AWI · Armstrong World Industries, Inc.

Net income fell 3.3% to $66.8 million, with diluted EPS at $1.55 compared to $1.58, reflecting the operating pressures partially mitigated by a decrease in interest expense due to lower average debt balances. Cash flow from operations was $32.1 million, down from $41.0 million, consistent with seasonal patterns. Investing activities showed an unfavorable change primarily due to the acquisition of Eventscape, partially offset by higher dividends from the WAVE joint venture. This strategic deployment underscores management's focus on growth through bolt-on acquisitions in Architectural Specialties while maintaining returns from unconsolidated investments.

Liquidity remains robust, with cash on hand and cash generated from operations, together with borrowing capacity under the credit facility, positioned to meet near-term needs for business operations, capital expenditures, and scheduled debt payments based on current expectations. The company continues to monitor governmental trade policies and geopolitical events, including the conflict in Iran, none of which had a material direct impact on financial condition, liquidity, or results of operations in Q1 2026 or 2025. These dynamics position AWI to navigate cost headwinds while leveraging pricing discipline and selective growth investments.