Armstrong World beats top-line and bottom-line estimates; raises FY outlook

* Armstrong World press release [https://seekingalpha.com/pr/20281401-armstrong-world-industries-reports-third-quarter-2025-results] (NYSE:AWI [https://seekingalpha.com/symbol/AWI]): Q3 Non-GAAP EPS of $2.05 beats by $0.03.
* Revenue of $425.2M (+10.0% Y/Y) beats by $1.71M.
* Consolidated net sales for the third quarter of 2025 increased 10.0% from the prior-year period due to higher volumes of $24 million and favorable Average Unit Value (dollars per unit sold, or "AUV") of $14 million.
* Year-to-date cash flow from operating and investing activities up 120% and year-to-date adjusted free cash flow up 22%
* RAISING FULL-YEAR 2025 GUIDANCE FOR ALL KEY METRICS.
*
UPDATING 2025 OUTLOOK“With year-to-date sales growth of 14% and adjusted EBITDA growth of 15%, we are raising our full-year 2025 guidance across all key metrics,” said Chris Calzaretta, AWI Senior Vice President and CFO. “We expect full-year margin expansion in both the Mineral Fiber and Architectural Specialties segments and remain confident in the strong adjusted free cash flow generation of the business. With a strong balance sheet, we are well-positioned to continue to execute our capital allocation strategy to drive shareholder value.”

For the Year Ended December 31, 2025

(Dollar amounts in millions except per-share data)

2024 Actual

Current Guidance

VPY Growth %

Net sales

$

1,446

$

1,623

to

$

1,638 (PRIOR $1,600 TO $1,630) VS. $1.63B CONSENSUS

12%

to

13%

Adjusted EBITDA*

$

486

$

553

to

$

563

14%

to

16%

Adjusted diluted net earnings per share*

$

6.31

$

7.45

to

$

7.55 (PRIOR $6.31 TO $7.15) VS. $7.30 CONSENSUS

18%

to

20%

Adjusted free cash flow*

$

298

$

342

to

$

352

15%

to

18%

Click to enlarge

MORE ON ARMSTRONG WORLD

* Armstrong World Industries: Hold Rated Because Valuation Is Too High [https://seekingalpha.com/article/4806681-armstrong-world-industries-hold-rated-because-valuation-is-too-high]
* Armstrong World raises dividend by 10% to $0.339 [https://seekingalpha.com/news/4507274-armstrong-world-raises-dividend-by-10-to-0339]
* Seeking Alpha’s Quant Rating on Armstrong World [https://seekingalpha.com/symbol/AWI/ratings/quant-ratings]
* Historical earnings data for Armstrong World [https://seekingalpha.com/symbol/AWI/earnings]
* Dividend scorecard for Armstrong World [https://seekingalpha.com/symbol/AWI/dividends/scorecard]