OWENS CORNING Q1 2026 INVESTOR PRESENTATION This presentation shared at the following events: | 03/11/26 | IR Roadshow Hosted by Deutsche Bank – Baltimore | | --- | --- | | | Brian Chambers, Chair & Chief Executive Officer | | 03/05/26 | Wolfe Research Housing Conference – New York | | | Todd Fister, Chief Financial Officer | | 03/04/26 | Evercore ISI Housing and Building Products Symposium – New York | | | Todd Fister, Chief Financial Officer | TM FORWARD-LOOKING STATEMENTS AND NON-GAAP MEASURES This prese ...

Core Viewpoint - Olive Resource Capital Inc. has reported a significant increase in its investment portfolio value, exceeding C$20 million as of February 28, 2026, driven by strong performance in commodity equities and strategic cash management in anticipation of market volatility [3][4]. Investment Portfolio Summary - The total value of Olive's investment portfolio increased from C$6.42 million on December 31, 2024, to C$20.19 million by February 28, 2026, reflecting a substantial appreciation in stock prices of its investments [2][11]. - Key investments include: - Omai Gold Mines Corp. increased from C$456,720 to C$5,006,000 [2]. - Arizona Sonoran Copper Co. rose from C$255,780 to C$1,371,800 [2]. - West Point Gold Corp. grew from C$118,688 to C$775,181 [2]. - Other notable investments include Aurion Resources Ltd. and Goldsky Resources Corp., which also showed significant value increases [2]. Market Performance and Strategy - February 2026 was characterized by broad advancements in commodities, with commodity equities performing well, often exceeding their respective reference commodities [3]. - The company has raised cash reserves to prepare for potential market volatility while maintaining a well-deployed investment strategy during historically strong seasonal performance months [3]. Share Repurchase Activity - Olive Resource Capital repurchased 116,500 shares in February 2026, bringing the total shares held in treasury to 2,116,500 pending cancellation [4]. Company Overview - Olive Resource Capital Inc. operates as a resource-focused merchant bank and investment company, primarily investing in natural resource companies across various development stages [6].

Core Insights - Owens Corning reported a challenging 2025, with weakening U.S. residential trends and destocking impacting performance, particularly in the roofing segment [2][4] - The company maintained strong profitability with a full-year revenue of $10.1 billion and adjusted EBITDA of $2.3 billion, achieving a 22% adjusted EBITDA margin [3][7] - Management anticipates a soft start to 2026 but expects improvement in the second half of the year, with revenue forecasts for Q1 2026 between $2.1 billion and $2.2 billion [18][21] Financial Performance - For Q4 2025, Owens Corning reported revenue of $2.1 billion and adjusted EBITDA of $362 million, representing a 17% margin [3][7] - The company generated $1.8 billion in operating cash flow for 2025 and returned approximately $1 billion to shareholders [5][9] - Full-year Roofing sales were $4.4 billion, down 4%, while Insulation sales were $3.7 billion, down 6% [11][13] Segment Results - Roofing segment Q4 sales were $774 million, down 27% year-over-year, primarily due to lower shingle volumes and reduced storm activity [10][6] - Insulation segment Q4 revenue was $916 million, down 7%, affected by the sale of a building materials business in China and lower volumes in North America [12] - Doors segment Q4 revenue was $486 million, down 14%, driven by lower volumes in new construction and discretionary repair [14] Strategic Actions - The company is focusing on residential building products, completing the sale of its business in China and Korea, and divesting the glass reinforcements business [16] - Owens Corning is exceeding its commitment to deliver $125 million in cost synergies by mid-2026, with additional structural cost improvements planned [16] - Initiatives under "The OC Advantage" include contractor engagement, innovation with over 30 new products launched, and manufacturing modernization efforts [24] 2026 Outlook - Management expects challenging conditions to persist in early 2026, with revenue anticipated to be flat compared to 2025 and a more normal roofing demand pattern expected [21] - For Q1 2026, Owens Corning forecasts revenue down in the low 20% range for Roofing and mid- to high-single digits for Insulation [19][20] - The company plans approximately $800 million in capital additions for 2026, with a focus on long-term cost efficiency and growth [5][21]

Core Insights - Owens Corning reported Q4 revenue of approximately $2.14 billion, missing estimates of $2.17 billion [1][6] - The company achieved net sales from continuing operations of $10.1 billion for the full year of 2025, reflecting a 3% increase year-over-year [2][6] - Owens Corning's financial health is bolstered by an operating cash flow of $1.8 billion and free cash flow of $1 billion [3][6] Financial Performance - The decline in sales across various end markets led to a wider loss in Q4 [2] - The company faced non-cash, pre-tax impairment charges of $1.2 billion related to its doors business in the second half of the year [3] Valuation Metrics - Owens Corning has a price-to-sales ratio of approximately 1.03 and an enterprise value to sales ratio of around 1.09, indicating investors are paying slightly more than the company's sales value [4] - The debt-to-equity ratio stands at about 0.26, suggesting a relatively low level of debt compared to equity [4] - A current ratio of approximately 1.26 indicates good liquidity to cover short-term liabilities [4] Challenges - The company has a negative price-to-earnings ratio of -9.00 and an earnings yield of -11.11%, indicating current losses [5] - The enterprise value to operating cash flow ratio of approximately 6.18 reflects the company's ability to generate cash relative to its enterprise value [5]

Core Insights - Owens Corning reported fourth-quarter results that fell short of analyst expectations, with adjusted earnings per share of $1.10, below the consensus estimate of $1.36 [1] - Revenue declined 17% year over year to $2.14 billion, missing the $2.17 billion estimate, driven by weaker demand across all segments [2] Financial Performance - Roofing sales dropped 27%, Insulation fell 7%, and Doors decreased 14% compared to the prior-year quarter [2] - For full-year 2025, adjusted earnings per share were reported at $12.05, down from $14.85 in 2024, with revenue of $10.1 billion, reflecting a 3% year-over-year increase [2] - The company recorded $1.2 billion in non-cash, pre-tax impairment charges related to its Doors business during the second half of the year [3] Future Outlook - For the first quarter of 2026, Owens Corning expects revenue of approximately $2.1 billion to $2.2 billion, with a midpoint of $2.15 billion, slightly below the fourth-quarter level [4] - Adjusted EBITDA margin is anticipated to be in the mid-teens due to higher-cost inventory impacting results [4] - Management expects full-year 2026 performance to be largely in line with current consensus estimates [4]

Core Insights - Owens Corning reported a revenue of $2.14 billion for the quarter ended December 2025, reflecting a year-over-year decline of 24.6% and a surprise of -2.57% compared to the Zacks Consensus Estimate of $2.2 billion [1] - The earnings per share (EPS) for the quarter was $1.10, down from $3.22 in the same quarter last year, resulting in an EPS surprise of -17.44% against the consensus estimate of $1.33 [1] Revenue Performance - Net Sales in the Insulation segment reached $916 million, slightly above the average estimate of $886.64 million, representing a year-over-year change of -1.1% [4] - Net Sales in the Doors segment were reported at $486 million, below the average estimate of $516.12 million, showing a year-over-year decline of 13.8% [4] - Net Sales in the Roofing segment amounted to $774 million, compared to the average estimate of $799.33 million, indicating a year-over-year decrease of 15.1% [4] Segment EBITDA - Segment EBITDA for Roofing was $199 million, slightly above the average estimate of $196.04 million [4] - Segment EBITDA for Doors was reported at $33 million, significantly below the average estimate of $51.66 million [4] - Segment EBITDA for Insulation reached $186 million, slightly exceeding the average estimate of $182.01 million [4] Stock Performance - Owens Corning's shares have returned +4.5% over the past month, contrasting with a -0.3% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 4 (Sell), suggesting potential underperformance relative to the broader market in the near term [3]

分组1 - Owens Corning reported quarterly earnings of $1.1 per share, missing the Zacks Consensus Estimate of $1.33 per share, and down from $3.22 per share a year ago, representing an earnings surprise of -17.44% [1] - The company posted revenues of $2.14 billion for the quarter, missing the Zacks Consensus Estimate by 2.57%, and down from $2.84 billion year-over-year [2] - Over the last four quarters, Owens Corning has surpassed consensus EPS estimates three times and topped consensus revenue estimates two times [2] 分组2 - The stock has gained approximately 13.2% since the beginning of the year, outperforming the S&P 500's gain of 0.7% [3] - The current consensus EPS estimate for the coming quarter is $1.72 on revenues of $2.21 billion, and for the current fiscal year, it is $10.58 on revenues of $9.8 billion [7] - The Zacks Industry Rank for Building Products - Miscellaneous is currently in the bottom 30% of over 250 Zacks industries, indicating potential underperformance compared to higher-ranked industries [8]

Financial Data and Key Metrics Changes - In Q4 2025, the company reported revenue of $2.1 billion and Adjusted EBITDA of $362 million, with an Adjusted EBITDA margin of 17% [7] - For the full year 2025, revenue reached $10.1 billion and Adjusted EBITDA was $2.3 billion, resulting in an Adjusted EBITDA margin of 22% [8] - The company returned $1 billion to shareholders through dividends and share repurchases in 2025, marking a total of over $4 billion returned since 2020 [8] Business Line Data and Key Metrics Changes - Roofing business sales in Q4 were $774 million, down 27% year-over-year, primarily due to lower shingle volumes [25] - Insulation business achieved Q4 revenues of $916 million, down 7%, driven by lower volumes in North American residential markets [27] - Doors business generated Q4 revenue of $486 million, down 14% from the prior year, affected by lower volumes in new construction and remodeling [29] Market Data and Key Metrics Changes - The U.S. residential market faced weakening trends, with a notably quiet storm season impacting roofing repair demand [6] - North American residential new construction and discretionary repair activity are expected to remain soft in early 2026, with a gradual improvement anticipated in the second half of the year [34] - European market conditions are expected to remain stable, benefiting from currency tailwinds [36] Company Strategy and Development Direction - The company is focusing on reshaping its portfolio by divesting from non-core businesses and enhancing its presence in residential product categories [9][10] - Strategic investments in manufacturing efficiency and capacity expansion are underway, with a focus on long-term cost efficiency [16] - The company aims to leverage its brand strength and unique capabilities to drive revenue growth and achieve mid-20% Adjusted EBITDA margins over the long term [12][44] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging market conditions in 2025 but expressed confidence in the company's ability to generate strong financial results as market conditions improve [18][34] - The outlook for 2026 includes expectations for a gradual recovery in residential markets, with a focus on capturing pent-up demand for housing and renovations [44] - Management emphasized the importance of operational efficiency and strategic investments to enhance future growth potential [19][44] Other Important Information - The company achieved a recordable incident rate of 0.60, reflecting its commitment to safety [7] - The company has made significant progress in integrating its new Doors business and achieving cost synergies [11] - The company expects to maintain a disciplined capital allocation strategy while investing in high-return growth opportunities [24] Q&A Session Summary Question: How comfortable is the company with visibility into Q2 to Q4 and meeting consensus estimates? - Management indicated that visibility is improving, with expectations for roofing demand to increase throughout the year as market conditions normalize [47][49] Question: What types of investments are included in the $800 million CapEx guide? - The $800 million CapEx is focused on growth-oriented and productivity investments in Roofing and Insulation, supporting ongoing cost efficiency [52][54] Question: Can the company discuss the contractor pull-through opportunities mentioned? - Management highlighted the success of its contractor engagement model and its expansion to lumber and building material dealers, resulting in a 38% increase in dealer enrollments [68][70]

Financial Data and Key Metrics Changes - In Q4 2025, the company reported revenue of $2.1 billion and Adjusted EBITDA of $362 million, with an Adjusted EBITDA margin of 17% [7] - For the full year 2025, revenue reached $10.1 billion and Adjusted EBITDA was $2.3 billion, resulting in an Adjusted EBITDA margin of 22% [8] - The company returned $1 billion to shareholders through dividends and share repurchases in 2025, marking a total of over $4 billion returned since 2020 [8][9] Business Line Data and Key Metrics Changes - Roofing business Q4 sales were $774 million, down 27% year-over-year, primarily due to lower shingle volumes [25] - Insulation business achieved Q4 revenues of $916 million, down 7%, driven by lower volumes in North American markets [27] - Doors business generated Q4 revenue of $486 million, down 14% from the prior year, affected by lower volumes in new construction and remodeling [29] Market Data and Key Metrics Changes - The U.S. residential market faced weakening trends, with a notably quiet storm season impacting roofing repair demand [6] - North American residential new construction and discretionary repair activity are expected to remain soft in early 2026, with a gradual improvement anticipated in the second half [34][36] - European market conditions are expected to remain stable, benefiting from favorable currency tailwinds [36] Company Strategy and Development Direction - The company is focusing on reshaping its portfolio by divesting from non-core businesses and enhancing its presence in residential product categories [9][10] - Strategic investments in manufacturing efficiency and capacity expansion are underway, with a focus on long-term cost efficiency [16][32] - The company aims to leverage its brand strength and unique capabilities to drive revenue growth and achieve mid-20% Adjusted EBITDA margins over the long term [12][44] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging market conditions in 2025 but expressed confidence in the company's ability to generate strong financial results as market conditions improve [18][34] - The outlook for 2026 anticipates continued challenges in the first half, with expectations for gradual recovery in the latter half of the year [34][36] - The company is optimistic about pent-up demand for housing and the need for renovations, which are expected to create growth opportunities [44] Other Important Information - The company achieved a recordable incident rate of 0.60, reflecting its commitment to safety [7] - The company has made significant progress in integrating its new Doors business and achieving cost synergies [11][30] - The company is utilizing advanced analytics and AI to enhance operational efficiency and customer service [17] Q&A Session Summary Question: How comfortable is the company with visibility into Q2 to Q4 and meeting consensus estimates? - Management indicated that visibility is improving, with expectations for roofing demand to increase throughout the year as market conditions normalize [47][48] Question: What types of investments are included in the $800 million CapEx guidance? - The CapEx is focused on growth-oriented projects in Roofing and Insulation, supporting ongoing cost efficiency and productivity [52][53] Question: Can the company elaborate on the contractor pull-through opportunities? - The company is leveraging its successful contractor engagement model to create downstream demand across its product lines, resulting in a 38% increase in dealer enrollments [68][70]

Financial Data and Key Metrics Changes - In Q4 2025, the company reported revenue of $2.1 billion and Adjusted EBITDA of $362 million, with an Adjusted EBITDA margin of 17% [5] - For the full year 2025, revenue reached $10.1 billion and Adjusted EBITDA was $2.3 billion, resulting in an Adjusted EBITDA margin of 22% [6][20] - The company returned $1 billion to shareholders through dividends and share repurchases in 2025, marking a total of over $4 billion returned since 2020 [7] Business Line Data and Key Metrics Changes - Roofing business Q4 sales were $774 million, down 27% year-over-year, with full-year sales of $4.4 billion, down 4% [24][25] - Insulation business Q4 revenues were $916 million, down 7%, with full-year sales of $3.7 billion, down 6% [26][27] - Doors business generated Q4 revenue of $486 million, down 14%, with full-year sales of approximately $2.1 billion [28][29] Market Data and Key Metrics Changes - The U.S. asphalt shingle market declined approximately 10% for the year, with a significant drop in the second half due to weak storm demand [25] - North American residential new construction and discretionary repair and remodel activity are expected to remain soft in early 2026, reflecting the lowest level of quarterly housing starts in six years [33] Company Strategy and Development Direction - The company is focusing on enhancing operational efficiency and accelerating organic growth through strategic initiatives [5] - Major strategic moves include divesting from non-core businesses and shifting towards residential product categories [9] - The company aims to achieve a mid-20% Adjusted EBITDA margin profile over the long term through factory modernization and cost efficiency initiatives [15] Management's Comments on Operating Environment and Future Outlook - Management noted that 2025 was a challenging year with weakening U.S. residential trends and distribution destocking [4] - For 2026, the company expects market conditions to improve in the second half of the year, with multiple paths to deliver strong results [33] - The company anticipates first quarter revenue from continuing operations of approximately $2.1 billion to $2.2 billion, in line with Q4 [34] Other Important Information - The company achieved a recordable incident rate of 0.60, which is industry-leading among U.S. manufacturers [5] - The company has been recognized as one of The Wall Street Journal's top 250 Best Managed Companies, ranking 73rd overall [17] Q&A Session Summary Question: How comfortable is the company with visibility into Q2 to Q4? - Management expressed confidence in visibility, expecting roofing demand to improve throughout the year as market conditions normalize [46][48] Question: What types of investments are included in the $800 million CapEx guide? - The $800 million CapEx is focused on growth-oriented and productivity-oriented investments in Roofing and Insulation, supporting ongoing cost efficiency [50][52] Question: Can the company elaborate on the contractor pull-through opportunities? - The company is leveraging its successful contractor engagement model to create downstream demand, with a significant increase in dealer enrollments [66][69]