Owens Corning : Q4 2024 Earnings Report Presentation

Published: 2025-02-24 09:03:10 ET OC

FOURTH-QUARTER AND FULL-YEAR 2024 RESULTS

Brian Chambers | Chair & Chief Executive Officer

Todd Fister | Chief Financial Officer

February 24, 2025 | Q4 & FY 2024

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 $11.0 Billion; Generates Earnings of $647 Million and Adjusted EBIT of $2.0 Billion

3

OWENS CORNING HIGHLIGHTS

25% reduction in injuries versus prior year

18th consecutive quarter delivering mid-teens or better adjusted EBIT margins and 20% or better adjusted EBITDA margins

Executed three major strategic moves to reshape and focus on building products in North America and Europe

Strengthening and growing core businesses by investing in new capacity and modernizing manufacturing facilities

($ in millions)1

Q4 2024

Q4 2023

FY 2024

FY 2023

Net sales

2,840

2,304

10,975

9,677

Adjusted EBIT

430

392

2,038

1,805

Adjusted EBIT as % of net sales

15%

17%

19%

19%

Adjusted EBITDA

629

518

2,702

2,313

Adjusted EBITDA as % of net sales

22%

22%

25%

24%

Five-year financial performance

$12,000

20%

$10,000

16%

$8,000

12%

$6,000

8%

$4,000

$2,000

4%

$0

0%

2020

2021

2022

2023

2024

Net sales in millions

Adj. EBIT as % of net sales

1. Doors segment added on May 15, 2024 as a result of the acquisition of Masonite. Doors segment contributed $564mm in net sales, $29mm in adjusted EBIT and $82mm in adjusted EBITDA for the period October 1, 2024 through

4

December 31, 2024. Doors segment contributed $1,448mm in net sales, $99mm in adjusted EBIT and $232mm in adjusted EBITDA for the period May 15, 2024 through December 31, 2024.

FINANCIAL SUMMARY

($ in millions, except per share data)1

Q4 2024

Q4 2023

FY 2024

FY 2023

Net sales

2,840

2,304

10,975

9,677

Net sales growth

23%

1%

13%

(1%)

Net (loss) earnings attributable to OC

(258)

131

647

1,196

Net (loss) earnings attributable to OC as % of net sales

(9%)

6%

6%

12%

Adjusted EBIT

430

392

2,038

1,805

Adjusted EBIT as % of net sales

15%

17%

19%

19%

Adjusted EBITDA

629

518

2,702

2,313

Adjusted EBITDA as % of net sales

22%

22%

25%

24%

EPS (diluted)

($2.97)

$1.46

$7.37

$13.14

Adjusted earnings

280

287

1,397

1,312

Adjusted EPS (diluted)

$3.22

$3.21

$15.91

$14.42

1. Doors segment added on May 15, 2024 as a result of the acquisition of Masonite. Doors segment contributed $564mm in net sales, $29mm in adjusted EBIT and $82mm in adjusted EBITDA for the period October 1, 2024 through

5

December 31, 2024. Doors segment contributed $1,448mm in net sales, $99mm in adjusted EBIT and $232mm in adjusted EBITDA for the period May 15, 2024 through December 31, 2024.

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

Full-Year 2024:

1.

Refer to Appendix A for reconciliation to Owens Corning SEC filings.

6

2.

The return on capital calculation has been simplified; refer to Appendix A for additional details.

ROOFING BUSINESS

Delivered full-year revenue of $4.1b, up slightly from prior year

Generated $1.3b of EBIT with 32% EBIT margin and 34% EBITDA margin, expanding margin year-over-year

Investments in de-bottlenecking delivered record laminate shingle production

($ in millions)

Q4 2024

Q4 2023

FY 2024

FY 2023

Net sales

912

928

4,052

4,030

EBIT

280

284

1,298

1,174

EBIT as % of net sales

31%

31%

32%

29%

EBITDA

296

300

1,360

1,238

EBITDA as % of net sales

32%

32%

34%

31%

Five-year financial performance

$4,000

35%

30%

$3,200

25%

$2,400

20%

$1,600

15%

10%

$800

5%

$0

0%

2020

2021

2022

2023

2024

Net sales in millions

EBIT as % of net sales

Source: Owens Corning management estimates and Owens Corning SEC filings; comparability may differ over time. Revenue before inter-segment eliminations.

7

INSULATION BUSINESS

Delivered full-year revenue of $3.7b, up slightly from prior year

Generated $682mm of EBIT with 18% EBIT margin and 24% EBITDA margin, expanding margin year-over-year

Strong execution in mixed end market conditions drove margin expansion

($ in millions)

Q4 2024

Q4 2023

FY 2024

FY 2023

Net sales

926

931

3,692

3,668

EBIT

155

150

682

619

EBIT as % of net sales

17%

16%

18%

17%

EBITDA

211

201

892

829

EBITDA as % of net sales

23%

22%

24%

23%

Five-year financial performance

$4,000

20%

$3,200

15%

$2,400

10%

$1,600

$800

5%

$0

0%

2020

2021

2022

2023

2024

Net sales in millions

EBIT as % of net sales

Technical and global insulation includes pipe and flexible duct media insulation, cellular glass insulation, foam, mineral fiber, and all building material products sold to Europe, Latin America and Asia.

8

Source: Owens Corning management estimates and Owens Corning SEC filings; comparability may differ over time. Revenue before inter-segment eliminations.

DOORS BUSINESS

Delivered acquisition-to-date revenue of $1.4b

($ in millions)

Net sales

EBIT

EBIT as % of net sales

EBITDA

EBITDA as % of net sales

Q4 2024

564

29

5%

82

15%

Acquisition to date1

1,448

99

7%

232

16%

Generated $232mm of EBITDA with 16% EBITDA margin

On track to meet or exceed $125mm of enterprise cost synergies

Revenue by Product2

Components

Interior

Exterior

Revenue by Geography2

Rest of World

Europe

U.S.

1. Doors segment added on May 15, 2024 as a result of the acquisition of Masonite. Acquisition to date reflects the period May 15, 2024 through December 31, 2024

9

2. Source: Owens Corning management estimates, Owens Corning SEC filings; Business mix statistics based on 2024 net sales for the period May 15, 2024 through December 31, 2024.

COMPOSITES BUSINESS

Delivered full-year revenue of $2.1b, down 7% from prior year

Generated $215mm of EBIT with 10% EBIT margin and 19% EBITDA margin, similar to prior year

Successfully completed strategic review of the glass reinforcements business and entered agreement to sell to Praana Group

($ in millions)

Q4 2024

Q4 2023

FY 2024

FY 2023

Net sales

515

514

2,118

2,286

EBIT

47

26

215

242

EBIT as % of net sales

9%

5%

10%

11%

EBITDA

94

68

397

414

EBITDA as % of net sales

18%

13%

19%

18%

Five-year financial performance

$4,000

20%

$3,200

15%

$2,400

10%

$1,600

$800

5%

$0

0%

2020

2021

2022

2023

2024

Net sales in millions

EBIT as % of net sales

Source: Owens Corning management estimates and Owens Corning SEC filings; comparability may differ over time. Revenue before inter-segment eliminations.

10

Disclaimer

Owens Corning published this content on February 24, 2025, and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on February 24, 2025 at 14:02:11.554.