Armstrong World Stock Up as Q4 Earnings & Net Sales Beat Estimates

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, surpassing the Zacks Consensus Estimate of $1.37 by 9.5%, and grew 23% year-over-year from $1.22 [5]. - Net sales reached $367.7 million, exceeding the consensus mark of $350.1 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 $238.2 million, driven by a favorable average unit value (AUV) of $20 million, despite a $2 million decline in sales volume [7]. - Architectural Specialties Segment: Net sales surged 40.8% year-over-year to $129.5 million, bolstered by a $25 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 $1.3 billion in 2023 [11]. - Adjusted earnings for the year were $6.31 per share, up from $5.32 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 $79.3 million, up from $70.8 million at the end of 2023 [13]. - Adjusted free cash flow for the fourth quarter was $86 million, an increase from $68 million in the same quarter of the previous year [13]. - The company repurchased 0.1 million shares for $15 million during the quarter, with $662 million remaining under the current share repurchase program [14]. 2025 Guidance - AWI anticipates net sales between $1,570 million and $1,610 million, indicating a 9-11% increase from the previous year [15]. - Adjusted EBITDA is expected to be between $525 million and $545 million, reflecting an 8-12% year-over-year rise [16]. - The company projects adjusted earnings per share to be between $6.85 and $7.15, implying growth of 9-13% from 2024 [16].