Owens Corning

be an opportunity for you to ask questions. If you'd like to join the queue, you can do so by pressing star followed by one on your telephone keypad. I'll now hand you over to Amber Wolfhard, Vice President, Corporate Affairs and Investor Relations to begin. Please go ahead.

Amber Wolfhard Good morning. Thank you for taking the time to join us for today's conference call and review of our business results for the third quarter 2024. Joining us today are Brian Chambers, Owens Corning's Chair and Chief Executive Officer, and Todd Pfister, our Chief Financial Officer. Following our presentation this morning, we will open this one-hour call to your questions. In order to accommodate as many call participants as possible, please limit yourselves to one question only. Earlier this morning, we issued a news release and filed a 10-Q that detailed our financial results for the third quarter 2024. For the purposes of our discussion today, we have prepared presentation slides summarizing our performance and results, and we'll refer to these slides during this call. You can access the earnings press release, form 10-Q, and the presentation slides at our website, owenscorning.com. Refer to the investors link under the corporate section of our homepage. A transcript and recording of this call and the supporting slides will be available on our website for future reference. Please reference slide two where we offer a couple of reminders. First, today's remarks will include forward-looking statements that are subject to risk, uncertainties, and other factors that could cause our actual results to differ materially. We undertake no obligation to update these statements beyond what is required under applicable securities laws. Please refer to the cautionary statements and the risk factors identified in our SEC filings for more detail. Second, the presentation slides and today's remarks contain non-GAAP financial measures. Explanations and reconciliations of non-GAAP to GAAP measures may be found in our earnings press release and presentation, available on the investor section of our website, owenscorning.com. For those of you following along with our slide presentation, we will begin on slide four. And now, opening remarks from our chair and CEO, Brian Chambers. Brian?

Thanks, Amber. Good morning, everyone, and thank you for joining us today. During our call this morning, I will share an overview of our third quarter performance and review several strategic initiatives and investments we're making to sharpen our focus as a leader in residential and commercial building products while positioning the company for future growth. Todd will provide further detail on our financial performance, and then I'll come back and discuss our near-term outlook. Owens Corning delivered another outstanding quarter, with our team continuing to demonstrate best-in-class commercial and operational execution despite challenging near-term market conditions. Our ongoing ability to deliver such strong results is a direct reflection of the work we've done over the past few years to strengthen our market-leading positions, improve our operating efficiencies, and increase the earnings power of the company. In addition to our strong financial results, we also made progress on a number of key initiatives to further enhance our production capacity and capability, as well as simplify our geographic footprint. I'll speak more about this shortly. But first, I'll begin, as always, with a critical component to our success, safety. Through the implementation of our Safer Together operating framework, our recordable incident rate was .58 in the third quarter. Two-thirds of our facilities have operated injury-free this year. and more than half have done so for over a year. As a reminder, a recently added door segment has not been included in the RIR calculation. As we bring our Safety First culture to this business, we continue to see improvements in the performance and look forward to including doors in our safety reporting in early 2025. In looking at our financial performance in more detail, our results continue to demonstrate our structurally higher and more resilient earnings profile, despite more challenging market conditions. In the third quarter, the company delivered an adjusted EBIT margin of 19% and adjusted EBITDA margin of 25%, marking the 17th consecutive quarter of achieving mid-teens or better adjusted EBIT margins and 20% or better adjusted EBITDA margins. Sales and margin growth resulted in adjusted diluted earnings per share of $4.38. In the quarter, we also continued to demonstrate the cash-generating capability of the company, producing $558 million of pre-cash flow. And given the strength of our balance sheet and focus on being disciplined capital allocators, we returned $252 million to shareholders through dividends and share repurchases. Our market-leading businesses continued to perform at a high level and generated results in line with our expectations. Roofing once again delivered very strong margins, with our shingle volume outperforming the market, as the overall asphalt shingle market was down slightly versus prior year. In insulation, we delivered increased sales in the quarter through positive price realization and favorable product mix within our North American residential and technical insulation businesses. Work within our doors business continued to focus on integration efforts as we navigated through some choppy near-term end markets. Results in its first full quarter as part of Owens Corning were in line with our outlook. And in composites, the segment performed well despite the macro environment remaining challenging. In the quarter, We also began commissioning our new glass nonwovens line in Fort Smith, Arkansas, giving us incremental capacity to grow this business. Our results this quarter continue to reflect the progress we've made in structuring our company to generate higher, more resilient earnings while also growing our top line. Over the past few years, through the execution of our enterprise strategy and operating priorities, we have been reshaping the company, creating multiple paths to achieve 20% or better adjusted EBITDA margins mid-teen returns on invested capital, and significant free cash flow generation. Through this process, we have maintained a disciplined capital allocation approach, focused on products and applications where we can build market-leading positions. This has resulted in acquisitions that have expanded our offering of branded building products, as well as investments to drive organic growth. We have also capitalized on several business optimization opportunities to simplify our structure and geographic footprint that have improved our operating efficiencies and cost position. As a result of this disciplined approach to enhance our earnings power and focus Owens Corning as a building products leader in North America and Europe, we announced two key decisions this morning. Let me start with our announcement to further simplify our geographic footprint by selling our building products business in China and Korea to a member of the business's management team. This sale of assets includes six installation manufacturing facilities in China as well as a Korean roofing manufacturing facility servicing demand in that region. Not included in this transaction are glass reinforcement facilities in Asia Pacific and our manufacturing assets that service our North American and European markets, including our roofing coated wovens manufacturing facilities in India and our cellular glass insulation plant in China. Over the years, we've built a strong market presence and customer base, with the business generating revenues of approximately $130 million in 2024. The strategic decision to exit this business allows us to put more focus on strengthening our leadership position in North America and Europe, which includes additional investments in these markets. The latest example of this is our announcement this morning to increase fiberglass insulation capacity in the United States. Over the last few quarters, we've been evaluating options to invest in the continued modernization of our flexible and cost-effective U.S. fiberglass insulation network. to meet strong market demand for both our residential and commercial products. As a result of this evaluation, we are excited to announce the addition of a new production line within our existing Kansas City manufacturing facility. This capacity, which is expected to come online in 2027, will utilize our advanced process technology to produce both light and heavy density fiberglass products at an improved cost. In addition, The new line will give us the capability to rebalance our fiberglass production network to increase capacity of light density residential inflation across our other existing facilities. positioning this new line in Kansas City enables us to grow alongside customers to meet market demand, while leveraging our existing footprint and the knowledge of our manufacturing team in Kansas City. In addition to these two announcements, we continue to make good progress on our other two key strategic initiatives to sharpen our product and geographic focus. the integration of doors, and the evaluation of our glass reinforcements business. The acquisition and addition of the door segment to Owens Corning has strengthened our portfolio of highly valued branded building products. As we continue to make progress in integrating doors within OC, we remain excited about the future growth opportunities within this category and our ability to drive improved financial results as we leverage both companies' best-in-class brands, extensive customer and channel knowledge, manufacturing capabilities, and material science expertise. We continue to execute our integration playbook, finding cost synergies consistent with our original expectation of $125 million, while we explore new growth opportunities with customers utilizing our expanded product line and longstanding relationships. We have delivered sourcing synergies in a number of categories and streamlined operating processes, reducing duplicate spending and leveraging our scale. In terms of synergy capture, We are on track to realize these cost savings within the first two years and anticipate recognizing about half of the synergies within the door segment and the remainder across legacy OC. Lastly, regarding the strategic review of our glass reinforcements business, we continue to make progress on the evaluation of options to both maximize the value to shareholders and determine the best growth path for the business. At this time, however, we have not yet concluded our review process. As we explore alternatives, we are committed to being a discipline operator as we plan for the future. As such, while we explore options, we continue to focus on improving the overall cost position of the business through ongoing restructuring actions. Before I turn it over to Todd, I would like to congratulate my 25,000 Owens Corning colleagues for their role in our most recent recognition. We have been named in the top 10 of the 100 best corporate citizens list for the seventh consecutive year, and we're ranked first within our industry category. This list recognizes outstanding environmental, social, and governance performance and transparency among the largest publicly traded US companies. As we make progress toward our mission to build a more sustainable future through material innovation, it's our people that truly make the difference. With that view of our performance and progress on strategic priorities, I will now turn it over to Todd to discuss our third quarter financial results in more detail. Todd?