- Owens Corning (NYSE:OC) reported first-quarter FY22 net sales growth of 23% year-over-year to $2.34 billion, beating the consensus of $2.23 billion.
- Sales by segments: Composites $714 million (+28% Y/Y), Insulation $859 million (+23% Y/Y), and Roofing $838 million (+18% Y/Y).
- Adjusted EPS was $2.84 (+59% Y/Y), beating the consensus of $2.43.
- Gross margin improved by 320 bps to 26.4%. Operating income increased 47.6% to $440 million, with a margin of 18.8%, up 320 bps.
- Adjusted EBITDA improved by 35.7% Y/Y to $543 million, and margin expanded by 226 bps to 23.3%.
- For the quarter, Owens Corning generated an operating cash flow of $158 million (-23% Y/Y) and a free cash flow of $51 million (-58% Y/Y).
- Owens Corning repurchased 2.5 million shares of common stock for $229 million in Q1, with 10.9 million shares still available for repurchase under the current authorization.
- In late March, Owens Corning decided to exit Russia through a transfer or sale of its facilities and halted all future investments in Russia. 2021 net sales in Russia were ~$100 million, or about 1% of the company’s consolidated net sales.
- For 2Q22, OC expects overall performance to result in net sales and adjusted EBIT growth Y/Y.
- FY22 Outlook: The company expects general corporate expenses of $160 million - $170 million, capital additions of ~$480 million, and depreciation and amortization of ~$520 million.
- Price Action: OC shares closed lower by 2.09% at $86.16 on Tuesday.
