Owens Corning Inc · NYSE:OC
Owens Corning — Q4 2023 Earnings Presentation
21 slides from Owens Corning's earnings presentation, Feb 14, 2024
Slide 1: Fourth-Quarter and Full-Year 2023 Results
FOURTH-QUARTER AND FULL-YEAR 2023 RESULTS Brian Chambers | Chair & Chief Executive Officer Todd Fister | Chief Financial Officer February 14, 2024 | Q4 & FY 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 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 Full-Year Net Sales of $9.7 Billion; Generates Earnings of $1.2 Billion and Adjusted EBIT of $1.8 Billion 3
Slide 4: Owens Corning Highlights
OWENS CORNING HIGHLIGHTS Finished the year with our best ($ in millions) Q4 2023 Q4 2022 FY 2023 FY 2022 quarterly safety performance in Net sales 2,304 2,285 9,677 9,761 over a decade Adjusted EBIT 392 333 1,805 1,762 Adjusted EBIT as % of net sales 17% 15% 19% 18% Delivered full-year revenue of Ad
Slide 5: Financial Summary
FINANCIAL SUMMARY ($ in millions, except per share data) Q4 2023 Q4 2022 FY 2023 FY 2022 Net sales 2,304 2,285 9,677 9,761 Net sales growth 1% 7% (1%) 15% Adjusted EBIT 392 333 1,805 1,762 Adjusted EBIT as % of net sales 17% 15% 19% 18% Adjusted EBITDA 518 460 2,313 2,267 Adjusted EBITDA as % of net
Slide 6: Adjusted Items to EBIT
ADJUSTED ITEMS TO EBIT $189 $2 $169 $145 $15 Gain on sale of Gain on sale of Restructuring Pension Paroc marine Santa Clara, certain precious costs settlement recall California site metals losses $1,805 $1,667 FY 2023 Adj. EBIT FY 2023 EBIT Numbers in millions. From left to right, green denotes incr
Slide 7: Capital Deployment
CAPITAL DEPLOYMENT • Full-year 2023: o Generated $1.2b of free cash flow o Capital additions of $526mm, 5% of revenue o Return on capital was 22% for the last twelve months o Maintained ample liquidity of approximately $2.7b, consisting of $1.6b of cash and nearly $1.1b of combined availability on b
Slide 8: Roofing Business
ROOFING BUSINESS ($ in millions) Q4 2023 Q4 2022 FY 2023 FY 2022 Net sales 928 799 4,030 3,658 Delivered full-year revenue of EBIT 284 168 1,174 831 $4.0b, up 10% from prior year EBIT as % of net sales 31% 21% 29% 23% EBITDA 300 184 1,238 893 EBITDA as % of net sales 32% 23% 31% 24% Produced full-ye
Slide 9: Insulation Business
INSULATION BUSINESS ($ in millions) Q4 2023 Q4 2022 FY 2023 FY 2022 Net sales 931 956 3,668 3,714 Delivered full-year revenue of EBIT 150 153 619 612 $3.7b, down 1% from prior year EBIT as % of net sales 16% 16% 17% 16% EBITDA 201 203 829 818 EBITDA as % of net sales 22% 21% 23% 22% Generated full-y
Slide 10: Composites Business
COMPOSITES BUSINESS ($ in millions) Q4 2023 Q4 2022 FY 2023 FY 2022 Net sales 514 589 2,286 2,660 Delivered full-year revenue of EBIT 26 64 242 498 $2.3b, down 14% from prior year EBIT as % of net sales 5% 11% 11% 19% EBITDA 68 108 414 673 EBITDA as % of net sales 13% 18% 18% 25% Reported full-year
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 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 expected t
Slide 12: Q1 2024 Business Outlook
Q1 2024 BUSINESS OUTLOOK ENTERPRISE • Entering into 2024 with a market fairly stable to Q4 2023 • Expect U.S. single family new construction to improve through the year, based on pent up demand and lower interest rates • Anticipate macro environment in Europe to continue to be challenging and global
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