Armstrong World Industries Inc · NYSE:AWI
Armstrong World Industries — Q1 2025 Earnings Presentation
16 slides from Armstrong World Industries's earnings presentation, Apr 29, 2025
Slide 1: 1st Quarter 2025 Earnings Presentation
1 Quarter 2025 st Earnings Presentation April 29, 2025
Slide 2: Safe Harbor Statement
Safe Harbor Statement Disclosures in this presentation contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including without limitation, those relating to future financial and operational results, market and broader economic conditions and g
Slide 3: Basis of Presentation Explanation
Basis of Presentation Explanation Results throughout this presentation are presented on a normalized basis. We remove the impact of certain discrete expenses and income in certain measures including adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”), adjusted diluted
Slide 4: GAAP and non-GAAP Financial Results
GAAP and non-GAAP Financial Results AWI Consolidated Results Q1 2025 Q1 2024 Net sales $382.7 $326.3 Net earnings $69.1 $59.9 Operating income $98.5 $86.1 Adj. EBITDA* $129 $111 Operating income margin (operating income % of net sales) 25.7% 26.4% Adj. EBITDA margin* (Adj. EBITDA % of net sales) 33.
Slide 5: Strong Top and Bottom-Line Growth to Start Year
Strong Top and Bottom-Line Growth to Start Year 1st Quarter 2025 Key Takeaways $383M (+17% VPY) Net Sales up 17% and Adj. EBITDA* up 16% Net Sales Total company Adj. EBITDA margin* of 33.6%, with AWI Organic Adj. EBITDA margin* expansion of 170bps $129M (+16% VPY) Mineral Fiber segment Adj. EBITDA*
Slide 6: Best Q1 Adj. EBITDA Margin in Mineral Fiber since 2020
Best Q1 Adj. EBITDA Margin* in Mineral Fiber since 2020 Mineral Fiber Q1 2025 Results $240 $245 Net Sales Q1 Mineral Fiber Key Highlights +2% Growth VPY Adj. EBITDA margin* expanded 180bps to ● 43.0% Q1 '24 Q1 '25 Adj. EBITDA* VPY Q1 Top-line AUV growth of 7% driven by like-for- 2024 Adj. EBITDA* $9
Slide 7: Recent Acquisitions & Organic Growth Fuel Strong Results
Recent Acquisitions & Organic Growth Fuel Strong Results Architectural Specialties Q1 2025 Results Net Sales $138 Growth VPY Q1 Architectural Specialties Key Highlights $87 +59% ● Robust sales and earnings growth with Adj. EBITDA margin* expansion of 310bps Q1 '24 Q1 '25 ● Sales growth driven primar
Slide 8: Double-Digit Sales and Earnings Growth Driven by Acquisitions and AUV
Double-Digit Sales and Earnings Growth Driven by Acquisitions and AUV Q1 2025 Consolidated Company Key Metrics Q1 2024 Q1 2025 Variance Net Sales $326 $383 17% Adj. EBITDA* $111 $129 16% Adj. EBITDA Margin* (Adj. EBITDA % of Net Sales) 33.9% 33.6% (30bps) AWI Organic Adj. EBITDA Margin* (Adj. EBITDA
Slide 9: Double-Digit Adjusted Free Cash Flow Growth to Start the Year
Double-Digit Adjusted Free Cash Flow* Growth to Start the Year Q1 2025 Adj. Free Cash Flow* Q1 2025 Up 10% vs PY Capital Deployment $7 $2 $48 2025 $19 $13 $22 $1 $43 ($4) 2024 $15 $12 $15 $6 CapEx Dividends 2024 Adj. Operating CapEx Interest WAVE 2025 Share Repurchases cash flow and Paid Dividends E
Slide 10: Reaffirming Full Year 2025 Guidance
Reaffirming Full Year 2025 Guidance No change in guidance despite elevated macro uncertainty Commentary1 Softer 2H 2025 market conditions on tariff uncertainty … Full year 2025 guidance reflects Net Sales Adj. EBITDA* impacts from currently known tariffs $1,570M to $1,610M $525M to $545M Expecting M
Slide 11: Appendix
Appendix
Slide 12: Full Year 2025 Assumptions
Full Year 2025 Assumptions Segment Net Sales Adjusted EBITDA Margin* Mineral Fiber ~5% growth (prior: ~5% to ~6% growth) ~ 42% Architectural Specialties >20% growth (prior: ~20%) ~ 18% Consolidated Metrics Full Year 2025 Shipping Days 2024 2025 vs Prior Year Capital expenditures $90M to $100M Q1 - (
Slide 13: Adjusted EBITDA Reconciliation; Adjusted Diluted EPS Reconciliation
Adjusted EBITDA For the Three Months Ended March 31, Reconciliation 2025 2024 Net sales $383 $326 Adjusted Diluted EPS For the Three Months Ended March 31, Net earnings $69 $60 Reconciliation 2025 2024 Net earnings $69 $60 Add: Income tax expense 22 20 Add: Income tax expense 22 20 Earnings before i
Slide 14: Adjusted Free Cash Flow Reconciliation
For the Three Months Ended March 31, Adjusted Free Cash Flow Reconciliation 2025 2024 Net cash provided by operating activities $41 $26 Net cash provided by investing activities $6 $6 Net cash provided by operating and investing activities $47 $32 Add: Investment in unconsolidated affiliate - 6 Add:
Slide 15: AS Organic and AWI Organic Adj. EBITDA Reconciliation
For the Three Months Ended March 31, AS Organic Adj. EBITDA Total AS Recent Acquisitions1 AS Organic Reconciliation 2025 2024 2025 2024 2025 2024 Net sales $138 $87 $41 - $96 $87 Operating income $15 $8 $3 - $12 $8 Add: Depreciation and amortization 9 4 4 - 4 4 Adjusted EBITDA $24 $12 $7 - $16 $12 O
Slide 16: 2025 Adj. EBITDA, Adj. Free Cash Flow and Adj. Diluted EPS Guidance Reconciliation
2025 Adj. EBITDA Full Year 2025 Guidance Reconciliation Low High 2025 Adj. Free Cash Flow Full Year 2025 Net earnings $289 $293 Guidance Reconciliation Low High Add: Income tax expense 90 96 Net cash provided by operating activities $297 $319 Earnings before income taxes $378 $388 Add: Return of inv
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