Owens Corning Inc · NYSE:OC
Owens Corning — Q2 2023 Earnings Presentation
21 slides from Owens Corning's earnings presentation, Jul 26, 2023
Slide 1: Second-Quarter 2023 Results
SECOND-QUARTER 2023 RESULTS Brian Chambers | Chair & Chief Executive Officer Ken Parks | Chief Financial Officer July 26, 2023 | Q2 2023
Slide 2: Forward-Looking Statements and Non-GAAP Measures
FORWARD-LOOKING STATEMENTS AND NON-GAAP MEASURES This presentation and the associated remarks contain forward-looking statements. We caution you against relying on these statements as they involve risks and uncertainties that are difficult to predict and the Company’s actual results may differ mater
Slide 3: Agenda
AGENDA Company highlights Brian Chambers Financial results Ken Parks Business outlook Brian Chambers Questions and discussion All Owens Corning Delivers Net Sales of $2.6 Billion; Generates Net Earnings of $345 Million and Adjusted EBIT of $534 Million 3
Slide 4: Owens Corning Highlights
OWENS CORNING HIGHLIGHTS ($ in millions) Q2 2023 Q2 2022 YTD 2023 YTD 2022 Two-thirds of facilities have remained Net sales 2,563 2,601 4,894 4,947 injury-free this year Adjusted EBIT 534 525 895 942 Adjusted EBIT as % of net sales 21% 20% 18% 19% Results in the second quarter reflect Adjusted EBITD
Slide 5: Financial Summary
FINANCIAL SUMMARY ($ in millions, except per share data) Q2 2023 Q2 2022 YTD 2023 YTD 2022 Net sales 2,563 2,601 4,894 4,947 Net sales growth (1%) 16% (1%) 19% Adjusted EBIT 534 525 895 942 Adjusted EBIT as % of net sales 21% 20% 18% 19% Adjusted earnings 385 379 640 672 Adjusted EPS (diluted) $4.22
Slide 6: Adjusted Items to EBIT
ADJUSTED ITEMS TO EBIT $47 Restructuring costs $534 $487 Q2 2023 Adj. EBIT Q2 2023 EBIT Numbers in millions. From left to right, red denotes decrease. 6
Slide 7: Capital Deployment
CAPITAL DEPLOYMENT • Second-Quarter 2023 • Generated $372mm of free cash flow • Capital additions of $122mm, or 5% of revenue • Return on capital was 20% for the last twelve months • Maintained ample liquidity of approximately $2.0b, consisting of $968mm of cash and nearly $1.1b of combined availabi
Slide 8: Insulation Business
INSULATION BUSINESS ($ in millions) Q2 2023 Q2 2022 YTD 2023 YTD 2022 Net sales 905 934 1,824 1,793 EBIT 163 157 319 286 Delivered second-quarter revenue of EBIT as % of net sales 18% 17% 17% 16% $905mm, down 3% from prior year EBITDA 220 208 427 390 EBITDA as % of net sales 24% 22% 23% 22% Generate
Slide 9: Composites Business
COMPOSITES BUSINESS ($ in millions) Q2 2023 Q2 2022 YTD 2023 YTD 2022 Net sales 620 719 1,205 1,433 EBIT 87 154 136 308 Delivered second-quarter revenue of EBIT as % of net sales 14% 21% 11% 21% $620mm, down 14% from prior year EBITDA 130 202 223 399 EBITDA as % of net sales 21% 28% 19% 28% Reported
Slide 10: Roofing Business
ROOFING BUSINESS ($ in millions) Q2 2023 Q2 2022 YTD 2023 YTD 2022 Net sales 1,123 1,018 2,018 1,856 EBIT 338 258 547 434 Delivered second-quarter revenue of EBIT as % of net sales 30% 25% 27% 23% $1,123mm, up 10% from prior year EBITDA 354 275 579 465 EBITDA as % of net sales 32% 27% 29% 25% Produc
Slide 11: Full-Year 2023 Key Financial Outlook
FULL-YEAR 2023 KEY FINANCIAL OUTLOOK • General corporate expenses are estimated to be between $215mm and $225mm, an increase from previous guidance of $195mm to $205mm • Interest expense estimated to be between $70mm and $80mm, lower than the previous outlook of $95mm to $105mm • Full-year effective
Slide 12: Q3 2023 Business Outlook
Q3 2023 BUSINESS OUTLOOK ENTERPRISE • Inflation to continue to moderate while increasing interest rates and ongoing political tensions result in slower global economic growth • Volumes to be relatively stable sequentially in many product categories • Overall positive price realization and moderating
Slide 13: Questions and Discussion
QUESTIONS AND DISCUSSION
Slide 14: Appendix A: Non-GAAP Reconciliations – Table 1
APPENDIX A: NON-GAAP RECONCILIATIONS – TABLE 1 14
Slide 15: Appendix A: Non-GAAP Reconciliations – Table 2
APPENDIX A: NON-GAAP RECONCILIATIONS – TABLE 2 15
Slide 16: Appendix A: Non-GAAP Reconciliations – Table 3
APPENDIX A: NON-GAAP RECONCILIATIONS – TABLE 3 16
Slide 17: Appendix A: Non-GAAP Reconciliations – Table 4
APPENDIX A: NON-GAAP RECONCILIATIONS – TABLE 4 17
Slide 18: Appendix A: Non-GAAP Reconciliations – Table 5
APPENDIX A: NON-GAAP RECONCILIATIONS – TABLE 5 18
Slide 19: Appendix A: Non-GAAP Reconciliations – Table 6
APPENDIX A: NON-GAAP RECONCILIATIONS – TABLE 6 19
Slide 20: Appendix A: Non-GAAP Reconciliations – Table 7
APPENDIX A: NON-GAAP RECONCILIATIONS – TABLE 7 20
Slide 21: Appendix A: Non-GAAP Reconciliations – Table 8
APPENDIX A: NON-GAAP RECONCILIATIONS – TABLE 8 21