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 ...