Record Sales and Earnings
Armstrong World Industries delivered record sales and earnings in Q2 2025, with a 16% increase in net sales and a 23% rise in adjusted EBITDA. Adjusted EBITDA margin expanded by 200 basis points to 36%, and adjusted diluted EPS grew by 29% year-over-year.
Strong Performance in Architectural Specialties
The Architectural Specialties segment saw a 37% increase in net sales, driven by both organic growth of 15% and contributions from acquisitions 3form and Zahner. The segment's adjusted EBITDA grew by 61%, with a margin increase to 22%.
Mineral Fiber Segment Growth
Mineral Fiber net sales increased by 7%, with a 5% growth in AUV and a modest volume contribution. Adjusted EBITDA in the segment grew by 16%, with a 350 basis point margin expansion to 45%.
Improved Free Cash Flow
Adjusted free cash flow increased by 29%, driven by higher cash earnings and dividends from the WAVE joint venture. The company repurchased $30 million in shares and paid $14 million in dividends.
Updated 2025 Guidance
Armstrong World Industries raised its full-year 2025 guidance, expecting net sales growth of 11% to 13% and adjusted EBITDA growth of 12% to 15%.