Owens Corning Inc · NYSE:OC
Owens Corning — Q1 2023 Earnings Presentation
20 slides from Owens Corning's earnings presentation, Apr 26, 2023
Slide 1: First-Quarter 2023 Results
FIRST-QUARTER 2023 RESULTS Brian Chambers | Chair & Chief Executive Officer Ken Parks | Chief Financial Officer April 26, 2023 | Q1 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 $2.3 Billion; Generates Net Earnings of $383 Million and Adjusted EBIT of $361 Million 3
Slide 4: Owens Corning Highlights
OWENS CORNING HIGHLIGHTS ($ in millions) Q1 2023 Q1 2022 Worked injury-free in nearly one-half of Net sales 2,331 2,346 global facilities over the past 12 months Adjusted EBIT 361 417 Adjusted EBIT as % of net sales 15% 18% Adjusted EBITDA 487 543 Delivered revenue in line with prior year Adjusted E
Slide 5: Financial Summary
FINANCIAL SUMMARY ($ in millions, except per share data) Q1 2023 Q1 2022 Net sales 2,331 2,346 Net sales growth (1%) 23% Adjusted EBIT 361 417 Adjusted EBIT as % of net sales 15% 18% Adjusted earnings 255 293 Adjusted EPS (diluted) $2.77 $2.92 5
Slide 6: Adjusted Items to EBIT
ADJUSTED ITEMS TO EBIT $189 $2 $18 Gain on sale of Gain on sale of Restructuring Santa Clara, certain precious costs California site metals $534 $361 Q1 2023 Adj. EBIT Q1 2023 EBIT Numbers in millions. From left to right, green denotes increase; red denotes decrease. 6
Slide 7: Capital Deployment
CAPITAL DEPLOYMENT • First-Quarter 2023 • Cash outflow in the quarter with net free cash flow of ($322mm) • Capital additions of $158mm, or 7% of revenue • Return on capital was 20% for the last twelve months • Maintained ample liquidity of approximately $1.8b, consisting of $757mm of cash and nearl
Slide 8: Insulation Business
INSULATION BUSINESS ($ in millions) Q1 2023 Q1 2022 Net sales 919 859 EBIT 156 129 EBIT as % of net sales 17% 15% Delivered first-quarter revenue of $919mm, up 7% from prior year EBITDA 207 182 EBITDA as % of net sales 23% 21% Generated $156mm of EBIT with 17% EBIT margins and 23% Five-year financia
Slide 9: Composites Business
COMPOSITES BUSINESS ($ in millions) Q1 2023 Q1 2022 Net sales 585 714 EBIT 49 154 EBIT as % of net sales 8% 22% Delivered first-quarter revenue of $585mm, down 18% from prior year EBITDA 93 197 EBITDA as % of net sales 16% 28% Reported $49mm of EBIT with 8% EBIT margins and 16% Five-year financial p
Slide 10: Roofing Business
ROOFING BUSINESS ($ in millions) Q1 2023 Q1 2022 Net sales 895 838 EBIT 209 176 EBIT as % of net sales 23% 21% Delivered first-quarter revenue of $895mm, up 7% from prior year EBITDA 225 190 EBITDA as % of net sales 25% 23% Produced $209mm of EBIT with 23% EBIT margins and 25% EBITDA Five-year finan
Slide 11: Full-Year 2023 Key Financial Outlook
FULL-YEAR 2023 KEY FINANCIAL OUTLOOK • General corporate expenses are estimated to be between $195mm and $205mm • Interest expense estimated to be between $95mm and $105mm • The company estimates a full-year effective tax rate of 24% to 26% and a cash tax rate of 26% to 28%, both on adjusted pre-tax
Slide 12: Q2 2023 Business Outlook
Q2 2023 BUSINESS OUTLOOK ENTERPRISE • End-markets to remain challenging due to ongoing inflation, higher interest rates, and continued geopolitical tensions • Moderating demand to result in lower volumes versus prior year • Overall pricing to offset ongoing inflation • Overall, moderate decline in n
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