AWI · Armstrong World Industries, Inc.

Armstrong World Industries delivered solid Q1 2026 top-line growth of 7.1% to $409.9 million, fueled by $17 million higher volumes and $10 million favorable AUV across segments. Mineral Fiber contributed 4.9% sales growth to $257.2 million with strong AUV from like-for-like pricing and positive volumes amid flat markets, driving Adjusted EBITDA up 3.5% to $109 million and maintaining a robust 42.4% margin despite input cost inflation and SG&A increases from severance. Architectural Specialties saw double-digit 11% sales growth to $152.7 million from $10 million organic gains in metal/wood categories plus $5 million inorganic from 2025/2026 acquisitions, but Adjusted EBITDA fell 11.9% to $21 million due to non-recurring tariff adjustment ($2M), Eventscape acquisition costs ($3M), severance ($1M), and organic manufacturing/SG&A pressures, contracting margins to 13.6% (organic 14.5%). Consolidated operating income declined 4.4% to $94.2 million from discrete items including severance ($3M), acquisition costs ($3M), and tariffs ($2M), though underlying growth in AUV/volumes was offset by manufacturing/SG&A rises. CEO Mark Hershey highlighted market stability, expanding AS order intake, and new energy-efficient/data center products, expressing confidence in full-year profitable growth and margin expansion. CFO Chris Calzaretta noted sequential profitability improvement and reaffirmed guidance for Net Sales (+8-10%), Adjusted EBITDA (+8-12%), Adjusted FCF (+9-14%), while raising Adjusted Diluted EPS to +10-14% on accelerated share repurchases (0.3M shares/$60M in Q1, $473M remaining). Operating cash flows fell $9 million on working capital timing, investing outflows rose $57 million mainly for Eventscape acquisition.