Armstrong World Industries third-quarter net sales rise 12% to $476 million
Adjusted diluted earnings per share rose 10% to $2.26, and the company updated its 2026 guidance for net sales, adjusted EBITDA, EPS and free cash flow.
Key takeaways
- Armstrong World Industries, Inc. (AWI) said in a filing on Oct. 27 that third-quarter 2026 net sales rose 12% to $476 million from $425 million. Adjusted EBITDA rose 11% to $164 million. The company updated full-year 2026 guidance, with net sales now expected at $1,788 million to $1,803 million.
Armstrong World Industries, Inc. (AWI) reported third-quarter 2026 net sales of $475.8 million, up 11.9% from a year earlier, and updated its full-year 2026 guidance. The company said in a filing on Tuesday that the results were released in a press release, and it discussed them on a webcast at 10:00 a.m. Eastern Time.
The architectural products maker said higher volumes and average unit value, or AUV, which includes both like-for-like price and mix, drove the quarter.
Here's how the company did:
- Revenue: $475.8 million vs. $425.2 million a year earlier
- Net earnings: $91.9 million vs. $86.3 million a year earlier
- Diluted earnings per share: $2.17 vs. $1.98 a year earlier
- Adjusted diluted earnings per share: $2.26 vs. $2.05 a year earlier
- Adjusted EBITDA: $164 million vs. $148 million a year earlier
Adjusted EBITDA, or earnings before interest, taxes, depreciation and amortization after certain adjustments, rose 11% to $164 million. The adjusted margin was 34.5%, compared with 34.7% a year earlier, as higher input cost inflation, mix headwinds in Mineral Fiber and tariffs pressured margins.
For the first nine months, net sales were $1,357.7 million, up from $1,232.5 million, and net earnings were $255.4 million, up from $243.2 million.
“Strong demand for our broad portfolio of Architectural Specialties solutions and solid Mineral Fiber AUV and volume performance drove another quarter of record top-line results.” AWI President and CEO Mark Hershey said.
Mineral Fiber net sales rose 6.6% to $292.1 million from $274.0 million. The company said the increase came from $16 million of favorable AUV and $2 million of higher sales volumes.
Mineral Fiber operating income rose 7.4% to $106.0 million from $98.7 million, and adjusted EBITDA reached $129 million, a 44.0% margin. The company said volume growth came primarily from timing-related demand from Canadian customers.
Manufacturing costs in the segment rose $8 million, mainly from freight and raw material inflation. A $3 million decrease in selling, general and administrative expenses partly offset that increase.
Architectural Specialties net sales rose 21.5% to $183.7 million from $151.2 million. The company said $25 million of the increase came from organic growth and $8 million from acquisitions.
The segment's operating income rose 33.7% to $25.8 million, and adjusted EBITDA rose 25.5% to $36 million, a 19.4% margin. Elevated metal costs also reduced project margins, the company said.
Recent acquisitions include Eventscape, which the company bought in February 2026, Parallel in December 2025 and Geometrik in September 2025.
Net cash provided by operating activities was $222.1 million for the first nine months, down $23 million or 10% from a year earlier. The company said the decline reflected timing-related changes in receivables and higher income tax payments.
Investing outflows rose $52 million, mainly from cash paid for the Eventscape acquisition. Adjusted free cash flow was $106 million in the quarter, down from $123 million, and $254 million for the nine months, down from $259 million.
In the third quarter, the company repurchased 0.4 million shares for $75 million at an average price of $174.36 per share. It said $1.1 billion remained under its share repurchase program as of Sept. 30, 2026, under an authorization of up to $2.5 billion through December 2029.
The company said the updated 2026 outlook reflects stronger net sales growth and accelerating inflationary pressures.
| Metric | 2025 actual | 2026 outlook | Growth |
|---|---|---|---|
| Net sales | $1,621M | $1,788M to $1,803M | 10% to 11% |
| Adjusted EBITDA | $555M | $602M to $612M | 8% to 10% |
| Adjusted diluted EPS | $7.41 | $8.30 to $8.40 | 12% to 13% |
| Adjusted free cash flow | $346M | $380M to $390M | 10% to 13% |
For the segments, the company expects Mineral Fiber net sales growth of about 6.5%, down from about 7%, and Architectural Specialties growth of 18% to 19%, up from 15% to 17%. It expects Mineral Fiber AUV growth of about 5.5%.
“Our updated outlook for 2026 reflects an increase in organic Architectural Specialties net sales, the impact of accelerating costs for both segments, net of mitigation efforts, as well as mix headwinds in Mineral Fiber and softer contributions from recent acquisitions.” AWI Senior Vice President and CFO Chris Calzaretta said.
The company's adjusted diluted EPS guidance is based on about 42.5 million diluted shares outstanding.
The company has about 4,100 employees and 24 manufacturing facilities, plus seven facilities dedicated to its Worthington Armstrong Venture (WAVE) joint venture. It said it expects to file its quarterly report on Form 10-Q for the quarter ended Sept. 30, 2026, the same day.