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Armstrong World Stock Up as Q4 Earnings & Net Sales Beat Estimates
AWIArmstrong World Industries(AWI) ZACKS·2025-02-26 16:26

Core Viewpoint - Armstrong World Industries, Inc. (AWI) reported strong fourth-quarter 2024 results, with earnings and net sales exceeding expectations and showing year-over-year growth [1][5]. Financial Performance - Adjusted EPS for the quarter was 1.50,surpassingtheZacksConsensusEstimateof1.50, surpassing the Zacks Consensus Estimate of 1.37 by 9.5%, and grew 23% year-over-year from 1.22[5].−Netsalesreached1.22 [5]. - Net sales reached 367.7 million, exceeding the consensus mark of 350.1millionby5350.1 million by 5% and increasing 17.7% year-over-year [5]. - Adjusted EBITDA rose 14% from the previous year to 112 million, although the adjusted EBITDA margin contracted by 100 basis points to 30.4% [6]. Segment Performance - Mineral Fiber Segment: Net sales grew 8.1% year-over-year to 238.2million,drivenbyafavorableaverageunitvalue(AUV)of238.2 million, driven by a favorable average unit value (AUV) of 20 million, despite a 2milliondeclineinsalesvolume[7].−∗∗ArchitecturalSpecialtiesSegment∗∗:Netsalessurged40.82 million decline in sales volume [7]. - **Architectural Specialties Segment**: Net sales surged 40.8% year-over-year to 129.5 million, bolstered by a 25millioncontributionfromrecentacquisitions[9].AnnualHighlights−Forthefullyear2024,AWIreportednetsalesof25 million contribution from recent acquisitions [9]. Annual Highlights - For the full year 2024, AWI reported net sales of 1.4 billion, an 11.6% increase from 1.3billionin2023[11].−Adjustedearningsfortheyearwere1.3 billion in 2023 [11]. - Adjusted earnings for the year were 6.31 per share, up from 5.32in2023[11].−AdjustedEBITDAfortheyearincreased13.15.32 in 2023 [11]. - Adjusted EBITDA for the year increased 13.1% to 486 million, with an adjusted EBITDA margin of 33.6% [12]. Cash Flow and Share Repurchase - As of December 31, 2024, AWI had cash and cash equivalents of 79.3million,upfrom79.3 million, up from 70.8 million at the end of 2023 [13]. - Adjusted free cash flow for the fourth quarter was 86million,anincreasefrom86 million, an increase from 68 million in the same quarter of the previous year [13]. - The company repurchased 0.1 million shares for 15millionduringthequarter,with15 million during the quarter, with 662 million remaining under the current share repurchase program [14]. 2025 Guidance - AWI anticipates net sales between 1,570millionand1,570 million and 1,610 million, indicating a 9-11% increase from the previous year [15]. - Adjusted EBITDA is expected to be between 525millionand525 million and 545 million, reflecting an 8-12% year-over-year rise [16]. - The company projects adjusted earnings per share to be between 6.85and6.85 and 7.15, implying growth of 9-13% from 2024 [16].