Armstrong World Industries Inc · NYSE:AWI
Armstrong World Industries — Investor Presentation (May 2025)
36 slides from Armstrong World Industries's investor presentation, May 8, 2025
Slide 1: Armstrong World Industries Investor Presentation May 2025
Armstrong World Industries Investor Presentation May 2025 Exhibit 99.1
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: Armstrong World Industries, Inc.
Armstrong World Industries, Inc. An Americas leader in the design and manufacturing of innovative interior & exterior architectural applications including ceilings, specialty walls and exterior metal solutions FULL YEAR 2024 CONSOLIDATED RESULTS1 $1,446M Net Sales $6.31 ADJUSTED DILUTED EPS* $298M A
Slide 5: The Armstrong Purpose
The Armstrong Purpose Making a positive difference in the spaces where we… LIVE WORK LEARN HEAL PLAY It matters to us, and it matters to our stakeholders
Slide 6: Three Pillars guide our sustainability program
Our workforce will be safe, diverse, inclusive and fulfilled, and we will actively contribute to our local communities. Our electricity will be either directly or indirectly sourced through renewable energy, and we will reduce carbon, GHG waste and water impacts of our products and solutions. We are
Slide 7: Creating a Differentiated and Focused Building Products Company
Creating a Differentiated and Focused Building Products Company 1. AWI Net Sales represents AWI on a Continuing Operations (Americas, ceilings and walls only) basis. 2013 2016 2021 2024 Added digital capabilities to better serve our customers Sold International business to focus on the Americas Bega
Slide 8: Why Invest in AWI?
Unique company in an attractive industry Complementary, high performing segments Strong financial returns Consistent & focused growth strategy Value Creation for Shareholders Why Invest in AWI?
Slide 9: Why Invest in AWI?
Unique company in an attractive industry Complementary, high performing segments Strong financial returns Consistent & focused growth strategy Value Creation for Shareholders Why Invest in AWI?
Slide 10: Unique company in an attractive industry
Strong and trusted brand Broadest, most innovative product portfolio Specification excellence through deep and long-standing relationships with architects and designers Large manufacturing scale with strong exclusive distribution partners Operational excellence supporting best-in-class service and q
Slide 11: Diverse End Markets Drive Stability Throughout Cycles
Diverse End Markets Drive Stability Throughout Cycles *12-to-24-month outlook based on internal company estimates and Dodge data and analytics, excluding indirect tariff-related impacts. | **Based on internal company estimates. | 1. According to the Federal Aviation Administration. Retail Slightly N
Slide 12: Why Invest in AWI?
Unique company in an attractive industry Complementary, high performing segments Strong financial returns Consistent & focused growth strategy Value Creation for Shareholders Why Invest in AWI?
Slide 13: Complementary Segments With Strong Profitability
Complementary Segments With Strong Profitability *Non-GAAP Measure. Reconciliations provided in the appendix of this presentation. | 1. CAGR represents 2019 to 2024 results. | 2. Based on internal company estimates. Mineral Fiber (MF) Segment Consistent AUV growth supported by innovation Targeted ma
Slide 14: Successful Joint Venture Creates Important Competitive Advantage
WAVE leverages the strengths and expertise of both parent companies Successful Joint Venture Creates Important Competitive Advantage Go to market expertise Steel procurement and supply chain management expertise Established in 1992 — 50/50 joint venture North American market leader in ceiling suspen
Slide 15: Together Our Segments Enable the AWI Total Customer Experience
Together Our Segments Enable the AWI Total Customer Experience AWI is uniquely positioned to efficiently deliver a broad range of innovative, highly-specified solutions to our customers Mineral Fiber Architectural Specialties Specification Leadership Broadest Portfolio of Products Brand Strength Ope
Slide 16: AWI is the Supplier of Choice for Large, Complex Projects
AWI is the Supplier of Choice for Large, Complex Projects Adobe North Tower, San Jose, CA Products Specified 2023 CISCA Award Winner Check out the full project here! AS: MetalWorks™ Custom Blades AS: Arktura® Vapor® Cluster AS: Turf® Custom Grid AS: Arktura® Vapor® Frequency AS: Tectum® AS: WoodWork
Slide 17: Why Invest in AWI?
Unique company in an attractive industry Complementary, high performing segments Strong financial returns Consistent & focused growth strategy Value Creation for Shareholders Why Invest in AWI?
Slide 18: Consistent and Focused Strategy That Drives Value for Stakeholders
Consistent and Focused Strategy That Drives Value for Stakeholders Market-driven product innovation Acquisitions to build greater market opportunity Enhances our competitive advantage Expands volume and AUV growth potential Creates shareholder value GROWTH STRATEGY EXPECTED OUTCOMES Customer-centric
Slide 19: New Products and Features Consistently Rewarded by the Market
New Products and Features Consistently Rewarded by the Market 1. Product Vitality Index represents the percent of total sales from products introduced in the last 5 years. Pre-Spin and Post-Spin refers to the separation from Armstrong Flooring, Inc., completed on April 1, 2016. 2. US and Canada Mine
Slide 20: Next Innovation Focus: Reducing Energy Use and Carbon in the Built Environment
Next Innovation Focus: Reducing Energy Use and Carbon in the Built Environment 1. Cooling energy savings according to research estimates measured in lab tests. Results may vary. | 2. Reduction in cradle-to-gate stages (A1-A3) impacts compared to standard Ultima® Panels. Carbon Impact Case Studies Un
Slide 21: Sustainable, Energy Efficient Buildings
Sustainable, Energy Efficient Buildings Description Digital platform to deliver end-to-end ceiling solutions, accessing untouched demand Automated design service to deepen customer relationships, strengthen specifications & lower construction costs Focus on energy saving products, construction effic
Slide 22: Driving Profitable AS Topline Growth Through Acquisitions and Market Penetration
Driving Profitable AS Topline Growth Through both Acquisitions and Market Penetration 22 Acquisitions AWI’s scale and focus drive synergies to enhance profitability and create value EBITDA multiples: ~9x pre-synergy ~7x post-synergy1 AS Segment Net Sales 21% CAGR 2023 and 2024 acquisition post-syner
Slide 23: Recent Acquisitions Expand Our Product Portfolio and Capabilities
Recent Acquisitions1 Expand Our Product Portfolio and Capabilities At-a-Glance Leader in the design, fabrication and engineering of highly crafted exterior architectural metal solutions ~160 employees $45M+ sales in 2024 2 production facilities At-a-Glance A design-driven category leader in transluc
Slide 24: Advancing External Metal Capabilities to Unlock Additional $1B Market Opportunity
Advancing External Metal Capabilities to Unlock an Additional $1B Architectural Specialties Market Opportunity “TAM”: Total Addressable Market. Based on internal company estimates. Today… Looking forward… ~$1.5B TAM1 Interior Applications Primarily interior metal, wood, felt, glass reinforced gypsum
Slide 25: Why Invest in AWI?
Unique company in an attractive industry Complementary, high performing segments Strong financial returns Consistent & focused growth strategy Value Creation for Shareholders Why Invest in AWI?
Slide 26: Resilient Business Model Creates Value for Shareholders
^ Resilient Business Model Creates Value for Shareholders *Non-GAAP measure. See appendix for reconciliation to the nearest GAAP measure. Delivering exceptional results despite a tough macro environment Net Sales ($M) Adjusted EBITDA* ($M) Adj Free Cash Flow* ($M) Adjusted Diluted EPS* 9% 3 Year CAG
Slide 27: Strong Cash Flow Profile Supports All Capital Allocation Priorities
Strong Cash Flow Profile Supports All Capital Allocation Priorities Adj. Free Cash Flow* Adj. Free Cash Flow Conversion*1 ~$1B of Adj. Free Cash Flow* generated since 2021 Balanced Approach To Capital Allocation Capital Allocation Priorities Share Repurchases Acquisitions2 CapEx Cash Dividends $202
Slide 28: Creating Value for Shareholders
Creating Value for Shareholders 1. The performance shown in the chart assumes $100 invested on December 31, 2022 through December 31, 2024, with dividends reinvested, and it should not be considered indicative of future performance. Unique company in an attractive industry Complementary, high perfor
Slide 29: Reaffirming Full Year 2025 Guidance
No change in guidance despite elevated macro uncertainty Reaffirming Full Year 2025 Guidance1 Commentary2 Net Sales Adj. Diluted EPS* Adj. EBITDA* Adj. Free Cash Flow* $1,570M to $1,610M 9% to 11% YoY Softer 2H 2025 market conditions on tariff uncertainty … Full year 2025 guidance reflects impacts f
Slide 30: Appendix
® Appendix
Slide 31: Full Year 2025 Assumptions
Full Year 2025 Assumptions1 Segment Net Sales Adjusted EBITDA Margin* Mineral Fiber ~5% growth ~ 42% Architectural Specialties >20% growth ~ 18% Consolidated Metrics Full Year 2025 Capital expenditures $90M to $100M Depreciation and amortization $115M to $120M Interest expense ~$35M Book / cash tax
Slide 32: 2021 – 2024 Adjusted EBITDA Reconciliation
2021 – 2024 Adjusted EBITDA Reconciliation For the Twelve Months Ended December 31, 2021 2022 2023 2024 Net Sales $1,107 $1,233 $1,295 $1,446 Net earnings $183 $203 $224 $265 Less: Net (loss) earnings from discontinued operations (2) 3 - - Earnings from continuing operations $185 $200 $224 $265 Add:
Slide 33: 2021 – 2024 Adjusted Diluted Earnings per Share Reconciliation
2021 – 2024 Adjusted Diluted Earnings per Share Reconciliation For the Twelve Months Ended December 31, For the Twelve Months Ended December 31, 2021 2022 2023 2024 Earnings from continuing operations $185 $200 $224 $265 Add: Income tax expense, as reported 57 58 75 82 Earnings from continuing opera
Slide 34: 2021 – 2024 Adjusted Free Cash Flow Reconciliation
2021 – 2024 Adjusted Free Cash Flow Reconciliation . Year Ended December 31, For the Three Months Ended March 31: 2021 2022 2023 2024 Net cash provided by operating activities $187 $182 $234 $267 Net cash (used for) provided by investing activities ($14) $28 ($10) ($79) Net cash provided by operatin
Slide 35: 2024 Segment Adjusted EBITDA Reconciliation
2024 Segment Adjusted EBITDA Reconciliation RIP expense represents only the plan service cost related to the RIP that is recorded within Operating Income. For all periods presented, we were not required to and did not make cash contributions to our RIP. Represents the impact of acquisition-related a
Slide 36: Full Year 2025 Adjusted EBITDA Reconciliation
Full Year 2025 Low High Net earnings $289 $293 Add: Income tax expense 90 96 Earnings before income taxes $378 $388 Add: Interest expense 34 36 Add: Other non-operating (income), net (2) (1) Operating income $409 $423 Add: RIP expense1 2 2 Adjusted operating income $410 $425 Add: Depreciation and am
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