Owens Corning

questions. If you'd like to participate in our Q&A, you can do so by pressing star followed by one on your telephone keypad. We kindly ask that you limit yourself to one question. I'll now hand you over to Amber Wolfer, Vice President of Corporate Affairs and Investor Relations. Please go ahead.

Good morning. Thank you for taking the time to join us for today's conference call and review of our business results for the fourth quarter and full year 2024. Joining us today are Brian Timbers, 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-K that detailed our financial results for the fourth quarter and full year 2024. For the purposes of our discussion today, We've 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-K, 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 risks, 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 in today's remarks contain non-GAAP financial measures. Explanations and reconciliations of non-GAAP to GAAP measures They'll be found in our earnings press release and presentation, available on the Investors 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 the call this morning, I will begin with a brief overview of our fourth quarter and full year 2024 results. before providing an update on the key strategic choices we've made over the past year, as well as future investments we're making to position Owens Corning for long-term growth. Todd will then discuss our fourth quarter and four-year financial results in greater detail, and I will come back to share expectations for our end markets and outlook for the first quarter. 2024 was a transformative year for Owens Corning, as we successfully executed three major strategic moves to reshape and focus the company on building products in North America and Europe while consistently delivering higher, more resilient earnings and cash flow. In addition to the acquisition of Masonite, the sale of our building materials business in Asia, and most recently, the sale of our glass reinforcements business, we also announced several capital investments to expand our capacity and highly profitable product lines that will further strengthen our market positions and drive organic growth. While market conditions were mixed across our business segments during the year, The combined power of our enterprise resulted in revenue, earnings, and cash flow growth. Through outstanding execution, we have demonstrated that Owens Corning is a best-in-class building products leader that consistently delivers strong financial performance and is positioned for future growth. Let me start a review of the quarter and the year with safety. In 2024, our team drove steady improvement of our already top-tier safety results through our Safer Together operating framework. Our recordable incident rate for the fourth quarter was 0.5. We ended the year with a 25% reduction in injuries versus prior year. Since acquiring Masonite in May of last year, we've been working closely to integrate safety systems and processes and have delivered a significant improvement in performance. In addition to great safety performance, we also delivered strong financial results for the quarter and the full year. For the fourth quarter, we closed out the year delivering revenue of $2.8 billion up 23%, with an adjusted EBIT margin of 15% and adjusted EBITDA margin of 22%. Q4 marks our 18th consecutive quarter of delivering mid-teens or better adjusted EBIT margins and 20% or better adjusted EBITDA margins. For the full year, we delivered revenues of $11 billion, up 13%, adjusted EBIT of $2 billion, and adjusted EBITDA of $2.7 billion. as each of our businesses delivered strong results relative to market conditions, including even margin expansion in our core roofing and insulation businesses. Our consistent performance over the past several years demonstrates the structurally higher and more resilient earnings profile we have built for the company, creating a cash generating engine that has allowed us to make strategic investments in our businesses and return significant cash to shareholders. During 2024, we returned 51% of free cash flow to our shareholders. 2024 also marked our 11th consecutive year of increasing our dividends. These actions demonstrate our commitment to a disciplined capital allocation strategy, all while continuing to invest in growth and innovation. In addition to delivering strong financial results, we executed our enterprise strategy to reshape and focus Owens Corning as a leading residential and commercial building products company in North America and Europe. A key driver of our long-term performance has been our operating discipline to focus on products and geographies where we can build market-leading positions. In line with this discipline approach, we executed three major strategic moves during the year. First was our acquisition of Masonite. This acquisition expanded our portfolio of branded residential building products into a complementary category that was an important step in our long-term growth strategy. It has significantly expanded our addressable market and provides a great opportunity for us to create a scalable growth platform. We are seeing immediate benefits from the acquisition as we execute our integration playbook. By leveraging our enterprise scale, we are on track to achieve our synergy commitment in the first two years of ownership. Through our brand leadership, extensive customer and channel knowledge, manufacturing expertise, and leading technology, we continue to see opportunities to drive both cost and revenue synergies on a path to achieving 20% EBITDA margins in the business. The second major move was our decision to sell our building materials business in China and Korea. This divestiture simplifies our geographic footprint and supports our strategy to grow our building products businesses in North America and Europe. Our third major move was the exploration of strategic options for our glass reinforcements business, which we recently completed with the signing of a definitive agreement to sell the business to Prana Group. As we shared at the start of the process, the glass reinforcements business primarily services industrial applications that are outside of our strategic focus to invest and grow in residential and commercial building products. The transaction is expected to close later this year, subject to customary regulatory approvals and other conditions. In addition to these major strategic moves, we've been focused on strengthening and growing our core businesses by investing in new capacity and modernizing our manufacturing facilities. In roofing, we recently announced our newest investment to expand our shingle capacity with the addition of a new laminate shingle manufacturing facility. This plant will operate a four-wide laminator capable of producing around 6 million squares per year. The additional capacity will be used to service the continued strong demand for our products, including our premium duration shingles, and support ongoing market growth in the southeastern U.S., which is the biggest asphalt shingle region in the country. We plan to announce the specific location for the new plant later this year, with production expected to begin sometime in 2027. This new facility complements the other investments we have made to expand our shingle capacity, including our new laminated shingle line in Ohio, which is expected to start up mid-year. We are also excited to begin capitalizing on a recently commissioned glass nonwoven line, creating incremental capacity to serve our growing roofing business, as well as other building product applications. Within our installation business we're also investing to increase production capacity and further strengthen our flexible cost efficient manufacturing network. In 2024 we announced the addition of a new fiberglass installation production line in our Kansas city facility expected to be operational in 2027. The new line will give us the capability to rebalance our network and increase capacity to serve both residential and commercial applications, in addition. Our new Formula NGX plant in Arkansas is expected to come online later this year to serve the growing demand for XPS insulation. And in Europe, we are making good progress on converting our mineral wall plant in Sweden from coke-fired furnaces to electric melting. This move strengthens our market-leading position in the region while improving manufacturing efficiency, reducing emissions, and meeting our European customer needs. Collectively, These three investments will support growth of core insulation products, while continuing to improve our winning cost position in the business. As we invest for growth, we will continue to be disciplined capital allocators, focusing on markets and product lines where we can build leading positions through our unique capabilities. Over the past several years, We have proven our ability to grow our business while consistently enhancing shareholder value through our capital allocation strategy of returning approximately 50% of free cash flow to investors over time through dividends and share repurchases. As a result, in the past three years, we've more than doubled our quarterly dividend. And since 2020, we have bought back more than 20% of our outstanding shares. This demonstrates both the cash-generating power of Owens Corning and our disciplined approach to deploying capital. In summary, our teams achieved many accomplishments in 2024, delivering outstanding financial performance while reshaping the company as a focused building products leader in North America and Europe. Before turning over to Todd, I want to thank our team for their tremendous work throughout 2024. We are proud of our achievements, which are also being recognized by others, including being named to the Wall Street Journal's Top 250 Best Managed Companies and earning a place on the Dow Jones Sustainability Index for the 15th consecutive year. These acknowledgements reflect the incredible effort and dedication that our team brings to work every day to help our customers win and grow in the market and drive the success of our company. I will now turn it over to Todd to discuss our fourth quarter and four-year financial results in more detail. Todd?