Armstrong World (AWI)
NYSE:AWI
Top Page
Armstrong World
(NYSE:AWI)
Select Model
Select Model
Rating:72Outperform
Price Target:
$193.00
â–²(7.71% Upside)
Action:UpgradedDate:03/03/26
AWI scores well on financial strength and profitability, supported by upbeat 2026 guidance that targets continued growth and margin expansion. The main offset is weak technical momentum (price below key moving averages with bearish MACD), while valuation appears reasonable but not compelling given the mid-20s P/E and low dividend yield.
Positive Factors
High and Improving Profitability
Sustained high gross and net margins indicate durable pricing power and efficient cost structure across cycles. Consistently strong margins support robust operating cash flow and reinvestment capacity, making earnings less sensitive to normal demand swings and enabling long-term margin expansion initiatives.
Negative Factors
Mineral Fiber Volume Recovery Lag
A persistent volume gap versus pre‑COVID levels implies a meaningful headwind to restoring historical revenue mix. Until volumes recover, the business must rely on AUV/pricing to offset demand shortfalls, which risks limiting long‑term top‑line resilience if end‑market activity remains subdued.
Read all positive and negative factors
Positive Factors
Negative Factors
High and Improving Profitability
Sustained high gross and net margins indicate durable pricing power and efficient cost structure across cycles. Consistently strong margins support robust operating cash flow and reinvestment capacity, making earnings less sensitive to normal demand swings and enabling long-term margin expansion initiatives.
Read all positive factors
Armstrong World (AWI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$7.64B
Dividend Yield0.66%
Average Volume (3M)564.93K
Price to Earnings (P/E)31.8
Beta (1Y)0.87
Revenue Growth15.10%
EPS Growth23.35%
CountryUS
Employees3,600
SectorIndustrials
Sector Strength72
IndustryConstruction
Share Statistics
EPS (TTM)1.61
Shares Outstanding42,834,050
10 Day Avg. Volume411,060
30 Day Avg. Volume564,933
Financial Highlights & Ratios
PEG Ratio1.60
Price to Book (P/B)9.25
Price to Sales (P/S)5.14
P/FCF Ratio33.86
Enterprise Value/Market Cap1.01
Enterprise Value/Revenue4.76
Enterprise Value/Gross Profit11.71
Enterprise Value/Ebitda12.58
Forecast
1Y Price Target
$213.00Price Target Upside18.87% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)8.31
Revenue Forecast (FY)$1.77B
Armstrong World Business Overview & Revenue Model
Company Description
Armstrong World Industries, Inc., together with its subsidiaries, designs, manufactures, and sells ceiling systems primarily for use in the construction and renovation of residential and commercial buildings in the United States, Canada, and Latin...
How the Company Makes Money
Armstrong World Industries generates revenue primarily through the sale of its ceiling and wall products to contractors, architects, and builders in various sectors, including commercial, residential, and institutional markets. The company's reven...
Armstrong World Earnings Call Summary
Earnings Call Date:Feb 24, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 28, 2026
Earnings Call Sentiment Positive
The call emphasized strong, record-setting full-year results (double-digit sales and EBITDA growth, record Mineral Fiber margins, robust free cash flow) and clear strategic progress—digital initiatives, new product innovation (energy-saving ceilings, data center solutions), and tuck-in acquisitions that expand addressable markets. Near-term challenges included softer Q4 volume dynamics (government shutdown impacts, home center destocking), project timing delays in Architectural Specialties that compressed quarter margins, and ongoing headwinds from input inflation and acquisition-related costs. Management provided constructive 2026 guidance (8%–10% sales growth, 8%–12% EBITDA growth) with margin expansion expected and reiterated strong capital allocation priorities.Positive Updates
Record Full-Year Financial Performance
Full-year 2025 net sales increased 12% year-over-year; adjusted EBITDA grew 14% with adjusted EBITDA margin expanding 70 basis points. Adjusted diluted net earnings per share rose 17% and adjusted free cash flow increased 16%.
Negative Updates
Softer Q4 Results and 'Air Pocket' Impact
Q4 finished softer than expected overall due to combined short-term headwinds in Mineral Fiber and Architectural Specialties that created a temporary 'air pocket' compressing near-term margins and volumes.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Full-Year Financial Performance
Full-year 2025 net sales increased 12% year-over-year; adjusted EBITDA grew 14% with adjusted EBITDA margin expanding 70 basis points. Adjusted diluted net earnings per share rose 17% and adjusted free cash flow increased 16%.
Read all positive updates
Company Guidance
For 2026 the company guided Mineral Fiber volumes flat to up ~1% with average unit value (AUV) growth of about 6% (expected to more than offset input‑cost inflation), Architectural Specialties (AS) organic growth in the high single digits with inorganic contributions (Geometric incremental through the first 8 months; Parallel and Eventscape incremental full year) together driving roughly half of AS sales growth, and total company net sales growth of 8–10%. They expect adjusted EBITDA growth of 8–12% with margin expansion in both segments, and indicated adjusted diluted EPS and adjusted free cash flow should grow at rates largely similar to adjusted EBITDA; SG&A dollars will rise modestly but SG&A as a percent of sales should improve. Management also noted a muted start to the year (Q1 seasonally weak; first half volumes slightly softer than the back half), reaffirmed benefits from WAVE equity earnings (mid‑single‑digit contribution) and said growth initiatives (PROJECTWORKS/Kanopi, TEMPLOK, data‑center and energy‑saving products) that contributed roughly 1 point of growth in 2025 could add up to an incremental ~0.5 point in 2026.Armstrong World Financial Statement Overview
Summary
Income Statement
84
Very Positive
Balance Sheet
88
Very Positive
Cash Flow
80
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.62B | 1.45B | 1.30B | 1.23B | 1.11B |
| Gross Profit | 658.70M | 581.60M | 497.00M | 449.30M | 405.90M |
| EBITDA | 433.30M | 495.60M | 434.30M | 368.40M | 370.60M |
| Net Income | 308.70M | 264.90M | 223.70M | 199.60M | 185.00M |
Balance Sheet | |||||
| Total Assets | 1.92B | 1.84B | 1.67B | 1.69B | 1.71B |
| Cash, Cash Equivalents and Short-Term Investments | 112.70M | 79.30M | 70.80M | 106.00M | 98.10M |
| Total Debt | 531.80M | 599.90M | 640.40M | 687.00M | 671.60M |
| Total Liabilities | 1.02B | 1.09B | 1.08B | 1.15B | 1.19B |
| Stockholders Equity | 900.70M | 757.10M | 591.80M | 535.00M | 519.70M |
Cash Flow | |||||
| Free Cash Flow | 246.10M | 184.00M | 149.70M | 107.60M | 107.40M |
| Operating Cash Flow | 355.50M | 266.80M | 233.50M | 182.40M | 187.20M |
| Investing Cash Flow | -3.60M | -79.30M | -10.40M | 28.20M | -13.90M |
| Financing Cash Flow | -319.30M | -177.60M | -258.60M | -201.90M | -212.10M |
Armstrong World Technical Analysis
Positive
179.19
Price Trends
176.89
Positive
182.72
Negative
185.17
Negative
Market Momentum
0.56
Negative
64.16
Neutral
97.00
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AWI, the sentiment is Positive. The current price of 179.19 is above the 20-day moving average (MA) of 168.16, above the 50-day MA of 176.89, and below the 200-day MA of 185.17, indicating a neutral trend. The MACD of 0.56 indicates Negative momentum. The RSI at 64.16 is Neutral, neither overbought nor oversold. The STOCH value of 97.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AWI.
Armstrong World Risk Analysis
Armstrong World disclosed 24 risk factors in its most recent earnings report. Armstrong World reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Armstrong World Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $11.84B | 30.06 | 25.82% | 0.47% | 2.48% | -6.92% | |
72 Outperform | $7.64B | 31.80 | 36.09% | 0.66% | 15.10% | 23.35% | |
71 Outperform | $7.44B | 29.69 | 17.58% | 0.69% | 4.26% | 8.52% | |
64 Neutral | $9.51B | -17.89 | -11.39% | 2.43% | 3.47% | -148.53% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
60 Neutral | $7.66B | 57.78 | 12.63% | 0.53% | 8.77% | -47.50% | |
56 Neutral | $13.09B | 16.37 | -537.31% | 1.94% | -3.62% | 3.41% |
* Industrials Sector Average
AWI
Armstrong World
179.19
44.38
32.92%
AAON
Aaon
93.81
12.10
14.81%
MAS
Masco
64.91
4.19
6.90%
OC
Owens Corning
119.41
-15.45
-11.45%
SSD
Simpson Manufacturing Co
177.89
28.91
19.40%
WMS
Advanced Drainage Systems
155.62
51.21
49.05%
Armstrong World Corporate Events
Business Operations and StrategyFinancial Disclosures
Armstrong World Updates Investor Presentation Highlighting 2025 Performance
Positive
Mar 2, 2026
Armstrong World Industries on March 2, 2026, published an updated investor presentation on its website ahead of a series of investor meetings, outlining its business profile as a leading Americas supplier of ceilings and architectural wall solutio...
Business Operations and StrategyFinancial Disclosures
Armstrong World Posts Record 2025 Results, Eyes 2026 Growth
Positive
Feb 24, 2026
On Feb. 24, 2026, Armstrong World Industries reported record fourth-quarter and full-year 2025 results, with Q4 net sales up 5.6% to $388.3 million, operating income up 12.3%, and adjusted EBITDA up 11.5%, driven by higher Average Unit Value and c...
Business Operations and StrategyExecutive/Board Changes
Armstrong World Appoints New General Counsel and Secretary
Positive
Feb 20, 2026
On February 20, 2026, Armstrong World Industries announced that Jessica M. Cicali will become senior vice president, general counsel and secretary effective April 1, 2026, succeeding Austin K. So as part of a broader management transition on that ...
Business Operations and StrategyM&A Transactions
Armstrong World Completes Acquisition of Custom Design Firm Eventscape
Positive
Feb 19, 2026
On Feb. 19, 2026, Armstrong World Industries announced it had completed the acquisition of Eventscape, Inc., a Toronto- and New York‑based specialist in the design, fabrication and installation of complex custom architectural features, funde...
DividendsFinancial Disclosures
Armstrong World Declares Quarterly Cash Dividend for 2026
Positive
Feb 18, 2026
Armstrong World Industries, Inc., an Americas leader in ceilings, specialty walls and exterior metal architectural solutions, reported 2024 revenue of $1.4 billion and operates 22 manufacturing facilities plus seven WAVE joint venture sites with a...
Executive/Board Changes
Armstrong World announces leadership transition and executive departure
Neutral
Feb 2, 2026
Armstrong World Industries is undergoing a broader board and management transition taking effect on April 1, 2026, including previously announced changes to its Executive Chair and President and Chief Executive Officer roles. As part of this trans...
Business Operations and StrategyExecutive/Board Changes
Armstrong World Announces CEO Transition and Leadership Changes
Positive
Jan 14, 2026
On January 14, 2026, Armstrong World Industries announced that President and CEO Vic Grizzle will transition to Executive Chair and that Senior Vice President and Chief Operating Officer Mark Hershey will become President, CEO and a board member, ...
Business Operations and StrategyPrivate Placements and Financing
Armstrong World Secures $500M Credit Facility Amendment
Positive
Dec 16, 2025
On December 10, 2025, Armstrong World Industries, Inc. amended its credit agreement to secure a $500 million revolving credit facility and a $410.625 million term loan, both maturing in 2030. This amendment enhances AWI’s financial flexibili...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.