Owens Corning

you can do so by pressing star followed by one on your telephone keypad. We ask that you please limit this to one question to give everyone the opportunity to take part. I'll now hand you over to Amber Wolfer, Vice President of Corporate Affairs and Investor Relations to begin. 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 first quarter of 2025. 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 first quarter of 2025. For the purposes of our discussion today, we have prepared presentation slides summarizing our performance and results and will 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 few 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 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. Third, financials and metrics for current and historical periods discussed on this call will be for continuing operations, except for capital expenditures and cash flow measures, which include amounts related to glass reinforcements until the closing and the sale of the business. 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 I will provide an update on our overall performance in the first quarter. Including some color on the operating environment we're navigating as well as the progress we're making on our strategic priorities and actions being taken to position us for future success. Todd will then provide a more detailed review of our quarterly performance and then i'll come back and discuss our outlook for Q2. Our team delivered another strong quarter to start the year demonstrating the durability of our earnings and the power of the enterprise to outperform in any operating environment. Our results continue to reflect the positive impact of the structural changes we've made to focus on scoring in high value building product categories. Where we can build market leading positions for our unique commercial capabilities and discipline operational execution. As always underpinning our performance is our ongoing focus on the safety of our people. Our team's commitment to working safely resulted in a recordable incident rate for the first quarter of 0.54, which is 80% lower than the manufacturing industry average. Our enterprise safety results now includes our doors business, which has been on a journey of continuous safety improvement. I'm pleased with how quickly our doors team has integrated the OC safer together operating framework to build on a strong safety culture. Turning to other first quarter performance highlights, we delivered revenue of 2.5 billion. an increase of 25% year-over-year compared to the prior year's revenue of $2 billion. Adjusted EBITDA in the first quarter totaled $565 million for an adjusted EBITDA margin of 22%. This marks our 19th consecutive quarter of delivering adjusted EBITDA margins above 20% as we continue our track record of sustaining strong and resilient margins in any operating environment. We also remain focused on our operating cash flow. delivering results in the quarter consistent with the seasonality we historically see to start the year. Given the cash generative power of each of our businesses through the year, we continue to fund high return organic investments. These phased investments in our roofing and insulation businesses coming online over the next three years will add needed capacity to support our long-term growth, as well as provide network flexibility with improved cost positions. In addition to these strategic investments, we returned significant cash to shareholders through our dividend and share repurchases. Looking to the broader building products market in North America and Europe, we entered 2025 with a mixed environment. Overall demand for repair and remodel has remained challenged, with the exception of non-discretionary re-roof activity, which has remained solid. New residential construction, which accounts for about a quarter of our enterprise revenue, started the year slower as interest rates remained elevated. And finally, Our non-residential markets, which account for about 20% of our business, remain fairly stable overall. Like all companies, we continue to evaluate and adjust to the impact of tariffs on our business. Given the localized nature of our production to meet demand and the fact that our products are USMCA compliant, we would expect to see modest direct impact from current tariffs. The impact of future tariffs, however, and the potential impact on North American and European economies remains uncertain. Todd will provide additional information on potential impacts on our financial results and the mitigation actions we are implementing. Against this backdrop, our first quarter results once again demonstrated the strength of our businesses and resiliency of our earnings. As we move through the year, we will remain focused on the areas we can control, our customer share positions, our operating costs, and our capital allocation. Regarding our longer-term organic investments to strengthen our market-leading positions, We continue to make good progress on all fronts. In roofing, we are on track to start up our laminate shingle production line in Medina, Ohio, at the end of the second quarter to provide needed capacity to service our contractors and distributors. And we are narrowing our site selection for our new shingle manufacturing plant in the southeastern U.S. Both of these investments complement our broader effort to enhance needed roofing capacity with a winning cost position as we further modernize our U.S. roofing manufacturing network. In insulation, we also made good progress on our major investments to meet residential and commercial customer needs. As we look to strengthen our flexible, cost-effective fiberglass network with a new line in Kansas City, expand our formula or XPS capabilities with our new facility in Arkansas, and improve our mineral wool manufacturing efficiency and capability by converting our plant in Sweden from coke-fired furnaces to electric melding. And indoors, we're actively driving margin improvement in the near term through our integration efforts. which are on track to exceed 125 million in cost synergies as we position the business for future growth by applying the broad Owens Corning playbook. In addition to these growth investments, progress on our two strategic divestitures continue to track in line with our expectation to close both transactions later this year. The sale of glass reinforcements and our building materials business in China and Korea allow us to streamline our operations and focus on geographies and applications where we can build market leading positions. The combination of these growth investments and strategic divestitures show how we're reshaping the company into a branded building products leader and operating as a new Owens Corning, driving higher, more consistent returns and long term value creation. Overall, our company is well positioned for future growth and performance, supported by key secular trends. including the age of existing US housing stock and the significant amount of homeowner equity, the need for heightened investment in new housing capacity, and the continued strength in US commercial construction applications and market opportunities emerging in Europe. In summary, our strategic investments and decisions, combined with our disciplined operational execution, create multiple paths to drive organic growth, deliver 20% or more adjusted EBITDA margins, and generate significant cash flow and strong returns. Before I close, I'd like to highlight a few other important recognitions. Last week, we announced the promotion of Rochelle Marcon to President of our DOORS business. Most recently, she led our Glass on Wovens business, which has delivered significant revenue and earnings growth for the company. We are excited to bring Rochelle's leadership capabilities and operational experiences to our DOORS business. In addition, this quarter we published our 19th Annual Sustainability Report that highlights our efforts to keep employees safe reduce greenhouse gas emissions and waste to landfill and advance our portfolio of products that help customers save energy and lower emissions. I'm also proud to share that Owens Corning was once again recognized by Barron's as one of the hundred most sustainable companies in the US, ranking fourth on the annual list and showcasing the strength of our iconic brand and commitment to sustainable growth. Finally, I would like to remind everyone that we will host our 2025 investor day on may 14 at our world headquarters in toledo Ohio. Todd myself and other senior leaders look forward to sharing more about our vision strategy and longer term financial goals for the new owens corning with that i'll turn it over to top.