Armstrong World Industries Inc · NYSE:AWI
Armstrong World Industries — Q2 2025 Earnings Presentation
19 slides from Armstrong World Industries's earnings presentation, Jul 29, 2025
Slide 1: 2nd Quarter 2025 Earnings Presentation
2 Quarter 2025 nd Earnings Presentation July 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 Q2 2025 Q2 2024 YTD 2025 YTD 2024 Net sales $424.6 $365.1 $807.3 $691.4 Net earnings $87.8 $65.9 $156.9 $125.8 Operating income $123.2 $95.0 $221.7 $181.1 Adj. EBITDA* $154 $125 $283 $236 Operating income margin (operating income % of net
Slide 5: Double-Digit Top and Bottom-Line Growth
Double-Digit Top and Bottom-Line Growth 2nd Quarter 2025 Key Takeaways $425M (+16% VPY) Net Sales up 16% and Adj. EBITDA* up 23% Net Sales Total company Adj. EBITDA margin* of 36.3% with EBITDA margin* expansion of 200bps $154 (+23% VPY) Mineral Fiber segment Adj. EBITDA* up 16% Adj. EBITDA* Adj. EB
Slide 6: Solid Sales Growth with Strong Adj. EBITDA Margin Expansion
Solid Sales Growth with Strong Adj. EBITDA Margin* Expansion Mineral Fiber Q2 2025 Results $267 $250 Q2 Mineral Fiber Key Highlights Net Sales +7% Adj. EBITDA margin* expanded 350bps to Growth VPY ● 45.2% Q2 '24 Q2 '25 Solid top-line growth with AUV of 5%, driven Adj. EBITDA* VPY Q1 Q2 ● by like-for
Slide 7: Robust Results Driven by Organic Growth & Recent Acquisitions
Robust Results Driven by Organic Growth & Recent Acquisitions Architectural Specialties Q2 2025 Results $158 Q2 Architectural Specialties Key Highlights Net Sales $115 Growth VPY Robust sales and earnings growth with Adj. +37% ● EBITDA margin* expansion of 310bps ● Better-than-expected sales growth
Slide 8: Adj. EBITDA Bridge: Q2 2025
Strong Results in Both Segments Drove Robust Top and Bottom-Line Growth Q2 2025 Consolidated Company Key Metrics Q2 2024 Q2 2025 Variance Net Sales $365 $425 16% Adj. EBITDA* $125 $154 23% Adj. EBITDA Margin* (Adj. EBITDA % of Net Sales) 34.3% 36.3% 200bps AWI Organic Adj. EBITDA Margin* (Adj. EBITD
Slide 9: Adj. EBITDA Bridge: First Half 2025
Solid Execution Through First Half of 2025 First Half 2025 Consolidated Company Key Metrics YTD 2024 YTD 2025 Variance Net Sales $691 $807 17% Adj. EBITDA* $236 $283 20% Adj. EBITDA Margin* (Adj. EBITDA % of Net Sales) 34.1% 35.1% 100bps AWI Organic Adj. EBITDA Margin* (Adj. EBITDA % of Net Sales) 3
Slide 10: Deploying Adj. Free Cash Flow to Fund All Capital Allocation Priorities
Deploying Adj. Free Cash Flow* to Fund All Capital Allocation Priorities 2025 Year to Date Adj. Free Cash Flow* 2025 Year to Date Up 29% vs PY Capital Deployment $5 $136 $27 $3 ($4) 2025 $39 $27 $52 $105 2024 $35 $25 $25 $99 CapEx Dividends 2024 Adj. Operating CapEx Interest WAVE 2025 Share Repurcha
Slide 11: Raising Full Year 2025 Guidance
Raising Full Year 2025 Guidance Remaining focused on solid execution and margin expansion Net Sales Adj. EBITDA* Commentary1 $1,600M to $1,630M $545M to $560M Still expecting a softer second half … Mineral Fiber volume flat to down low-single-digits for the year 11% to 13% YoY 12% to 15% YoY Expect
Slide 12: Appendix
Appendix
Slide 13: Updating Full Year 2025 Assumptions
Updating Full Year 2025 Assumptions Segment Net Sales Adjusted EBITDA Margin* Mineral Fiber ~5% growth ~ 43% (prior: ~42%) Architectural Specialties >25% growth (prior: >20%) ~ 19% (prior: ~18%) Consolidated Metrics Full Year 2025 Shipping Days 2024 2025 vs Prior Year Capital expenditures $100M to $
Slide 14: Adjusted EBITDA Reconciliation
For the Three Months For the Six Months Adjusted EBITDA Ended June 30, Ended June 30, Reconciliation 2025 2024 2025 2024 Adjusted Diluted EPS For the Three Months Ended June 30, For the Six Months Ended June 30, Net sales $425 $365 $807 $691 Reconciliation 2025 2024 2025 2024 Net earnings $88 $66 $1
Slide 15: Adjusted Free Cash Flow Reconciliation
For the Three Months Ended June 30, For the Six Months Ended June 30, Adjusted Free Cash Flow Reconciliation 2025 2024 2025 2024 Net cash provided by operating activities $82 $57 $123 $84 Net cash provided by (used for) investing activities $7 ($87) $13 ($81) Net cash provided by (used for) operatin
Slide 16: Segment Adj. EBITDA Reconciliation
For the Three Months Ended June 30, For the Six Months Ended June 30, Segment Adj. EBITDA MF AS UC MF AS UC Reconciliation 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024 Net sales $267 $250 $158 $115 - - $512 $490 $295 $202 - - Operating income (loss) $98 $82 $26 $14 ($1) ($1) $183 $161
Slide 17: AS Organic Adj. EBITDA Reconciliation
For the Three Months Ended June 30, For the Six Months Ended June 30, Recent Recent AS Organic Adj. EBITDA Total AS Acquisitions1 AS Organic Total AS Acquisitions1 AS Organic Reconciliation 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024 Net sales $158 $115 $45 $17 $113 $98 $295 $202 $86
Slide 18: AWI Organic Adj. EBITDA Reconciliation
For the Three Months Ended June 30, For the Six Months Ended June 30, Recent Recent AWI Organic Adj. EBITDA Total AWI Acquisitions1 AWI Organic Total AWI Acquisitions1 AWI Organic Reconciliation 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024 Net sales $425 $365 $45 $17 $380 $348 $807 $6
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 $300 $304 Guidance Reconciliation Low High Add: Income tax expense 92 97 Net cash provided by operating activities2 $322 $339 Earnings before income taxes $392 $402 Add: Return of in
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