Core Viewpoint - Armstrong World Industries reported mixed fourth-quarter results, with adjusted earnings and revenues missing consensus estimates but showing year-over-year growth, indicating resilience in pricing and growth in the Architectural Specialties segment [3][4]. Financial Performance - Adjusted earnings were $1.61 per share, a 7.3% increase from $1.50 in the prior-year quarter, but fell short of the consensus estimate of $1.67 by 3.6% [4]. - Net sales reached $388.3 million, up 5.6% year over year from $367.7 million, yet missed the consensus estimate of $399 million by approximately 2.7% [4]. - Net earnings increased to $65.5 million from $62.2 million in the prior-year quarter, while adjusted net earnings rose to $70 million from $66 million [5]. Margin Performance - Gross profit increased to $154.5 million from $143.9 million in the year-ago quarter [6]. - Operating income rose 12.3% year over year to $92 million, with operating margin expanding 140 basis points to 23.7% [6]. - Adjusted EBITDA increased 11.5% year over year to $124 million, with adjusted EBITDA margin expanding 160 basis points to 32% [6]. Segment Highlights - Mineral Fiber segment saw net sales increase by 2.7% year over year to $244.6 million, driven by higher pricing and favorable product mix, with operating income rising 17.2% to $80.4 million [7]. - Architectural Specialties segment net sales grew 11% year over year to $143.7 million, supported by acquisitions and organic growth, although operating income declined to $12.5 million from $14.2 million due to increased costs [8]. Balance Sheet & Share Repurchases - Armstrong ended 2025 with strong cash generation, with cash flow from operating and investing activities totaling $351.9 million, up from $187.5 million in the prior year [9]. - Adjusted free cash flow increased 15.9% year over year to $346 million [9]. - The company repurchased 0.8 million shares for $129 million at an average price of $167.75, with approximately $533 million remaining under the share repurchase authorization as of December 31, 2025 [9]. 2026 Outlook - For 2026, Armstrong projects net sales of $1.745–$1.785 billion, indicating 8–10% growth year over year [11]. - Adjusted EBITDA is expected in the range of $600–$620 million, reflecting 8–12% growth, while adjusted EPS is projected between $8.05 and $8.35, implying 9–13% growth [11]. - The company anticipates adjusted free cash flow of $375–$395 million, representing 9–14% year-over-year growth, supported by pricing strength and productivity improvements [12]. Estimate Trends - There has been a downward trend in estimates for Armstrong World Industries over the past month, indicating a shift in investor sentiment [13]. VGM Scores - Armstrong World Industries has a Growth Score of B but lags in Momentum and Value Scores with D, placing it in the bottom 40% for the value investment strategy [14]. - The overall aggregate VGM Score is C, which is relevant for investors not focused on a single strategy [14]. General Outlook - Estimates for the stock have been trending downward, with a Zacks Rank of 3 (Hold), suggesting an expectation of in-line returns in the coming months [15].

4 th Quarter and Full Year 2025 Earnings Presentation February 24, 2026 Safe Harbor Statement Disclosures in this presentation contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including without limitation, those relating to future financial and operational results, market and broader economic conditions and guidance. Those statements provide our future expectations or forecasts and can be identified by our use of words such as "anticipate," "esti ...

Q2 2025 Financial Performance - Net sales increased by 16% to $424.6 million compared to $365.1 million in Q2 2024[9] - Adjusted EBITDA rose by 23% to $154 million from $125 million in Q2 2024[9, 14] - Adjusted diluted EPS increased by 29% to $2.09 compared to $1.62 in Q2 2024[9, 15] - Adjusted free cash flow increased by 42% to $88 million from $62 million in Q2 2024[9, 15] - The company's adjusted EBITDA margin expanded by 200bps to 36.3%[11, 25] Segment Performance - Mineral Fiber segment adjusted EBITDA increased by 16%[11] - Mineral Fiber segment adjusted EBITDA margin expanded by 350bps to 45.2%[11, 18] - Architectural Specialties segment adjusted EBITDA increased by 61%[11] - Architectural Specialties segment adjusted EBITDA margin expanded by 310bps to 21.5%, with organic adjusted EBITDA margin of 22.1%[11] - Architectural Specialties net sales growth VPY +37%[22] Full Year 2025 Guidance - The company is raising its full-year 2025 guidance and expects double-digit growth in all key metrics[12] - Net sales are projected to be between $1.6 billion and $1.63 billion, representing an 11% to 13% year-over-year increase[35] - Adjusted EBITDA is expected to be between $545 million and $560 million, a 12% to 15% year-over-year increase[35]

Financial Performance - Q1 2025 - Net sales increased by 17% year-over-year to $382.7 million[9] - Adjusted EBITDA rose by 16% year-over-year to $129 million[9] - Adjusted diluted earnings per share (EPS) increased by 20% year-over-year to $1.66[9] - Adjusted free cash flow increased by 10% year-over-year to $48 million[9] Segment Performance - Q1 2025 - Mineral Fiber (MF) segment adjusted EBITDA increased by 7%[11] - Architectural Specialties (AS) segment adjusted EBITDA increased significantly by 94%[11] - AS organic sales grew by 11%[25] Margin Analysis - Q1 2025 - Total company adjusted EBITDA margin was 33.6%[9] - AWI Organic Adjusted EBITDA margin expanded by 170bps[11] - Mineral Fiber adjusted EBITDA margin expanded by 180bps to 43.0%[11, 20] - Architectural Specialties organic adjusted EBITDA margin expanded by 290bps to 16.9%[11] Full Year 2025 Guidance - The company reaffirmed its full-year 2025 guidance, expecting net sales to grow by 9% to 11%, reaching $1.57 billion to $1.61 billion[12, 33] - Adjusted EBITDA is expected to grow by 8% to 12%, reaching $525 million to $545 million[12, 33] - Adjusted diluted EPS is expected to grow by 9% to 13%, reaching $6.85 to $7.15[12, 33]