Research
Research Alert: Oc Q1 Pressured By Broad Weakness; Guides Higher Q2 Margins Post-divestiture
CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:Owens Corning reported Q1 sales of $2.265B (-10% Y/Y) with adjusted EPS of $1.22 as broad-based weakness hit all segments, with Roofing declining 14% to $960M, Insulation falling 5% to $867M, and Doors dropping 12% to $475M. EBITDA margins compressed by 600 bps across segments, with consolidated margin at 16%, while operating cash flow turned negative at $(154)M and FCF deteriorated to $(387)M. The company completed the strategic sale of its glass reinforcements business for ~$280M in cash, with proceeds funding organic growth and shareholder returns as OC pivots to a focused building products platform. Management guided Q2 revenue of $2.6B-$2.7B with adjusted EBITDA margin of 20%-22% (versus 16% in Q1), expecting $60M in inflationary headwinds from the Iran conflict. Residential construction and discretionary remodeling markets are expected to remain under pressure, with roofing demand slightly down absent major storm activity, though potential $25M tariff refunds provide upside not included in guidance.
$OC