Insights
- Owens Corning reported Q1 FY24 net sales of $2.3 billion, unchanged from last year, with net earnings margins at 13 per cent.
- Adjusted EBIT and EBITDA margins were 19 per cent and 25 per cent, respectively.
- Composites sector sales fell 11 per cent to $523 million due to lower volumes and price drops, partially offset by positive pricing in nonwovens.
Owens Corning, a renowned worldwide composites maker, reported sustained net sales of $2.3 billion in the first quarter of fiscal 2024 (Q1 FY24), matching the previous year’s results. Owens Corning reported strong profitability, with net earnings margins of 13%.
The adjusted EBIT margins stood at 19%, with a strong adjusted EBITDA margin of 25%. The company announced diluted profits per share (EPS) of $3.40, with an adjusted diluted EPS of $3.59, according to a news statement.
However, the company struggled with cash flow management, with an operating cash flow of $24 million and a free cash outflow of $128 million in the quarter.
A closer examination at the composites sector finds a downturn, with net sales down 11% to $523 million compared to the first quarter of FY23. This dip was principally caused by lower volumes and price declines in glass reinforcements, which reflected global market constraints, however good pricing in nonwovens helped to counteract this. The composites segment’s earnings dropped somewhat, with EBIT falling $3 million to $46 million. This resulted in 9% EBIT margins and 17% EBITDA margins.
“Owens Corning started the year with first-quarter results that continue to highlight our strong and consistent enterprise performance. These results are driven by the strength of our team and the actions we have taken over the last several years to generate higher, more resilient earnings,” said chair and chief executive officer Brian Chambers.