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Investing.com -- Owens Corning (NYSE:OC) reported second-quarter earnings that exceeded analyst expectations, but shares slipped 0.6% as investors focused on softening market conditions and declining margins.
The building products leader posted adjusted earnings per share of $4.21 for the second quarter, beating the analyst estimate of $3.82 by $0.39.
Revenue came in at $2.75 billion, slightly above the consensus estimate of $2.71 billion and representing a 10% increase from the same period last year, bolstered by the acquisition of its Doors business in May 2024.
Despite the earnings beat, the company’s adjusted EBITDA margin from continuing operations declined to 26% from 27% in the prior-year quarter, while adjusted diluted EPS decreased 4% year-over-year.
The company noted "more challenging near-term conditions" in its outlook, particularly in residential construction.
"Our second quarter results continue to demonstrate the strength of our business and resiliency of our earnings to outperform the market despite more challenging near-term conditions," said Brian Chambers, Chair and CEO of Owens Corning.
For the third quarter, the company expects revenue from continuing operations to be "slightly down to in-line with prior year," at approximately $2.7 billion to $2.8 billion, with adjusted EBITDA margin projected between 23% and 25%.
The company’s Roofing segment delivered $1.3 billion in sales with a 35% EBITDA margin, while Insulation sales declined to $934 million from $974 million YoY, with EBITDA margin dropping to 24% from 25%.
Owens Corning returned $279 million to shareholders through dividends and share repurchases during the quarter, part of its commitment to return $2 billion to shareholders over 2025 and 2026.
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