Armstrong World Industries, Inc. AWI reported better-than-expected earnings for the third quarter on Tuesday. The company posted quarterly earnings of $1.81 per share which beat the analyst consensus estimate of $1.75 per share. The company reported quarterly sales of $386.60 million which missed the analyst consensus estimate of $386.69 million. "With another quarter of record setting sales and strong earnings growth, we continue to demonstrate our ability to deliver growth despite muted market conditions ...

Financial Data and Key Metrics Changes - The company reported record-setting third quarter sales and strong earnings growth, with total sales and adjusted EBITDA each increasing by 11% year-over-year, and adjusted diluted earnings per share rising by 13% [9][27][33] - Adjusted EBITDA margin for the company remained consistent with the prior year, reflecting strong operational performance [27][33] Business Line Data and Key Metrics Changes - The Mineral Fiber segment saw net sales increase by 3%, driven by solid average unit value (AUV) performance, despite a modest decline in sales volumes [11][21] - The Architectural Specialty segment reported a 32% increase in net sales, significantly boosted by acquisitions of 3form and BOK Modern, with organic sales growth of 7% [14][24] Market Data and Key Metrics Changes - Market conditions for the Mineral Fiber segment remained mixed, with positive contributions from education, healthcare, and transportation sectors, while the office market showed signs of stabilization [18][76] - The company noted increased bidding activity for large transportation projects, particularly in the airport sector, which is expected to provide multi-year opportunities [16][18] Company Strategy and Development Direction - The company is focused on product innovation, particularly in energy-saving solutions like TEMPLOK ceilings, which address macro trends in energy efficiency and carbon emissions [38][42] - The company aims to leverage its strengths in design and specification to capture growth in emerging markets such as data centers [85][88] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate a challenging market environment, with expectations for continued net sales and earnings growth in 2024 [37][46] - The company anticipates a potential tailwind from new construction activity in 2025, although renovation activity will depend on economic factors and interest rates [91][92] Other Important Information - The company announced a 10% increase in its quarterly dividend, marking the sixth consecutive annual increase since the inception of its dividend program [31][32] - The company repurchased $15 million of shares in the third quarter and has $677 million remaining under its existing share repurchase authorization [32] Q&A Session Summary Question: Thoughts on Mineral Fiber volume growth and trajectory - Management indicated that the market has stabilized, and there are building blocks in place to return to a 2% to 4% volume growth range, driven by new construction and renovation initiatives [49][51] Question: Opportunities for margin improvement - Management highlighted a multi-year history of productivity gains and a healthy pipeline of initiatives aimed at maintaining productivity improvements [54][55] Question: Input costs outlook for the fourth quarter and early next year - Input costs are expected to remain stable, with low single-digit deflation in freight and energy, while raw material costs may see modest inflation in 2025 [58][59] Question: Growth in Architectural Specialties and its drivers - Management noted that while large airport projects contribute to growth, there is broad-based activity across the portfolio supporting organic growth [60][62] Question: AUV expectations for the fourth quarter - Management expects AUV to accelerate in the fourth quarter, driven by improved channel mix and continued pricing execution [63] Question: Performance of Mineral Fiber in different markets - The company reported positive contributions from healthcare and education, while the office market remains soft but stabilizing [76] Question: Return on investments in growth initiatives - Management confirmed that investments in initiatives like Canopy and Project Works are yielding positive EBITDA and are expected to generate greater operating leverage going forward [70][72]

Core Viewpoint - Armstrong World Industries, Inc. (AWI) reported strong third-quarter 2024 results, with earnings and net sales exceeding expectations and showing year-over-year growth [1][4]. Financial Performance - Adjusted EPS was $1.81, surpassing the Zacks Consensus Estimate of $1.75 by 3.4%, and grew 13.1% year over year from $1.60 [4]. - Net sales reached $386.6 million, exceeding the consensus mark of $385.7 million by 0.2% and increasing 11.3% year over year [4]. - Adjusted EBITDA rose 11.2% from the previous year to $139 million, although the adjusted EBITDA margin contracted by 10 basis points to 35.9% [5]. Segment Performance - **Mineral Fiber Segment**: - Net sales grew 3.3% year over year to $258 million, driven by a 10% increase in average unit value (AUV) [6]. - Operating income increased 8.8% to $93 million, with an operating margin expansion of 180 basis points to 36% [7]. - **Architectural Specialties Segment**: - Net sales surged 31.8% year over year to $128.6 million, supported by a $25 million contribution from recent acquisitions [8]. - Operating income rose 23.9% to $19.2 million, with adjusted EBITDA growing 27.1% to $26 million [9]. Cash Flow and Share Repurchase - As of September 30, 2024, cash and cash equivalents were $73.7 million, up from $70.8 million at the end of 2023 [10]. - Net cash provided by operations was $97 million in the third quarter, compared to $83 million in the same period last year [10]. - The company repurchased 0.1 million shares for $15 million during the quarter, with $677 million remaining under the current share repurchase program [11]. 2024 Guidance Update - The company raised its 2024 net sales guidance to a range of $1,420-$1,435 million, reflecting a 10-11% increase from the previous year [13]. - Adjusted EBITDA is now projected to be between $482 million and $490 million, indicating a 12-14% growth from $430 million in 2023 [14]. - Adjusted EPS is expected to increase 16-17% year over year to a range of $6.15-$6.25 [15].

For the quarter ended September 2024, Armstrong World Industries (AWI) reported revenue of $386.6 million, up 11.3% over the same period last year. EPS came in at $1.81, compared to $1.60 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $385.7 million, representing a surprise of +0.23%. The company delivered an EPS surprise of +3.43%, with the consensus EPS estimate being $1.75.While investors scrutinize revenue and earnings changes year-over-year and how they compare ...

Q3 2024 Financial Performance - Net sales increased by 11% year-over-year (YoY) to $387 million[9] from $347 million[8] - Adjusted EBITDA increased by 11% YoY to $139 million[9] from $125 million[8] - Adjusted diluted earnings per share increased by 13% YoY to $1.81[9] from $1.60[8] - Adjusted EBITDA margin was 35.9%, similar to the prior year's 36.0%[8] Segment Performance - Mineral Fiber (MF) segment adjusted EBITDA increased by 8% YoY[10] - MF adjusted EBITDA margin expanded by 200 basis points to 43.9%[10], driven by strong Average Unit Value (AUV) and manufacturing productivity gains[10] - Architectural Specialties (AS) segment adjusted EBITDA increased by 27% YoY[10] - AS segment net sales increased by 32% YoY to $129 million[14] from $98 million[14] - Total AS adjusted EBITDA margin was 20.1%, including recent acquisitions[10] Full Year 2024 Guidance Update - Net sales are expected to be between $1,420 million and $1,435 million, representing a 9% to 11% YoY increase[22] - Adjusted EBITDA is expected to be between $482 million and $490 million, representing a 12% to 14% YoY increase[22] - Adjusted diluted EPS is expected to be between $6.15 and $6.25, representing a 16% to 17% YoY increase[22] - Adjusted free cash flow is expected to be between $290 million and $300 million, representing a 10% to 14% YoY increase[22]

Armstrong World Industries (AWI) came out with quarterly earnings of $1.81 per share, beating the Zacks Consensus Estimate of $1.75 per share. This compares to earnings of $1.60 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 3.43%. A quarter ago, it was expected that this ceiling and wall systems manufacturer would post earnings of $1.53 per share when it actually produced earnings of $1.62, delivering a surprise of 5.88%. O ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 Securities registered pursuant to Section 12(b) of the Act: Title of each class Trading Symbol(s) Name of each exchange on which registered Common Stock, $0.01 par value per share AWI New York Stock Exchange FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES ...

Armstrong world Industries Exhibit 99.1 Armstrong World Industries Reports Third-Quarter 2024 Results • Record setting quarterly net sales of $387 million, an increase of 11% • Operating income increased 11% and diluted net earnings per share increased 12% • Adjusted EBITDA up 11% and adjusted diluted net earnings per share up 13% • Raising full-year 2024 guidance for adjusted EBITDA, adjusted diluted net earnings per share and adjusted free cash flow (Comparisons above are versus the prior-year period unle ...

Dividend Increase and Shareholder Value - Armstrong World Industries, Inc. (AWI) announced a 10% increase in its quarterly cash dividend, raising it to 30.8 cents per share from 28 cents, to be paid on Nov. 21, 2024 [1] - The company has consistently increased its cash dividend for six consecutive years, enhancing shareholder value through regular payments since December 2018 [1][2] - AWI has returned over $1 billion to investors via dividends and share repurchases from 2016 through 2023, with an authorization to purchase up to $1.7 billion of its outstanding shares through December 2026 [3] Financial Performance - As of the second quarter, AWI had cash and cash equivalents of $73.6 million, an increase from $70.8 million at the end of 2023, while long-term debt rose to $621.5 million from $564.3 million [2] - The company is projected to report earnings of $1.75 per share for the third quarter, reflecting a growth of 9.4% from the previous year's figure of $1.60, with net sales estimated at $385.7 million, indicating an 11.1% increase [5] Digital and Technology Initiatives - AWI's ProjectWorks and Canopy platforms are central to its growth initiatives, with Canopy experiencing a 20% increase in sales year-over-year in Q2 2024, and ProjectWorks seeing a 52% rise in quoted project values in the first half of 2024 [4] - The company is focusing on innovation in energy-efficient and digital solutions, positioning itself well for future growth amid broader market uncertainties [4] Stock Performance - Armstrong World's shares have increased by 40.6% year-to-date, outperforming the Zacks Building Products - Miscellaneous industry, which grew by 21.3% [5]

Core Viewpoint - Armstrong World Industries (AWI) is a leading provider of ceiling and wall solutions in the Americas, showing consistent revenue growth and strong profitability margins, with a modestly upgraded outlook for the second half of the year driven by steady demand in key sectors [2][12] Financial Performance - AWI reported record net revenue of $1.29 billion in FY23, reflecting a year-over-year growth of approximately 5%, driven by improved average unit value and stronger sales volume [4] - In Q2, net revenue increased by 12.2% year-over-year, from $325.4 million to $365.1 million, with operating income rising by 9.2% [6] - Adjusted EBITDA margins improved from 31.2% in FY22 to 33.2% in FY23, while adjusted earnings margins also increased from 17.8% to 18.4% [5] Business Segments - AWI operates primarily in two segments: Mineral Fiber and Architectural Specialties, with the Mineral Fiber segment accounting for the majority of sales [7] - The Architectural Specialties segment grew by 26% year-over-year, significantly boosted by strategic acquisitions like BOK Modern and 3form [10] Growth Opportunities - The company is tracking approximately 100 data center projects, indicating rapid growth in this area, alongside strong performance in healthcare, education, and transportation sectors [9] - The acquisition of Data Centre Resources, LLC enhances AWI's capabilities in the data center market, addressing operational efficiencies and construction challenges [9] Relative Valuation - AWI's forward revenue growth rate of 7.18% significantly outperforms the peers' median of 1.54%, and its EBITDA margin of 17.92% exceeds the peers' median of 7.27% [11] - The forward non-GAAP P/E ratio for AWI is 20.35x, justifying a premium valuation compared to peers [11]