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Owens Corning Delivers Net Sales of $2.3 Billion; Generates Net Earnings of $383 Million and Adjusted EBIT of $361 Million

General News

Owens Corning (NYSE: OC), a global building and construction materials leader, today reported first-quarter 2023 results.

  • Reported Net Sales of $2.3 Billion, in-line with Prior Year
  • Generated Adjusted EBIT Margins of 15% and Adjusted EBITDA Margins of 21%
  • Delivered Diluted EPS of $4.17 and Adjusted Diluted EPS of $2.77
  • Produced Operating Cash Outflow of $164 Million and Free Cash Outflow of $322 Million
  • Returned $183 Million to Shareholders through Dividends and Share Repurchases

“In the first quarter, each of our segments performed well relative to market conditions, especially our North American residential businesses, demonstrating the strength of our customer partnerships, the value of our product lines, and the power of our brand,” said Board Chair and Chief Executive Officer Brian Chambers. “In addition to driving strong financial performance in the near-term, we continue to make strategic investments that will expand our growth potential and enhance our earnings over the long-term.”

Enterprise Performance

($ in millions, except per share amounts)First-Quarter
Net Sales$2,331$2,346$(15)(1%)
Net Earnings Attributable to OC3833047926%
Adjusted EBIT361417(56)(13%)
As a Percent of Net Sales15%18%N/AN/A
Adjusted EBITDA487543(56)(10%)
As a Percent of Net Sales21%23%N/AN/A
Diluted EPS4.173.031.1438%
Adjusted Diluted EPS2.772.92(0.15)(5%)
Operating Cash (Out)Flow(164)158(322)*
Free Cash (Out)Flow(322)51(373)*

*Calculation not meaningful

Enterprise Strategy Highlights

  • In the first quarter, the recordable incident rate (RIR) was 0.64, in line with prior year.
  • Owens Corning continues to invest in accelerating new product and process innovation to support customers and generate additional growth. In the first quarter, it launched 11 new or refreshed products.
  • Owens Corning continues to be recognized as a leader in environmental, social, and governance matters. In March, the company was honored by Ethisphere as one of the 2023 World’s Most Ethical Companies, marking the sixth consecutive year it has been recognized with this distinction. It was one of two honorees in the Construction and Building Materials industry.
  • Owens Corning will issue its 17th annual Sustainability Report next month. The report will highlight the company’s ongoing aspirations to double the positive impact of its products, halve its environmental footprint, protect its people, advance inclusion and diversity, and make a positive impact in its communities.

Cash Returned to Shareholders

  • During the first quarter, the company returned $183 million to shareholders through dividends and share repurchases. The company paid a quarterly cash dividend of $0.52 per common share, an approximately 50% increase compared with the associated prior quarterly dividends, and repurchased 1.5 million shares of common stock.

“We remain committed to maintaining an investment-grade balance sheet with free cash conversion at or above 100% and returning approximately 50% of free cash flow to shareholders over time,” said Executive Vice President and Chief Financial Officer Ken Parks. “Our first quarter cash flow reflected more normal seasonal trends resulting in a net cash outflow driven by the timing of working capital and capital investments.”

Other Notable Highlights

  • Owens Corning completed the previously announced sale of its site in Santa Clara, California and recognized a pre-tax gain of $189 million on the transaction.

Segment Performance

  • Composites net sales decreased 18% to $585 million in first-quarter 2023 compared with first-quarter 2022, primarily due to lower volumes, including the impact of previously announced divestitures. EBIT decreased $105 million to $49 million, resulting in 8% EBIT margins and 16% EBITDA margins, on the impact of lower sales volumes, the resulting production downtime, and higher manufacturing costs.
  • Insulation net sales increased 7% to $919 million in first-quarter 2023 compared with first-quarter 2022, as a result of positive price realization partially offset by lower volumes. EBIT increased $27 million to $156 million, with 17% EBIT margins and 23% EBITDA margins, on positive price realization, which more than offset input cost inflation and lower volumes.
  • Roofing net sales increased 7% to $895 million in first-quarter 2023 compared with first-quarter 2022, primarily due to positive price realization partially offset by lower volumes, which outperformed the market. EBIT increased $33 million to $209 million, with 23% EBIT margins and 25% EBITDA margins, primarily due to positive price realization partially offset by input cost inflation and the impact of higher manufacturing costs.

Second-Quarter and Full-Year 2023 Outlook

  • The key economic factors that impact the company’s businesses are residential repair and remodeling activity, U.S. housing starts, global commercial construction activity, and global industrial production.
  • In the near term, the company expects many of its end markets to remain challenging as the impacts of ongoing inflation, higher interest rates, and continued geopolitical tensions result in slower global economic growth.
  • For second-quarter 2023, the company expects a moderate decline in net sales, versus the comparable quarter in the prior year, while continuing to generate mid-teen EBIT margins.

Current 2023 financial outlook is presented below:

General Corporate Expenses$195 million to $205 million
Interest Expense$95 million to $105 million
Effective Tax Rate on Adjusted Earnings24% to 26%
Cash Tax Rate on Adjusted Earnings26% to 28%
Capital AdditionsApproximately $520 million
Depreciation and Amortization$520 million to $530 million

For the full First Quarter results, click here.

About Owens Corning

Owens Corning is a global building and construction materials leader committed to building a sustainable future through material innovation. Our three integrated businesses – Composites, Insulation, and Roofing – provide durable, sustainable, energy-efficient solutions that leverage our unique material science, manufacturing, and market knowledge to help our customers win and grow. We are global in scope, human in scale with approximately 19,000 employees in 31 countries dedicated to generating value for our customers and shareholders, and making a difference in the communities where we work and live. Founded in 1938 and based in Toledo, Ohio, USA, Owens Corning posted 2022 sales of $9.8 billion. For more information, visit


Amber Wohlfarth – Director, Investor Relations – – (419) 248-5639

Source: Owens Corning