Armstrong World Industries Inc

Latest Results (13.09.2026):

Armstrong World Industries Inc — second-quarter 2026 results: the company reported record Q2 net sales of $472.0M (up 11.2% year-over-year), operating income of $133.8M (+8.6%), adjusted EBITDA of $166M (+7.5%), diluted net earnings per share of $2.26 (+12.4%) and adjusted diluted EPS of $2.36 (+12.9%). Management raised 2026 guidance midpoints across key metrics and the Board authorized an additional $800M to expand the share repurchase program (extended through December 2029).

Sales & segment growth

Consolidated net sales rose 11.2% to $472.0M driven by higher volumes (+$31M) and favorable AUV (+$16M). Mineral Fiber sales were $288.2M (+7.9%) and Architectural Specialties were $183.8M (+16.6%). Architectural growth included $15M organic and $11M inorganic contribution from recent acquisitions; Mineral Fiber benefited from $16M favorable AUV and $5M higher volumes.

Profitability

Operating income increased to $133.8M (+8.6%) while operating margin declined 70bps to 28.3%. Adjusted EBITDA was $166M (+7.5%) with a 35.2% margin (down 110bps). Margin drivers included $13M benefit from volume growth and $12M from favorable AUV, partly offset by higher SG&A (+$9M) and increased manufacturing costs (+$6M). Worthington Armstrong JV (WAVE) equity earnings contributed ~$2M.

Earnings per share

Diluted net earnings per share rose to $2.26 (+12.4%); adjusted diluted EPS was $2.36 (+12.9%). Adjusted net earnings for the quarter were $101M (non-GAAP).

Cash flow, buybacks & balance sheet

YTD net cash provided by operating activities was $125.9M (up $3M YoY). Adjusted free cash flow for the quarter was $100M and YTD adjusted free cash flow was $147M. The company repurchased 0.5M shares in Q2 for $75M; as of 6/30/26 $398M remained under the prior authorization and the Board approved an additional $800M (total program authorization now up to $2.5B through Dec 2029). Cash and cash equivalents were $78.6M at 6/30/26.

Guidance update

AWI raised 2026 guidance midpoints: full-year net sales $1,770–$1,800M (9–11% growth), adjusted EBITDA $605–$620M (9–12% growth), adjusted diluted EPS $8.30–$8.50 (12–15% growth) and adjusted free cash flow $380–$395M.

Segment margin details & drivers

Mineral Fiber: operating income $105.3M (+7.0%), operating margin 36.5% (down 40bps), adjusted EBITDA $129M (+6.8%). Drivers: favorable mix/AUV (+$16M), volumes (+$5M), partially offset by SG&A (+$5M) and higher manufacturing costs (+$4M). Architectural Specialties: operating income $29.4M (+14.8%), operating margin 16.0% (down 20bps), adjusted EBITDA $37M (+10.4%); growth from organic demand and acquisitions, offset by higher SG&A and steel/aluminum input costs.

Other notable items

Q2 included a ~$2M benefit from IEEPA tariff refunds recognized during the quarter, continued investment spend to support growth, and an effective tax rate around 24%. Average diluted shares outstanding were ~42.7M for the quarter.