[PART I - FINANCIAL INFORMATION](index=5&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) This section presents Armstrong World Industries, Inc.'s unaudited Condensed Consolidated Financial Statements for periods ended June 30, 2025, including earnings, balance sheets, cash flows, and notes Condensed Consolidated Statements of Earnings (Unaudited) | Indicator | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | **Net sales** | $424.6M | $365.1M | $807.3M | $691.4M | | **Gross profit** | $175.8M | $149.3M | $325.7M | $273.6M | | **Operating income** | $123.2M | $95.0M | $221.7M | $181.1M | | **Net earnings** | $87.8M | $65.9M | $156.9M | $125.8M | | **Diluted EPS** | $2.01 | $1.50 | $3.59 | $2.86 | Condensed Consolidated Balance Sheet Highlights (Unaudited) | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total current assets** | $375.6M | $348.9M | | **Total assets** | $1,862.0M | $1,842.7M | | **Total current liabilities** | $232.9M | $249.7M | | **Long-term debt, less current installments** | $461.8M | $502.6M | | **Total shareholders' equity** | $837.8M | $757.1M | Condensed Consolidated Statements of Cash Flows (Unaudited) | Indicator | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $122.6M | $83.7M | | **Net cash provided by (used for) investing activities** | $13.2M | $(81.4)M | | **Net cash (used for) provided by financing activities** | $(134.7)M | $1.1M | | **Net increase in cash and cash equivalents** | $1.8M | $2.8M | [Note 2. Segment Results](index=11&type=section&id=Note%202.%20Segment%20Results) The company's Mineral Fiber and Architectural Specialties segments reported **$512.1 million** and **$295.2 million** in net sales respectively for H1 2025, driven by acquisitions Segment Performance for Six Months Ended June 30, 2025 vs 2024 | Segment | Net Sales 2025 | Net Sales 2024 | Operating Income 2025 | Operating Income 2024 | | :--- | :--- | :--- | :--- | :--- | | **Mineral Fiber** | $512.1M | $489.8M | $182.9M | $160.9M | | **Architectural Specialties** | $295.2M | $201.6M | $40.4M | $21.9M | | **Unallocated Corporate** | - | - | $(1.6)M | $(1.7)M | | **Total** | $807.3M | $691.4M | $221.7M | $181.1M | [Note 4. Acquisitions](index=13&type=section&id=Note%204.%20Acquisitions) The company acquired A. Zahner Company and 3form, LLC, contributing **$86.1 million** in net sales and **$8.2 million** in operating income for H1 2025 - Acquired A. Zahner Company ("Zahner"), a manufacturer of exterior metal architectural solutions, in December 2024[29](index=29&type=chunk)[45](index=45&type=chunk) - Acquired 3form, LLC ("3form"), a designer of architectural resin and glass products, in April 2024 for **$93.5 million**[30](index=30&type=chunk)[46](index=46&type=chunk) Contribution from Zahner and 3form Acquisitions (Six Months Ended June 30) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | **Net sales** | $86.1M | $16.7M | | **Operating income** | $8.2M | $0.1M | [Note 8. Investments in Unconsolidated Affiliates](index=16&type=section&id=Note%208.%20Investments%20in%20Unconsolidated%20Affiliates) The company's 50% equity interest in Worthington Armstrong Venture (WAVE) generated **$58.9 million** in equity earnings for H1 2025, with WAVE's net sales at **$264.1 million** WAVE Financial Performance (Six Months Ended June 30) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | **Net sales** | $264.1M | $251.9M | | **Net earnings** | $121.7M | $112.2M | | **AWI's Equity Earnings from WAVE** | $58.9M | $53.9M | [Note 17. Shareholders' Equity](index=22&type=section&id=Note%2017.%20Shareholders'%20Equity) The company repurchased **0.4 million** shares for **$52.0 million** in H1 2025, with **$609.8 million** remaining for repurchases, and declared quarterly dividends of **$0.308** per share - Repurchased **0.4 million** shares for a total cost of **$52.0 million** during the six months ended June 30, 2025[87](index=87&type=chunk) - As of June 30, 2025, **$609.8 million** remained available under the share repurchase program, authorized through December 31, 2026[84](index=84&type=chunk) - The Board of Directors declared quarterly dividends of **$0.308** per share, paid in March and May 2025, with another declared for August 2025[88](index=88&type=chunk) [Note 18. Litigation and Related Matters](index=25&type=section&id=Note%2018.%20Litigation%20and%20Related%20Matters) The company is involved in environmental remediation at two Superfund sites, with total recorded liabilities of **$4.1 million** as of June 30, 2025 - The company is actively involved in investigation and remediation at two Superfund sites: Macon, Georgia and Elizabeth City, North Carolina[95](index=95&type=chunk)[100](index=100&type=chunk)[108](index=108&type=chunk) - Total recorded liabilities for environmental matters were **$4.1 million** as of June 30, 2025, down from **$4.6 million** at year-end 2024[109](index=109&type=chunk) - In May 2024, the EPA issued a Proposed Remedial Action Plan for the non-groundwater elements at the Macon site with a total cost estimate of approximately **$8 million**[104](index=104&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=25&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Consolidated net sales increased **16.8%** to **$807.3 million** for H1 2025, driven by higher volumes and AUV, with operating income growing **22.4%** to **$221.7 million** [Consolidated Results](index=34&type=section&id=Consolidated%20Results) Consolidated net sales rose **16.8%** to **$807.3 million** and operating income increased **22.4%** to **$221.7 million** for H1 2025, driven by volumes and AUV Consolidated Results Summary (Six Months Ended June 30) | Metric | 2025 | 2024 | % Change | | :--- | :--- | :--- | :--- | | **Total consolidated net sales** | $807.3M | $691.4M | 16.8% | | **Operating income** | $221.7M | $181.1M | 22.4% | - The increase in net sales for the first six months was driven by higher volumes of **$87 million** and favorable AUV of **$29 million**[140](index=140&type=chunk) - Equity earnings from the WAVE joint venture increased to **$58.9 million** for the first six months of 2025, up from **$53.9 million** in 2024, driven by favorable AUV[144](index=144&type=chunk) [Reportable Segment Results](index=36&type=section&id=Reportable%20Segment%20Results) Mineral Fiber net sales increased **4.6%** to **$512.1 million** due to AUV, while Architectural Specialties sales grew **46.4%** to **$295.2 million**, driven by acquisitions - **Mineral Fiber:** Net sales for the first six months of 2025 increased by **$22 million**, driven by **$29 million** in favorable AUV, partially offset by a **$7 million** decrease from lower sales volumes[150](index=150&type=chunk) - **Architectural Specialties:** Net sales for the first six months of 2025 improved by **$94 million**, primarily due to a **$69 million** increase from the Zahner and 3form acquisitions and increased organic sales[159](index=159&type=chunk) [Financial Condition and Liquidity](index=38&type=section&id=Financial%20Condition%20and%20Liquidity) Operating cash flow increased to **$122.6 million** for H1 2025, with the company maintaining strong liquidity of **$81.1 million** in cash and **$430 million** available under its credit facility - Cash from operating activities increased to **$122.6 million** in the first six months of 2025 from **$83.7 million** in the same period of 2024, primarily due to higher cash earnings[165](index=165&type=chunk) - As of June 30, 2025, the company had **$81.1 million** in cash and cash equivalents and **$430 million** available under its revolving credit facility[173](index=173&type=chunk) - The company was in compliance with all financial covenants of its senior credit facility as of June 30, 2025[171](index=171&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=32&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section refers to the Annual Report on Form 10-K for market risk disclosures, noting no material changes since December 31, 2024 - There have been no material changes to the market risk disclosures provided in the Annual Report on Form 10-K for the year ended December 31, 2024[175](index=175&type=chunk) [Item 4. Controls and Procedures](index=32&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded the company's disclosure controls and procedures were effective as of June 30, 2025, with no material changes in internal control over financial reporting - The principal executive officer and chief financial officer concluded that the company's disclosure controls and procedures were effective as of June 30, 2025[176](index=176&type=chunk) - No material changes in internal control over financial reporting occurred during the fiscal quarter ended June 30, 2025[176](index=176&type=chunk) [PART II - OTHER INFORMATION](index=33&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=33&type=section&id=Item%201.%20Legal%20Proceedings) Information regarding legal proceedings, primarily environmental matters, is incorporated by reference from Note 18 of the Condensed Consolidated Financial Statements - Information regarding legal proceedings is provided in Note 18 to the Condensed Consolidated Financial Statements[178](index=178&type=chunk) [Item 1A. Risk Factors](index=33&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the Annual Report on Form 10-K for the year ended December 31, 2024 - There have been no material changes to the risk factors disclosed in the Annual Report on Form 10-K for the year ended December 31, 2024[179](index=179&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=33&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) In Q2 2025, the company repurchased **0.2 million** shares for **$30.0 million**, with **$609.8 million** remaining under the share repurchase program Issuer Purchases of Equity Securities (Q2 2025) | Period | Total Shares Purchased | Average Price Paid per Share | Shares Purchased as Part of Program | | :--- | :--- | :--- | :--- | | **April 2025** | 145,561 | $131.16 | 91,287 | | **May 2025** | 112,349 | $153.57 | 112,349 | | **June 2025** | 3,236 | $154.76 | 3,193 | | **Total** | 261,146 | - | 206,829 | - In Q2 2025, the company repurchased **0.2 million** shares for **$30.0 million** at an average price of **$145.04** per share[183](index=183&type=chunk) [Item 3. Defaults Upon Senior Securities](index=33&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon senior securities during the reporting period - None[184](index=184&type=chunk) [Item 4. Mine Safety Disclosures](index=33&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not Applicable[185](index=185&type=chunk) [Item 5. Other Information](index=33&type=section&id=Item%205.%20Other%20Information) No director or officer adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during Q2 2025 - During the three months ended June 30, 2025, no director or officer adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement[186](index=186&type=chunk) [Item 6. Exhibits](index=34&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed as part of the Quarterly Report on Form 10-Q, including CEO/CFO certifications and XBRL data files

[Q2 2025 Earnings Release Overview](index=1&type=section&id=Armstrong%20World%20Industries%20Reports%20Record%20Second-Quarter%202025%20Sales%20and%20Earnings) Armstrong World Industries achieved record Q2 2025 sales and earnings, driven by strong segment performance and strategic acquisitions, leading to an updated full-year outlook [Second-Quarter 2025 Consolidated Results](index=1&type=section&id=Second-Quarter%20Consolidated%20Results) Armstrong World Industries reported record Q2 2025 results with significant growth in net sales and operating income, driven by higher volumes, favorable AUV, and acquisitions Q2 2025 Consolidated Financial Highlights | (Dollar amounts in millions except per-share data) | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | **Net sales** | $424.6 | $365.1 | 16.3% | | **Operating income** | $123.2 | $95.0 | 29.7% | | **Operating income margin** | 29.0% | 26.0% | 300bps | | **Net earnings** | $87.8 | $65.9 | 33.2% | | **Diluted net earnings per share** | $2.01 | $1.50 | 34.0% | | **Adjusted EBITDA** | $154 | $125 | 23.2% | | **Adjusted EBITDA margin** | 36.3% | 34.3% | 200bps | | **Adjusted diluted net earnings per share** | $2.09 | $1.62 | 29.0% | - Net sales growth was driven by a **$46 million** increase from higher volumes and a **$14 million** benefit from favorable Average Unit Value (AUV)[6](index=6&type=chunk) - Operating income increased primarily due to a **$25 million** benefit from sales volume growth, an **$8 million** margin benefit from favorable AUV, and a **$6 million** increase in equity earnings from the WAVE joint venture[7](index=7&type=chunk) - The 2024 acquisitions of 3form and Zahner contributed **$28 million** to the increase in net sales and **$5 million** to the increase in operating income in Q2 2025[7](index=7&type=chunk) [Second-Quarter 2025 Segment Performance](index=3&type=section&id=Second-Quarter%20Segment%20Results) Both Mineral Fiber and Architectural Specialties segments demonstrated strong sales growth and margin expansion, with acquisitions significantly boosting Architectural Specialties [Mineral Fiber](index=3&type=section&id=Mineral%20Fiber) The Mineral Fiber segment achieved 6.7% net sales growth and 20.4% operating income increase, driven by favorable AUV, increased WAVE equity earnings, and reduced SG&A Q2 2025 Mineral Fiber Segment Results | (Dollar amounts in millions) | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | **Net sales** | $267.0 | $250.2 | 6.7% | | **Operating income** | $98.4 | $81.7 | 20.4% | | **Adjusted EBITDA** | $121 | $104 | 15.6% | | **Operating income margin** | 36.9% | 32.7% | 420bps | | **Adjusted EBITDA margin** | 45.2% | 41.7% | 350bps | - Net sales growth was composed of **$14 million** from favorable AUV (like-for-like price and mix) and **$3 million** from higher sales volumes[8](index=8&type=chunk) - The increase in operating income was primarily due to an **$8 million** benefit from favorable AUV, a **$6 million** increase in WAVE equity earnings, and a **$4 million** decrease in SG&A expenses[9](index=9&type=chunk) [Architectural Specialties](index=3&type=section&id=Architectural%20Specialties) Architectural Specialties saw significant growth with 37.2% net sales and 80.3% operating income increase, primarily from 2024 acquisitions and strong organic performance Q2 2025 Architectural Specialties Segment Results | (Dollar amounts in millions) | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | **Net sales** | $157.6 | $114.9 | 37.2% | | **Operating income** | $25.6 | $14.2 | 80.3% | | **Adjusted EBITDA** | $34 | $21 | 60.7% | | **Operating income margin** | 16.2% | 12.4% | 380bps | | **Adjusted EBITDA margin** | 21.5% | 18.4% | 310bps | - Net sales growth was driven by a **$28 million** increase from the 2024 acquisitions of 3form and Zahner, along with increased organic sales from broad-based product penetration[10](index=10&type=chunk) - Operating income growth was driven by operating leverage on strong organic growth and contributions from acquisitions, partially offset by a **$4 million** increase in manufacturing costs and a **$7 million** increase in SG&A, both primarily attributable to the acquisitions[11](index=11&type=chunk)[12](index=12&type=chunk) [Unallocated Corporate](index=5&type=section&id=Unallocated%20Corporate) Unallocated Corporate operating loss remained consistent at $1 million in Q2 2025 compared to the prior year - Unallocated Corporate operating loss was **$1 million** in Q2 2025, consistent with Q2 2024[13](index=13&type=chunk) [Cash Flow and Capital Allocation](index=5&type=section&id=Cash%20Flow%20and%20Capital%20Allocation) The company demonstrated strong cash generation with a 46% increase in operating cash flow year-to-date and returned $30 million to shareholders via share repurchases - Year-to-date cash flows from operating activities increased by **$39 million (46%)** compared to the prior year, driven by higher cash earnings[14](index=14&type=chunk) - In Q2 2025, the company repurchased **0.2 million shares** for a total cost of **$30 million**[15](index=15&type=chunk) - As of June 30, 2025, **$610 million** remained available under the authorized share repurchase program[15](index=15&type=chunk) [Full-Year 2025 Outlook](index=5&type=section&id=Updating%202025%20Outlook) Armstrong World Industries raised its full-year 2025 guidance for net sales, Adjusted EBITDA, and adjusted diluted EPS, reflecting strong first-half performance - Management raised its full-year 2025 guidance for net sales, Adjusted EBITDA, adjusted diluted net earnings per share, and adjusted free cash flow, citing strong first-half results[17](index=17&type=chunk) Updated Full-Year 2025 Guidance | (Dollar amounts in millions except per-share data) | 2024 Actual | Current Guidance (2025) | VPY Growth % | | :--- | :--- | :--- | :--- | | **Net sales** | $1,446 | $1,600 to $1,630 | 11% to 13% | | **Adjusted EBITDA** | $486 | $545 to $560 | 12% to 15% | | **Adjusted diluted net earnings per share** | $6.31 | $7.15 to $7.30 | 13% to 16% | | **Adjusted free cash flow** | $298 | $330 to $345 | 11% to 16% | [Appendix: Financial Statements and Reconciliations](index=7&type=section&id=Appendix%3A%20Financial%20Statements%20and%20Reconciliations) This section provides detailed unaudited financial statements and comprehensive reconciliations of GAAP to non-GAAP measures for Q2 2025 and full-year 2025 guidance [Selected Financial Statements](index=7&type=section&id=Reported%20Financial%20Results) Presents unaudited consolidated income statement, segment results, balance sheet, and cash flow statement for Q2 2025 and year-to-date, with comparative 2024 data Selected Financial Results (Income Statement) | (Amounts in millions, except per share data) | For the Three Months Ended June 30, | For the Six Months Ended June 30, | | :--- | :--- | :--- | | | **2025** | **2024** | **2025** | **2024** | | **Net sales** | $424.6 | $365.1 | $807.3 | $691.4 | | **Gross profit** | $175.8 | $149.3 | $325.7 | $273.6 | | **Operating income** | $123.2 | $95.0 | $221.7 | $181.1 | | **Net earnings** | $87.8 | $65.9 | $156.9 | $125.8 | | **Diluted net earnings per share** | $2.01 | $1.50 | $3.59 | $2.86 | Selected Balance Sheet Information | (Amounts in millions) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total assets** | $1,862.0 | $1,842.7 | | **Total liabilities** | $1,024.2 | $1,085.6 | | **Shareholders' equity** | $837.8 | $757.1 | [GAAP to Non-GAAP Reconciliations](index=9&type=section&id=Supplemental%20Reconciliations%20of%20GAAP%20to%20non-GAAP%20Results) Details reconciliations for key non-GAAP metrics including Adjusted EBITDA and Adjusted Diluted EPS for Q2 2025 and the updated full-year 2025 guidance Q2 2025 Adjusted EBITDA Reconciliation | (Amounts in millions) | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | **Net earnings** | $88 | $66 | | Add: Income tax expense | 28 | 21 | | Add: Interest/other income and expense, net | 8 | 8 | | **Operating income** | $123 | $95 | | Add: Adjustments (RIP, Acquisition, etc.) | 1 | 5 | | **Adjusted operating income** | $124 | $100 | | Add: Depreciation and amortization | 30 | 25 | | **Adjusted EBITDA** | $154 | $125 | Q2 2025 Adjusted Diluted EPS Reconciliation | (Amounts in millions, except per share) | Q2 2025 Total | Q2 2025 Per Share | Q2 2024 Total | Q2 2024 Per Share | | :--- | :--- | :--- | :--- | :--- | | **Net earnings** | $88 | $2.01 | $66 | $1.50 | | Add: Adjustments (Acquisition impacts, Amortization, etc.) | 4 | | 7 | | | (Less): Adjusted income tax expense | (29) | | (23) | | | **Adjusted net earnings** | $91 | $2.09 | $71 | $1.62 | FY 2025 Adjusted EBITDA Guidance Reconciliation | (Amounts in millions) | Low | High | | :--- | :--- | :--- | | **Net earnings** | $300 | $304 | | Add: Taxes, Interest, Other | 124 | 132 | | **Operating income** | $425 | $436 | | Add: RIP expense | 2 | 2 | | **Adjusted operating income** | $427 | $438 | | Add: Depreciation and amortization | 117 | 122 | | **Adjusted EBITDA** | $545 | $560 |

Core Insights - The Modular Wall Panel Systems Market is projected to grow from USD 1.6 Billion in 2024 to USD 2.5 Billion by 2030, with a CAGR of 7.80% driven by urbanization, faster construction needs, and sustainable practices [2][19]. Market Drivers - The demand for time-efficient and cost-effective construction solutions is a primary driver, as modular wall panels reduce construction time and labor requirements through prefabrication [6][8]. - Sectors such as healthcare, education, and commercial real estate benefit from the rapid deployment capabilities of modular systems, enhancing project planning and budgeting [7]. - Rising labor costs and a shortage of skilled tradespeople in developed regions make modular construction a practical alternative, minimizing on-site labor dependency [8]. Market Challenges - High initial investment and setup costs hinder adoption, as establishing production facilities requires significant capital for specialized equipment and automation [9][10]. - Comprehensive planning and design expenses, along with limited financing options in developing regions, further restrict the transition to modular construction [10]. - Resistance to change within construction firms complicates the adaptation of existing workflows to modular techniques, delaying broader adoption [11]. Market Trends - The integration of smart and sustainable materials into modular panels is a key trend, with manufacturers adopting eco-friendly alternatives to meet tightening environmental regulations [12][13]. - Materials such as recycled metals and engineered wood are replacing traditional materials, providing benefits like improved insulation and energy efficiency [13]. Key Market Players - Notable companies in the modular wall panel systems market include Armstrong World Industries, Hufcor, PortaFab, DIRTT Environmental Solutions, and others [16]. Report Scope - The report segments the market by product type and application, covering various sectors including healthcare, education, and commercial [15][21].

The market expects Armstrong World Industries (AWI) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2025. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates. The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected t ...

Core Viewpoint - Investors in the Building Products - Miscellaneous sector should consider United Rentals (URI) and Armstrong World Industries (AWI) for potential value investment opportunities [1] Valuation Metrics - URI has a forward P/E ratio of 18.29, while AWI has a forward P/E of 23.34, indicating that URI may be undervalued compared to AWI [5] - URI's PEG ratio is 1.95, which is lower than AWI's PEG ratio of 2.06, suggesting URI has a more favorable earnings growth expectation relative to its price [5] - URI's P/B ratio is 5.9, compared to AWI's P/B of 8.98, further supporting the notion that URI is a better value option [6] Analyst Outlook - URI currently holds a Zacks Rank of 2 (Buy), indicating a positive earnings estimate revision trend, while AWI has a Zacks Rank of 3 (Hold) [3] - The improving earnings outlook for URI positions it as a superior value option in the current market [7]

Group 1 - Armstrong World Industries (AWI) has consistently surpassed earnings estimates, making it a strong candidate for potential investment [1][2] - The company has achieved an average earnings surprise of 8.29% over the last two quarters, with specific surprises of 7.10% and 9.49% in the most recent quarters [2][3] - Recent estimates for Armstrong World Industries have been revised upward, indicating positive sentiment among analysts [5][8] Group 2 - The Zacks Earnings ESP for Armstrong World Industries is currently +1.71%, suggesting bullish expectations for upcoming earnings [8] - The stock holds a Zacks Rank of 2 (Buy), further indicating the potential for another earnings beat [8] - The next earnings report for the company is anticipated to be released on July 29, 2025 [8]

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Overview: Armstrong World Industries (AWI) - AWI currently holds a Momentum Style Score of A, indicating strong momentum characteristics [2] - The company has a Zacks Rank of 2 (Buy), suggesting it is positioned for potential outperformance in the market [3] Performance Metrics - AWI shares have increased by 7.19% over the past week, outperforming the Zacks Building Products - Miscellaneous industry, which rose by 3.58% [5] - Over the past quarter, AWI shares have surged by 31.32%, and over the last year, they have gained 47.55%, while the S&P 500 has only increased by 10.42% and 14.64%, respectively [6] - The average 20-day trading volume for AWI is 291,500 shares, indicating a bullish trend when combined with rising stock prices [7] Earnings Outlook - In the past two months, one earnings estimate for AWI has increased, while none have decreased, raising the consensus estimate from $6.98 to $7.03 [9] - For the next fiscal year, one estimate has also moved upwards with no downward revisions, indicating positive earnings momentum [9] Conclusion - Given the strong performance metrics and positive earnings outlook, AWI is recommended as a solid momentum pick with a Momentum Score of A and a Zacks Rank of 2 (Buy) [11]

Company Overview - Armstrong World Industries (AWI) is a leading global producer of ceiling systems, primarily serving the construction and renovation sectors for commercial, institutional, and residential buildings [11] - The company designs, manufactures, and sells various ceiling systems, including mineral fiber, fiberglass wool, metal, wood, wood fiber, glass-reinforced gypsum, and felt [11] Investment Ratings - AWI currently holds a Zacks Rank of 3 (Hold) and has a VGM Score of B, indicating a solid position but not a strong buy recommendation [11] - The company is considered a potential top pick for growth investors due to its favorable Growth Style Score of B [12] Financial Performance - AWI is forecasted to achieve year-over-year earnings growth of 11.4% for the current fiscal year [12] - In the last 60 days, two analysts have revised their earnings estimates upwards, with the Zacks Consensus Estimate increasing by $0.04 to $7.03 per share [12] - The company has an average earnings surprise of 6.5%, suggesting it has a history of exceeding earnings expectations [12]

Company Overview - Armstrong World Industries (AWI) shares have increased by approximately 7.2% over the past month, outperforming the S&P 500 [1] - The most recent earnings report is crucial for understanding the catalysts affecting the stock [1] Earnings Estimates - Fresh estimates for Armstrong World Industries have trended upward in the past month [2] - The magnitude of these revisions has been net zero, indicating stability in expectations [4] VGM Scores - Armstrong World Industries has a Growth Score of B, but a low Momentum Score of D, and a Value Score of D, placing it in the bottom 40% for the value investment strategy [3] - The overall aggregate VGM Score for the stock is D, which is significant for investors not focused on a single strategy [3] Industry Performance - Armstrong World Industries is part of the Zacks Building Products - Miscellaneous industry, where another player, Masco (MAS), has seen a 3.3% gain over the past month [5] - Masco reported revenues of $1.8 billion for the last quarter, reflecting a year-over-year decline of 6.5% [5] - Masco's expected earnings for the current quarter are $1.06 per share, indicating a year-over-year change of -11.7% [6]

Core Insights - Armstrong World Industries, Inc. (AWI) reported strong first-quarter 2025 results, with earnings and net sales exceeding expectations and showing year-over-year growth [1][2][3] Financial Performance - Adjusted earnings per share (EPS) reached $1.66, surpassing the Zacks Consensus Estimate of $1.55 by 7.1% and growing 20.3% year over year from $1.38 [3] - Net sales totaled $382.7 million, exceeding the consensus mark of $373 million by 2.7% and increasing 17.3% year over year [3] - Adjusted EBITDA rose 16.2% from the previous year to $129 million, although the adjusted EBITDA margin contracted by 30 basis points to 33.6% [4] Segment Performance - **Mineral Fiber Segment**: Net sales grew 2.3% year over year to $245.1 million, driven by a favorable Average Unit Value (AUV) of $16 million, despite a $10 million decline in sales volume due to weak demand [5] - **Architectural Specialties Segment**: Net sales surged 58.7% year over year to $137.6 million, bolstered by a $41 million contribution from acquisitions [7] Cash Flow and Share Repurchase - As of March 31, 2025, cash and cash equivalents stood at $82.8 million, up from $79.3 million at the end of 2024, with net cash provided by operations at $41 million compared to $26 million a year ago [9] - The company repurchased 0.1 million shares for $22 million during the quarter, with $640 million remaining under the current share repurchase program [10] 2025 Guidance - AWI maintains its guidance for net sales between $1,570 million and $1,610 million, indicating a 9-11% increase year over year [11] - Adjusted EBITDA is projected to be between $525 million and $545 million, reflecting an 8-12% year-over-year rise [12]