Adjusted EPS was $3.83 (+43% Y/Y), above the consensus of $3.32.
Sales by segments: Composites $719 million (+23% Y/Y), Insulation $934 million (+16% Y/Y), and Roofing $1 billion (+11% Y/Y).
Gross margin improved by 62 bps to 28.2%. Operating income increased 14.6% to $487 million, with a margin of 18.7%, down 26 bps.
Adjusted EBITDA improved by 24% Y/Y to $656 million, and margin expanded by 100 bps to 25%.
Owens Corning generated an operating cash flow for year-to-date of $624 million (-11% Y/Y) and a free cash flow of $412 million (-22% Y/Y).
During the quarter, Owens paid dividends of $35 million and repurchased 1 million shares of common stock for $86 million.
In July, the company agreed to acquire the remaining 50% interest in an existing joint venture based in the U.S. that produces nonwoven roofing mat.
“Our strong and consistent cash generation combined with our solid financial position provides us the flexibility to execute on our enterprise strategy, while remaining committed to returning at least 50% of free cash flow to shareholders over time,” stated EVP and CFO Ken Parks.
Outlook: For 3Q22, Owens Corning expects overall performance to result in net sales and adjusted EBIT growth for the quarter.
The company expects general corporate expenses of $170 million – $180 million, capital additions of ~$480 million, and depreciation and amortization of ~$520 million.
Price Action: OC shares are trading higher by 0.04% at $82.82 on the last check Wednesday.
