Owens Corning (OC) 6 Nov 242024 Q3 Earnings call transcript

Good morning, everyone, and welcome to Owens Corning's Third Quarter 2024 Earnings Call. My name is Lydia, and I will be your operator today. [Operator Instructions] I'll now hand you over to Amber Wohlfarth, Vice President, Corporate Affairs and Investor Relations, to begin. Please go ahead.

Good morning. the review join for of quarter XXXX. taking conference for the for of and call our you time us to today's third Thank business results

Chief Brian Financial financial Chief [Operator results detailed quarter and Instructions] Earlier issued third Corning's Joining filed Fister, we Officer. Chambers, of morning, for news today and Todd the are Chair us XXXX. our and a Executive this a Officer; our that Owens release XX-Q

slides presentation our discussion these today, we results, For we'll performance the purposes and prepared and of our slides have during summarizing refer to this call.

of earnings reference. release, section call at Corporate the slides supporting the future access can available and presentation Refer link the Investors XX-Q of slides our You our the website, to this owenscorning.com. website be press for recording will Form homepage. the and on A under our and transcript

we Slide X reference reminders. of Please where a offer couple

statements and to could subject will factors statements First, are Please detail. risk to required that beyond remarks We what materially. our cautionary differ our in filings more uncertainties risks, to SEC cause securities the and no is statements undertake include update today's refer laws. applicable identified obligation the these that factors actual forward-looking under for other to results

earnings Second, website, our our of press and measures. of release non-GAAP on the financial presentation Investors be today's reconciliations section in presentation and slides Explanations to may and remarks non-GAAP contain found GAAP the owenscorning.com. measures available

presentation, will those following For our on begin of you X. Slide with we along slide

Brian? Chair CEO, Chambers. from our remarks opening and now And Brian

us everyone, today. Amber. for you morning, joining Good Thanks, and thank

performance to discuss strategic provide commercial building and and an our detail focus on During I'll a near-term sharpen will performance, further products will leader company outlook. in Todd come residential investments and overview while back we our and then our future financial the call third growth. for positioning and share I making quarter initiatives morning, our as are of several review this our

quarter, with challenging to demonstrate outstanding commercial execution another delivered and our continuing best-in-class Corning Owens conditions. despite operational market team near-term

deliver the strong is our to and years the done ability our of to results power ongoing over direct reflection improve earnings a the positions, of we've efficiencies Our operating market-leading such company. increase the past strengthen few work

our begin our we and also our made speak to geographic component In to further I'll financial of this a our as capacity strong as key to a footprint. with number addition well shortly. on always critical results, enhance simplify as progress more first, safety. production, capability, I'll But about success, initiatives

our quarter. incident of in framework, more rate our year have the recordable half and operated facilities injury-free X.XX Safer operating Through Together our for over this the a than year. so was third implementation X/X done of have

reminder, our in added recently has been As RIR not included Doors a calculation. the segment

business, in to our in safety safety-first our bring to performance including look forward to see the this reporting culture early improvements we As and continue we Doors in XXXX.

XX% achieving in of margins. market despite adjusted In of the structurally the detail, the quarter XX%, better company consecutive more conditions. XXth EBITDA financial our mid-teens and margin our demonstrate profile In adjusted delivered better EBITDA of margins adjusted third continued to results resilient earnings looking at and more our performance higher challenging quarter, more EBIT EBIT an or XX% adjusted margin and or marking

repurchases. company, free disciplined on of allocators, through and sheet In demonstrate of diluted being Sales $X.XX. the producing also the million dividends the $XXX cash cash-generating quarter, given flow. to focus strength And of growth capability per of to returned and $XXX capital million and margin we in adjusted our resulted shareholders share we share the earnings balance continued

the results a strong at outperforming again overall market our margins with shingle businesses delivered high Our in level with generated our perform very once volume and line expectations. as market-leading continued the to Roofing slightly and prior and down insulation our in favorable was American we market mix product businesses. the residential price positive In within asphalt realization North increased technical year. Insulation, quarter shingle delivered through sales versus

within nonwovens Corning as as in through macro in grow navigated Arkansas, to Results our with first performed segment Fort began Composites, capacity well to choppy part us near-term its full end-markets. Doors our the quarter remaining challenging. the new on Smith, focus this also we the commissioning of quarter, in giving outlook. despite In were environment some Work incremental integration business efforts our we And in glass business. continue Owens line line

more our company quarter this our earnings results line. reflect made growing generate while to higher, resilient also continue progress to top the in structuring Our we have

few enterprise to EBITDA achieve Through our invested and adjusted paths company, Over priorities, in branded XX% years, of focused the acquisitions our multiple free operating capital this drive expanded and This been margins, that approach have build as of have the cash past where allocation better process, on can offering we strategy products capital growth. as returns generation. building creating well mid-teen through a investments we've or significant the flow reshaping on to market-leading positions. maintained disciplined organic and resulted we execution has products applications

on We and business our optimization have to opportunities geographic simplify footprint efficiencies our cost that improved structure position. also several and operating have capitalized

enhance key building announced to As America and a X morning. this this result Corning leader decisions a earnings of North Owens products disciplined power our as focus in we Europe, approach and

roofing that in insulation Korea announcement a our building this to roofing start North plant member of markets, our and that management our me business' our assets business facility American and insulation European glass This manufacturing Pacific further includes team. wovens of cellular manufacturing and sale China our and in Not the including products manufacturing Asia our simplify with X China our facilities well in in geographic service footprint in glass to servicing selling manufacturing a facilities assets reinforcement are facilities our transaction as coated India included in China. in demand region. Let Korean by as

North million strategic decision in market and position strong this business generating America of exit more strengthening presence in a us allows customer on focus which in base and built approximately The business the additional we've Europe, these includes investments years, the to put our markets. XXXX. with to Over $XXX leadership revenues

this latest increase United announcement capacity of this our fiberglass The insulation morning the States. in example is to

Over the few meet the demand market invest and of flexible in fiberglass continued last modernization strong to to been both and residential options our evaluating network our we've quarters, commercial products. cost-effective U.S. insulation for

line and both fiberglass we heavy-density is utilize process technology City XXXX, to result our cost. a an improved capacity, existing of of will expected the this online Kansas announce at excited As production manufacturing our in new facility. evaluation, which products advanced a This come addition within to light- to produce are

In our our to Kansas demand our addition, network this light-density the to existing fiberglass line meet increase capability in insulation team across will of the line us new our new Kansas of leveraging alongside Positioning enables facilities. market and residential other give knowledge City the customers while existing us to City. grow capacity rebalance in footprint to production manufacturing

our to segment of of geographic highly the announcements, valued to sharpen make of key Doors; progress other the products. addition reinforcements X focus: Doors to our integration product acquisition continue X evaluation and our and good addition business. strengthened our portfolio The on branded glass and the strategic Corning In we has these Owens building of initiatives to

improved OC, remain both category this As customer growth results drive future we excited opportunities and capabilities and about we within ability the science continue knowledge, as best-in-class material and brands, to Doors integrating to we make our extensive channel companies' within financial progress in expertise. leverage manufacturing

our expectation product of expanded our and original to playbook, long-standing cost synergies finding execute $XXX opportunities our integration we with while consistent continue relationships. We customers growth explore utilizing new with million, line

in We reducing have leveraging duplicate categories number delivered and scale. our processes, sourcing a of and operating synergies streamlined spending

to these remainder X we years synergies Doors and cost savings of on anticipate are legacy across the synergy In and about first within half OC. realize segment within the of track terms capture, recognizing the the

our strategic reinforcements the business. Lastly, regarding glass of review

continue We At path review to for the concluded business. options on evaluation of and yet the not however, determine we best shareholders process. progress the time, both this make growth to value our to maximize have the

being disciplined for committed future. alternatives, operator are we we explore as As to we the a plan

As ongoing business cost explore the we focus we such, improving of continue actions. through to while the on options, restructuring overall position

over it for their my in recent Owens role our recognition. colleagues most congratulate like to Corning I turn XX,XXX Todd, I Before would to

for We in U.S. the named seventh our within have consecutive List XX first and among and companies. ranked largest been environmental, recognizes the publicly-traded performance year the top we're This Citizens outstanding governance of list XXX and transparency, Best social category. Corporate the industry

our it's people our we truly mission material through make difference. progress more innovation, toward make to future sustainable a the As that build

Todd? to quarter it discuss on performance that strategic priorities, financial I in more results of detail. to our With will over progress third our Todd view now turn and

everyone. and Brian, you, Thank good morning,

the As the Brian consistent have quarter from operational performance of improvements structural commercial mentioned, our the third execution results. reflects and delivered we The to teams. quarter made outstanding we and another the enterprise in

multiple and have margins, sustain our cash cash to structurally to We generation deliver continue EBITDA strong shareholders. higher to paths return

discuss quarter, line EBITDA I'd the of was deliver continued by in more Organically, the margin versus legacy the to adjusted up In year and growth the margin EBITDA the $XXX and for businesses. adjusted million XX%. Part grew by be to acquisition can to the with XX% segment last $XXX growth line of Slide commercial EBIT in excellent and to now EBIT top quarter remainder we driven first a were EBITDA execution in X full on first of the Doors quarter enterprise. quarter XX%. primarily EBIT turn after Adjusted like bottom build adjusted Masonite, of and our of X%. to third adjusted ongoing detail. million XX% operating attributed our year-over-year was to strong the Adjusted half and

year. $XXX for $X.XX earnings per compared diluted $XXX share, Adjusted or in per quarter the third same the quarter or diluted million prior were with $X.XX share million

$XX shift production and approximately the certain and primarily review in $XX our as For ongoing the Masonite of our reinforcements adjusted million EBIT. sale and $XX of tooling the totaled business. adjusting needs items are glass $XX related the change include Composites, costs, of from precious million to gains charges They excluded acquisition-related million on quarter, the of portfolio ownership we strategic metals of million

Slide Turning to X.

Our remains capital allocation strategy unchanged.

the on cash focused flow, company. grow returning investors We strong XX% time, balance business an over strategies investment-grade generating on maintaining free executing to approximately and to sheet while our are

in million flow from increased last make year targeted quarter, million quarter additions we from quarter as decline the year-over-year in which flow up Operating million was was prior compared in to for the year up cash $XXX $XXX was prior the quarter. Free year. the The mentioned. million investments to third cash $XX the were due slightly same $XXX Brian capital

the of the debt company acquisition. At was September last we facilities. XXXX, months availability on for billion, XX cash to billion of $X.X Our the capital XX% as ending and from approximately $X.X XX, year of bank return consisting impact our the continued liquidity quarter-end, $XXX of on had of see down million

We in have million notes fourth due the quarter. of $XXX senior

under During have the year, repurchases the share through dividend. of the we third X million had and million inclusive shares $XXX months returning targeted Through end quarter the adjusted quarter. share our X the the of to $XXX net returned million in and of first was to of shareholders our to cash At repurchase a to authorization. through range XXXX, shareholders our repurchases current Exiting we million dividends. EBITDA returned $XXX quarter, we to debt slightly X.X shareholders below QX, Xx, available of for

The additional provide outperformance Roofing engagement details of shingle Now on continue our the I'll turning business to strength results. demonstrate components had we favorable of segment packaging. model. and net market offset another contractor our to impact from and as X, quarter price as Overall volumes billion, with impact revenue year of the the line exit lower protected was mix of the in prior positive $X.X Slide

our quarter, quarter, would in in to quarter market The down shingle Coming to price we volume our strong. on market the for mid- increase, the into a saw August the and basis we single was U.S. the positive anticipated the asphalt compared high In remained demand digits. slightly realization be down year. shingles prior

outperformed volume demand market, shingles shingle up for slightly we as remained strong. the As U.S. expected, our our

impacted overall by components from QX protective our through impacted by expected, were channel to inventory impact We as volumes of decision roofing segment be last these will as the would strategic be packaging of products. the business. packaging. quarter exit distributors Also protective anticipate volumes to Volume worked lower continued

primarily $XXX year. quarter, due the versus was the positive and decline. offsetting for favorable up $XX million price increase million volume was last EBIT mix The to

All EBITDA of this EBIT XX% resulted in XX%. margin of and margin of

expanded quarter, our please Slide Now growth the a turn margin business business. third and In delivered for summary versus prior to the X of Insulation Insulation year.

Within were We North remain Volume American weak. execute for revenues stable starts. Pacific prior Asia housing choppiness year. $XXX in quarter. residential well X% despite in revenue up continue while a million, over QX up grew business market, and fairly the to North American Europe in our Insulation, was

to realize North American on continue also positive We in actions. residential previously price pricing announced

similar quarter. third quarter revenue the Demand first fairly lower environment America price technical Insulation, due was Input execution, million revenue Overall fiberglass QX commercial grow. $XX $XXX products macro in global, was in remains in Europe. to delivery million, half, compared the costs Consistent costs. growth primarily last and year. the to prior for technical Through by the up was the EBIT In for realization for year. to insulation to positive with neutral and has continued challenged North EBITDA in our strong were

Insulation of delivered an quarter, of margin EBITDA EBIT XX% XX%. and margin For the

X, the business integration Europe Doors challenging revenue million. business. market Europe. the in a continuing with America in of and some and softer in will we to North pressure. outlook Slide overview an America volume Overall progress line as Moving $XXX the Doors conditions on impact quarter, provide and performed our generated business I revenue of the pricing market navigated well. This includes for of is the to North The In

$XX including price the for view Overall, third EBITDA exclude generated the of the margin In impact of order purchase quarter to was of for of million, quarter and a an impact EBIT the and performance accounting. in Doors quarter to the EBIT million million. was EBITDA $XX in Doors' XX% the margin purchase $XX of accounting, X% share quarter. clearer from

continued Composites a in macro Slide In perform an business overview XX provides of business. the well our to challenging third the environment. quarter,

first compared was saw to Lower consistent prior While for down primarily reinforcements remained end-markets stabilization prior quarter prices. EBIT for glass glass $XXX sequentially. reinforcement year. million, we for reinforcement EBIT by be was impacts soft, the million, from the pricing was $XX saw the glass X% quarter impacted half. Revenue continued volume million to lower with the we in $XX year. down

We up We of XX% the quarter margin also EBITDA incurred Smith, impact the costs delivered we in margin manufacturing to offset begin positive Arkansas. more nonwovens in costs Fort start-up cost. as our line some incremental for quarter. and than an Overall, start Composites with EBIT the XX%

expected result key million year I financial interest full $XXX to on additional expenses with as including $XXX range corporate as Moving down $XXX be approximately balance. expense XX. ongoing range expense our higher our we Slide our debt between to impact will the year. In to of and lower exit discuss items. to interest the General XXXX outlook million, is now cost estimated outlook, controls a prior the are of for million from million, $XXX from $XXX of line interest acquisition on the on and less income our prior cash million

to XX% unchanged is tax XX% between XXXX of earnings. remain Our adjusted rate to effective expected pretax

with additions and to $XXX be expected line amortization. Next, million, approximately in depreciation capital are

to the back and to further outlook. please Brian turn call XX, turn Slide Brian? I'll our to discuss Now

Thank Todd. you,

improvements quarter and demonstrated strategic third made the choppy remain deliver The XXXX Our and continues likely company margins many year. strengthen have strong commercial higher the and the results new enter a flow choices free outlook conditions. market for sustainably we Owens and near-term cash as of of and impact to residential our Corning end-markets that out to close build despite is structural market challenging we into to

nonresidential improve. trends in strengthen in to rates to as remodel North However, projects move and housing do through and as interest down expect we new both America and in and see investments come we XXXX, repair demand construction

We've that Specific strengthen to well also by overall signs in of products and should evolve demand recovery expect some continue normal the we Europe market end-of-the-year conditions to conditions next as market economic seasonality. challenging quarter, year. be as seen to our impacted fourth for

recent manufacturing from our hurricanes In disruptions impact addition, from operational some will the each of in we realize businesses.

America to soft. remodeling remain be while we markets, is and anticipate North construction activity more to nondiscretionary remodeling and our repair discretionary In and activity expected building repair solid,

starts and decline will quarter. Outside the geopolitical anticipate products. negatively to continue for expect construction in lagged ongoing demand America, North we the new our demand tensions also impact result in in trends, from single-family lower We housing to macroeconomic

revenue backdrop, anticipated Given with business of XX% below this around growth quarter prior revenue for fourth our we company expect year. legacy OC be slightly the from to

an For EBIT, of enterprise, of the expect with quarter margin approximately EBITDA for XX%. to we deliver another strong mid-teen margin

the calls, I'll Roofing anticipate components offset a Based normal recent shingles realization. digits market shipments seasonality XXXX, fourth more our fourth detailed to demand lower of quarter mid-single next down storm on volume, Starting price positive expect more down low business the and majority flat. by revenue prior digits specific our we consistent with be quarter. in Now, our with the we relatively with outlook to activity to being provide for with the mid-single business, in with year, for partially ARMA demand be from serviced fourth for quarter

we in For see down year. as anticipate for roofing volumes our components, versus versus we last rates quarter running normalized more levels prior to at the year components to attachment be shingles

the last addition, of packaging exit business. our In impact quarter realize will of the protective we from

business in million revenue approximately As $XXX had annually. reminder, a this

lower high margin we anticipate from We our for in the some anticipate invest assets we EBITDA and the and partially as last cost costs price of XX%. of EBIT continue Overall we for operational level demand approximately an absorb maintenance XX% to of Roofing, approaching and products meet our previous to expect Compared manufacturing of of positive components our to offset QX higher announcements revenue the to volumes. impact year, disruptions.

our Moving on Insulation to business.

realizations to anticipate volumes. In be our North versus with We be down expect insulation America relatively business, ongoing slightly largely revenue revenue lower flat. residential we price year offsetting prior to

June from by line with housing in increase realization lagged near-term decline starts. the be to expect the We lower offset in price volumes

In prior positive America. remains technical soft volumes, America, slightly demand North of will primarily market global, we driven and by Outside year, down the lower offset which to partially by realization, primarily price be expect by revenue challenged North in versus be environment.

the overall be some costs positive. recent impact we For to delivery in in anticipate to in from quarter, Also input the the of business expect Insulation our activity. incremental incur tied price we with to and facilities neutral, the hurricane materials relatively quarter, remaining costs

margin expect EBITDA last we to fourth for year. similar the EBIT and this, all quarter Given generate to Insulation

Turning to Doors.

market to lower by and resulting QX tightly the an distributors with inventories, be tariff We impacted continued high managing of quarter, incremental catch-up driven cost primarily by down We from pressure price digits costs. end-of-year revenue positive QX. expect anticipate for in to be in volumes, recovery sequentially single input

associated we with For deleverage what early to quarter, lower volumes the realized offset in we synergies partially have by date. EBITDA, expect line to and impact

Overall mid-teen margin. to for we Doors, low anticipate EBITDA

growth, for EBITDA by are Going business offset prior both to we reinforcements glass operational year-over-year. as we lower contract in guide price take anticipate on overall quarters, spot be America Composites price forward, this and what lower the the business, year is of last we've mix. revenues noise focus for quarter, away to fourth primarily North to the will with pricing in in our similar volume performance purchase on And and and Consistent shared accounting. pricing unfavorable

Fort absorb costs costs downtime start-up quarter, demand of for expect lower the and continue the our production to the we Overall business, productivity. expect we business well, nonwovens Smith line. as solid some the manufacturing perform even with and During pricing, incremental with new from favorable we nonwovens to commissioning

high EBITDA and to EBIT we mid-teen For the mid- quarter, margin fourth Composites margin. in single-digit expect

businesses, view enterprise that our With a few items. of turn to I'll

day market. more to consistent our at investments power, of each consistently earnings this start execution team and we made earnings. the which coupled call, has best-in-class strengthened growth, positioned demonstrating outperform deliver and every to with As higher, resilient the initiatives performance, is I Owens have our our Corning strategic is accelerated shared It the and the

for with to business our we glass our reshape network, review the strategic to decisions reinforcements are along and of with China building examples the alternatives believe how American addition grow company. the of the North strategic a using of combined and business, Doors materials in of We business invest are exit our our disciplined fiberglass latest the approach

to look innovation can markets and customer As we material knowledge, and and operators, Masonite positions invest and leading capabilities, process we build be disciplined inorganically, and channel organically product opportunities will continue and on science expertise. our at we integrate through and focusing lines additional manufacturing to where

we will as an strengthen built incredibly utilize long-term of the we continue invest have which We the strong to performance balance to company. sheet,

balanced remain allocation XX% committed of shareholders forward, strategy, returning free generation to cash Going time. and flow strong flow capital at to a least we over cash

the to or for We've to being want recognize I free mid-teen OC and to future. achieve deliver today team generate margin, invested by done closing, built significant work grow our and returns XX% the EBITDA adjusted stakeholders great In position more on our to multiple paths in capital, flow. cash

As we value customers shareholders. XXXX, serving our creating our are we on and finish executing for focused priorities, our

With would open questions. up to that, call like we for the

question comes first John Lovallo [Operator with UBS. Instructions] Our from

capacity John. the This for if this, North actually incremental running you will too now? also insulation about online? simply Kansas much missed right online Spencer American but are in resi capacity tight that certain Kaufman I bringing bringing competitors in new is concerned Or XXXX? the be are City just on And is market any line how Apologies

is I'll Todd. one. take Spencer, this that

in when for attractive incremental really existing facility line. really new So the increase is asset that with use the again, we're operating adding couple of in look facility. of very because to Kansas being we to using we're City, City asset also that Kansas our able has us. think you capital-efficient fixed line capacity things cost great for It's X% at you of and What's It fiberglass X% footprint because, infrastructure a could cost the overhead ongoing have we're this that a in an that that industry. as a about

business focused insulation really flexibility that over us a that We've to significantly, so. decade grown we've and or time, but gives serve market a market. flexibility But the our ways line technical different That's designed new the last just also network the network, serve over on market. to period few not across been of the the flexibility we've our quite better give long residential been to rebalance us last to years, in it

look like addition, a support part we our on the our way growth to also the other to strategy is cost attractive of But network that our assets. it at continue So and structure technical growth and as really growth focus ongoing Insulation markets, nice insulation, of of business. of we when to it give us a of

So adding rationale that was for the big it.

comes with Kim question ISI. next Evercore Our Stephen from

Just sort of little on a a bit follow-up Insulation.

actually code risk sweep, to could still got last big Yes. House you mentioned that. a think I'm HUD reversed, news if sweep you And wondering -- expansion. in situation you some also, then curious you to, calculus there's you've that with City affect know with but guess, to were I night, is hurricane Republican energy would aspects. Just to I up the did around your your respect Republican if the Kansas the get And for a assuming do was the respect I mandate? XQ be that quantify grabs, where guide, how the

So with we'll go that. we'll just --

the Thanks, a first, could I'll answer we those, the and about Stephen. bit Appreciate and both changes. talk of then HUD hurricane

startup our We had be overall, limited had we We some impacts facilities power in had we the and So did some some idled, Milton. costs from associated one hurricane, of of Helene plants see interruptions. for with it. some both our

this really, cost in those million You is -- in with could million or $X range manufacturing for facilities. the being mostly associated costs think as probably QX $XX so to hurricane of in impact, of

hurricanes. some a bit. Typically, with may There lags positive be the demand associated that

see to expect through. some of of see that wouldn't a lot of QX, in the year could comes the that certainly as demand first but we So in half that

really, we've inflation look was we talked U.S. saw we has housing, supply, seen in And of things for sides policy know very one housing pricing the both housing about, all the part in been we over address need in housing a at to time. for the As and the long of on period time. more that underbuilt

our we add for are Fundamentally, think a macros good value the lot in housing. So products North America. fundamentally, in housing of

You Really that markets the volume in its any of has into changes. mentioned HUD made way material today. none

yesterday As Brian previous that calls, happened by with the always outcome viewed we about and I talked be it on this would an election. impacted what as

we capital know about of that you we investments, about not making from what City. other volume the the you long-term would the we we do way fundamentals thought asset investments adding. as based when the think And we we So we're with That was one thought about business. HUD contemplating part of calculus on were really, or as that the Thank Kansas for question. weren't

Jefferies. question Ng with next Our from comes Philip

of getting in The on and uplift Congrats see size kind Roofing, been hurricanes layered quarter. the recent how strong perhaps XXXX? on really strong has do last you another On you can that Roofing demand up obviously any potential backdrop from some year. of

even low margins, year? to your lap sustain, out look we So call drive as XX% as to and curious grow, that, just next ability you to it, to higher prices perhaps

a talk about bit little impact. Yes, Phil. me hurricane let the Thanks,

I still devastating we're think were mean that really hurricanes lot of X I these folks. assessing. a impacted

were But there's squares impacts, infrastructure Beacon's some X think on potential I some be and that needs really So estimating think analysis, some impact. had look as to around call, they I potential repaired. somewhere of of done we at the million

us. as go Roofing might right our our and thought that potential well. for standpoint, incremental given upside But repaired mentioned, play I how be going think think into think the this some need a other terms damages broadness at that's I in some next I we'd as to think estimate. initial of out that businesses are we And year, flooding point, that in Todd there's as I of to other with line from in the be of

repair hurricanes. damage long takes a talking about the know, time you when we're As

we So and as would to through volumes be expect move this we much XXXX. impacting more demand

think a be inventory There We going that's we in bit little to quarter. of into significant. broader next the fourth don't year. a not early stocking, going play is be here lot the might be think So on to but

terms roofing few overall in you've the mean, very for a of market. I XXXX, last In the strong years, setup we've said been it.

continue generally to to existing we stay rates, think year think of many see activity. to R&R in a this I see little that's regions. continue, we for if more bit fundamental start homeowner trends that turnover, pretty lower some R&R interest going We especially drives strong

through And start again, construction interest expectations to new the new to on think construction, we from going lower is XXXX. we pick as move based rates, up

setup to for the R&R pick fundamentals some and half demand. given over, of XXXX first start then incremental another of trends in think we're the off going think up, new some some we will that we of Roofing think I with strong the carry is the storm think will So pretty we construction

investments, we've our the for last to significant we've around grow, think about ability of number So been calls, investing grow capacity. I to our making as talked laminate over

that capacity. see been footprint our shift to to to impact investing roofing mix our we've existing positive on in in continue continues be We mix expand strips from And a that to results. laminates. That

an about the squares million laminator midyear to the of are incremental Medina half had. up capacity, in increases to sorry, to first -- going next of that's online our -- add network That's going year. bring to lam expecting be We new Medina we've existing couple

in into facing we're going customers' the that certainly, demand we're think adds, a another growth in are to going backdrop going positive think forward. position capacity continue is better to us to be for And I making go put our we as we to roofing So XXXX. believe, investments service what we

question comes Anthony next from with Pettinari The Citi.

world. demand kind rest interior year, we acquisition, if expectations year? of trended on next of closed the versus from Doors U.S. price if and draw assuming maybe have volume you stronger broadly the in prospect point or versus could a for that's you wondering finer was I improvement versus Doors And talk R&R then and improvement how kind since about just you there's exterior do next backdrop any underlying you about maybe of can talk

we've tougher facing our Certainly, more in market well certainly we third acquisition. the a out But quarter, conditions half market challenging to business performed say in Yes. Thanks, conditions in Anthony. the line since back relative with and the here and are closed the outlook. I'd market condition, these

business, see last little bit R&R a activities. the of down And over we starts that to continue. lagged third evenly quarters, is The between split reminder, and quarter and here continued to coming we've pretty expect construction the some as a new housing

more that's demand here market we been down, challenges that's Doors, has that seeing. lot And So not product building going of the we're conditions material inside of just And to create but some the across new think a in activity into categories this the certainly, challenging R&R playing other year. some construction.

volume we pretty at would declines business, our look between seen I we've the exterior. and When say consistent interior have been

I again, lot and So differences R&R tied both there, fundamentally the in Europe. are we've this we to are trends big down in Those seeing business, a not going new got forward. And challenged construction think, of demand we've as step seen smaller a U.S. well. business

do we in discussion back challenging. see But near-term So where we to see terms outlook, that more demand new environment it's construction will come what overall. rates improve, we backdrop XXXX we I do we going backdrop starts to Doors expect, is that's that see think believe increase, our a for as see interest favorable going down, turnover a into more a we create housing of XXXX a

We we partnerships value we quality, a are in value value we're innovation, that leader service, we then value And the we category building. this commercial space.

going up to forward. of volume So going we believe able we're terms of to growth to be advantage take that set be in

we're near our integration continuing the execute to In term, playbook.

million So to with our in our $XXX we're synergies prepared in leveraging also expectation. as line commercial playbook. about cost operational And deliver and our track comments, we're I my of talked on

XXXX at customers we're as potential our we growth opportunity. with the broader platform across go into opportunities looking So

also we're synergies optimization looking in track looking then cost we've got as for footprint And opportunities. again. operationally terms at that the record of manufacturing a that's executing good additional of something And well as

continue grow prepare operate the into XXXX. So improve, to the differentiators. ourselves, going go we a quality we're and ourselves to market near-term we're going business. as as we prepare then focus can to very And our advantage on that as to going full innovation service volumes that to does of We're challenges for take and market cost-effective to

Reid from Fargo. today Our with Wells comes next question Sam

a drill down wanted more bit to off maybe on actually I pricing. last the but Masonite, piggyback on question

that. what you on like could repair/remodel terms most So just seeing of new and maybe when in disaggregate what build pricing finer is talk repair/remodel on to sounds you're hear a It the into between price about the you maybe but of like you're on pricing giveback, channel? selling the point would weakness side,

XXXX impact a we would spend pricing your consistent repair/remodel to you have impact recover with do in of kind think And in positive discretionary -- were expectations, Masonite? that see then corresponding on if

Tim. Thanks, Yes.

comments. that seeing of and some we the areas, I did in really relative conditions. pricing market terms pricing to dynamics of very And talked some We pricing us in it say, modest. in competitive the in surgical, we with would Very In that markets. about the make some did specific very made, certain modest the get moves we're moves line

made we've modest some So there. moves

and We're that market. the our innovation we quarter. our those quality of the still focused in But some in pricing we value our retaining on the value have moves service, to did relative and make

broadly, lot market. competitive make a broader felt construction, would of market-based more and needed not maintaining say premium moves stay between new to we These Really we were the in our to differences repair value while remodeling. that I

So for better go better a into pricing. certainly, forward environment improved opportunity demand as year, environment we volume and creates the next

relative and we expect we manage next business year as that we'll look the to have so value to And that also demand marketplace. would market the forward the premium and into that relative go to in at

Allinson Wolfe with comes next question Research. Our Trevor from

It kept Just capacity Or some talk quarter and guidance. or like ARMA into the was to of for? than you a better of And given advantage than are about with was capacity your Was you online They helped year. that that were you're shipments. downtime? market? better were also better the you being limitations from talking anticipated? ability planned prior then your what than leading next perform volumes tailwinds you Medina destocking distributor what line the than to anticipating. right better it Can your your take it coming you trying on kind your of to were understand what looking were about market looks One in follow-up less volumes just

Trevor. Thanks,

slightly terms In stronger ARMA they were we of were the market anticipating. than shipments,

of some There's factors of around Hurricane played the repair amount into through lot we that. in with incrementally roofs we and just the with that done storm a some that, I the activity to Midwest better stronger, think stayed pockets saw Beryl. Texas been is good related just And One couple and demand, Northeast there. on. was and to frankly, damage particularly that weather, then opportunities saw more of seasonal in quarter a warm put

And up those so would regions step particularly demand that we than expected. we in saw more of have kind

overall, a good quarter. So

Our little bit. shipments a that outperformed

continue strong We our see to demand for products.

some limitations. to of are you these there, mentioned making laminate the we significant investments capacity limitations, And so capacity. our really increase tied as That's the why to are

demand that's investments created We great We've are have to them, increase and that's to that very why environment us. a strong we grow we together continue to lot invest that with making capacity. contractor demand got for the a our businesses great to products. a try network the we're And for

our this We're increased XXXX I as go big with We'll capacity produce continue that laminates going you to another as last. year-on-year. with think said, than into more we Medina year have the laminates step-up, we laminator.

remain go the is going strong into we So products demand we for our to feel outlook like XXXX. as

Adam Our Associates. Zelman with next Baumgarten question & comes from

materials the sale to you the the I it and on expect earnings I revenue. of gave then close? know impact but on missed building from businesses, this, may sale? that you any And China have Korea do when Just

closing I time. we the I can then the color give can appreciate business Thanks, a itself, question. more Adam. little on talk about

of China, are really The products. shared shingles Korea. is then X in plant Chinese into It's insulation it's X million was plants plant the Korean revenue. plants China-for-China $XXX Korea So Japan. what go that we primarily in And and

look at that margin business, pretty it's you When business. EBITDA a low

more been our margins lot for really higher-value product So consistent customers. we've with that lines structurally forward. the add of doing they it's value across a to attractive going have portfolio And what on focus

we've given got, had the low pretty So to pretty close, everything that in quarters actually margins, up intensity be everything we plants. When and timing execute those set to the footprint this is of couple to about just this to sale. work Chinese especially also one insulation through going a get high EBITDA capital think

we be expect So to would complete. this QX timing for

Hughes Keith Truist. have we with Next,

is? It's a of single-digit high where last margin what You've to on given business a margin given structure compare EBITDA that fuzzy year the of compares in Masonite to. little us guidance for that for quarter. the fourth quarter fourth the the Would EBITDA

Yes. with this the that. of Keith, all terms moving Brian. is Tough parts in

business. equate to terms our think mid-single-digit a to kind from I continue would of EBIT that operating how guide margin perspective we in of are the

getting why that's really lot there's set, to noise We're try inside we're a that's So of where the and guide. change margin -- an purchase EBITDA accounting. that wanting to

business as post that to go that a a on operating acquisition. well side. continue forward how EBIT we're we as relative the something of versus we that's on terms be guide think the to be point also But comparison, is the going focus year-over-year in I data to going that's

Our Dahl with next question Michael from comes RBC.

I want Roofing. to focus on

I margins. cost? and in you strength quarter, and cost. are about realization. When fourth then think you you costs, Because had manufacturing Can the manufacturing know in you delivery like some it margin on continued quantify about where you price the input So the kind seems talked sequential still of

look part, setting how given you would laminate And into if give second Roofing in view you potentially demand on you strength a about us as then these up 'XX? offset investments, the margins some and the can, continued think can I maybe into by price be, 'XX, some of

Mike. Thanks,

the continue fourth very the margin being strong the done to well operate to of performance of margins, to terms we're that In that's seeing and the continue certainly, in guidance, work terms we in very business. generate business the quarter history and relative

So to very strong lead I to the think margins great going is team forward. continuing execution by

a of few modest some input see, seeing and inflation areas just In we're costs terms that we deflation really in others. in

So here think pretty quarters. of theme pretty the stable costs couple And constant been we're business. input across over a last the I seeing that's

into that's creating the price/cost to going input but and stay XXXX, fourth increase, the look off August we'll kind positive materials. for pricing of as we that's we're seeing relative happens to what those here. And stable see think So we the quarter go realization

given we terms into think, us. going I strong kind of setup we levels these a margin price/cost positive 'XX. what kind for XXXX In about our which of margin for positive would demands, continue market, performance, expect and be demand terms continued on a mix see maintain Maintaining to setup products, that we continued we've well retain think those in talked up strong to of the some for see be XXXX, which to set would indicators of

our normal also then we've some basis continue on very demand strong business, a is a we volumes, performance. on attachment as year-over-year of which to for I back key see that. margin our in track components the some contributor And component think but good And seen rates again, step

full So seeing system package the and we're good and we're contractors seeing still demand good our for components, roof. the from selling demand on

going continue to going that's think we XXXX. So into

our for the components terms is say terms in business. next and terms price/cost, very product in year demand, terms I'd setup in for well So us of of volume, our of in of

a up So first good set half. we're we think for

Your with next Goldman question Susan comes Sachs. Maklari from

business bit especially allocation you're about quarter? additions on talk about will shareholder and cash a you that priorities you dynamics this just portfolio about thinking changes that and how regions, the returns, over for any And time? exiting making that the other to mean with and the the the flow deleveraging the that for some you and of capital of that, As the that think with businesses you're what buybacks between did with comments balance the can

the Appreciate question. Sue. Thanks,

could changes about thoughtful about the bit allocation. a very about on We're portfolio, being the talk me of talk capital then we're think we the as making. implications changes and we Let

capital EBITDA businesses. moment about low As and sale our high ago I alluded to intensity pretty a in assets Korea, were China margin, the these of

or about requires businesses. a before that a glass capital going Composites what our a shifts much being our business, business Doors than have the as talked into that intensity position acquisition, business a Insulation We've structurally but we And really capital reinforcements being portfolio lower great in forward.

also generate both America we've in So Europe building a really that's building of ongoing got cash leader portfolio of cash branded that business company also a of an products eye in to the has we profile future of an off also and North the and flow the to reinvest to the capital in shareholders. that can that flow and terms attractive free in both return the requirements significant business

coming of successfully we a little capital a have in little are million and that QX, we here, notes about senior bit of and foremost, our is due to deleveraging fourth in $XXX we right we're priorities very retire think also the to quarter. When on do is, that. of building that We've now and for the to will deliver got bit sheet term cash the priority first integrate our investment. near Masonite allocation, shareholders returns In from

Smith, capacity, Russellville plant whether nonwovens the our Medina extruded the discussed City foam with plant; our investments whether our that it's think into polystyrene the with grow it's effectively Beyond Kansas today. we discussed, capital Arkansas additions businesses we business; Fort we strategic for very we we're capital-efficient into Brian making addition to to that, very can as want And laminator, grow. business, that or

to very to So business. both investments also targeted, strategic drive really that but capital the efficient continue are focused these attractive cost cash on we're capital efficient we think flows for

$XXX coming of X QX, Xx quarter. including We strategy. that like been even through out committed We're little capital returning EBITDA. to buybacks then to And allocation we've million to shareholders our the of below in a the leverage

But Xx of a balance we've what very do Brian on we we as as we're got go with to lot a forward. strong capital allocation X and we've said, flexibility in sheet, happy So got range. terms of that

the a largest and repurchases XX% to company. last over done a But time, we've acquisition XX shareholders cash returned through lot of dividends the as over including months we've

that. businesses very portfolio shareholder-friendly think go market-leading helps committed we're as and to us forward. we new this to achieve value-creating So that, and capital committed of And we allocation we're

comes Garik question next with Capital. Shmois from Our Loop

Is And the on that maybe on while contract into did some if dropped that right? correctly and sequentially? year-on-year, that spot pricing my negotiations Composites, weakened was Sorry just hasn't ahead But was since pricing, earlier. line asked you then next primarily? going down Is really this of I thoughts hear year.

Thanks I'll for the question. that one. take

still drive and few a to the sequential of on drive executed in year side. good to really of last pricing a margins manufacturing yes, Sequentially, the we're that the stability Brian Both you've proud I kind this stable stability, on work So seen Composites. how down done really from but commercially are They've also year-over-year mean, I has outstanding quarters. manufacturing productivity seen we've standpoint. both business

It negotiations. is days on early contract really

say We're we it's trying we're And stable can where of as challenging a customers, we're has in about certainly impacting market business So still the add do how at. how but to really early to little do midst is to in prioritized value it, much the efficient. really costs our environments keep which the global demand drive we we pretty in margins environment. China,

with question is The next Bouley Barclays. from Matthew

cost ask to that 'XX negative get you're bit Insulation given to the given manufacturing XXXX. these just volumes Obviously, fixed on high here first flip Wanted how exiting guiding can Wanted rate. assets. half exit kind your on to of little volumes, you're sort and the of about of be thinking a thoughts

next need still volume do production early So kind thoughts on that have the near-term of decrementals rightsize and of if any if volume to any kind we headwind year?

the Matt. question. Thanks, Appreciate

little from at July. we're we're now, of a March at starts look air of really right that So we an where with when saw through weaker pocket we bit dealing

saw we are for That mean, us. I good starts little range we starts. pretty saw As said, in a bit of rates downturn still high, interest bit a a a in

remind this flows on and of Insulation margins million I'll around to able starts return attractive environment, X.X really cash And be to where and the market we're X.X business range. exactly in to you, we this kind million reengineered capital deliver

fundamentally the since really million view still annual the the starts late is have not Our number housing We under-built. X.X approached is market XXXXs.

a from decade a ago. per we were of codes, you when roughly we long to period home continue XX-year the a We than that where period see also go higher XX% support see over back over pounds time,

year not it's and where So we term, support codes. But the long in X% see certainly, volume year dynamics from in for volume the X.X%, linear a increases out, in it's industry. strong

year. interest we we with success. structure positioned that's engineered very good a how we'll choices business housing made rates the end margin around year. we're go we've we've the We'll that the we've starts as closely confident for can and watch deliver So watch stability the forward. as we business end And as the cost But intentional

with is question Thompson Kathryn Group. next The Thompson from Research

at the we next how over Owens Doors. to for or years? nearshoring certain But approach value think do and And look You out balancing back segment value a the touched this a particular. just in issue, been, around if say focus wouldn't over Asia area earlier in the an and products getting push Q&A that that you over I of but at you certainly volume? reshoring, how as volume, we does pricing in X Doors has this continued in take Corning But the step look changes

Kathryn. Thanks,

in just service, I'll the quality, High think things approach, that of innovation. We're investors the the commercial customers step help of tools, we to back. that grow things value I them tools, kind level, in the and market. marketing investors bring are our

can our the through in always start our business help our commercial through resources, through and our and our innovation, anything we commercial And so help tools, through quality, customers offering, market that premise a them service, can product of with how grow our win grow. we help our the through

value. to we create invest So

to that's I to over say trade-off think we We value don't when I Now look volume, a make. value. look that really drive increased

in our to We be competitive pricing. have

in competitive We our be in positions to to market. have the our maintain offering

We that we value think I trade think invest that's volume. to create approach. additional volume. And our So I off to value don't over leads more

into the value but a products premium customers market that proposition they be take always we that that creating, our market. in not expect value premium value those we're we are that our for all offerings product through always see to market. in premium, to the competitive can to our see as going But a products So of going conditions. we see only we are value that that And

So we close at overall that's we a want manufacture and customers. When or think that to that look have our service outsourcing, to that angle. quality fundamental belief improves we We approach. in-sourcing our

have and we to a going structure could areas and mindful cost for So that we're imports local within of be always manufacturing impact also local philosophy our of But demand local other the service. businesses.

are going local building markets to and that to geographic something reshape Europe. on sharpening manufacturing really is on company products to So as we're to we've in executing leader our We about. our talked invest our strategy service America are that manufacturing focus a the in create the that's sourcing and customers. footprint North local focused our our assets to the facilities And platform and for there suppliers to best that

Thank you. This concludes Q&A our session.

back I'll comments. for So pass any you to Brian now Chambers final

to call. making safe to Thanks, call Lydia. with day. look a to in join for thanks, quarter fourth forward interest Owens Corning. thank time have today's like your everyone on And our you I'd Well, ongoing for on we speaking and and us again

call. joining. our you for Thank concludes This

your disconnect You may now lines.