Owens Corning Q4 2024 Earnings Call Summary

The following is excerpted from the question-and-answer section of the transcript.

Question: Anthony Pettinari - Citi - Analyst : Good morning, I was wondering if you could walk through, maybe in a little bit more detail, potential tariff impact and the mitigation strategies that you referenced. And if there's any way to kind of quantify either percentage of COGS, percentage of sales (inaudible)

Question: Michael Rehaut - JP Morgan - Analyst : Thanks for taking my question. I wanted to focus on pricing trends as you see them coming out of 2024 and into '25, especially around your residential markets. I think there's been various amounts of concern regarding, as you kind of alluded to, the potentially softer start and some of the new res and repair remodel segments. How are you thinking about pricing power in 2025? Particularly, I mean, across -- if you could kind of hit on Insulation, Roofing and Doors? And if there's any changes perhaps that you're might be anticipating this year relative to the pricing power you've enjoyed over the last couple of years?

Question: John Lovallo - UBS - Analyst : Thank you for taking my call. The question is, I guess, Roofing will include about $130 million of revenue from structural lumber in nonwovens and Insulation, about $30 million from the glass fiber plants. How do we think about the cadence of that as we move through the year? Should we expect the revenue contribution to just step up seasonally? Or what's the right way to think about that?

Question: Sam Reid - Wells Fargo Securities - Analyst : Thanks so much. I wanted to touch on some of the Medina capacity that's coming on online later this year in Roofing. And specifically, can you talk to the margin lift from mix that should come from incremental laminate capacity, I think especially if some of that is replacing some lower-margin strip single capacity that's coming offline?

Question: Matthew Bouley - Barclays - Analyst : Thank you for taking the question. So I wanted to ask on the new Roofing capacity of the new plant. So I guess in an industry that is also adding capacity beyond your own over the next couple of years, depending on where we go with industry volumes over these next couple of years, it would be helpful if you could give us some perspective on how do you think about kind of that -- the impact REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 24, 2025 / 2:00PM, OC.N - Q4 2024 Owens Corning Earnings Call of new capacity on the Roofing industry margins, and Roofing industry price and kind of how you think about the incentives of getting plant utilization to a certain level?

Question: Stephen Kim - Evercore ISI - Analyst : Thinking on the utilization rates, Insulation, I think you indicated that utilization rates were in the high 90s in the fourth quarter. I believe that was for fiber glass in North America. Can you talk about what utilization rates look like across your technical footprint? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 24, 2025 / 2:00PM, OC.N - Q4 2024 Owens Corning Earnings Call And then also with the glass plants that you're transferring to the business, the glass melters, I guess, I mean. Can you give us a sense for what the annual DNA looks like associated with those two facilities? And I think you said that margins are going to be pretty similar I was just wondering because in the Roofing side of the business, your margins are so high. I just want to make sure that we kind of have a sense. Are you talking within a couple of hundred basis points here? Or is it similar mean something much broader than that?

Question: Brian Biros - Thompson Research Group - Analyst : Hey, good morning. Thank you for taking my question. On the R&R side, I guess, on our demand becomes in a little bit better for the year or just whenever, you start pick back up. That should be a boost to the Door segment just given the R&R aspect there. How are you guys thinking about price versus volume and share gains for the Door segment when R&R returns to growth? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 24, 2025 / 2:00PM, OC.N - Q4 2024 Owens Corning Earnings Call

Question: Trevor Allinson - Wolfe Research - Analyst : Hi, good morning. Thank you for taking my question. First, going back to Roofing margins in 2025, maybe excluding any impact from the nonwovens. You've got a couple of price increases in 2024 that carryover. You've got another one for April. You did mention some cost inflation, but you're also expecting to be price/cost positive. So should we think about pretty healthy core Roofing margins year-over-year as we go into 2025? Or are there any other notable offsets we should be considering?

Question: Philip Ng - Jefferies - Analyst : Doors is still a very new business for me. So I just wanted to drill down on that a little bit, Brian. I think if I heard you correctly, you're dialing back some of your pricing to kind of be more in line with the broader market. And when I look at your margins, you're guiding it to drifting closer to low teens to low double digit from mid-teens. So I guess my question to you is what's your path to getting margins back to mid teens this year? And I believe that business probably has a little more risk as it relates to tariffs. Just help us understand the Colombian lumber exposure. Do you have any of that? Any hardware to that gives me some concerns about costs being a little more elevated, if pricing is a little more challenged. Just kind of help us think through the path for profitability in that doors business this year.

Question: Garik Shmois - Loop Capital - Analyst : I had a question just on the CapEx increase for '25. I was wondering if you could speak to what's incremental this year? And what would be a good maintenance CapEx figure to use when considering the divestment of the -- what was a highly capital-intensive GR business?