Armstrong World Industries Inc · NYSE:AWI

Armstrong World Industries — Q1 2026 Earnings Presentation

17 slides from Armstrong World Industries's earnings presentation, Apr 28, 2026

  1. Slide 1: 1st Quarter 2026 Earnings Presentation

    1 Quarter 2026 st Earnings Presentation April 28, 2026

  2. 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

  3. 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

  4. Slide 4: GAAP and non-GAAP Financial Results

    GAAP and non-GAAP Financial Results AWI Consolidated Results Q1 2026 Q1 2025 Net sales $409.9 $382.7 Net earnings $66.8 $69.1 Operating income $94.2 $98.5 Adj. EBITDA* $130 $129 Operating income margin (operating income % of net sales) 23.0% 25.7% Adj. EBITDA margin* (Adj. EBITDA % of net sales) 31.

  5. Slide 5: Solid Sales Growth with Muted Adj. EBITDA Growth

    Solid Sales Growth with Muted Adj. EBITDA* Growth 1st Quarter 2026 Key Takeaways $410M (+7% VPY) Net Sales up 7% and Adj. EBITDA* up 1% Net Sales Total company Adj. EBITDA margin* of 31.7% impacted primarily by short-term headwinds in the Architectural Specialties segment $130M (+1% VPY) Mineral Fib

  6. Slide 6: AUV Growth and Positive Volume Drive Strong Results

    AUV Growth and Positive Volume Drive Strong Results Mineral Fiber Q1 2026 Results $257 $245 Net Sales Q1 Mineral Fiber Key Highlights +5% Growth VPY Top-line AUV growth of 4% primarily driven ● by favorable like-for-like price Q1 '25 Q1 '26 Slightly positive volume driven by solid Adj. EBITDA* VPY Q

  7. Slide 7: Sales Growth with Earnings Primarily Impacted by Short-Term Headwinds

    Sales Growth with Earnings Primarily Impacted by Short-Term Headwinds Architectural Specialties Q1 2026 Results Net Sales Q1 Architectural Specialties Key Highlights Growth VPY $153 ● Sales growth driven by solid organic growth and $138 recent acquisitions 11% ● Manufacturing costs negatively impact

  8. Slide 8: Strong Sales Growth with Earnings Pressured by Discrete Headwinds

    Strong Sales Growth with Earnings Pressured by Discrete Headwinds Q1 2026 Consolidated Company Key Metrics Q1 2025 Q1 2026 Variance Net Sales $383 $410 7% Adj. EBITDA* $129 $130 1% Adj. EBITDA Margin* (Adj. EBITDA % of Net Sales) 33.6% 31.7% (190bps) AWI Organic Adj. EBITDA Margin* (Adj. EBITDA % of

  9. Slide 9: Adjusted Free Cash Flow Funds All Capital Allocation Priorities

    Adjusted Free Cash Flow* Funds All Capital Allocation Priorities Q1 2026 Adj. Free Cash Flow* Q1 2026 Down 1% vs PY Capital Deployment $48 $5 $47 2026 $18 $15 $60 $65 $2 $1 ($8) 2025 $19 $13 $22 CapEx Dividends 2025 Adj. Operating CapEx Interest WAVE 2026 Share Repurchases cash flow and Paid Dividen

  10. Slide 10: Updated Full Year 2026 Guidance

    Updated Full Year 2026 Guidance Expecting strong growth across all key metrics Commentary1 Expect Mineral Fiber volume flat to up 1% on slightly Net Sales Adjusted EBITDA* improving market conditions and growth initiatives $1,745M to $1,785M $600M to $620M Expect Mineral Fiber AUV growth ~6% … deliv

  11. Slide 11: Appendix

    Appendix

  12. Slide 12: Full Year 2026 Assumptions

    Full Year 2026 Assumptions Segment Net Sales Adjusted EBITDA Margin Mineral Fiber 6% to 7% growth ~44% (prior: > 43.5%) Architectural Specialties Mid-teens % growth ~19% (prior: > 19%) Consolidated Metrics Full Year 2026 Shipping Days 2025 2026 vs Prior Year Capital expenditures $100M to $110M Q1 (1

  13. Slide 13: Adjusted EBITDA Reconciliation

    Adjusted EBITDA For the Three Months Ended March 31, Reconciliation 2026 2025 Net sales $410 $383 Adjusted Diluted EPS For the Three Months Ended March 31, Net earnings $67 $69 Reconciliation 2026 2025 Net earnings $67 $69 Add: Income tax expense 22 22 Add: Income tax expense 22 22 Earnings before i

  14. Slide 14: Adjusted Free Cash Flow Reconciliation

    For the Three Months Ended March 31, Adjusted Free Cash Flow Reconciliation 2026 2025 Net cash provided by operating activities $32 $41 Net cash (used for) provided by investing activities ($51) $6 Net cash (used for) provided by operating and investing activities ($19) $47 Add: Acquisitions, net of

  15. Slide 15: AS Organic Adj. EBITDA Reconciliation

    For the Three Months Ended March 31, AS Organic Adj. EBITDA Total AS Recent Acquisitions1 AS Organic Reconciliation 2026 2025 2026 2025 2026 2025 Net sales $153 $138 $5 - $147 $138 Operating income $9 $15 ($2) - $12 $15 Add: Acquisition-related impacts2 3 - 2 - 1 - Add: Severance and cost reduction

  16. Slide 16: AWI Organic Adj. EBITDA Reconciliation

    For the Three Months Ended March 31, AWI Organic Adj. EBITDA Total AWI Recent Acquisitions1 AWI Organic Reconciliation 2026 2025 2026 2025 2026 2025 Net sales $410 $383 $5 - $405 $383 Operating income $94 $99 ($2) - $97 $99 Add: RIP expense2 1 1 - - 1 1 Add: Acquisition-related impacts3 3 - 2 - 1 -

  17. Slide 17: 2026 Adj. EBITDA Guidance Reconciliation

    2026 Adj. EBITDA Full Year 2026 2026 Adj. Free Cash Flow Full Year 2026 Guidance Reconciliation Low High Guidance Reconciliation Low High Net earnings $339 $348 Net cash provided by operating activities $295 $317 Add: Return of investment from joint venture 114 122 Add: Income tax expense 113 116 (L

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