Armstrong World Industries Inc · NYSE:AWI
Armstrong World Industries — Q4 2025 Earnings Presentation
21 slides from Armstrong World Industries's earnings presentation, Feb 24, 2026
Slide 1: 4th Quarter and Full Year 2025 Earnings Presentation
4 Quarter and th Full Year 2025 Earnings Presentation February 24, 2026
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 2025 Q4 2024 2025 2024 Net sales $388.3 $367.7 $1,620.8 $1,445.7 Net earnings $65.5 $62.2 $308.7 $264.9 Operating income $92.0 $81.9 $430.9 $374.3 Adj. EBITDA* $124 $112 $555 $486 Operating income margin (operating i
Slide 5: Record Net Sales with Adj. EBITDA Margin Expansion
Record Net Sales with Adj. EBITDA Margin* Expansion Full Year 2025 Key Takeaways and 2026 Outlook $1,621M (+12% VPY) Net Sales Net Sales up 12% and Adj. EBITDA* up 14% Architectural Specialties Net Sales up 28% and Mineral Fiber Net Sales up 5%; Total company Adj. EBITDA margin* of 34.3% with Adj. E
Slide 6: Solid Sales Growth with Double-Digit Earnings Growth
Solid Sales Growth with Double-Digit Earnings Growth 4th Quarter 2025 Key Takeaways $388M (+6% VPY) Net Sales Net Sales up 6% and Adj. EBITDA* up 11% Total company Adj. EBITDA margin* of 32.0% with Adj. EBITDA margin* expansion of 160bps $124M (+11% VPY) Adj. EBITDA* Mineral Fiber segment Adj. EBITD
Slide 7: Eventscape Acquisition Expands Design and Fabrication Capabilities
Eventscape Acquisition1 Expands Design and Fabrication Capabilities to More Applications in the Built Environment At-a-Glance Leader in the design, fabrication and installation of custom-built-marque architectural features that elevate how a space is experienced ~150 employees 2 production facilitie
Slide 8: Record-Setting Mineral Fiber Adj. EBITDA Margin
Record-Setting Mineral Fiber Adj. EBITDA Margin* Mineral Fiber Q4 2025 Results $245 $238 Q4 Mineral Fiber Key Highlights Net Sales Record fourth-quarter Adj. EBITDA margin* of Growth VPY +3% ● 42.1% with Adj. EBITDA margin* expansion of 460bps Q4 '24 Q4 '25 Top-line AUV growth of 6% primarily driven
Slide 9: Strong Sales Growth with Profitability Impacted by Project Timing
Strong Sales Growth with Profitability Impacted by Project Timing Architectural Specialties Q4 2025 Results $144 $130 Q4 Architectural Specialties Key Highlights Net Sales +11% Growth VPY Sales growth driven primarily by the 2024 ● acquisitions of 3form and Zahner and organic growth Q4 '24 Q4 '25 ●
Slide 10: Adj. EBITDA Bridge: Q4 2025
Robust Earnings Growth Fueled by Strong AUV and WAVE Contributions Q4 2025 Consolidated Company Key Metrics Q4 2024 Q4 2025 Variance Net Sales $368 $388 6% Adj. EBITDA* $112 $124 11% Adj. EBITDA Margin* (Adj. EBITDA % of Net Sales) 30.4% 32.0% 160bps AWI Organic Adj. EBITDA Margin* (Adj. EBITDA % of
Slide 11: Adj. EBITDA Bridge: Full Year 2025
* Double-Digit Sales & Earnings Growth with Adj. EBITDA Margin Expansion Full Year 2025 Consolidated Company Key Metrics Full Year 2024 Full Year 2025 Variance Net Sales $1,446 $1,621 12% Adj. EBITDA* $486 $555 14% Adj. EBITDA Margin* (Adj. EBITDA % of Net Sales) 33.6% 34.3% 70bps AWI Organic Adj. E
Slide 12: Robust Adj. Free Cash Flow Growth Supports All Capital Allocation Priorities
Robust Adj. Free Cash Flow* Growth Supports All Capital Allocation Priorities 2025 Adj. Free Cash Flow* 2025 Up 16% vs PY Capital Deployment $51 $15 $346 $8 2025 $109 $55 $129 $14 ($26) $298 2024 $83 $51 $56 $129 CapEx Dividends 2024 Adj. Operating CapEx Interest WAVE 2025 Share Repurchases cash flo
Slide 13: Issuing Full Year 2026 Guidance
Issuing Full Year 2026 Guidance Expecting strong sales and earnings growth 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 of ~6% … delive
Slide 14: Appendix
Appendix
Slide 15: Full Year 2026 Assumptions
Full Year 2026 Assumptions Segment Net Sales Adjusted EBITDA Margin Mineral Fiber 6% to 7% growth > 43.5% Architectural Specialties Mid-teens % growth > 19% Consolidated Metrics Full Year 2026 Shipping Days 2025 2026 vs Prior Year Capital expenditures $100M to $110M Q1 (1) - Depreciation and amortiz
Slide 16: Adjusted EBITDA Reconciliation
For the Three Months For the Year Ended Adjusted EBITDA Ended December 31, December 31, Reconciliation 2025 2024 2025 2024 Adjusted Diluted EPS For the Three Months Ended December 31, For the Year Ended December 31, Net sales $388 $368 $1,621 $1,446 Reconciliation 2025 2024 2025 2024 Net earnings $6
Slide 17: Adjusted Free Cash Flow Reconciliation
For the Three Months Ended December 31, For the Year Ended December 31, Adjusted Free Cash Flow Reconciliation 2025 2024 2025 2024 Net cash provided by operating activities $110 $87 $356 $267 Net cash (used for) investing activities ($20) ($18) ($4) ($79) Net cash provided operating and investing ac
Slide 18: 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 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024 Net sales $245 $238 $144 $130 - - $1,031 $986 $590 $460 - - Operating income (loss) $80 $69 $13 $14 ($1) ($1) $362
Slide 19: 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 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024 Net sales $144 $130 $39 $30 $105 $100 $590 $460
Slide 20: 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 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024 Net sales $388 $368 $39 $30 $349 $338 $1,62
Slide 21: 2026 Adj. EBITDA Guidance Reconciliation
2026 Adj. EBITDA Full Year 2026 Guidance Reconciliation Low High 2026 Adj. Free Cash Flow Full Year 2026 Net earnings $340 $349 Guidance Reconciliation Low High Net cash provided by operating activities $361 $383 Add: Income tax expense 115 118 Add: Return of investment from joint venture 114 122 Ea
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