Owens Corning Inc · NYSE:OC
Owens Corning — Q3 2022 Earnings Presentation
17 slides from Owens Corning's earnings presentation, Oct 26, 2022
Slide 1: Third-Quarter 2022 Results
THIRD-QUARTER 2022 RESULTS Brian Chambers | Chair & Chief Executive Officer Ken Parks | Chief Financial Officer October 26, 2022 | Q3 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 Net Sales of $2.5 Billion; Generates Net Earnings of $470 Million and Adjusted EBIT of $487 Million 3
Slide 4: Owens Corning Highlights
OWENS CORNING HIGHLIGHTS ($ in millions) Q3 2022 Q3 2021 YTD 2022 YTD 2021 Maintained world-class level of safety Net sales 2,529 2,213 7,476 6,367 performance Adjusted EBIT 487 400 1,429 1,090 Adjusted EBIT as % of net sales 19% 18% 19% 17% Delivered revenue growth of 14%, and Adjusted EBITDA 608 5
Slide 5: Financial Summary
FINANCIAL SUMMARY ($ in millions, except per share data) Q3 2022 Q3 2021 YTD 2022 YTD 2021 Net sales 2,529 2,213 7,476 6,367 Net sales growth 14% 16% 17% 24% Adjusted EBIT 487 400 1,429 1,090 Adjusted EBIT as % of net sales 19% 18% 19% 17% Adjusted earnings 347 262 1,009 719 Adjusted EPS (diluted) $
Slide 6: Adjusted Items to EBIT
ADJUSTED ITEMS TO EBIT $130 $7 $12 $2 $610 Gain on Gain on sale of Restructuring Acquisition- $487 remeasurement certain precious costs related costs of equity metals investment Q3 2022 Adj. EBIT Q3 2022 EBIT Numbers in millions. From left to right, green denotes increase; red denotes decrease. 6
Slide 7: Capital Deployment
CAPITAL DEPLOYMENT • Third-Quarter 2022 • Generated $367mm of free cash flow • Capital additions of $94mm, or 4% of revenue • Return on capital was 21% for the last twelve months • Maintained ample liquidity of approximately $1.8b, consisting of $751mm of cash and nearly $1.1b of combined availabili
Slide 8: Adjusted EBIT Reconciliation
ADJUSTED EBIT RECONCILIATION $49 $25 $17 $4 Insulation Composites Roofing Corporate $487 $400 Q3 2021 Adj. EBIT Q3 2022 Adj. EBIT Numbers in millions. From left to right, green denotes increase; red denotes decrease. 8
Slide 9: Insulation Business
INSULATION BUSINESS ($ in millions) Q3 2022 Q3 2021 YTD 2022 YTD 2021 Net sales 965 815 2,758 2,321 EBIT 173 124 459 318 EBIT as % of net sales 18% 15% 17% 14% Delivered record results with revenue growth of 18% EBITDA 225 176 615 474 EBITDA as % of net sales 23% 22% 22% 20% Generated $173mm of EBIT
Slide 10: Composites Business
COMPOSITES BUSINESS ($ in millions) Q3 2022 Q3 2021 YTD 2022 YTD 2021 Net sales 638 591 2,071 1,733 EBIT 126 101 434 278 EBIT as % of net sales 20% 17% 21% 16% Grew revenue 8% through strong commercial performance EBITDA 166 143 565 397 EBITDA as % of net sales 26% 24% 27% 23% Reported $126mm of EBI
Slide 11: Roofing Business
ROOFING BUSINESS ($ in millions) Q3 2022 Q3 2021 YTD 2022 YTD 2021 Net sales 1,003 869 2,859 2,497 EBIT 229 212 663 602 EBIT as % of net sales 23% 24% 23% 24% Delivered $1b of revenue, up 15% from the prior year EBITDA 244 227 709 646 EBITDA as % of net sales 24% 26% 25% 26% Produced $229mm of EBIT
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 • Interest expense estimated to be between $110mm and $115mm, versus previous guidance of $115mm to $125mm • The company estimates a full-year effective tax rate of 24% to 26%, previously
Slide 13: Q4 2022 Business Outlook
Q4 2022 BUSINESS OUTLOOK ENTERPRISE • U.S. residential and commercial product lines to experience good demand with weakening demand trends in Europe and Asia • Each of the businesses to be impacted by additional inflation while maintaining positive price/cost • Each of the businesses to be impacted
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