Owens Corning Inc · NYSE:OC
Owens Corning — Q2 2024 Earnings Presentation
28 slides from Owens Corning's earnings presentation, Aug 6, 2024
Slide 1: Second-Quarter 2024 Results
SECOND-QUARTER 2024 RESULTS Brian Chambers | Chair & Chief Executive Officer Todd Fister | Chief Financial Officer August 6, 2024 | Q2 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 those resul
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 $2.8 Billion; Generates Net Earnings of $285 Million and Adjusted EBIT of $588 Million 3
Slide 4: Owens Corning Highlights
OWENS CORNING HIGHLIGHTS ($ in millions)1 Q2 2024 Q2 2023 YTD 2024 YTD 2023 Year-to-date legacy safety Net sales 2,789 2,563 5,089 4,894 performance improved 40% from the Adjusted EBIT 588 534 1,026 895 same period last year Adjusted EBIT as % of net sales 21% 21% 20% 18% Adjusted EBITDA 742 664 1,3
Slide 5: A Global Residential & Commercial Building Products Leader
A GLOBAL RESIDENTIAL & COMMERCIAL BUILDING PRODUCTS LEADER Enterprise Strategy Revenue by End Market1 Revenue by Geography2 Residential 1 Strengthen position in core Construction ~70% U.S. 75% products and markets 2 Expand into new product adjacencies that leverage our material science, market, and
Slide 6: Financial Summary
FINANCIAL SUMMARY ($ in millions, except per share data)1 Q2 2024 Q2 2023 YTD 2024 YTD 2023 Net sales 2,789 2,563 5,089 4,894 Net sales growth 9% (1%) 4% (1%) Net earnings attributable to OC 285 345 584 728 Net earnings attributable to OC as % of net sales 10% 13% 11% 15% Adjusted EBIT 588 534 1,026
Slide 7: Balance Sheet and Capital Deployment
BALANCE SHEET AND CAPITAL DEPLOYMENT Capital allocation strategy remains focused on consistently generating strong free cash flow, returning approximately 50% to investors over time, and maintaining an investment grade balance sheet, while executing on business strategies to grow the company Second-
Slide 8: Roofing Business
ROOFING BUSINESS ($ in millions) Q2 2024 Q2 2023 YTD 2024 YTD 2023 Net sales 1,105 1,123 2,062 2,018 Delivered second-quarter revenue of EBIT 373 338 659 547 $1,105mm, down 2% from prior year EBIT as % of net sales 34% 30% 32% 27% EBITDA 388 354 689 579 EBITDA as % of net sales 35% 32% 33% 29% Gener
Slide 9: Insulation Business
INSULATION BUSINESS ($ in millions) Q2 2024 Q2 2023 YTD 2024 YTD 2023 Net sales 916 905 1,820 1,824 Delivered second-quarter revenue of EBIT 183 163 344 319 $916mm, up 1% from prior year EBIT as % of net sales 20% 18% 19% 17% EBITDA 234 220 446 427 EBITDA as % of net sales 26% 24% 25% 23% Generated
Slide 10: Doors Business
DOORS BUSINESS ($ in millions) Acquisition to date1 Net sales 311 Performed as expected while navigating through dynamic market EBIT 34 conditions EBIT as % of net sales 11% EBITDA 61 EBITDA as % of net sales 20% Generated $34mm of post-acquisition EBIT with 11% EBIT margin and 20% Revenue by Produc
Slide 11: Composites Business
COMPOSITES BUSINESS ($ in millions) Q2 2024 Q2 2023 YTD 2024 YTD 2023 Net sales 546 620 1,069 1,205 Delivered second-quarter revenue of EBIT 61 87 107 136 $546mm, down 12% from prior year EBIT as % of net sales 11% 14% 10% 11% EBITDA 106 130 196 223 EBITDA as % of net sales 19% 21% 18% 19% Generated
Slide 12: Full-Year 2024 Key Financial Outlook
FULL-YEAR 2024 KEY FINANCIAL OUTLOOK1 Previous as of Q1 2024 Updated as of Q2 2024 General corporate expenses $240mm - $250mm $255mm - $265mm Interest expense $70mm - $80mm $210mm - $220mm Full-year effective tax rate 24% - 26% 24% - 26% Capital additions Approximately $550mm Approximately $650mm De
Slide 13: Q3 2024 Business Outlook
Q3 2024 BUSINESS OUTLOOK ENTERPRISE: • Revenue growth of low 20% (legacy revenue similar to Q3 2023 + full quarter of Doors revenue) • High-teen EBIT margin and low-20% EBITDA margin ROOFING INSULATION • Revenue flat to slightly down • Revenue up low-to-mid single digits • Industry shipments for U.S
Slide 14: Questions and Discussion
QUESTIONS AND DISCUSSION
Slide 15: Appendix A: Non-GAAP Reconciliations – Table 1
APPENDIX A: NON-GAAP RECONCILIATIONS – TABLE 1 15
Slide 16: Appendix A: Non-GAAP Reconciliations – Table 2
APPENDIX A: NON-GAAP RECONCILIATIONS – TABLE 2 16
Slide 17: Appendix A: Non-GAAP Reconciliations – Table 3
APPENDIX A: NON-GAAP RECONCILIATIONS – TABLE 3 17
Slide 18: Appendix A: Non-GAAP Reconciliations – Table 4
APPENDIX A: NON-GAAP RECONCILIATIONS – TABLE 4 18
Slide 19: Appendix A: Non-GAAP Reconciliations – Table 5
APPENDIX A: NON-GAAP RECONCILIATIONS – TABLE 5 19
Slide 20: Appendix A: Non-GAAP Reconciliations – Table 6
APPENDIX A: NON-GAAP RECONCILIATIONS – TABLE 6 20
Slide 21: Appendix A: Non-GAAP Reconciliations – Table 7
APPENDIX A: NON-GAAP RECONCILIATIONS – TABLE 7 21
Slide 22: Appendix A: Non-GAAP Reconciliations – Table 8
APPENDIX A: NON-GAAP RECONCILIATIONS – TABLE 8 22
Slide 23: Appendix A: Non-GAAP Reconciliations – Table 9
APPENDIX A: NON-GAAP RECONCILIATIONS – TABLE 9 23
Slide 24: Appendix A: Non-GAAP Reconciliations – Table 10
APPENDIX A: NON-GAAP RECONCILIATIONS – TABLE 10 24
Slide 25: Appendix A: Non-GAAP Reconciliations – Table 11
APPENDIX A: NON-GAAP RECONCILIATIONS – TABLE 11 25
Slide 26: Appendix A: Non-GAAP Reconciliations – Table 12
APPENDIX A: NON-GAAP RECONCILIATIONS – TABLE 12 26
Slide 27: Appendix A: Non-GAAP Reconciliations – Table 13
APPENDIX A: NON-GAAP RECONCILIATIONS – TABLE 13 27
Slide 28: Appendix A: Non-GAAP Reconciliations – Table 14
APPENDIX A: NON-GAAP RECONCILIATIONS – TABLE 14 28