Armstrong World Industries Inc (AWI)
NYSE:AWI
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Armstrong World
(NYSE:AWI)
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Rating:73Outperform
Price Target:
$176.00
â–¼(-1.96% Downside)
Action:Reiterated
Date:06/17/26
The score is driven primarily by strong financial performance (high margins and sharply reduced leverage), supported by a constructive earnings call with reaffirmed outlook and a modest EPS guidance raise. Offsetting factors are mixed technicals (negative MACD and below longer-term moving averages) and only average valuation support (P/E ~22 and low dividend yield).
Positive Factors
High and Stable Margins
Sustained ~40% gross and ~19% net margins demonstrate durable pricing power and cost structure advantages in core ceiling and wall products. High margins support internal investment, allow margin expansion initiatives to meaningfully flow to the bottom line, and provide resilience through cycles.
Negative Factors
Free Cash Flow Momentum Weakness
Although absolute FCF remains strong, the TTM decline in FCF growth signals timing or operational pressures (working capital, taxes) that could constrain sustainable cash available for buybacks, dividends, or bolt‑on M&A if the trend persists beyond a quarter.
Read all positive and negative factors
Positive Factors
Negative Factors
High and Stable Margins
Sustained ~40% gross and ~19% net margins demonstrate durable pricing power and cost structure advantages in core ceiling and wall products. High margins support internal investment, allow margin expansion initiatives to meaningfully flow to the bottom line, and provide resilience through cycles.
Read all positive factors
Armstrong World (AWI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.74B
Dividend Yield0.66%
Average Volume (3M)412.64K
Price to Earnings (P/E)22.1
Beta (1Y)0.83
Revenue Growth9.71%
EPS Growth13.17%
CountryUS
Employees3,600
SectorIndustrials
Sector Strength72
IndustryConstruction
Share Statistics
EPS (TTM)7.05
Shares Outstanding42,678,837
10 Day Avg. Volume395,700
30 Day Avg. Volume412,636
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 Cap1.05
Enterprise Value/Revenue4.28
Enterprise Value/Gross Profit10.63
Enterprise Value/Ebitda11.58
Forecast
1Y Price Target
$206.25Price Target Upside14.89% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)8.31
Revenue Forecast (FY)$1.77B
Armstrong World Business Overview & Revenue Model
Company Description
Armstrong World Industries, Inc. (AWI) specializes in the design, manufacturing, and distribution of diverse ceiling systems, primarily catering to the construction and renovation needs of residential and commercial properties across the United St...
How the Company Makes Money
AWI primarily makes money by selling ceiling and wall system products for new construction and renovation projects, with revenue recognized from product shipments to customers. Its key revenue streams are (1) mineral fiber and other ceiling panels...
Armstrong World Earnings Call Summary
Earnings Call Date:Apr 28, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 28, 2026
Earnings Call Sentiment Positive
The call conveyed a positive underlying operational and commercial momentum: solid top-line growth (7% total sales), strong AUV and EBITDA margin performance in Mineral Fiber, meaningful traction on new product initiatives (TempLock, data center solutions, Canopy, ProjectWorks), robust order intake (especially transportation/airports), and disciplined capital returns (dividends and $60M buybacks) with reaffirmed guidance and an EPS raise. Headwinds were present—notably a near-term decline in AS adjusted EBITDA driven by a $2M nonrecurring tariff reconciliation, acquisition integration costs, higher input and freight costs, and temporary SG&A investments—which compressed consolidated adjusted EBITDA expansion in the quarter. Management characterized most negatives as temporary or mitigable and expects sequential margin improvement in Q2 and stronger second-half performance, so the positives materially outweigh the transitory negatives.Positive Updates
Total Company Sales Growth
Total company net sales increased 7% in Q1 2026 versus prior year, driven by growth in both segments and supporting a reaffirmed full-year sales outlook.
Negative Updates
AS Adjusted EBITDA Decline and Short-Term Dilution
Architectural Specialties adjusted EBITDA decreased approximately $3M (about -12% year-over-year) in Q1; on an organic basis AS adjusted EBITDA fell ~9% due to higher manufacturing costs, $2M nonrecurring tariff adjustment, $2M incremental acquisition-related costs, and ~$1M of plant investments.
Read all updates
Q1-2026 Updates
Positive
Negative
Total Company Sales Growth
Total company net sales increased 7% in Q1 2026 versus prior year, driven by growth in both segments and supporting a reaffirmed full-year sales outlook.
Read all positive updates
Company Guidance
The company reaffirmed full‑year guidance for net sales, adjusted EBITDA and adjusted free cash flow while modestly raising adjusted diluted EPS guidance to +10%–14% (reflecting accelerated Q1 repurchases); Q1 results included total company sales +7%, consolidated adjusted EBITDA +1%, adjusted diluted EPS +2%, adjusted free cash flow -1%, Mineral Fiber net sales +5% (AUV +4%), Mineral Fiber adjusted EBITDA margin 42.4% with a full‑year target of ~44% (AUV ~6% for the year and up to +1.5 pts of volume growth ahead of market), and Architectural Specialties net sales +11% (7% organic + ~4 pts from acquisitions) with a segment margin target of ~19% (organic 19%–20%) and an expectation for significant sequential AS margin improvement in Q2 and continued full‑year expansion toward ≥20%; additional metrics called out include input cost inflation in the mid‑single digits (raws ~35% of COGS, energy ~10% of COGS with energy inflation ~10%, freight ~10%), order intake up low‑double digits (transportation intake YTD > full‑year 2025), data‑center pipeline >50% ahead of last year, Q1 dividends $15M and share repurchases $60M with $473M remaining authorization.Armstrong World Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
82
Very Positive
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.65B | 1.62B | 1.45B | 1.30B | 1.23B | 1.11B |
| Gross Profit | 664.10M | 658.70M | 581.60M | 497.00M | 449.30M | 405.90M |
| EBITDA | 609.60M | 553.70M | 495.60M | 434.30M | 368.40M | 370.60M |
| Net Income | 306.40M | 308.70M | 264.90M | 223.70M | 199.60M | 185.00M |
Balance Sheet | ||||||
| Total Assets | 1.99B | 1.92B | 1.84B | 1.67B | 1.69B | 1.71B |
| Cash, Cash Equivalents and Short-Term Investments | 79.80M | 112.70M | 79.30M | 70.80M | 106.00M | 98.10M |
| Total Debt | 569.00M | 531.80M | 599.90M | 640.40M | 687.00M | 671.60M |
| Total Liabilities | 1.09B | 1.02B | 1.09B | 1.08B | 1.15B | 1.19B |
| Stockholders Equity | 892.90M | 900.70M | 757.10M | 591.80M | 535.00M | 519.70M |
Cash Flow | ||||||
| Free Cash Flow | 247.40M | 246.10M | 184.00M | 149.70M | 107.60M | 107.40M |
| Operating Cash Flow | 346.60M | 355.50M | 266.80M | 233.50M | 182.40M | 187.20M |
| Investing Cash Flow | -61.00M | -3.60M | -79.30M | -10.40M | 28.20M | -13.90M |
| Financing Cash Flow | -288.90M | -319.30M | -177.60M | -258.60M | -201.90M | -212.10M |
Armstrong World Technical Analysis
Neutral
179.52
Price Trends
163.52
Negative
170.30
Negative
180.84
Negative
Market Momentum
-1.67
Negative
50.42
Neutral
59.03
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AWI, the sentiment is Neutral. The current price of 179.52 is above the 20-day moving average (MA) of 155.89, above the 50-day MA of 163.52, and below the 200-day MA of 180.84, indicating a neutral trend. The MACD of -1.67 indicates Negative momentum. The RSI at 50.42 is Neutral, neither overbought nor oversold. The STOCH value of 59.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
73 Outperform | $6.74B | 22.05 | 34.81% | 0.66% | 9.71% | 13.17% | |
73 Outperform | $8.23B | 23.22 | 17.68% | 0.69% | 6.31% | 11.06% | |
67 Neutral | $15.01B | 18.03 | -566.50% | 1.94% | -0.31% | 10.03% | |
67 Neutral | $11.28B | 26.85 | 22.43% | 0.47% | 5.03% | -5.49% | |
65 Neutral | $11.20B | 94.63 | 13.40% | 0.53% | 28.27% | -25.82% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
56 Neutral | $10.32B | -19.28 | -12.50% | 2.43% | -12.20% | -333.77% |
* Industrials Sector Average
AWI
Armstrong World
157.88
6.84
4.53%
AAON
Aaon
136.72
64.94
90.46%
MAS
Masco
74.38
14.31
23.83%
OC
Owens Corning
128.14
-0.51
-0.40%
SSD
Simpson Manufacturing Co
200.14
47.44
31.07%
WMS
Advanced Drainage Systems
147.12
33.35
29.31%
Armstrong World Corporate Events
Executive/Board ChangesShareholder Meetings
Armstrong World Shareholders Approve Directors, Auditor and Pay
Positive
Jun 17, 2026
At its June 11, 2026 annual meeting, Armstrong World Industries shareholders elected all nine director nominees to the board and ratified KPMG LLP as the independent auditor for the 2026 fiscal year. Investors also approved the 2026 Directors Stoc...
Business Operations and StrategyFinancial Disclosures
Armstrong World Highlights Strategy at Bank of America Conference
Positive
May 11, 2026
On May 11, 2026, Armstrong World Industries announced that President and CEO Mark Hershey and SVP and CFO Chris Calzaretta would host investor meetings at the Bank of America Securities Industrials, Transportation and Airlines Key Leaders Conferen...
Business Operations and StrategyFinancial Disclosures
Armstrong World Delivers Record Q1 2026 Sales, Lifts EPS Outlook
Positive
Apr 28, 2026
Armstrong World Industries, Inc., based in Lancaster, Pa., is an Americas-focused manufacturer of interior and exterior architectural products, including ceilings, specialty walls and exterior metal solutions. The company targets commercial and ot...
Dividends
Armstrong World Announces Quarterly Dividend, Highlights Capital Returns
Positive
Apr 24, 2026
Armstrong World Industries said on April 24, 2026, that its board has declared a quarterly cash dividend of $0.339 per share for its common stock. The payout is scheduled for May 26, 2026, to shareholders of record as of the close of business on M...
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.