Armstrong World Industries Surpasses Third Quarter Earnings Estimates and Raises Guidance

LANCASTER, Pa. - Armstrong World Industries, Inc. (NYSE:AWI) reported stronger-than-expected third-quarter earnings on Tuesday due to robust sales growth and operational performance. The company's shares rose by 1.24% in pre-market trading, reflecting investor's positive reaction to the results and improved outlook. The ceiling and wall solutions manufacturer also raised its full-year guidance for adjusted EBITDA, adjusted earnings per share, and adjusted free cash flow. Armstrong World announced an adjusted earnings per share of $1.81 for the third quarter, exceeding the analyst estimate of $1.75. Revenue for the quarter was $386.6 million, slightly below the consensus estimate of $386.69 million but representing an 11.3% increase compared to the same period last year. Vic Grizzle, President and CEO of Armstrong World Industries, stated, "With another record sales and strong earnings growth quarter, we continue to demonstrate our ability to drive growth despite soft market conditions, thanks to our operational performance and investments in strategic acquisitions, innovation, and digital initiatives." The net sales for the company’s Mineral Fiber segment increased by 3.3% to $258 million, primarily due to a favorable Average Unit Value (AUV). The Architectural Specialties segment reported a significant increase of 31.8% in net sales to $128.6 million, largely due to recent acquisitions and increased sales in special metal projects. Armstrong World raised its full-year 2024 guidance, expecting adjusted earnings per share to be between $6.15 and $6.25, up from the previous range of $5.32 to $6.15. The company also narrowed its revenue forecast to a range of $1.42 billion to $1.435 billion. Chris Calzaretta, Senior Vice President and CFO of AWI, remarked, "We continue to focus on expanding our adjusted EBITDA margin at the total company level and expect to achieve growth in net sales and earnings for the fourth consecutive year in 2024." The company's adjusted EBITDA for the quarter increased by 11.2% to $139 million, with an adjusted EBITDA margin of 35.9%.