Armstrong World Industries(US:AWI) ZACKSยท2025-04-30 16:15Core Insights - Armstrong World Industries, Inc. (AWI) reported strong first-quarter 2025 results, with earnings and net sales exceeding expectations and showing year-over-year growth [1][2][3] Financial Performance - Adjusted earnings per share (EPS) reached $1.66, surpassing the Zacks Consensus Estimate of $1.55 by 7.1% and growing 20.3% year over year from $1.38 [3] - Net sales totaled $382.7 million, exceeding the consensus mark of $373 million by 2.7% and increasing 17.3% year over year [3] - Adjusted EBITDA rose 16.2% from the previous year to $129 million, although the adjusted EBITDA margin contracted by 30 basis points to 33.6% [4] Segment Performance - Mineral Fiber Segment: Net sales grew 2.3% year over year to $245.1 million, driven by a favorable Average Unit Value (AUV) of $16 million, despite a $10 million decline in sales volume due to weak demand [5] - Architectural Specialties Segment: Net sales surged 58.7% year over year to $137.6 million, bolstered by a $41 million contribution from acquisitions [7] Cash Flow and Share Repurchase - As of March 31, 2025, cash and cash equivalents stood at $82.8 million, up from $79.3 million at the end of 2024, with net cash provided by operations at $41 million compared to $26 million a year ago [9] - The company repurchased 0.1 million shares for $22 million during the quarter, with $640 million remaining under the current share repurchase program [10] 2025 Guidance - AWI maintains its guidance for net sales between $1,570 million and $1,610 million, indicating a 9-11% increase year over year [11] - Adjusted EBITDA is projected to be between $525 million and $545 million, reflecting an 8-12% year-over-year rise [12]