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 Insights - Installed Building Products, Inc. (NYSE:IBP) is recognized as one of the best economic recovery stocks to buy now [1] Financial Performance - For Q4 2025, IBP reported net sales of $747.5 million, a 0.4% decrease from the previous year [4] - Other revenue from manufacturing and distribution increased by 22.8% to $67.8 million, while installation-related revenues decreased by 2.2% to $679.7 million [4] - Despite lower revenue, the company's adjusted EBITDA rose by 7.7% to $142.2 million, and net income increased by 14.5% to a record $76.6 million [5] - Earnings per diluted share increased by 18.4% to $2.83 compared to the same period last year [5] Market Outlook - RBC Capital raised its price target for IBP from $203 to $255 while maintaining an Underperform rating, citing strong growth in the heavy commercial segment expected to continue into 2026 [2] - Potential challenges for the upcoming year include price and cost pressures, a downturn in the single-family housing market, possible declines in private non-residential development, and concerns about the sustainability of profit margins [3] Company Overview - IBP is a U.S.-based installer of insulation and complementary building products for both residential and commercial construction, offering services such as insulation, waterproofing, fireproofing, and garage doors through a nationwide contractor network [6]

Economic Overview - The US real GDP is projected to increase by approximately 2.2% in 2025, down from 2.8% in 2024, indicating a gradual economic expansion driven by business investment and consumer spending [2] - Predictions for 2026 suggest a modest growth rate between 1.8% and 2.0%, reflecting the economy's underlying resiliency [2] - Unemployment is expected to rise slightly to between 4.4% and 4.5% in 2026, compared to around 4% in 2024 and 2025 [3] - The core PCE price index indicates inflation continues to exceed the Fed's 2% target, with pricing pressures expected to remain above target throughout 2026 [3] Market Insights - Analysts highlight the resilience of American consumers, suggesting that if corporate profits maintain their current trajectory, the market and economy will continue to perform well [4] - There is a recommendation for investors to adopt "boring" but reliable strategies such as global diversification and investing in dividend-paying companies [5] - The strong performance of international markets in 2025 presents profitable opportunities, although there is a preference for local large- and mid-cap stocks [5] Methodology for Stock Selection - The methodology focuses on stocks that typically perform well during economic recovery, screening ETFs with cyclical stocks and selecting companies with significant recent developments [7] - The strategy aims to mimic top stock picks from leading hedge funds, which has historically outperformed the market [8] Company Highlights Installed Building Products, Inc. (NYSE:IBP) - IBP reported net sales of $747.5 million for Q4 2025, a 0.4% decrease from the previous year, with installation-related revenues down 2.2% to $679.7 million [12] - Despite lower revenue, adjusted EBITDA increased by 7.7% to $142.2 million, and net income rose 14.5% to a record $76.6 million, with earnings per diluted share up 18.4% to $2.83 [13] - The company faces challenges such as price and cost pressures, a downturn in the single-family housing market, and potential declines in private non-residential development [11] TopBuild Corp. (NYSE:BLD) - BLD reported Q4 2025 revenue of $1.49 billion, a 13.2% increase from the same period last year, driven by acquisitions [16] - The company completed seven acquisitions throughout the year, generating nearly $1.2 billion in sales, and returned $434.2 million to shareholders through share repurchases [17] - Revenue projections for 2026 are between $5.925 billion and $6.225 billion, with adjusted EBITDA expected to be between $1.005 billion and $1.155 billion [17]

Core Insights - Installed Building Products (IBP) reported record sales and profitability for fiscal year 2025, driven by strong performance in commercial markets and effective cost management despite challenges in residential demand [3][4][6]. Financial Performance - For the full year 2025, IBP achieved consolidated sales growth of 1% but experienced a 1% decline in same-branch sales, with residential same-branch sales down 4% [2][6]. - The company closed fiscal 2025 with adjusted EBITDA of $142 million, representing a 19% adjusted EBITDA margin, and adjusted net income of $88 million, or $3.24 per diluted share [6][9]. - Fourth-quarter consolidated net revenue was approximately flat at $748 million, with same-branch sales for the installation segment declining 2% [7]. Market Dynamics - The company noted that while residential demand faced pressure due to housing affordability, commercial markets showed robust performance, particularly in sectors like education, healthcare, and manufacturing [3][10]. - Management indicated that the customer mix shift towards regional, private move-up, and custom builders has positively impacted margins, while entry-level production builders continue to face challenges [11][12]. M&A and Growth Strategy - IBP completed 11 acquisitions in 2025, adding over $64 million in annual revenue, and plans to pursue at least $100 million in acquisitions in 2026 [5][15][16]. - The company is focusing on expanding its presence in commercial roofing and mechanical installation, identifying these areas as significant growth opportunities [17]. Capital Management and Shareholder Returns - IBP maintained strong liquidity with nearly $900 million available and a net debt to trailing 12-month adjusted EBITDA ratio of 1.1x [18][19]. - The company returned capital to shareholders through stock buybacks, repurchasing 850,000 shares for $173 million in 2025, and authorized a new $500 million buyback program [20]. - A first-quarter dividend of $0.39 per share was approved, representing a more than 5% increase over the prior year, along with a variable dividend of $1.80 per share [21].

Financial Data and Key Metrics Changes - Consolidated net revenue for Q4 2025 was approximately flat at $748 million, compared to $750 million in the same period last year [15] - Adjusted EBITDA for Q4 2025 increased to a record $142 million, reflecting a record adjusted EBITDA margin of 19% [17] - Adjusted net income increased to $88 million, or $3.24 per diluted share [17] - The adjusted return on invested capital for 2025 was 24%, consistent with the previous three years [7] Business Line Data and Key Metrics Changes - Same-branch sales for the installation segment were down 2% for Q4, with a 23% increase in commercial same-branch sales offsetting a 9% decline in new residential same-branch sales [15] - Heavy commercial same-branch sales growth was strong at 38% during Q4 2025 [16] - Residential sales growth within the installation segment was down 4% on a same-branch basis for 2025 [8] Market Data and Key Metrics Changes - Single-family starts decreased by 7% from the prior year, while multifamily starts were up 18% for the same period [11] - The commercial end market saw installation segment sales up 10% on a same-branch basis from the prior year [9] Company Strategy and Development Direction - The company remains focused on profitable growth and maximizing returns for shareholders while continuing to invest in strategic acquisitions [6][10] - The core residential installation market is highly fragmented, presenting considerable opportunities for consolidation [10] - The company plans to acquire at least $100 million of annual revenue in 2026 [11] Management's Comments on Operating Environment and Future Outlook - The company expects home building activity to remain challenging in the near term, but the long-term outlook for installed services remains positive [6] - Management is optimistic about the fundamentals of the industry and the company's competitive positioning [12] - The company anticipates some level of rebuilding of inventories in the entry-level market, which could lead to a positive inflection [30] Other Important Information - The company repurchased 150,000 shares of common stock at a total cost of $38 million in Q4 2025 and 850,000 shares at a total cost of $173 million during the full year [21] - A new $500 million stock buyback program was authorized, replacing the previous program [21] - The board declared a $1.80 per share annual variable dividend, a nearly 6% increase over the previous year [22] Q&A Session Summary Question: Confidence in protecting margins amid price deflation - Management acknowledged the pressure on margins but expressed confidence in the performance of the commercial business and the ability to manage costs effectively [26][27] Question: Investment in commercial business - Management indicated that there is room for both organic and M&A growth in the commercial sector, with plans to pursue opportunities as they arise [32][35] Question: M&A landscape and strategy - Management confirmed interest in the commercial roofing segment and emphasized ongoing efforts in the mechanical and industrial installation areas [45][46] Question: Growth in complementary products - Management reported continued good uptake in complementary products, particularly in the heavy commercial business, and noted that this growth is expected to continue [55][56] Question: Impact of weather on Q1 results - Management estimated that weather-related impacts in January and February would result in a revenue loss of about $20 million for Q1 [78] Question: Multifamily market outlook - Management expressed confidence in the multifamily market, noting that cycle times have normalized and backlogs are growing [111][112]

Financial Data and Key Metrics Changes - Consolidated net revenue for Q4 2025 was approximately flat at $748 million, compared to $750 million in the same period last year [13] - Adjusted EBITDA for Q4 2025 increased to a record $142 million, reflecting a record adjusted EBITDA margin of 19% [15] - Adjusted net income increased to $88 million, or $3.24 per diluted share [15] - Adjusted return on invested capital for 2025 was 24%, consistent with the previous three years [5] Business Line Data and Key Metrics Changes - Same-branch sales for the installation segment were down 2% in Q4, with a 23% increase in commercial same-branch sales offsetting a 9% decline in new residential same-branch sales [13] - Residential sales growth within the installation segment decreased by 4% on a same-branch basis for 2025, with both single-family and multifamily same-branch sales declining [6] - Commercial end market sales in the installation segment increased by 10% on a same-branch basis from the prior year [8] Market Data and Key Metrics Changes - Single-family starts decreased by 7% in 2025, while multifamily starts increased by 18% [10] - The heavy commercial end market saw same-branch sales growth of 38% in Q4 2025 [14] - The Midwest Census Bureau region revenue was up mid-single digits, benefiting from a higher mix of private, semi-custom, and custom homes [46] Company Strategy and Development Direction - The company aims to focus on profitable growth and maximizing returns for shareholders while continuing to invest in strategic acquisitions [5] - The core residential installation market remains highly fragmented, presenting opportunities for consolidation [9] - The company plans to acquire at least $100 million of annual revenue in 2026, with a strong outlook for acquisition opportunities [10] Management's Comments on Operating Environment and Future Outlook - The management expects home building activity to remain challenging in the near term but maintains a positive long-term outlook for installed services [5] - The company is well-positioned to compete and win business due to strong national market share and deep customer relationships [11] - Management expressed optimism about the fundamentals of the industry and the company's competitive positioning [11] Other Important Information - The company repurchased 150,000 shares of common stock at a total cost of $38 million in Q4 2025 and 850,000 shares at a total cost of $173 million during the full year [19] - A new $500 million stock buyback program was authorized, replacing the previous program [19] - The board declared a $1.80 per share annual variable dividend, a nearly 6% increase over the previous year [20] Q&A Session Summary Question: What is the confidence in protecting margins for 2026? - Management noted that while they do not provide guidance, they believe the commercial business will continue to perform well, and they are managing costs effectively [25][26] Question: Can the commercial business see more investment? - Management indicated that there is room for both organic and M&A growth in the commercial sector, and they feel confident about growth prospects [30][34] Question: What is the M&A landscape and strategy? - Management confirmed interest in the commercial roofing segment and emphasized ongoing opportunities in the core residential insulation installation business [44][45] Question: How is the company managing price-cost dynamics? - Management acknowledged price-cost pressures in the entry-level market but expressed confidence in their ability to manage these challenges effectively [76][77] Question: What is the outlook for multifamily construction? - Management believes the multifamily market is normalizing and expects continued growth, supported by strong backlogs and improved cycle times [111][113]

INVESTOR PRESENTATION INSTALLED BUILDING PRODUCTS Q4 2025 FEB 26, 2026 NYSE: IBP Safe Harbor This presentation contains "forward-looking statements" as defined under U.S. federal securities laws. Forward -looking statements are generally identified by the use of the words "will," "may," "believes," "expects," "forecast," "intends," "anticipates," "projects," "outlook," "target," "plans" and "seeks," and, in each case their negative, and other variations or comparable terminology. Forward-looking statements ...

1 Fourth Quarter and Year End 2024 Robert Buck, President & CEO Rob Kuhns, CFO Published February 25, 2025 Safe Harbor Statements contained herein reflect our views about future periods, including our future plans and performance, constitute "forward-looking statements" under the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as "will," "would," "anticipate," "expect," "believe," "designed," "plan," or "intend," the negative of these terms, and s ...

Core Insights - TopBuild Corp. reported a 13.2% increase in fourth quarter sales, totaling $1.49 billion, primarily driven by acquisitions [2][6] - The company completed seven acquisitions in 2025, contributing approximately $1.2 billion in annual sales and diversifying its market exposure [3][5] - For 2026, TopBuild expects sales between $5.925 billion and $6.225 billion, with adjusted EBITDA projected between $1.005 billion and $1.155 billion [4][16] Financial Performance - Fourth quarter sales reached $1,485.2 million, up from $1,312.2 million in the previous year, with a gross profit of $404.6 million and a gross margin of 27.2% [7][24] - For the full year 2025, total sales were $5,409.1 million, slightly up from $5,329.8 million in 2024, with a net income of $521.7 million [8][24] - The company returned $434.2 million to shareholders through share repurchases, buying back approximately 1.4 million shares [3][14] Segment Analysis - Installation Services generated sales of $798.4 million in Q4 2025, while Specialty Distribution saw sales of $755.4 million, marking a 25.5% increase [10][29] - The adjusted EBITDA margin for Installation Services was 21.0%, while Specialty Distribution's margin was 15.4% [11][29] - Operating profit for Installation Services was $137.7 million, with an operating margin of 17.2%, while Specialty Distribution reported an operating profit of $79.3 million with a margin of 10.5% [11][29] Capital Allocation and Acquisitions - In 2025, TopBuild completed acquisitions including Progressive Roofing and SPI, which are expected to enhance its market position in commercial roofing and mechanical insulation [5][12] - The company has continued to prioritize acquisitions as a key strategy for capital deployment, with additional acquisitions planned for 2026 [4][13] - The total annual revenue from acquisitions in 2025 was approximately $1.2 billion, with ongoing efforts to drive operational improvements and synergies [5][6] 2026 Outlook - The company anticipates a mid-single-digit decline in residential sales, while expecting low-single-digit growth in commercial and industrial sales [15][17] - M&A contributions to sales are projected to be between $800 million and $850 million for 2026 [17] - The guidance for 2026 does not include potential acquisitions that may close during the year [15]

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]