Armstrong World Industries Inc · NYSE:AWI
Armstrong World Industries — Q3 2025 Earnings Presentation
19 slides from Armstrong World Industries's earnings presentation, Oct 28, 2025
Slide 1: 3rd Quarter 2025 Earnings Presentation
3 Quarter 2025 rd Earnings Presentation October 28, 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 Q3 2025 Q3 2024 YTD 2025 YTD 2024 Net sales $425.2 $386.6 $1,232.5 $1,078.0 Net earnings $86.3 $76.9 $243.2 $202.7 Operating income $117.2 $111.3 $338.9 $292.4 Adj. EBITDA* $148 $139 $431 $375 Operating income margin (operating income % of
Slide 5: Solid Execution Drives Sales and Earnings Growth
Solid Execution Drives Sales and Earnings Growth 3rd Quarter 2025 Key Takeaways $425M (+10% VPY) Net Sales up 10% and Adj. EBITDA* up 6% Net Sales Total company Adj. EBITDA margin* of 34.7% pressured by timing-related costs in both segments $148M (+6% VPY) Mineral Fiber segment Adj. EBITDA* up 6% Ad
Slide 6: AUV and WAVE Contribution Drive Solid Results
AUV and WAVE Contribution Drive Solid Results Mineral Fiber Q3 2025 Results $274 $258 Q3 Mineral Fiber Key Highlights Net Sales +6% Growth VPY Top-line AUV growth of 6% driven by like-for- ● like price and a modest mix contribution Q3 '24 Q3 '25 Second consecutive quarter of slightly Adj. EBITDA* VP
Slide 7: Double-Digit Top and Bottom-Line Growth
Double-Digit Top and Bottom-Line Growth Architectural Specialties Q3 2025 Results $151 Q3 Architectural Specialties Key Highlights $129 Net Sales Robust sales and earnings growth with Adj. Growth VPY +18% ● EBITDA margin* of 18.8% including the impact of recent acquisitions ● Sales growth driven pri
Slide 8: Adj. EBITDA Bridge VPY
Volume and AUV Growth More Than Offset Timing-Related Cost Headwinds Q3 2025 Consolidated Company Key Metrics Q3 2024 Q3 2025 Variance Net Sales $387 $425 10% Adj. EBITDA* $139 $148 6% Adj. EBITDA Margin* (Adj. EBITDA % of Net Sales) 35.9% 34.7% (120bps) AWI Organic Adj. EBITDA Margin* (Adj. EBITDA
Slide 9: Adj. EBITDA Bridge VPY (Year-to-Date)
* Double-Digit Sales & Earnings Growth with Adj. EBITDA Margin Expansion Year-to-Date 2025 Consolidated Company Key Metrics YTD 2024 YTD 2025 Variance Net Sales $1,078 $1,233 14% Adj. EBITDA* $375 $431 15% Adj. EBITDA Margin* (Adj. EBITDA % of Net Sales) 34.8% 35.0% 20bps AWI Organic Adj. EBITDA Mar
Slide 10: Robust Adj. Free Cash Flow Funds All Capital Allocation Priorities
Robust Adj. Free Cash Flow* Funds All Capital Allocation Priorities 2025 Year to Date Adj. Free Cash Flow* 2025 Year to Date Up 22% vs PY Capital Deployment $13 $259 $10 $26 $6 2025 $62 $41 $79 $7 ($8) $212 2024 $54 $37 $40 $99 CapEx Dividends 2024 Adj. Operating CapEx Interest WAVE Income Tax 2025
Slide 11: Raising Full Year 2025 Guidance
Raising Full Year 2025 Guidance Double-digit growth across all key metrics Net Sales Adjusted EBITDA* Commentary1 $1,623M to $1,638M $553M to $563M Expect Mineral Fiber volume flat to down 1% on 12% to 13% YoY 14% to 16% YoY stabilizing market conditions Prior: $1,600M to $1,630M Prior: $545M to $56
Slide 12: Appendix
Appendix
Slide 13: Full Year 2025 Assumptions
Full Year 2025 Assumptions Segment Net Sales Adjusted EBITDA Margin Mineral Fiber ~5% growth ~ 43% Architectural Specialties ~29% growth (prior: >25%) ~ 19% Consolidated Metrics Full Year 2025 Shipping Days 2024 2025 vs Prior Year Capital expenditures $105M to $110M (prior: $100M-$110M) Q1 - (1) Dep
Slide 14: Adjusted EBITDA Reconciliation; Adjusted Diluted EPS Reconciliation
For the Three Months For the Nine Months Adjusted EBITDA Ended September 30, Ended September 30, Reconciliation 2025 2024 2025 2024 Adjusted Diluted EPS For the Three Months Ended September 30, For the Nine Months Ended September 30, Net sales $425 $387 $1,233 $1,078 Reconciliation 2025 2024 2025 20
Slide 15: Adjusted Free Cash Flow Reconciliation
For the Three Months Ended September 30, For the Nine Months Ended September 30, Adjusted Free Cash Flow Reconciliation 2025 2024 2025 2024 Net cash provided by operating activities $123 $97 $246 $180 Net cash provided by (used for) investing activities $4 $20 $17 ($61) Net cash provided operating a
Slide 16: Segment Adj. EBITDA Reconciliation
For the Three Months Ended September 30, For the Nine Months Ended September 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 $274 $258 $151 $129 - - $786 $748 $446 $330 - - Operating income (loss) $99 $93 $19 $19 ($1) ($1
Slide 17: AS Organic Adj. EBITDA Reconciliation
For the Three Months Ended September 30, For the Nine Months Ended September 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 $151 $129 $39 $23 $112 $105 $
Slide 18: AWI Organic Adj. EBITDA Reconciliation
For the Three Months Ended September 30, For the Nine Months Ended September 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 $387 $39 $23 $386 $
Slide 19: 2025 Adj. EBITDA Guidance Reconciliation; 2025 Adj. Free Cash Flow
2025 Adj. EBITDA Full Year 2025 2025 Adj. Free Cash Flow Full Year 2025 Guidance Reconciliation Low High Guidance Reconciliation Low High Net earnings $314 $316 Net cash provided by operating activities $349 $363 Add: Income tax expense 92 94 Add: Return of investment from joint venture 112 114 Earn
Armstrong World Industries — Q3 2025 Earnings Presentation on 6ix