Company targeting $10 billion in annual revenue by 2024

Owens Corning (NYSE: OC) hosted its 2021 virtual Investor Day today. Members of its senior management team discussed the evolution of the company’s performance and its strategic priorities, along with providing selected three-year financial targets.

New Growth Strategy

The company’s new enterprise strategy is rooted in its mission of building a sustainable future through material innovation, and significantly expands its current addressable markets by capitalizing on key secular trends to create new opportunities for growth. This strategy is expected to generate stronger, more consistent financial results by:

• Strengthening the company’s position in core building and construction products;
• Expanding to provide more multimaterial solutions; and
• Developing prefabricated building solutions that are more energy efficient, more sustainable, and more cost-effective than those built on-site.

This new strategy capitalizes on the strength of each business and leverages a core set of enterprise capabilities, unique material science expertise, and leading market positions to create value for customers and shareholders.

“We are very proud of the work we have done over the past several years to grow our company and strengthen our earnings power. I believe we are a great company and a great investment today, and we are focused on building an even better company for the future,” said Chair and Chief Executive Officer Brian Chambers. “Our team is energized by new opportunities to grow our company, help our customers win in the market, and deliver additional value to our shareholders.”

Leveraging the Power of the Enterprise

The company continues to focus on building market-leading positions within each of its business segments by leveraging material, manufacturing, and market knowledge, along with expertise to drive innovation, improve cost positions, and broaden market reach for new products.

• In Composites, the company is pivoting the business to focus on high-value material solutions within the building and construction, renewable energy, and infrastructure markets by leveraging its glass fiber material science technology. Building on strong secular trends, the business is expected to sustain above-market growth while continuing to be less capital intensive.
• Within Insulation, the company has positioned the business to achieve higher, more consistent margins and to perform above the construction market. It continues to invest in new product platforms and innovations that position the company as a leader in driving net-zero solutions. Together, these investments are expected to significantly increase its growth potential as the world continues to demand more energy-efficient solutions.
• And in Roofing, the company is focused on expanding its extensive contractor network, innovating new products, and growing its Roofing Components product offering to drive above-market growth in the business going forward. The company is investing to increase capacity in its existing network to meet demand for its comprehensive multimaterial roofing system and industry-leading products.

2024 Financial Targets

The company introduced the following financial targets for 2024:

• Achieve annual revenue of $10 billion by 2024 with mid-teen operating margins;
• Maintain already-reduced capital intensity level at between 4% and 5% of revenue;
• Generate free cash flow conversion at or above 100% of adjusted net income over time; and
• Return approximately 50% of free cash flow to shareholders over time.

“While the team is excited about our financial results to date, we are even more excited about delivering on these three-year targets as we build Owens Corning for the future,” said Executive Vice President and Chief Financial Officer Ken Parks. “The initiatives our leaders shared today are focused on generating this growth and driving this performance with the foundation in place to make it happen.”

Sustainability Leadership Creating Growth Opportunities

With its extensive track record of sustainability impact, Owens Corning generates more than 60% of its revenue from energy-saving and renewable energy products and has reduced its greenhouse gas emissions by 60% from its peak year in 2007. In addition, the company set ambitious 2030 goals to further expand the positive impact of Owens Corning’s products and material solutions, significantly reduce the negative impact of its operations, and increase its social impact through commitments to health and safety, communities, and inclusion and diversity. See further details in its recent sustainability report.

Material, Product & Process Innovation Driving Growth

Since its founding more than 80 years ago, Owens Corning has been a pioneer in creating new and improved materials and converting applications and markets to these solutions. Today, the company continues to deliver significant differentiated value through its material science and functional design expertise, which is evident in customer-inspired product and process innovations. The company is also increasing its R&D investments going forward to further accelerate its new product and systems innovations to support its enterprise strategy.

Investing in Talent as a Competitive Advantage

Throughout its businesses and across its global enterprise, Owens Corning continues to invest in developing its talent by building the capabilities and leadership pipeline to help ensure long-term success. Inspired by the company’s mission, its people provide a competitive edge – through cultivating the industry’s best talent and creating an inclusive and diverse culture.

Event Webcast Details

An archived replay of the Investor Day webcast and printable files of the slide presentations will be available on the Owens Corning Investor Relations website for one year following today’s event.

About Owens Corning

At Owens Corning, our people and products make the world a better place. We are a global building and construction materials leader helping customers win in the market by providing innovative and sustainable solutions, which leverage our functional design and material science expertise and strong market positions. We are global in scope, with 19,000 employees in 33 countries united in our mission to build a sustainable future through material innovation. And we are human in scale, dedicated to generating value for our customers and shareholders, and making a difference in the communities where our people work and live. Founded in 1938 and based in Toledo, Ohio, USA, Owens Corning posted 2020 sales of $7.1 billion. For more information, visit www.owenscorning.com.

Forward-Looking Statements

This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements are subject to risks, uncertainties and other factors and actual results may differ materially from any results projected in the statements. These risks, uncertainties and other factors include, without limitation: the severity and duration of the current COVID-19 pandemic on our operations, customers and suppliers, as well as related actions taken by governmental authorities and other third parties in response, each of which is uncertain, rapidly changing and difficult to predict; levels of residential, commercial and industrial construction activity; levels of global industrial production; availability and cost of energy, transportation, raw materials or other inputs; issues related to acquisitions, divestitures, joint ventures or expansions; competitive and pricing factors; demand for our products; relationships with key customers; domestic and international economic and political conditions, including new legislation, policies or other governmental actions in the U.S. or elsewhere; industry and economic conditions that affect the market and operating conditions of our customers, suppliers or lenders; climate change, weather conditions and storm activity; uninsured losses, including those from natural disasters, pandemics, catastrophe, theft or sabotage; legal and regulatory proceedings, including litigation and environmental actions; changes to tariff, trade or investment policies or laws; research and development activities and intellectual property protection; issues involving implementation and protection of Information technology systems; achievement of expected synergies, cost reductions and/or productivity improvements; the level of fixed costs required to run our business; foreign exchange and commodity price fluctuations; our level of indebtedness; our liquidity and the availability and cost of credit; levels of goodwill or other indefinite-lived intangible assets; price volatility in certain wind energy markets in the U.S.; loss of key employees, labor disputes or shortages; defined benefit plan funding obligations; and factors detailed from time to time in the company’s Securities and Exchange Commission filings. The information in this news release speaks as of November 10, 2021, and is subject to change. The company does not undertake any duty to update or revise forward-looking statements except as required by federal securities laws. Any distribution of this news release after that date is not intended and should not be construed as updating or confirming such information.

Non-GAAP Financial Measures

This news release contains references to certain “non-GAAP financial measures” as defined by the SEC. When the company provides forward-looking expectations for non-GAAP measures, the most comparable GAAP measures and reconciliations to those GAAP measures are generally not available without unreasonable effort due to the variability, complexity and limited visibility of the adjusting items that would be excluded from the non-GAAP measures in future periods. The variability in timing and amount of adjusting items could have significant and unpredictable effects on future GAAP results.

Owens Corning Company News / Owens Corning Investor Relations News

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