Armstrong World Industries, Inc. (AWI) reported solid results for second-quarter 2024, wherein earnings and net sales topped the Zacks Consensus Estimate and increased on a year-over-year basis. Following the results, shares of this international designer and manufacturer of wall and ceiling building materials grew 1.1% on Jul 30.The company’s growth trend was backed by solid contributions from the Mineral Fiber as well as Architectural Specialties segments. Growth was attributable to the increase in averag ...

Armstrong World Industries, Inc. (NYSE:AWI) Q2 2024 Earnings Conference Call July 30, 2024 10:00 AM ET Company Participants Theresa Womble - VP, IR and Corporate Communications Vic Grizzle - CEO Chris Calzaretta - CFO Conference Call Participants Susan Maklari - Goldman Sachs Keith Hughes - Truist Adam Baumgarten - Zelman & Associates Garik Shmois - Loop Capital Brian Biros - Thompson Research Group Philip Ng - Jefferies Rafe Jadrosich - Bank of America Stephen Kim - Evercore ISI Matt Johnson - UBS Operator ...

Armstrong World Industries (AWI) came out with quarterly earnings of $1.62 per share, beating the Zacks Consensus Estimate of $1.53 per share. This compares to earnings of $1.38 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 5.88%. A quarter ago, it was expected that this ceiling and wall systems manufacturer would post earnings of $1.21 per share when it actually produced earnings of $1.38, delivering a surprise of 14.05%.Ov ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 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 June 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 1-2116 | --- | --- | --- | |---------------------------------------------------------------------------------------------------------- ...

Financial Performance - Net sales increased by 12.2% to $365.1 million in Q2 2024, driven by higher volumes of $27 million and favorable Average Unit Value (AUV) of $13 million[4]. - Operating income rose by 9.2% to $95.0 million, with a margin of 26.0%, impacted by a $17 million margin benefit from higher sales volumes[3][5]. - Adjusted EBITDA increased by 12.5% to $125 million, with an adjusted EBITDA margin of 34.3%[3][6]. - Architectural Specialties net sales surged by 25.7% to $114.9 million, primarily due to a $20 million contribution from acquisitions[8][9]. - Mineral Fiber net sales grew by 6.9% to $250.2 million, supported by $13 million of favorable AUV[6][7]. - Net sales for the three months ended June 30, 2024, were $365.1 million, a 12.2% increase from $325.4 million in the same period last year[20]. - Gross profit for the six months ended June 30, 2024, was $273.6 million, up 15.8% from $236.1 million in the prior year[20]. - Operating income for the three months ended June 30, 2024, increased to $95.0 million, compared to $87.0 million in the same period last year, reflecting a growth of 9.2%[21]. - Net earnings for the six months ended June 30, 2024, were $125.8 million, a 17.9% increase from $107.5 million in the same period last year[25]. - Diluted net earnings per share for the three months ended June 30, 2024, were $1.50, compared to $1.34 in the same period last year, representing a 11.9% increase[20]. Guidance and Projections - The company raised its full-year 2024 guidance, expecting net sales to reach between $1.415 billion and $1.440 billion, representing a growth of 9% to 11% year-over-year[14]. - Adjusted diluted net earnings per share are projected to be between $6.00 and $6.15, reflecting a growth of 13% to 16%[14]. - Adjusted EBITDA guidance for the year ending December 31, 2024, is projected to be between $474 million and $486 million[37]. - Adjusted diluted net earnings per share guidance for 2024 is estimated to be between $6.00 and $6.15, based on approximately 44 million diluted shares outstanding[38]. - Adjusted free cash flow is expected to range from $288 million to $300 million for the year ending December 31, 2024[39]. - Net cash provided by operating activities is projected to be between $171 million and $183 million for the year ending December 31, 2024[39]. - Adjusted operating income is forecasted to be between $374 million and $380 million[37]. - Adjusted net earnings are anticipated to be between $264 million and $269 million[38]. - Total capital expenditures are expected to be between $80 million and $90 million[39]. - The company expects to incur cash paid for acquisitions of $99 million for the year ending December 31, 2024[39]. - The company projects an income tax expense of approximately $85 million to $87 million for the year ending December 31, 2024[37]. - The company does not expect to make cash contributions to its RIP, which is reflected in the adjusted earnings calculations[38]. Cash Flow and Capital Management - Cash flows from operating activities decreased by $10 million year-to-date compared to the prior year, primarily due to unfavorable working capital changes[10]. - The company repurchased 0.1 million shares for a total cost of $10 million during Q2 2024, with $692 million remaining under the share repurchase program[11]. - Cash and cash equivalents at the end of the period were $73.6 million, down from $101.6 million at the end of the previous year, indicating a decrease of 27.5%[25]. - Consolidated adjusted free cash flow for the three months ended June 30, 2023, was $62 million, down from $73 million in the prior year[34]. - The company reported a net cash used for investing activities of $(87) million for the three months ended June 30, 2023, compared to $(5) million in the same period last year[34]. Asset and Liability Management - Total assets as of June 30, 2024, were $1,820.2 million, up from $1,672.4 million at the end of December 2023, indicating a growth of 8.8%[24]. - Current liabilities increased to $200.0 million as of June 30, 2024, compared to $194.5 million at the end of December 2023, reflecting a rise of 2.8%[24]. Segment Performance - Mineral Fiber net sales for the three months ended June 30, 2023, were $250 million, up from $234 million in the same period last year, representing a 6.8% increase[30]. - Adjusted operating income for Mineral Fiber was $85 million for the three months ended June 30, 2023, compared to $76 million in the prior year, reflecting a 12% increase[30]. - Adjusted EBITDA margin for Mineral Fiber improved to 41.7% for the three months ended June 30, 2023, compared to 40.4% in the same period last year[30]. - Architectural Specialties net sales for the three months ended June 30, 2023, were $115 million, an increase of 26.4% from $91 million in the prior year[32]. - Adjusted EBITDA for Architectural Specialties was $21 million for the three months ended June 30, 2023, compared to $17 million in the same period last year, marking a 23.5% increase[32]. Tax and Corporate Expenses - The effective tax rate for the three months ended June 30, 2023, was 24%, compared to 25% in the prior year[36]. - Unallocated corporate operating loss for the three months ended June 30, 2023, was $(1) million, unchanged from the prior year[33].

The Zacks Construction sector is expected to witness tepid growth this season thanks to the elevated mortgage rates as well as high material and labor costs.Per the latest Earnings Trends report, the latest earnings season has seen releases from approximately 46.2% of the total construction companies on the S&P 500 Index, capturing a total market cap of 55.4%. Of them, total earnings increased 7% from the year-ago period on 4.5% higher revenues, with 83.3% beating earnings per share (EPS) estimates and 50% ...

A month has gone by since the last earnings report for Armstrong World Industries (AWI) . Shares have added about 0.6% in that time frame, underperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Armstrong World Industries due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts. Armstrong World Q1 E ...

Armstrong World Industries (AWI) could be a solid choice for investors given its recent upgrade to a Zacks Rank #1 (Strong Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.The power o ...

Armstrong World Industries, Inc. (AWI) unveils Ultima Low Embodied Carbon (LEC) ceiling panels to aid building owners, architects and contractors in reducing environmental impact. The move signifies the company's continued focus on expanding its range of products aimed at reducing the environmental impact of buildings.Armstrong aims to offer products supporting decarbonization and circularity in the built environment. Its latest offerings, Ultima LEC and Ultima Templok Energy Saving Ceiling panels are devel ...

Core Viewpoint - Armstrong World Industries, Inc. (AWI) is experiencing solid growth in its Mineral Fiber and Architectural Specialties segments, supported by recent acquisitions and positive financial performance [1][2]. Financial Performance - In Q1 2024, AWI reported adjusted EPS growth of 23.2% year over year, with net sales increasing by 5.2% [2]. - The favorable average unit value (AUV) of $20 million and a $3 million contribution from the acquisition of BOK Modern, LLC contributed to this growth [2]. - Operating margin expanded by 380 basis points, and adjusted EBITDA margin rose by 300 basis points compared to the previous year [2]. 2024 Guidance - AWI raised its 2024 net sales outlook to $1.395-$1.435 billion, indicating an 8-11% increase from the previous year's $1.295 billion [3]. - Adjusted EBITDA is projected to be between $465 million and $485 million, reflecting an 8-13% year-over-year rise from $430 million [3]. - The adjusted EPS guidance is now set at $5.80-$6.05, representing a growth of 9-14% from the 2023 figure of $5.32 [3]. Segment Performance - For the Mineral Fiber segment, net sales are expected to grow by 2-15% year over year, with an adjusted EBITDA margin exceeding 40% [4]. - The Architectural Specialties segment's net sales growth expectations have been significantly raised to 21-24% year over year, up from the previous 6-9% forecast, with an adjusted EBITDA margin nearing 18% [4]. Share Price Performance - AWI's shares have outperformed the Zacks Building Products – Miscellaneous industry and the S&P 500 over the past six months, gaining 40.9% compared to the industry's 31.9% and the S&P 500's 17.7% [5]. Analyst Sentiment - The consensus estimate for 2024 EPS has increased to $5.89, reflecting a 10.7% year-over-year growth [6]. - AWI has a solid earnings surprise history, with EPS surpassing consensus estimates in the last four quarters, averaging 15.2% [6]. Strategic Initiatives - The company is focused on digitalization and technology enhancement, investing in Healthy Spaces and digital initiatives to support growth [7]. - AWI has strategically invested in new products and advanced manufacturing capabilities, with recent investments in metal, wood, and Tectum supporting performance [7]. Acquisitions and Financial Health - AWI has acquired nine companies in the past seven years to expand its Architectural Specialties segment, including the recent acquisition of 3form, LLC [8]. - The company has returned over $1 billion through dividends and share repurchases since 2016, with a recent repurchase of 0.1 million shares for $15 million [8]. - On October 18, 2023, AWI announced a 10.2% increase in its quarterly cash dividend to 28 cents per share, marking five consecutive years of dividend increases [9].