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Armstrong World (AWI)
NYSE:AWI
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Armstrong World (AWI) AI Stock Analysis

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AWI

Armstrong World

(NYSE:AWI)

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Outperform 75 (OpenAI - 4o)
Rating:75Outperform
Price Target:
$218.00
▲(12.61% Upside)
Armstrong World Industries exhibits strong financial performance and positive earnings call highlights, driving a solid overall score. However, technical indicators suggest mixed momentum, and the valuation appears stretched, which tempers the overall score.
Positive Factors
Revenue Growth
Sustained revenue growth indicates strong market demand and effective sales strategies, supporting long-term financial stability and expansion.
Innovative Product Development
Innovation in energy-saving products positions Armstrong World as a leader in sustainable building solutions, appealing to environmentally conscious consumers and driving future growth.
Strong Cash Flow Management
Robust cash flow management ensures liquidity and financial flexibility, enabling strategic investments and shareholder returns, enhancing long-term business resilience.
Negative Factors
Market Uncertainty
Economic uncertainties, including tariffs and inflation, may impact demand and profitability, posing risks to sustained growth and financial performance.
Tariffs Impact
Tariff-related cost increases could pressure margins and competitiveness, necessitating strategic adjustments to maintain profitability and market position.
Input Cost Inflation
Rising input costs may erode margins if not offset by pricing strategies or operational efficiencies, challenging long-term profitability.

Armstrong World (AWI) vs. SPDR S&P 500 ETF (SPY)

Armstrong World Business Overview & Revenue Model

Company DescriptionArmstrong World Industries, Inc. (AWI) is a leading manufacturer of innovative ceiling and wall solutions, catering to both residential and commercial markets. Headquartered in Lancaster, Pennsylvania, AWI operates primarily in the building materials sector and is renowned for its high-quality products, including acoustic ceiling tiles, specialty ceilings, and wall panels. The company emphasizes sustainability and design, providing solutions that enhance interior spaces while meeting the needs of architects, designers, and builders.
How the Company Makes MoneyArmstrong World Industries generates revenue primarily through the sale of its ceiling and wall products to a diverse customer base, including contractors, architects, and distributors. Key revenue streams include the manufacture and sale of acoustic ceiling systems, which account for a significant portion of their earnings, as well as specialty ceilings and wall solutions. The company leverages strategic partnerships with distributors and contractors to expand its market reach and improve sales. Additionally, AWI invests in research and development to innovate and enhance its product offerings, which helps maintain competitive pricing and attract new customers. The emphasis on sustainable products also appeals to a growing market segment focused on environmental responsibility, contributing to steady revenue growth.

Armstrong World Earnings Call Summary

Earnings Call Date:Oct 28, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Feb 24, 2026
Earnings Call Sentiment Positive
Armstrong World Industries delivered strong financial performance in Q2 2025, with record sales, earnings, and margin expansion despite anticipating a softer market environment in the second half. The Architectural Specialties segment performed exceptionally well, and the company raised its full-year guidance. However, market uncertainty and tariff impacts remain challenges.
Q2-2025 Updates
Positive Updates
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%.
Negative Updates
Market Uncertainty
The company anticipates softer market conditions in the second half of 2025 due to economic uncertainty, tariffs, inflation, and interest rates.
Tariffs Impact
Currently implemented and announced tariffs are expected to have a direct impact on the cost of goods sold, though mitigation efforts are in place.
Modest Input Cost Inflation
The second quarter saw modest input cost inflation, particularly in energy and raw materials.
Company Guidance
During the second quarter of 2025, Armstrong World Industries reported a 16% increase in net sales and a 23% rise in adjusted EBITDA, leading to a 200 basis point expansion in adjusted EBITDA margin to 36%. Adjusted diluted earnings per share surged by 29% year-over-year, marking the highest quarterly EPS growth since 2016. The Mineral Fiber segment saw net sales growth of 7% and a 350 basis point improvement in adjusted EBITDA margin, while the Architectural Specialties segment achieved a 37% increase in net sales, with both organic and inorganic growth contributing significantly. Adjusted EBITDA in this segment grew by 61%, with a margin of approximately 22%. Armstrong raised its full-year guidance, now expecting total company net sales growth of 11% to 13% and adjusted EBITDA growth of 12% to 15%, citing strong performance in the first half and anticipated continued execution. The company is also focused on innovation, particularly with its TEMPLOK energy-saving ceilings, and remains committed to strategic acquisitions to expand its portfolio.

Armstrong World Financial Statement Overview

Summary
Armstrong World demonstrates strong financial health with robust revenue growth, profitability, and efficient cash flow management. The company maintains a solid balance sheet with low leverage, though there is room for improvement in reducing liabilities.
Income Statement
85
Very Positive
Armstrong World exhibits strong revenue growth and robust profitability. The TTM (Trailing-Twelve-Months) revenue has increased by 8.03% compared to the previous year, showing a positive growth trend. The gross profit margin stands at 40.57%, and the net profit margin is 18.95%, which are strong indicators of profitability. EBIT and EBITDA margins are also healthy, reflecting efficient operations.
Balance Sheet
78
Positive
The company maintains a stable financial position with a debt-to-equity ratio of 0.12, indicating low leverage. Return on equity is strong at 35.32%, showcasing effective use of equity capital. The equity ratio is 45.00%, reflecting a solid capital structure. However, there is room for improvement in reducing liabilities further.
Cash Flow
82
Very Positive
Armstrong World shows healthy cash flow management, with a free cash flow growth rate of 18.75% over the last year. The operating cash flow to net income ratio is 1.03, indicating good cash conversion. The free cash flow to net income ratio is 0.74, suggesting efficient capital expenditure management.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.60B1.45B1.30B1.23B1.11B936.90M
Gross Profit648.10M581.60M497.00M449.30M405.90M333.20M
EBITDA544.40M495.60M434.30M368.40M370.60M-13.00M
Net Income305.40M264.90M223.70M199.60M185.00M-84.20M
Balance Sheet
Total Assets1.89B1.84B1.67B1.69B1.71B1.72B
Cash, Cash Equivalents and Short-Term Investments90.10M79.30M70.80M106.00M98.10M136.90M
Total Debt109.90M599.90M640.40M687.00M671.60M755.70M
Total Liabilities1.00B1.09B1.08B1.15B1.19B1.27B
Stockholders Equity889.20M757.10M591.80M535.00M519.70M450.90M
Cash Flow
Free Cash Flow241.70M184.00M149.70M107.60M107.40M163.40M
Operating Cash Flow332.10M266.80M233.50M182.40M187.20M218.80M
Investing Cash Flow-1.30M-79.30M-10.40M28.20M-13.90M-141.10M
Financing Cash Flow-313.90M-177.60M-258.60M-201.90M-212.10M13.50M

Armstrong World Technical Analysis

Technical Analysis Sentiment
Negative
Last Price193.59
Price Trends
50DMA
196.93
Negative
100DMA
183.54
Positive
200DMA
165.00
Positive
Market Momentum
MACD
1.41
Positive
RSI
42.23
Neutral
STOCH
55.62
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AWI, the sentiment is Negative. The current price of 193.59 is below the 20-day moving average (MA) of 198.74, below the 50-day MA of 196.93, and above the 200-day MA of 165.00, indicating a neutral trend. The MACD of 1.41 indicates Positive momentum. The RSI at 42.23 is Neutral, neither overbought nor oversold. The STOCH value of 55.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
$8.37B27.7238.03%0.61%15.10%23.35%
$7.76B22.6717.82%0.65%4.26%8.52%
$10.97B25.4627.68%0.48%0.24%-12.68%
$8.43B70.4515.52%0.36%5.39%-34.28%
$14.33B18.171.79%-2.73%-8.31%
$10.63B33.5112.26%2.16%13.08%-67.65%
$10.79B15.437.44%2.01%2.89%-14.66%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AWI
Armstrong World
193.59
54.30
38.98%
AAON
Aaon
103.34
-11.30
-9.86%
MAS
Masco
68.43
-10.55
-13.36%
OC
Owens Corning
127.08
-51.05
-28.66%
SSD
Simpson Manufacturing Co
186.43
6.63
3.69%
WMS
Advanced Drainage Systems
141.03
-10.88
-7.16%

Armstrong World Corporate Events

Armstrong World Industries Reports Strong Q3 2025 Results
Oct 29, 2025

Armstrong World Industries, Inc. is a leading company in the Americas specializing in the design and manufacture of innovative interior and exterior architectural applications, including ceilings, specialty walls, and exterior metal solutions. The company is renowned for its commitment to enhancing building aesthetics, acoustics, and sustainability.

Business Operations and StrategyFinancial Disclosures
Armstrong World Reports Strong Q3 Sales Growth
Positive
Oct 28, 2025

On October 28, 2025, Armstrong World Industries reported a 10% increase in third-quarter net sales to $425 million, driven by growth in both Architectural Specialties and Mineral Fiber segments. The company also saw a 5% rise in operating income and a 13% increase in diluted net earnings per share, attributing these results to strong operational execution and strategic acquisitions, which have positioned it well despite market challenges.

The most recent analyst rating on (AWI) stock is a Buy with a $220.00 price target. To see the full list of analyst forecasts on Armstrong World stock, see the AWI Stock Forecast page.

Business Operations and StrategyExecutive/Board Changes
Armstrong World Expands Board with New Appointment
Positive
Oct 23, 2025

On October 22, 2025, Armstrong World Industries announced the appointment of Kevin P. Holleran to its Board of Directors, expanding the board to eight members. Holleran, who brings over 30 years of leadership experience from companies like Hayward Holdings and Textron Inc., will serve on the Management Development and Compensation and Nominating, Governance and Social Responsibility committees. Additionally, the board welcomed Kathleen E. Pitre, elected in June 2025, who brings extensive experience from her tenure at Ball Corporation. These appointments are expected to bolster Armstrong’s strategic growth and operational excellence. Concurrently, the company updated its nonemployee director compensation program, increasing the annual equity retainer and the Chair’s annual retainer, effective from the 2026 annual meeting of shareholders.

The most recent analyst rating on (AWI) stock is a Buy with a $220.00 price target. To see the full list of analyst forecasts on Armstrong World stock, see the AWI Stock Forecast page.

Dividends
Armstrong World Increases Quarterly Dividend by 10%
Positive
Oct 22, 2025

On October 22, 2025, Armstrong World Industries announced a 10% increase in its quarterly cash dividend to $0.339 per share, payable on November 20, 2025, to stockholders of record as of November 6, 2025. This marks the seventh consecutive annual increase, reflecting the Board’s confidence in the company’s growth strategy and cash flow generation capabilities. The decision underscores Armstrong’s commitment to returning cash to shareholders as part of its disciplined capital allocation approach.

The most recent analyst rating on (AWI) stock is a Buy with a $220.00 price target. To see the full list of analyst forecasts on Armstrong World stock, see the AWI Stock Forecast page.

Business Operations and StrategyM&A Transactions
Armstrong World Acquires Geometrik Manufacturing Inc.
Positive
Sep 18, 2025

On September 18, 2025, Armstrong World Industries announced the acquisition of Geometrik Manufacturing Inc., a Canadian company known for its wood acoustical ceiling and wall systems. This acquisition is expected to expand Armstrong’s wood manufacturing capabilities and product portfolio in North America, leveraging Geometrik’s expertise in wood species like Western Hemlock. The move is part of Armstrong’s strategy to accelerate growth in the wood product category and enhance its offerings in biophilic design, which is increasingly popular among designers and architects. This marks the 13th acquisition in Armstrong’s Architectural Specialties segment since 2016, funded by available cash, with District Capital Partners as the buy-side adviser.

The most recent analyst rating on (AWI) stock is a Buy with a $230.00 price target. To see the full list of analyst forecasts on Armstrong World stock, see the AWI Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
Armstrong World Releases Updated Investor Presentation
Positive
Sep 3, 2025

On September 3, 2025, Armstrong World Industries released an updated Investor Presentation on its website ahead of upcoming investor meetings. The presentation outlines the company’s financial performance, emphasizing its strong market position and strategic focus on sustainability and innovation. Armstrong World Industries highlights its commitment to renewable energy and reducing environmental impacts, while also showcasing its broad product portfolio and strong relationships with architects and designers. The company aims to continue its growth trajectory through strategic acquisitions and a focus on high-value, innovative products.

The most recent analyst rating on (AWI) stock is a Buy with a $222.00 price target. To see the full list of analyst forecasts on Armstrong World stock, see the AWI Stock Forecast page.

Armstrong World Industries Reports Record Q2 2025 Earnings
Jul 30, 2025

Armstrong World Industries, Inc. is a leading company in the Americas specializing in the design and manufacture of interior and exterior architectural applications, including ceilings and specialty walls. The company is known for its innovative solutions and strong market presence.

Armstrong World Industries Reports Record Q2 2025 Earnings
Jul 30, 2025

Armstrong World Industries Inc. has reported a robust performance in its second-quarter 2025 earnings call, showcasing record sales and earnings. The company has demonstrated resilience against market uncertainties and input cost inflation, with a positive sentiment prevailing throughout the call. The management’s confidence is evident as they have raised the full-year guidance, reflecting their strong growth strategy and operational efficiency.

Business Operations and StrategyFinancial Disclosures
Armstrong World Reports Record Q2 2025 Sales and Earnings
Positive
Jul 29, 2025

On July 29, 2025, Armstrong World Industries reported record second-quarter sales and earnings for 2025, with a 16% increase in net sales to $425 million. The company experienced significant growth in both its Mineral Fiber and Architectural Specialties segments, with operating income rising by 30% and net earnings per share increasing by 34%. The results were driven by strong commercial execution, growth initiatives, and contributions from recent acquisitions, despite ongoing macro-economic uncertainties.

The most recent analyst rating on (AWI) stock is a Hold with a $122.00 price target. To see the full list of analyst forecasts on Armstrong World stock, see the AWI Stock Forecast page.

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.Date of analysis: Oct 29, 2025