Armstrong World Industries(AWI) - 2024 Q4 - Annual Results

Financial Performance - Fourth-quarter 2024 net sales reached $367.7 million, an increase of 17.7% compared to $312.3 million in Q4 2023[3] - Full-year 2024 net sales totaled $1.4457 billion, reflecting an 11.6% increase from $1.2952 billion in 2023[12] - Operating income for Q4 2024 was $81.9 million, up 23.5% from $66.3 million in Q4 2023, with an operating income margin of 22.3%[3] - Diluted net earnings per share for Q4 2024 increased by 34.0% to $1.42, compared to $1.06 in Q4 2023[3] - Net earnings for the year 2024 were $264.9 million, up 18.4% from $223.8 million in 2023[32] - Adjusted diluted EPS for Q4 2024 was $1.50, a 23.0% increase compared to $1.22 in Q4 2023[45] Segment Performance - Architectural Specialties segment net sales surged 40.8% in Q4 2024, driven by acquisitions and increased custom project sales[10] - The Mineral Fiber segment reported net sales of $238.2 million in Q4 2024, up from $220.3 million in Q4 2023[28] - Architectural Specialties segment net sales increased to $129.5 million in Q4 2024, compared to $92.0 million in Q4 2023, marking a 40.7% growth[28] - Net sales for the Mineral Fiber segment increased to $238 million in Q4 2024, up from $220 million in Q4 2023, representing an 8.2% growth[39] - Adjusted EBITDA for the Mineral Fiber segment reached $89 million in Q4 2024, compared to $81 million in Q4 2023, reflecting a 9.9% increase[39] - Architectural Specialties net sales rose to $130 million in Q4 2024, a significant increase from $92 million in Q4 2023, marking a 41.3% growth[41] Cash Flow and Guidance - Adjusted free cash flow for 2024 was $298 million, with a guidance of $315 million to $335 million for 2025, indicating a growth of 6% to 12%[18] - The company reported a $33 million increase in cash flows from operating activities in 2024 compared to the prior year[15] - The company reported a net cash provided by operating activities of $87 million in Q4 2024, compared to $57 million in Q4 2023, representing a 52.6% increase[43] - The company expects adjusted EBITDA for the year ending December 31, 2025, to be between $525 million and $545 million[48] - Adjusted Free Cash Flow guidance for 2025 is projected to be between $315 million and $335 million[53] Future Projections - For 2025, the company projects net sales between $1.57 billion and $1.61 billion, representing a growth of 9% to 11%[18] - The company anticipates net earnings for 2025 to be between $293 million and $297 million, translating to an adjusted diluted EPS of $6.72 to $6.84[50] Acquisition and Assets - The company completed the acquisition of A. Zahner Company, contributing to growth in Architectural Specialties[4] - Total assets as of December 31, 2024, were $1.8427 billion, an increase from $1.6724 billion in 2023[31] Tax and Reporting - The effective tax rate for adjusted net earnings is estimated to be approximately 25%[52] - The company expects to file its annual report for the year ended December 31, 2024, with the SEC today, which will include a detailed discussion of performance and future outlook[23]