Armstrong World Industries(US:AWI)2025-10-28 10:00Financial Performance - Third-quarter 2025 net sales increased by 10.0% to $425.2 million compared to $386.6 million in the prior year[4] - Operating income rose by 5.3% to $117.2 million, with an operating income margin of 27.6%, down from 28.8%[4] - Net earnings increased by 12.2% to $86.3 million, with diluted net earnings per share rising by 13.1% to $1.98[4] - Architectural Specialties net sales grew by 17.6% to $151.2 million, driven by $16 million from acquisitions and $7 million in organic sales growth[11] - Mineral Fiber net sales increased by 6.2% to $274.0 million, supported by favorable Average Unit Value (AUV) and improved sales volumes[9] - Net sales for Q3 2025 reached $425.2 million, a 10% increase from $386.6 million in Q3 2024[24] - Operating income for Q3 2025 was $117.2 million, compared to $111.3 million in Q3 2024, representing a 5% increase[24] - The Mineral Fiber segment reported net sales of $274 million in Q3 2025, up from $258 million in Q3 2024, a 6% increase[35] - Architectural Specialties segment net sales increased to $151.2 million in Q3 2025 from $128.6 million in Q3 2024, a growth of 17.6%[26] Cash Flow and Guidance - Year-to-date cash flow from operating activities increased by 36% to $65 million, with adjusted free cash flow up by 22%[5] - The company raised its full-year 2025 guidance, expecting net sales between $1,623 million and $1,638 million, representing a growth of 12% to 13%[17] - Adjusted EBITDA for 2025 is projected to be between $553 million and $563 million, indicating a growth of 14% to 16%[17] - Adjusted Free Cash Flow for the nine months ended September 30, 2025, was $259 million, compared to $212 million in 2024, marking a 22% increase[39] - The company expects adjusted EBITDA for the year ending December 31, 2025, to be between $553 million and $563 million[45] - Adjusted Free Cash Flow guidance for the year ending December 31, 2025, is estimated to be between $342 million and $352 million[50] Shareholder Returns - The company repurchased 0.1 million shares for $27 million during the third quarter, with $583 million remaining under the share repurchase program[15] - Adjusted diluted EPS for the three months ended September 30, 2025, was $2.05, reflecting a 13.3% increase from $1.81 in 2024[41] Assets and Liabilities - Total assets as of September 30, 2025, were $1,893.4 million, compared to $1,842.7 million at the end of 2024, reflecting a 2.8% increase[28] - Cash and cash equivalents at the end of Q3 2025 were $90.1 million, up from $73.7 million at the end of Q3 2024, a 22% increase[30] - Net cash provided by operating activities for the nine months ended September 30, 2025, was $246 million, up from $180 million in 2024[39] Earnings Overview - Gross profit for the nine months ended September 30, 2025, was $504.2 million, up from $437.7 million in the same period of 2024, reflecting a 15% increase[24] - Net earnings for the nine months ended September 30, 2025, were $243.2 million, a 20% increase from $202.7 million in the same period of 2024[30] - Adjusted EBITDA for Q3 2025 was $148 million, compared to $139 million in Q3 2024, indicating a 6% increase[33] - Adjusted EBITDA for the nine months ended September 30, 2025, reached $86 million, a 46% increase compared to $59 million in 2024[37] Operating Metrics - The average number of diluted common shares outstanding decreased slightly from 44.0 million in 2024 to 43.7 million in 2025[24] - The operating income margin for the three months ended September 30, 2025, was 12.8%, compared to 14.9% in the same period of 2024[37] - The company reported an operating loss of $1 million for the three months ended September 30, 2025, consistent with the same period in 2024[38]