Armstrong World Industries Inc · NYSE:AWI
Armstrong World Industries — Q4 2024 Earnings Presentation
19 slides from Armstrong World Industries's earnings presentation, Feb 25, 2025
Slide 1: 4th Quarter and Full Year 2024 Earnings Presentation
4 Quarter and th Full Year 2024 Earnings Presentation February 25, 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 Full Year Full Year AWI Consolidated Results Q4 2024 Q4 2023 2024 2023 Net sales $367.7 $312.3 $1,445.7 $1.295.2 Net earnings $62.2 $46.8 $264.9 $223.8 Operating income $81.9 $66.3 $374.3 $323.7 Adj. EBITDA* $112 $98 $486 $430 Operating income margin (operating in
Slide 5: Strong Finish to 2024 Record Setting Results
Strong Finish to 2024 Record Setting Results 4th Quarter 2024 Key Takeaways $368M (+18% VPY) Net Sales up 18% and Adj. EBITDA* up 14% Net Sales Total company adj. EBITDA margin* of 30.4% Mineral Fiber segment Adj. EBITDA* up 10% $112M (+14% VPY) Adj. EBITDA margin* expanded 70bps to 37.5%, with stro
Slide 6: Strong AUV and Mineral Fiber Profitability Continue
Strong AUV and Mineral Fiber Profitability Continue Mineral Fiber Q4 2024 Results $238 $220 Net Sales Growth VPY +8% Q4 Mineral Fiber Key Highlights Top-line AUV growth of 9% driven by both Q4 '23 Q4 '24 ● mix and like-for-like price Adj. EBITDA* VPY Q1 Q2 Q3 Q4 FY ● Market conditions continued to s
Slide 7: Recent Acquisitions & Organic Growth Fuel Robust Results
Recent Acquisitions & Organic Growth Fuel Robust Results Architectural Specialties Q4 2024 Results Net Sales $130 Growth VPY Q4 Architectural Specialties Key Highlights $92 +41% ● Record-setting segment sales and earnings ● AS organic* sales growth accelerated to ~15% and Adj. EBITDA margin* expande
Slide 8: Double-Digit Sales and Earnings Growth Driven by AUV and Acquisitions
Double-Digit Sales and Earnings Growth Driven by AUV and Acquisitions Q4 2024 Consolidated Company Key Metrics Q4 2023 Q4 2024 Variance Net Sales $312 $368 18% Adj. EBITDA* $98 $112 14% Adj. EBITDA Margin* (Adj. EBITDA % of Net Sales) 31.4% 30.4% (100bps) Adj. Diluted Earnings Per Share* $1.22 $1.50
Slide 9: Strong Sales & Adj. EBITDA Growth with Margin Expansion
Strong Sales & Adj. EBITDA* Growth with Adj. EBITDA Margin* Expansion Full Year 2024 Consolidated Company Key Metrics Full Year 2023 Full Year 2024 Variance Net Sales $1,295 $1,446 12% Adj. EBITDA* $430 $486 13% Adj. EBITDA Margin* (Adj. EBITDA % of Net Sales) 33.2% 33.6% 50bps Adj. Diluted Earnings
Slide 10: Double-Digit Adjusted Free Cash Flow Growth Supports All Capital Allocation Priorities
Double-Digit Adjusted Free Cash Flow* Growth Supports All Capital Allocation Priorities 2024 Adj. Free Cash Flow* 2024 Up 13% vs PY Capital Deployment $53 $1 $1 ($4) $298 ($16) 2024 $83 $51 $55 $129 $263 2023 $84 $47 $132 $27 CapEx Dividends 2023 Adj. Operating CapEx Interest WAVE Income Tax 2024 Sh
Slide 11: Issuing Full Year 2025 Guidance
Issuing Full Year 2025 Guidance Expecting strong sales and earnings growth Commentary1 Net Sales Adj. EBITDA* Choppy market outlook … expecting flattish $1,570M to $1,610M $525M to $545M Mineral Fiber volume 9% to 11% YoY 8% to 12% YoY Expect Mineral Fiber AUV growth above historical average … deliv
Slide 12: Appendix
Appendix
Slide 13: Full Year 2025 Assumptions
Full Year 2025 Assumptions Segment Net Sales Adjusted EBITDA Margin* Mineral Fiber ~5% to ~6% growth ~ 42% Architectural Specialties ~20% growth ~ 18% Consolidated Metrics Full Year 2025 Shipping Days 2024 2025 vs Prior Year Capital expenditures $90M to $100M Q1 - (1) Depreciation and amortization $
Slide 14: Adjusted EBITDA Reconciliation and Adjusted Diluted EPS
Adjusted EBITDA For the Three Months Ended December 31, For the Year Ended December 31, Reconciliation 2024 2023 2024 2023 Adjusted Diluted EPS For the Three Months For the Year Ended Ended December 31, December 31, Net sales $368 $312 $1,446 $1,295 Reconciliation 2024 2023 2024 2023 Net earnings $6
Slide 15: Adjusted Free Cash Flow Reconciliation
For the Three Months Ended December 31, For the Year Ended December 31, Adjusted Free Cash Flow Reconciliation 2024 2023 2024 2023 Net cash provided by operating activities $87 $57 $267 $234 Net cash (used for) investing activities ($18) - ($79) ($10) Net cash provided by operating and investing act
Slide 16: Segment Adj. EBITDA Reconciliation
For the Three Months Ended December 31, For the Year Ended December 31, Segment Adj. EBITDA MF AS UC MF AS UC Reconciliation 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 Net sales $238 $220 $130 $92 - - $986 $932 $460 $363 - - Operating income (loss) $69 $61 $14 $6 ($1) ($1) $323 $286
Slide 17: AS Organic Adj. EBITDA Reconciliation
For the Three Months Ended December 31, For the Year Ended December 31, Recent Recent AS Organic Adj. EBITDA Total AS Acquisitions1 AS Organic Total AS Acquisitions1 AS Organic Reconciliation 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 Net sales $130 $92 $34 $9 $96 $83 $460 $363 $84
Slide 18: AWI Organic Adj. EBITDA Reconciliation
For the Three Months Ended December 31, For the Year Ended December 31, Recent Recent AWI Organic Adj. EBITDA Total AWI Acquisitions1 AWI Organic Total AWI Acquisitions1 AWI Organic Reconciliation 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 Net sales $368 $312 $34 $9 $334 $304 $1,446
Slide 19: 2025 Adj. EBITDA Guidance Reconciliation
2025 Adj. EBITDA Full Year 2025 Guidance Reconciliation Low High 2025 Adj. Free Cash Flow Full Year 2025 Net earnings $293 $297 Guidance Reconciliation Low High Add: Income tax expense 96 102 Net cash provided by operating activities $297 $319 Earnings before income taxes $389 $399 Add: Return of in
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