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Owens Corning to Benefit From New Long-Term Financial Goals
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Owens Corning (OC - Free Report) has announced its 2028 financial goals and provided an update on its revamped enterprise strategy at its 2025 Investor Day.
Per Brian Chambers, chair and chief executive officer at Owens Corning, “Our renewed enterprise strategy capitalizes on the market-leading positions of one of our three businesses and the unique capabilities of The OC Advantage to generate revenue growth, more resilient margins and substantial cash flow. With the strategic choices and structural improvements we have made, the new Owens Corning is well-positioned to generate significant value for our customers and shareholders and deliver on our long-term financial targets.”
OC stock inched up 1% during yesterday’s after-hours trading session, indicating optimistic investors’ sentiments on its recent business and long-term performance updates.
Owens Corning 2028 Targets Unraveled
The company operates through three reportable segments, Roofing, Insulation and Doors. It revealed the revised long-term adjusted EBITDA margin goals through 2028 for all three segments.
The adjusted EBITDA margin expectations through 2028 for the Roofing, Insulation and Doors segments are placed at 30%, 24% and 18%, respectively. These expectations are supported by the contractor engagement model, high-value branded roofing system, structural cost improvements, flexible and efficient manufacturing network and improved market conditions. Owens Corning believes that these three market-leading businesses will be able to navigate through market uncertainties on the back of the mentioned synergies and achieve the targets.
OC expects its annual revenues to grow to $12.5 billion in 2028 compared with $10.6 billion pro forma revenues reported in 2024. Consolidated adjusted EBITDA margin is expected to be mid-20%, with return on capital to be up more than the mid-teens percentage.
Moreover, the company expects the cumulative free cash flow to be $5.5 billion through 2025 to 2028, with $2 billion to be returned to shareholders through dividends and share repurchases by the end of 2026. OC also highlighted its board of directors approving a share repurchase authorization for up to 12 million shares, which adds to the previously announced share repurchase program, having approximately 5.7 million shares remaining as of March 31, 2025.
Owens Corning’s Enterprise Strategy Makeover
The company highlighted the makeover of its enterprise strategy, which currently stands on three distinct priorities. Firstly, strengthening market-leading positions; secondly, leveraging enterprise scale and capabilities; and lastly, extending product offerings in existing businesses.
These redefined strategies stand on the platform created by the effective amalgamation of the company’s three reportable segments and the operating capabilities of the OC Advantage. The OC Advantage comprises OC’s iconic brand, commercial strength, leading technology and victorious cost position.
OC Stock Price Performance
Shares of this manufacturer of fiberglass composites have tumbled 16.6% in the year-to-date period compared with the Zacks Building Products - Miscellaneous industry’s 7% decline. The current ongoing market risks and uncertainties surrounding the new tariff regime are taking a toll on the company’s near-term prospects. However, in the long term, it remains well-positioned to tackle the macro risks and minimize the negative impacts through its in-house strategic initiatives and foster profitability.
Image Source: Zacks Investment Research
Besides, Owens Corning’s trailing 12-month return on equity (ROE) is indicative of its growth potential and focus on maintaining shareholder value. Its ROE of 25% compares favorably with the industry’s 13.4%, indicating more efficiency in using shareholders’ funds than peers.
OC’s Zacks Rank & Key Picks
Owens Corning currently carries a Zacks Rank #4 (Sell).
Here are some better-ranked stocks from the Construction sector.
The company delivered a trailing four-quarter earnings surprise of 93.3%, on average. The stock has inched down 0.3% year to date. The Zacks Consensus Estimate for Great Lakes’ 2025 sales and earnings per share (EPS) implies an increase of 7.9% and 10.7%, respectively, from a year ago.
Construction Partners, Inc. (ROAD - Free Report) currently carries a Zacks Rank #2 (Buy). The company delivered a trailing four-quarter earnings surprise of 97.4%, on average. The stock has trended up 12.4% year to date.
The Zacks Consensus Estimate for Construction Partners’ fiscal 2025 sales and EPS implies an increase of 53% and 60.9%, respectively, from a year ago.
Gibraltar Industries, Inc. (ROCK - Free Report) currently carries a Zacks Rank of 2. The company delivered a trailing four-quarter earnings surprise of 3.1%, on average. The stock has inched up 3.7% year to date.
The Zacks Consensus Estimate for Gibraltar’s 2025 sales and EPS implies an increase of 9.3% and 15.8%, respectively, from a year ago.
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Owens Corning to Benefit From New Long-Term Financial Goals
Owens Corning (OC - Free Report) has announced its 2028 financial goals and provided an update on its revamped enterprise strategy at its 2025 Investor Day.
Per Brian Chambers, chair and chief executive officer at Owens Corning, “Our renewed enterprise strategy capitalizes on the market-leading positions of one of our three businesses and the unique capabilities of The OC Advantage to generate revenue growth, more resilient margins and substantial cash flow. With the strategic choices and structural improvements we have made, the new Owens Corning is well-positioned to generate significant value for our customers and shareholders and deliver on our long-term financial targets.”
OC stock inched up 1% during yesterday’s after-hours trading session, indicating optimistic investors’ sentiments on its recent business and long-term performance updates.
Owens Corning 2028 Targets Unraveled
The company operates through three reportable segments, Roofing, Insulation and Doors. It revealed the revised long-term adjusted EBITDA margin goals through 2028 for all three segments.
The adjusted EBITDA margin expectations through 2028 for the Roofing, Insulation and Doors segments are placed at 30%, 24% and 18%, respectively. These expectations are supported by the contractor engagement model, high-value branded roofing system, structural cost improvements, flexible and efficient manufacturing network and improved market conditions. Owens Corning believes that these three market-leading businesses will be able to navigate through market uncertainties on the back of the mentioned synergies and achieve the targets.
OC expects its annual revenues to grow to $12.5 billion in 2028 compared with $10.6 billion pro forma revenues reported in 2024. Consolidated adjusted EBITDA margin is expected to be mid-20%, with return on capital to be up more than the mid-teens percentage.
Moreover, the company expects the cumulative free cash flow to be $5.5 billion through 2025 to 2028, with $2 billion to be returned to shareholders through dividends and share repurchases by the end of 2026. OC also highlighted its board of directors approving a share repurchase authorization for up to 12 million shares, which adds to the previously announced share repurchase program, having approximately 5.7 million shares remaining as of March 31, 2025.
Owens Corning’s Enterprise Strategy Makeover
The company highlighted the makeover of its enterprise strategy, which currently stands on three distinct priorities. Firstly, strengthening market-leading positions; secondly, leveraging enterprise scale and capabilities; and lastly, extending product offerings in existing businesses.
These redefined strategies stand on the platform created by the effective amalgamation of the company’s three reportable segments and the operating capabilities of the OC Advantage. The OC Advantage comprises OC’s iconic brand, commercial strength, leading technology and victorious cost position.
OC Stock Price Performance
Shares of this manufacturer of fiberglass composites have tumbled 16.6% in the year-to-date period compared with the Zacks Building Products - Miscellaneous industry’s 7% decline. The current ongoing market risks and uncertainties surrounding the new tariff regime are taking a toll on the company’s near-term prospects. However, in the long term, it remains well-positioned to tackle the macro risks and minimize the negative impacts through its in-house strategic initiatives and foster profitability.
Image Source: Zacks Investment Research
Besides, Owens Corning’s trailing 12-month return on equity (ROE) is indicative of its growth potential and focus on maintaining shareholder value. Its ROE of 25% compares favorably with the industry’s 13.4%, indicating more efficiency in using shareholders’ funds than peers.
OC’s Zacks Rank & Key Picks
Owens Corning currently carries a Zacks Rank #4 (Sell).
Here are some better-ranked stocks from the Construction sector.
Great Lakes Dredge & Dock Corporation (GLDD - Free Report) currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The company delivered a trailing four-quarter earnings surprise of 93.3%, on average. The stock has inched down 0.3% year to date. The Zacks Consensus Estimate for Great Lakes’ 2025 sales and earnings per share (EPS) implies an increase of 7.9% and 10.7%, respectively, from a year ago.
Construction Partners, Inc. (ROAD - Free Report) currently carries a Zacks Rank #2 (Buy). The company delivered a trailing four-quarter earnings surprise of 97.4%, on average. The stock has trended up 12.4% year to date.
The Zacks Consensus Estimate for Construction Partners’ fiscal 2025 sales and EPS implies an increase of 53% and 60.9%, respectively, from a year ago.
Gibraltar Industries, Inc. (ROCK - Free Report) currently carries a Zacks Rank of 2. The company delivered a trailing four-quarter earnings surprise of 3.1%, on average. The stock has inched up 3.7% year to date.
The Zacks Consensus Estimate for Gibraltar’s 2025 sales and EPS implies an increase of 9.3% and 15.8%, respectively, from a year ago.