Owens Corning Delivers Net Sales of $2.6 Billion

Owens Corning, a global building and construction materials leader, today reported second-quarter 2023 results.

• Reported Net Sales of $2.6 Billion, Similar to Prior Year
• Expanded Adjusted EBIT Margins to 21% and Adjusted EBITDA Margins to 26%
• Delivered Diluted EPS of $3.78 and Adjusted Diluted EPS of $4.22
• Generated Operating Cash Flow of $494 Million and Free Cash Flow of $372 Million
• Returned $160 Million to Shareholders through Dividends and Share Repurchases

“Owens Corning delivered another outstanding quarter highlighting the capability of our teams, the value of our product lines, and the earnings power of our company,” said Board Chair and Chief Executive Officer Brian Chambers. “Our second quarter results continued to demonstrate the progress we have made in elevating the performance of the enterprise to generate higher, more resilient earnings. As we move forward, we will remain focused on delivering strong financial results and positioning the company for long-term success.”

Enterprise Strategy Highlights

• In the second quarter, the safety performance resulted in a recordable incident rate (RIR) of 0.59.
• Owens Corning continues to invest in accelerating new product and process innovation to support customers and generate additional growth. In the second quarter, 6 new or refreshed products were launched bringing the first-half total to 17 launches.
• Owens Corning continues to be recognized as a leader in environmental, social, and governance matters and in May published its 17^th annual Sustainability Report. Earlier this year, the company completed a major renewable electricity supply agreement, which is expected to come online in stages through 2024, contributing significantly to reducing carbon emissions. In combination with existing wind-driven virtual power purchase agreements (VPPAs) operating in Finland and Sweden, the new agreement means that 100 percent of the company’s European production sites and science and technology centers will be covered by contracts and VPPAs supplying renewable electricity.

Cash Returned to Shareholders

• During the second quarter, the company returned $160 million to shareholders through dividends and share repurchases. The company paid a quarterly cash dividend of $47 million and repurchased 1.1 million shares of common stock for $113 million. As of the end of the quarter, 11.8 million shares were available for repurchase under the current authorization.

“Our strong and consistent cash generation combined with our solid financial position provide us the flexibility to execute on our enterprise strategy, while remaining committed to maintaining our investment-grade balance sheet and returning approximately 50% of free cash flow to shareholders over time,” said Executive Vice President and Chief Financial Officer Ken Parks.

Other Notable Highlights

• In May, Owens Corning was recognized for its workplace fairness and inclusion practices and policy by DiversityInc as one of its Top 50 companies. Participation in the Top 50 survey measures overall performance in six key areas of diversity and inclusion management: leadership accountability, talent programs, workforce practices, supplier diversity, philanthropy, and human capital diversity metrics.

Segment Performance

• Composites net sales decreased 14% to $620 million in second-quarter 2023 compared with second-quarter 2022, primarily due to lower volumes and the expected net headwind from the impact of previously announced divestitures and acquisitions. EBIT decreased $67 million to $87 million while maintaining 14% EBIT margins and 21% EBITDA margins, on the impact of lower sales volumes and the resulting production downtime. Additionally, the net impact from the divestitures and acquisitions contributed to the year-over-year EBIT decline. Positive price realization and favorable delivery more than offset input cost inflation.
• Insulation net sales decreased 3% to $905 million in second-quarter 2023 compared with second-quarter 2022, primarily due to lower volumes partially offset by positive price realization and favorable product and customer mix. EBIT increased $6 million to $163 million, expanding EBIT margins to 18% and EBITDA margins to 24%, on positive price realization and favorable customer and product mix, which more than offset lower volumes, input cost inflation, and higher manufacturing costs.
• Roofing net sales increased 10% to $1.1 billion in second-quarter 2023 compared with second-quarter 2022, primarily due to higher volumes related to storm activity in the quarter and positive price realization. EBIT increased $80 million to $338 million, expanding EBIT margins to 30% and EBITDA margins to 32%, primarily due to positive price realization and higher volumes. Lower input costs, including delivery, more than offset higher manufacturing costs.

Third-Quarter 2023 Outlook

• The key economic factors that impact the company’s businesses are residential repair and remodeling activity, U.S. housing starts, global commercial construction activity, and global industrial production.
• Inflation continues to moderate while increasing interest rates and ongoing geopolitical tensions continue to result in slower global economic growth. While global economic growth is expected to be lower year-over-year, the company expects many of its end markets to be relatively stable in the near term.
• For third-quarter 2023, the company expects overall performance to result in net sales similar to the comparable quarter in the prior year, while generating high-teen EBIT margins.

To view the full second quarter results, click here.

About Owens Corning

Owens Corning is a global building and construction materials leader committed to building a sustainable future through material innovation. Our three integrated businesses – Composites, Insulation, and Roofing – provide durable, sustainable, energy-efficient solutions that leverage our unique material science, manufacturing, and market knowledge to help our customers win and grow. We are global in scope, human in scale with approximately 19,000 employees in 31 countries dedicated to generating value for our customers and shareholders and making a difference in the communities where we work and live. Founded in 1938 and based in Toledo, Ohio, USA, Owens Corning posted 2022 sales of $9.8 billion. For more information, visit www.owenscorning.com.

Contact:

Amber Wohlfarth – Vice President, Investor Relations – Amber.Wohlfarth@owenscorning.com – (419) 248-5639

Source: Owens Corning