Owens Corning (NYSE: OC) has reported its fourth-quarter and full-year 2024 results, showcasing a transformative year for the company. The company's reported net sales of $11.0 billion represent a 13% increase from the prior year, driven in part by the newly acquired doors business contributing $1.4 billion in revenue. Notably, Owens Corning achieved a net earnings margin of 6%, adjusted EBIT margin of 19%, and adjusted EBITDA margin of 25%.
In terms of earnings per share (EPS), the company delivered diluted EPS of $7.37 and adjusted diluted EPS of $15.91. Operating cash flow for the year amounted to $1.9 billion, with free cash flow reaching $1.2 billion. Owens Corning returned $638 million, or 51% of free cash flow, to shareholders through dividends and share repurchases.
The company's enterprise strategy highlights its successful execution of three major initiatives aimed at reshaping Owens Corning into a focused leader in building products for North America and Europe. These included the acquisition of Masonite International Corporation, a strategic review of the global glass reinforcements business, and an agreement to sell the company's building materials business in China and Korea. Notably, Owens Corning has entered into a definitive agreement for the sale of its glass reinforcements business, which is expected to strengthen the company's position as a market leader in building products.
In terms of investment, Owens Corning announced an expansion of its manufacturing capacity for high-performing laminate shingles, with a new facility expected to come online in 2027. Additionally, the company returned $638 million to shareholders through cash dividends and share repurchases during 2024.
Looking at performance metrics, the company's roofing segment achieved net sales of $4.052 billion, with an EBIT margin of 32% and EBITDA margin of 34% in 2024. The insulation segment delivered net sales of $3.692 billion, with EBIT margin of 18% and EBITDA margin of 24%. The doors segment, which was newly acquired, recorded net sales of $1.448 billion and an EBIT margin of 7%.
For the first quarter and full-year 2025 outlook, Owens Corning expects to continue delivering strong results, reflecting structural changes to the company and its cost structure. The company anticipates revenue from continuing operations to grow by mid-20 percent, compared to the prior year's revenue of $2.0 billion adjusted for the removal of glass reinforcements to discontinued operations.
Owens Corning's current 2025 financial outlook includes estimates for general corporate expenses, interest expense, effective tax rate on adjusted earnings, capital additions, and depreciation and amortization.
The market has reacted to these announcements by moving the company's shares -2.9% to a price of $160.66. For more information, read the company's full 8-K submission here.
