Loop Capital's analyst, Garik Shmois, has adjusted his price target for Owens Corning (OC, Financial), bringing it down from $203 to $180 while maintaining a Buy rating. Despite a strong performance in the first quarter, the company has faced a downturn in its stock following an underwhelming guidance for the second quarter. This forecast highlighted reduced demand for insulation in North America and slightly decreased roofing shipments, which did not meet the firm's previous expectations.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 14 analysts, the average target price for Owens-Corning Inc (OC, Financial) is $176.10 with a high estimate of $235.00 and a low estimate of $150.00. The average target implies an upside of 35.04% from the current price of $130.40. More detailed estimate data can be found on the Owens-Corning Inc (OC) Forecast page.
Based on the consensus recommendation from 19 brokerage firms, Owens-Corning Inc's (OC, Financial) average brokerage recommendation is currently 2.2, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Owens-Corning Inc (OC, Financial) in one year is $154.94, suggesting a upside of 18.82% from the current price of $130.4. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Owens-Corning Inc (OC) Summary page.
OC Key Business Developments
Release Date: May 07, 2025
- Revenue: $2.5 billion, a 25% increase year-over-year.
- Adjusted EBITDA: $565 million, with a margin of 22%.
- Adjusted Earnings Per Share: $2.97.
- Free Cash Flow: Net outflow of $252 million.
- Capital Additions: $203 million for the quarter.
- Liquidity: $1.9 billion, including $400 million in cash.
- Shareholder Returns: $159 million returned through share repurchases and dividends.
- Roofing Revenue: $1.1 billion, up 2% from prior year.
- Roofing EBITDA Margin: 30%.
- Insulation Revenue: $909 million, a 5% decrease from Q1 last year.
- Insulation EBITDA Margin: 25%.
- Doors Revenue: $540 million.
- Doors EBITDA Margin: 13%.
- Dividend: $0.69 per share declared in February.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Owens-Corning Inc (OC, Financial) reported a 25% year-over-year increase in revenue for Q1 2025, reaching $2.5 billion.
- The company achieved an adjusted EBITDA margin of 22%, marking the 19th consecutive quarter of margins above 20%.
- OC's safety performance was notable, with a recordable incident rate of 0.54, significantly lower than the industry average.
- The company is making strategic investments in its roofing and insulation businesses to support long-term growth and improve cost positions.
- OC returned $159 million to shareholders through dividends and share repurchases in Q1 2025.
Negative Points
- The company experienced a net cash outflow of $252 million in Q1 2025, driven by working capital timing and capital additions.
- OC's Insulation segment saw a 5% decrease in revenue compared to Q1 2024, due to market uncertainty and lower demand.
- The Doors business faced challenges with lower volumes in North America and Europe, impacting revenue.
- Tariffs are expected to have a net impact of around $10 million in Q2 2025, primarily affecting the Doors business.
- The company anticipates higher manufacturing costs in the Roofing segment due to maintenance and startup costs, impacting margins.
