A Look Back at Home Construction Materials Stocks’ Q3 Earnings: Owens Corning (NYSE:OC) Vs The Rest Of The Pack

January 15, 2025 at 04:04 AM EST

OC Cover Image

Wrapping up Q3 earnings, we look at the numbers and key takeaways for the home construction materials stocks, including Owens Corning (NYSE: OC) and its peers.

Traditionally, home construction materials companies have built economic moats with expertise in specialized areas, brand recognition, and strong relationships with contractors. More recently, advances to address labor availability and job site productivity have spurred innovation that is driving incremental demand. However, these companies are at the whim of residential construction volumes, which tend to be cyclical and can be impacted heavily by economic factors such as interest rates. Additionally, the costs of raw materials can be driven by a myriad of worldwide factors and greatly influence the profitability of home construction materials companies.

The 12 home construction materials stocks we track reported a mixed Q3. As a group, revenues missed analysts’ consensus estimates by 0.9%.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 9.9% since the latest earnings results.

Owens Corning (NYSE: OC)

Credited with the discovery of fiberglass, Owens Corning (NYSE: OC) supplies building and construction materials to the United States and international markets.

Owens Corning reported revenues of $3.05 billion, up 22.9% year on year. This print was in line with analysts’ expectations, and overall, it was a very strong quarter for the company with a solid beat of analysts’ adjusted operating income estimates and an impressive beat of analysts’ EBITDA estimates.

"Our third-quarter results demonstrate the impact of the strategic choices and structural improvements we have made to strengthen Owens Corning and build a company that continues to deliver strong free cash flow and sustainably higher margins despite a challenging market environment. The strong execution of our team, combined with the key initiatives and investments we are undertaking, is accelerating our growth, strengthening our earnings power, and reshaping the company,” said Chair and Chief Executive Officer Brian Chambers.

Unsurprisingly, the stock is down 4.4% since reporting and currently trades at $174.60.

Is now the time to buy Owens Corning? Access our full analysis of the earnings results here, it’s free.

Best Q3: Trex (NYSE: TREX)

Addressing the demand for aesthetically-pleasing and unique outdoor living spaces, Trex Company (NYSE: TREX) makes wood-alternative decking, railing, and patio furniture.

Trex reported revenues of $233.7 million, down 23.1% year on year, outperforming analysts’ expectations by 3.7%. The business had an exceptional quarter with an impressive beat of analysts’ EBITDA estimates.

Trex achieved the biggest analyst estimates beat among its peers. The market seems content with the results as the stock is up 3.8% since reporting. It currently trades at $69.02.

Is now the time to buy Trex? Access our full analysis of the earnings results here, it’s free.

Weakest Q3: JELD-WEN (NYSE: JELD)

Founded in the 1960s as a general wood-making company, JELD-WEN (NYSE: JELD) manufactures doors, windows, and other related building products.

JELD-WEN reported revenues of $934.7 million, down 13.2% year on year, falling short of analysts’ expectations by 5.6%. It was a disappointing quarter as it posted full-year revenue guidance missing analysts’ expectation.

JELD-WEN delivered the weakest full-year guidance update in the group. As expected, the stock is down 35.6% since the results and currently trades at $9.10.

Read our full analysis of JELD-WEN’s results here.

Gibraltar (NASDAQ: ROCK)

Gibraltar (NASDAQ: ROCK) makes renewable energy, agriculture technology and infrastructure products. Its mission statement is to make everyday living more sustainable.

Gibraltar reported revenues of $361.2 million, down 7.6% year on year. This number met analysts’ expectations. More broadly, it was a mixed quarter as it also produced full-year EPS guidance slightly topping analysts’ expectations but EBITDA in line with analysts’ estimates.

The stock is down 5.8% since reporting and currently trades at $61.28.

Read our full, actionable report on Gibraltar here, it’s free.

American Woodmark (NASDAQ: AMWD)

Starting as a small millwork shop, American Woodmark (NASDAQ: AMWD) is a cabinet manufacturing company that helps customers from inspiration to installation.

American Woodmark reported revenues of $452.5 million, down 4.5% year on year. This print came in 1.3% below analysts' expectations. It was a disappointing quarter as it also recorded a significant miss of analysts’ adjusted operating income and EPS estimates.

The stock is down 21.4% since reporting and currently trades at $79.20.

Read our full, actionable report on American Woodmark here, it’s free.

Market Update

Thanks to the Fed's series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market has thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% each in November and December), and a notable surge followed Donald Trump's presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by the pace and magnitude of future rate cuts as well as potential changes in trade policy and corporate taxes once the Trump administration takes over. The path forward is marked by uncertainty.

Want to invest in winners with rock-solid fundamentals? Check out our 9 Best Market-Beating Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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