Armstrong World Industries Q1 revenue down 5%, FY23 guidance reduced.

• Armstrong World Industries reports Q3 sales of $579.2mln, up 5.2% YoY • Digital data sales rise 11% YoY • Net income of $52.1mln, up from $44.7mln in Q3 2022 • Company raises FY 2023 guidance on strong Q3 performance • Armstrong World Industries is a leading global manufacturer of ceiling systems and other building products.

Armstrong World Industries (AWI) has reported its third-quarter (Q3) financial results for the year 2025, showcasing robust growth across various segments. The company, a leading global manufacturer of ceiling systems and other building products, reported Q3 sales of $579.2 million, representing a year-over-year (YoY) increase of 5.2%. This performance has led the company to raise its full-year (FY) 2023 guidance on the strong Q3 results.

Digital data sales, a key growth driver, rose by 11% YoY, underscoring the company's commitment to innovation and digitalization. The company's net income for Q3 2025 was $52.1 million, a significant increase from $44.7 million in Q3 2022. This growth is attributed to strong operational performance and effective cost management.

The company's Mineral Fiber and Architectural Specialties segments continue to perform well. Mineral Fiber sales climbed by 6.7%, driven by a 5% improvement in Average Unit Value (AUV) and modest volume growth. The Architectural Specialties segment saw net sales surge by 37%, largely due to the successful integration of acquisitions such as 3form and Zahner, along with 15% organic growth. These acquisitions have extended Armstrong World's reach into specialty walls, exterior facades, and rain screens.

Armstrong World Industries has also been proactive in its capital allocation strategy. The company ended Q3 2025 with $81.1 million in cash and cash equivalents and total liquidity of approximately $150 million, including availability under its revolver. The company repurchased 0.4 million shares for $52 million during the first six months of 2025, excluding commissions and taxes, and paid dividends worth $27 million.

The company's strong performance has been reflected in the analyst community. Armstrong World Industries has received a Zacks Rank #1 (Strong Buy) and an average Growth Score of C, although it is lagging on the Momentum Score front with an F. The stock has outperformed the Zacks Building Products - Miscellaneous industry, gaining 37.5% year to date compared to the industry's 1.3% growth.

Looking ahead, Armstrong World Industries expects to continue its growth trajectory. The company anticipates net sales to be within $1.60-$1.63 billion for FY 2023, indicating an 11-13% increase from the year-ago figure. Adjusted EBITDA is now estimated to be within $545-$560 million, and adjusted earnings per share are expected to be between $7.15 and $7.30, implying growth of 13-16% from the reported figure of 2024.

References:
[1] https://finance.yahoo.com/quote/AWI/analysis/
[2] https://www.nasdaq.com/articles/why-armstrong-world-industries-awi-41-last-earnings-report
[3] https://www.nasdaq.com/articles/heres-why-investors-should-buy-armstrong-stock-right-now