- Armstrong World Industries (AWI, Financial) reported a 17% increase in net sales for Q1 2025, driven by acquisitions and Mineral Fiber AUV growth.
- Operating income rose 14%, while adjusted EBITDA and adjusted diluted net earnings per share increased by 16% and 20%, respectively.
- The company reaffirmed its 2025 guidance, maintaining confidence in its growth strategies despite economic uncertainties.
Armstrong World Industries, Inc. (AWI), a leader in architectural applications, has reported strong financial results for the first quarter of 2025. The company's net sales increased by 17.3% to $382.7 million, compared to $326.3 million in the prior-year period. This growth was attributed to benefits from 2024 acquisitions and a robust performance in Mineral Fiber Average Unit Value (AUV).
Operating income for the quarter rose 14.4% to $98.5 million, driven by sales volume growth and improvement in AUV. Diluted net earnings per share also saw a significant rise of 16.2% to $1.58. Adjusted EBITDA increased by 16.2% to $129 million, with an adjusted EBITDA margin of 33.6%.
The Mineral Fiber segment reported a 2.3% increase in net sales to $245.1 million, fueled by a $16 million favorable AUV, though partially offset by lower volumes. The Architectural Specialties segment saw a substantial 58.7% increase in net sales to $137.6 million, largely due to acquisitions and organic growth.
Cash flows from operating activities improved by $15 million, despite unfavorable working capital changes. During the quarter, Armstrong repurchased 0.1 million shares of its common stock for $22 million, leaving $640 million available under its repurchase program.
Looking ahead, Armstrong reaffirmed its 2025 guidance, maintaining projections across all key financial metrics. The company expects net sales of $1,570 to $1,610 million for the year, reflecting growth expectations of 9% to 11% compared to 2024.
A webcast conference call to discuss these results will be held at 10:00 a.m. ET today. More information is available on the company's website.
