Armstrong World (AWI) Q1 Earnings & Net Sales Top, '24 View Up

Core Insights - Armstrong World Industries, Inc. (AWI) reported strong first-quarter 2024 results, with earnings and net sales exceeding expectations and showing year-over-year growth [1][3] - The growth was driven by the Mineral Fiber and Architectural Specialties segments, supported by favorable pricing, mix, and contributions from recent acquisitions [1][2] Financial Performance - Adjusted earnings were $1.38 per share, surpassing the Zacks Consensus Estimate of $1.21 by 14.1% and growing 23.2% year over year [3] - Net sales reached $326.3 million, exceeding the consensus mark of $317.8 million by 2.7% and increasing 5.2% year over year [3] - Operating income grew 22.6% to $86.1 million, with an operating margin expansion of 380 basis points to 26.4% [4] - Adjusted EBITDA increased 16% to $111 million, with an adjusted EBITDA margin rise of 300 basis points to 33.9% [4] Segment Performance - Mineral Fiber segment net sales grew 4.9% year over year to $239.6 million, with an operating income increase of 24.1% to $79.2 million [5] - Architectural Specialties segment net sales rose 6% to $86.7 million, driven by recent acquisitions and custom metal project sales, although operating income declined 6.9% to $7.7 million [5][6] Cash Flow and Financial Position - As of March 31, 2024, cash and cash equivalents were $69.6 million, with adjusted free cash flow increasing to $43 million from $30 million year over year [7] - The company repurchased 0.1 million shares for $15 million during the quarter, with $702 million remaining under the share repurchase program [7] Updated Guidance - Armstrong World updated its 2024 outlook, projecting net sales between $1,395-$1,435 million, adjusted EBITDA between $465-$485 million, and adjusted earnings per share between $5.80 and $6.05 [8][9]