Owens Corning Inc · NYSE:OC
Owens Corning — Q2 2022 Earnings Presentation
18 slides from Owens Corning's earnings presentation, Jul 27, 2022
Slide 1: Second-Quarter 2022 Results
SECOND-QUARTER 2022 RESULTS Brian Chambers | Chair & Chief Executive Officer Ken Parks | Chief Financial Officer July 27, 2022 | Q2 2022
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 Record Net Sales of $2.6 Billion; Generates Net Earnings of $343 Million and Adjusted EBIT of $525 Million 3
Slide 4: Owens Corning Highlights
OWENS CORNING HIGHLIGHTS ($ in millions) Q2 2022 Q2 2021 YTD 2022 YTD 2021 Maintained world-class level of safety Net sales 2,601 2,239 4,947 4,154 performance Adjusted EBIT 525 408 942 690 Adjusted EBIT as % of net sales 20% 18% 19% 17% Delivered revenue growth of 16%, and Adjusted EBITDA 656 529 1
Slide 5: Financial Summary
FINANCIAL SUMMARY ($ in millions, except per share data) Q2 2022 Q2 2021 YTD 2022 YTD 2021 Net sales 2,601 2,239 4,947 4,154 Net sales growth 16% 38% 19% 29% Adjusted EBIT 525 408 942 690 Adjusted EBIT as % of net sales 20% 18% 19% 17% Adjusted earnings 377 283 662 473 Adjusted EPS (diluted) $3.83 $
Slide 6: Adjusted Items to EBIT
ADJUSTED ITEMS TO EBIT $7 $29 $11 $3 $525 $489 Gain on sale of Impairment loss Restructuring Acquisition- certain precious on Chambery, costs related costs metals France assets held for sale Q2 2022 Adj. EBIT Q2 2022 EBIT Numbers in millions. From left to right, green denotes increase; red denotes d
Slide 7: Capital Deployment
CAPITAL DEPLOYMENT • Second-Quarter 2022 • Generated $361mm of free cash flow • Capital additions of $105mm, or 4% of revenue • Expanded return on capital to 21% for the last twelve months • Maintained ample liquidity of approximately $1.9b, consisting of $810mm of cash and nearly $1.1b of combined
Slide 8: Adjusted EBIT Reconciliation
ADJUSTED EBIT RECONCILIATION $56 $45 $24 $8 Composites Insulation Roofing Corporate $525 $408 Q2 2021 Adj. EBIT Q2 2022 Adj. EBIT Numbers in millions. From left to right, green denotes increase; red denotes decrease. 8
Slide 9: Insulation Business
INSULATION BUSINESS ($ in millions) Q2 2022 Q2 2021 YTD 2022 YTD 2021 Net sales 934 806 1,793 1,506 EBIT 157 112 286 194 EBIT as % of net sales 17% 14% 16% 13% Generated $157mm of EBIT with 17% EBIT margins EBITDA 208 165 390 298 EBITDA as % of net sales 22% 20% 22% 20% Positive pricing more than Fi
Slide 10: Composites Business
COMPOSITES BUSINESS ($ in millions) Q2 2022 Q2 2021 YTD 2022 YTD 2021 Net sales 719 583 1,433 1,142 EBIT 154 98 308 177 EBIT as % of net sales 21% 17% 21% 15% Reported $154mm of EBIT with 21% EBIT margins EBITDA 202 137 399 254 EBITDA as % of net sales 28% 23% 28% 22% Revenue growth driven by strong
Slide 11: Roofing Business
ROOFING BUSINESS ($ in millions) Q2 2022 Q2 2021 YTD 2022 YTD 2021 Net sales 1,018 917 1,856 1,628 EBIT 258 234 434 390 EBIT as % of net sales 25% 26% 23% 24% Produced $258mm of EBIT with 25% EBIT margins EBITDA 275 248 465 419 EBITDA as % of net sales 27% 27% 25% 26% Continued strong commercial Fiv
Slide 12: Full-Year 2022 Key Financial Outlook
FULL-YEAR 2022 KEY FINANCIAL OUTLOOK1 • General corporate expenses are estimated to be between $170mm and $180mm, an increase from previous guidance of $160mm to $170mm • Interest expense estimated outlook to be approximately $115mm to $125mm • The company estimates a full-year effective tax rate of
Slide 13: Q3 2022 Business Outlook
Q3 2022 BUSINESS OUTLOOK ENTERPRISE • U.S. residential and commercial markets, and global building and construction end-markets to remain positive • Inflation to continue to significantly impact costs • Each of the businesses maintain positive pricing more than offsetting inflation • Overall net sal
Slide 14: Questions and Discussion
QUESTIONS AND DISCUSSION
Slide 15: Natural Polymers: Innovative Manufacturer of Spray Foam
NATURAL POLYMERS: INNOVATIVE MANUFACTURER OF SPRAY FOAM • Expects to deliver ~$100mm in FY 2022 sales with double-digit growth over the next several years • Strengthens Owens Corning’s core building and construction products • Many of Natural Polymers’ products are GREENGUARD Gold certified by Under
Slide 16: Appendix B: Non-GAAP Reconciliations – Table 1
APPENDIX B: NON-GAAP RECONCILIATIONS – TABLE 1 16
Slide 17: Appendix B: Non-GAAP Reconciliations – Table 2
APPENDIX B: NON-GAAP RECONCILIATIONS – TABLE 2 17
Slide 18: Appendix B: Non-GAAP Reconciliations – Table 3
APPENDIX B: NON-GAAP RECONCILIATIONS – TABLE 3 18