Owens Corning (OC) Q4 2024 earnings summary

Executive summary

• 2024 was a transformative year, marked by the acquisition of Masonite, the sale of the Building Materials business in Asia, and the divestiture of the glass reinforcements business, focusing the company on North America and Europe.

• Full-year 2024 net sales reached $11.0 billion, up 13% year-over-year, with $1.4 billion from the newly acquired Doors business.

• Revenue, earnings, and cash flow grew year-over-year, with strong execution across all business segments despite mixed market conditions.

• The company was recognized among the Wall Street Journal's top 250 best-managed companies and maintained its place on the Dow Jones Sustainability Index for the 15th year.

• Pro forma 2023 revenue reached $12.5 billion with adjusted EBITDA of $2.9 billion and a 23% margin, reflecting the combined entity's enhanced financial profile.

Financial highlights

• Q4 2024 revenue was $2.8 billion, up 23% year-over-year, with adjusted EBIT margin of 15% and adjusted EBITDA margin of 22%.

• Full-year 2024 revenue reached $11 billion, up 13%, with adjusted EBIT of $2 billion and adjusted EBITDA of $2.7 billion.

• Adjusted EPS for the year was $15.91, up 10% from 2023; diluted EPS was $7.37.

• Free cash flow for the year was $1.2 billion, with free cash conversion at 89% of adjusted earnings.

• Return on capital was 16% for the year; year-end liquidity was $1.7 billion.

Outlook and guidance

• 2025 outlook anticipates solid but mixed end-market opportunities, with stable non-discretionary repair demand and weaker new construction/remodeling due to elevated interest rates.

• Q1 2025 revenue for continuing operations expected to grow mid-20% year-over-year (adjusted for divestitures), with enterprise EBITDA margin in the low 20% range.

• Roofing revenue expected to be flat year-over-year in Q1, with EBITDA margin around 30%.

• 2025 capital additions expected to be ~$800 million, reflecting ongoing strategic investments.

• Committed to returning at least 50% of free cash flow to shareholders over time.