Owens Corning Q1 FY2026 earnings call

• Safety: Safer Together operating framework driving improved results, first quarter recordable incident rate 0.46. • Financial performance: Generated $2.3 billion revenue, $369 million adjusted EBITDA, 16% margin. Returned $63 million to shareholders. • Structural improvements: Integrated go-to-market strategy, optimized manufacturing network, used AI in plants, achieving cost synergies. • Sustainability: Embedding sustainability, reducing emissions, waste, increasing recycled materials use. • Role expansion: Todd Pfister's role expanded to Chief Financial and Operating Officer.

Roofing: Sales were $960 million, down 14% y/y, EBITDA margin 24%. Insulation: Total sales $867 million, down 5% y/y, adjusted EBITDA $167 million, margin 19%. Doors: Sales $475 million, down 12% y/y, EBITDA $34 million, margin 7%.

• Second quarter revenue expected ~$2.6 - $2.7 billion, slightly below prior year. • Adjusted EBITDA margin expected ~20 - 22% for enterprise. • Roofing: Revenue down low to mid-single digits y/y, EBITDA margins in low 30% range. • Insulation: Revenue down low single digits y/y, EBITDA margins ~20%. • Doors: Revenue down mid-single digits y/y, EBITDA margin to high single digits sequentially.

• Tariffs: Uncertainty around timing of tariff refunds, not included in guidance. • Inflation: Impact of Iran-related inflation, including asphalt, delivery, purchase materials inflation, with lags in price realization. • Market conditions: Uncertainty in residential and commercial markets, including housing market impacts and mortgage rate effects.

Q: John Lavallo asked about market outlook, A: Brian said Q2 guide in line, confident in business performance.

Q: Michael Rehut asked on roofing margins, A: Mike Pratt said upside driven by volume and productivity, underperformed Q1 due to customer mix, Q2 outperformance expected.

Q: Stephen Kim asked on insulation supply-demand, A: Todd said North America res starts positive, non-res strong in AI, data centers, Europe stable.

Q: Phil Ng asked on inflation and price-cost spread, A: Todd said Q2 Iran-related inflation impact, price realization lags, back half could see positive spread.

Q: Susan McClary asked on cost improvements, A: Todd said focused on operations, sourcing, supply chain, doors synergy success.

Q: Trevor Allenson asked on roofing pricing realization, A: Tristan Marquez said good realization on April and June increases, back half expected positive.

Q: Anthony Petanari asked on tariff refunds, A: Todd said filed for $25M, potential $50M, timing uncertain.

Q: Mike Dahl asked on roofing price realization and channel inventories, A: Joe Trumpey said good realization, year shaping up to be good.

Q: Matthew Boulay asked on competitive capacity in roofing, A: Joe Trumpey said mix shift to laminate, Medina capacity helpful.

Q: Rafe Jadrosich asked on doors market share and volume, A: Colin Varon said making progress, order book accelerating.

Q: Adam Baumgarten asked on roofing price decline, A: Adam said slight decline due to prior pricing moves.

Q: Keith Hughes asked on Europe input inflation, A: Keith said Europe hedges energy, pockets strong, long-term bullish.