Owens Corning Inc · NYSE:OC
Owens Corning — Q1 2024 Earnings Presentation
25 slides from Owens Corning's earnings presentation, Apr 24, 2024
Slide 1: First-Quarter 2024 Results
FIRST-QUARTER 2024 RESULTS Brian Chambers | Chair & Chief Executive Officer Todd Fister | Chief Financial Officer April 24, 2024 | Q1 2024
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 are subject to risks, uncertainties and other factors and actual results may differ materially from any results
Slide 3: Agenda
AGENDA Company highlights Brian Chambers Financial results Todd Fister Business outlook Brian Chambers Questions and discussion All Owens Corning Delivers Net Sales of $2.3 Billion; Generates Net Earnings of $299 Million and Adjusted EBIT of $438 Million 3
Slide 4: Owens Corning Highlights
OWENS CORNING HIGHLIGHTS Safety performance improved more ($ in millions) Q1 2024 Q1 2023 than 50% from the same period last Net sales 2,300 2,331 year Adjusted EBIT 438 361 Adjusted EBIT as % of net sales 19% 15% 15th consecutive quarter of mid-teens or Adjusted EBITDA 565 487 better Adjusted EBIT
Slide 5: Financial Summary
FINANCIAL SUMMARY ($ in millions, except per share data) Q1 2024 Q1 2023 Net sales 2,300 2,331 Net sales growth (1%) (1%) Net earnings attributable to OC 299 383 Net earnings attributable to OC as % of net sales 13% 16% Adjusted EBIT 438 361 Adjusted EBIT as % of net sales 19% 15% Adjusted EBITDA 56
Slide 6: Adjusted Items to EBIT
ADJUSTED ITEMS TO EBIT $18 $14 $3 Acquisition-related Restructuring Other adjusting costs costs items $438 $403 Q1 2024 Adj. EBIT Q1 2024 EBIT Numbers in millions. From left to right, red denotes decrease. 6
Slide 7: Capital Deployment
CAPITAL DEPLOYMENT • First-Quarter 2024: o Free cash flow for the quarter was a net outflow of $128mm o Capital additions of $152mm o Return on capital was 17% for the last twelve months1 o Maintained ample liquidity of approximately $5.6b, consisting of $1.3b of cash and nearly $4.3b of combined av
Slide 8: Roofing Business
ROOFING BUSINESS ($ in millions) Q1 2024 Q1 2023 Net sales 957 895 Delivered first-quarter revenue of EBIT 286 209 $957mm, up 7% from prior year EBIT as % of net sales 30% 23% EBITDA 301 225 EBITDA as % of net sales 31% 25% Produced $286mm of EBIT with 30% EBIT margins and 31% EBITDA Five-year finan
Slide 9: Insulation Business
INSULATION BUSINESS ($ in millions) Q1 2024 Q1 2023 Net sales 904 919 Delivered first-quarter revenue of EBIT 161 156 $904mm, down 2% from prior year EBIT as % of net sales 18% 17% EBITDA 212 207 EBITDA as % of net sales 23% 23% Generated $161mm of EBIT with 18% EBIT margins and 23% EBITDA Five-year
Slide 10: Composites Business
COMPOSITES BUSINESS ($ in millions) Q1 2024 Q1 2023 Net sales 523 585 Delivered first-quarter revenue of EBIT 46 49 $523mm, down 11% from prior year EBIT as % of net sales 9% 8% EBITDA 90 93 EBITDA as % of net sales 17% 16% Reported $46mm of EBIT with 9% EBIT margins and 17% EBITDA Five-year financi
Slide 11: Full-Year 2024 Key Financial Outlook
FULL-YEAR 2024 KEY FINANCIAL OUTLOOK1 • General corporate expenses are expected to range between $240mm and $250mm • Interest expense is estimated to range between $70mm and $80mm • Full-year effective tax rate is expected to be 24% to 26% on adjusted pre-tax earnings • Capital additions are expecte
Slide 12: Q2 2024 Business Outlook
Q2 2024 BUSINESS OUTLOOK ENTERPRISE • Expect North American building and construction markets to remain favorable • Demand for housing and low existing home inventory create positive sentiment for single-family new construction in the U.S. • Outside North America, anticipate macroeconomic trends and
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
Slide 22: Appendix A: Non-GAAP Reconciliations – Table 9
APPENDIX A: NON-GAAP RECONCILIATIONS – TABLE 9 22
Slide 23: Appendix A: Non-GAAP Reconciliations – Table 10
APPENDIX A: NON-GAAP RECONCILIATIONS – TABLE 10 23
Slide 24: Appendix A: Non-GAAP Reconciliations – Table 11
APPENDIX A: NON-GAAP RECONCILIATIONS – TABLE 11 24
Slide 25: Appendix A: Non-GAAP Reconciliations – Table 12
APPENDIX A: NON-GAAP RECONCILIATIONS – TABLE 12 25