Owens Corning

Ladies and gentlemen, thank you for joining us and welcome to Owens Corning First Quarter 2026 Earnings Call. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star 1 to raise your hand. To withdraw your question, press star 1 again. I will now hand the conference over to Darren Garvin, Director of Investor Relations. Please go ahead.

Good morning and thank you for joining us to discuss Owens Corning's first quarter 2026 results. Joining me today are Brian Chambers, our chair and chief executive officer, and Todd Pfister, our chief financial and operating officer. Our earnings release, form 10Q, and presentation slides were issued earlier this morning and are available on the investor section of our website at owenscorning.com. Following our prepared remarks, we will open the call for Q&A. To allow for broad participation, please limit yourself to one question. Before we begin, please refer to slide two. Today's remarks will include forward-looking statements which are subject to risks and uncertainties that could cause actual results to differ materially. We undertake no obligation to update these statements except as required by law. Please refer to the cautionary statements and risk factors identified in our SEC filings for more detail. This presentation also includes non-GAAP financial measures. Explanations and reconciliations to get measures can be found in our earnings release and presentation materials available on our website. Financials and metrics discussed today reflect continuing operations except for cash flow measures, which include amounts related to glass reinforcements. With the completed divestiture of glass reinforcements, Q2 will be the final quarter that cash flow includes the impact of discontinued operations. For those following along with the presentation, we will begin on slide four. And with that, I'll turn the call over to our chair and CEO, Brian Chambers.

Thanks, Darren. Good morning, everyone, and thank you for joining us today. I know many of you have had the opportunity to speak with Darren, who recently assumed leadership of our investor relations function. And I want to welcome him to his first earnings call in this role. I also want to recognize and thank Amber Wolford for all of her great work leading investor relations. and wish her well in her new role leading our finance team in roofing. To begin, I'll provide a brief overview of our first quarter performance, and then discuss our progress in reshaping Owens Corning as a more focused and more integrated building products leader, which generates consistently strong margins and cash flows. Todd will then provide a detailed review of our first quarter financial results, and I'll come back to share our outlook for the second quarter. Entering the year, we continued to perform at a high level despite current residential market conditions. Repair and remodel demand and new residential construction activity continue to reflect affordability challenges and consumer uncertainty. Roofing activity was boosted by end of quarter inventory restocking, but remained impacted by low carryover demand from the uniquely quiet storm season in the second half of last year. Against that backdrop, our team executed well and delivered strong operating performance. For the past several quarters, we've been operating through markets with declining volumes, but our ability to consistently deliver solid results highlights the strength of our enterprise and the structural improvements we've made. We are demonstrating the durable performance of the new Owens Corning, a focused building products company that outperforms through the cycles and is poised for significant growth as repair and remodel investments and new construction activity increases in the future. I'll share more about our financial performance in a moment. But first, I'll lead with safety. Our Safer Together operating framework is driving improved results as we start the year, with a first quarter recordable incident rate of 0.46. Our team's commitment to working safely achieved one of the best quarters on record in each of our businesses, with nearly 85% of our sites working recordable injury-free. Turning to first quarter financial performance, we generated $2.3 billion in revenue and $369 million in adjusted EBITDA. with an adjusted EBITDA margin of 16%. We also returned $63 million to shareholders through a cash dividend. This reflects our ongoing commitment to return $1 billion of cash to shareholders in 2026. For the past year, we've delivered strong margins on lower market volumes in roofing and insulation. In fact, when we compare today's results to similar market conditions over the past 10 years, we've improved margins across both businesses by over 500 basis points. Across the company, we are seeing the impact of structural improvements made to strengthen our market positions and streamline our operating costs. In roofing, we are expanding our contractor base through an industry-leading engagement model, growing our high-margin components business and increasing capacity to service a sustained shift toward premium laminate shingles. In our insulation business, we've invested in a more profitable mix of products and applications and restructured our manufacturing network to be more efficient and more flexible. And indoors, We are applying the same commercial and operational playbook used to increase revenues and improve margins in roofing and insulation, utilizing an integrated go-to-market strategy to increase our customer share positions while achieving significant operating cost synergies. Taken together, these actions reflect how a more focused and integrated Owens Corning is operating today by leveraging our unique OC advantages to drive growth and productivity and deliver structurally higher and more durable margins. One key part of the playbook is our integrated go-to-market strategy that combines the breadth and depth of our distribution network with our downstream demand pull-through model. Commercially, we've built one of the strongest distribution networks in building products and are leveraging that strength across the enterprise. We serve over 4,100 home center locations and more than 8,000 distributor locations, providing broad access to our product categories, which gives our downstream customers the widest choice of service platforms. Our network has grown through commercial strength that is unparalleled in the market. Home Center customers value our in-store service, merchandising capabilities, unique product portfolio, and highly recognized brand, both on the shelf and online, which helps drive traffic and increase average ticket size. As a result, we've earned additional placement across all three of our product categories at Lowe's and were recently recognized in their annual vendor partner awards for our ability to deliver quality products, innovation, value, and service. Distributors choose Owens Corning because we provide easy-to-sell products and they increasingly see value in offering a complete residential package, roofing, insulation, and doors as we help them grow with our down-channel customers across all three product categories. Through our unique customer engagement model, we've built deep and loyal partnerships with the contractors, builders, dealers, and specifiers who utilize our iconic brand, our wide array of products, and our robust marketing and merchandising programs to help them grow their businesses. This partnership accelerates demand creation, deepens distribution partnerships, and is a meaningful source of differentiation for Owens Corning. And we continue to focus on increasing and expanding our network. In roofing alone, we've grown our contractor network to over 30,000 members. Operationally, alongside our commercial strength, we are leveraging the full scale and capabilities of the enterprise to deliver a winning cost position. Over the past several years, we've optimized our manufacturing network, improved flexibility, and invested in productivity and efficiency across our businesses. This includes expanding our use of intelligent monitoring and AI-enabled tools to improve asset reliability, reduce unplanned downtime, and support a structurally lower cost position. Today, we are monitoring and analyzing over 20,000 process sensors in our plants. Using Ai to provide real time alerts that help our teams predict risk before they impact safety quality or productivity. These capabilities are deployed in nearly 40 plants across our three businesses with plans to continue expanding. We are also capturing meaningful cost synergies in our doors business as we leverage enterprise manufacturing and supply chain capabilities and processes. Currently, we are on track to achieve approximately 135 million and run rate enterprise cost synergies by mid year. exceeding the $125 million we committed to. We are also making progress to deliver an additional $75 million of structural cost improvements within our operations. These actions are reducing the cost structure of the business and supporting a path to improved margins. At the same time, we're simplifying and standardizing work across the company to reduce complexity and improve operating expense efficiency by continuously identifying opportunities and maintaining a best-in-class cost structure we are strengthening our ability to self fund growth initiatives and reinvest in our OC advantages. Through this work, we are enhancing our ability to perform in today's environment while positioning us to grow revenues and earnings as volumes increase. We've also taken decisive portfolio actions to unlock cash and deploy capital to the opportunities that best support growth and returns. A key milestone of this effort was the recently completed sale of our glass reinforcements business. As a result, we will see cash proceeds from the transaction of approximately 280 million and expect to generate additional cash of 50 to 70 million from excess alloy sales over the next year. With the reshaping of Owens Corning complete, we are positioned to operate as a more integrated company and capture the full value of our complimentary product platforms. To help drive this next phase forward, we recently expanded Todd Pfister's role to Chief Financial and Operating Officer. Todd's deep strategic and operational expertise along with his knowledge of our people and the building products industry, will be key to our ability to unlock efficiencies, streamline execution, and accelerate organic growth by fully leveraging the OC advantages across the enterprise. Todd will provide both operational and financial leadership as we conduct a search for a chief financial officer. Before I turn it over to Todd, I also want to provide a brief update on our sustainability journey, which is fundamental to how we operate and build a strong company. We continue to embed sustainability into our operations by reducing emissions and waste to landfill and increasing the use of recycled materials, actions that lower cost, improve efficiency, and support both our winning cost position and our growth in Europe. In recognition, we were recently honored by S&P Global as a top 1% performer in the sustainability yearbook for the building products industry, placing us among a select group of sustainability leaders worldwide. We look forward to sharing more details on our progress in the upcoming release of our 20th Annual Sustainability Report. In summary, our first quarter results demonstrate the strength of the operating model we have built. Moving forward, we will remain focused on leveraging the OC advantages across our complementary businesses to create value for both our customers and our shareholders. With that, I'll turn it over to Todd.