Armstrong World Industries (AWI) investor relations material

Business overview and strategy

• Leading provider of interior and exterior architectural solutions, focusing on ceilings, specialty walls, and exterior metal products, with a 165-year legacy and ~4,000 employees across 24 facilities.

• Strategy centers on innovation, sustainability, and acquisitions to drive growth and market leadership in the Americas.

• Operates two main segments: Mineral Fiber and Architectural Specialties, complemented by the WAVE joint venture for ceiling suspension systems.

• Focused on high-value, highly specified products with strong brand loyalty and operational excellence.

• Sustainability is integral, with commitments to healthy products, renewable energy, and community engagement.

Financial performance and guidance

• 2025 consolidated net sales reached $1,621M, with adjusted EBITDA of $555M, adjusted diluted EPS of $7.41, and adjusted free cash flow of $346M.

• Four-year CAGR: net sales 10%, adjusted EBITDA 11%, adjusted diluted EPS 14%, and adjusted free cash flow 16%.

• 2026 guidance raised: net sales $1,770M–$1,800M (9–11% YoY), adjusted EBITDA $605M–$620M (9–12% YoY), adjusted diluted EPS $8.30–$8.50 (12–15% YoY), and adjusted free cash flow $380M–$395M (10–14% YoY).

• Mineral Fiber segment expected to grow ~7% in 2026, Architectural Specialties 15–17%, with margin expansion and strong WAVE equity earnings.

• Balanced capital allocation: reinvestment, acquisitions, dividends, and share repurchases, supported by strong cash flow conversion rates (61–62%).

Segment highlights and growth drivers

• Mineral Fiber: $1,031M net sales in 2025, 44% adjusted EBITDA margin, consistent AUV growth, and diverse end markets (education, office, healthcare, retail, transportation).

• Architectural Specialties: $590M net sales in 2025, 18% adjusted EBITDA margin, focused on major renovation and new construction, with strong growth from acquisitions.

• WAVE joint venture: over $500M in 2025 sales, $860M in cash dividends to AWI since 2017, and market leadership in ceiling suspension systems.

• Strategic acquisitions, including Eventscape in 2026, expand design and fabrication capabilities and add incremental sales and EBITDA.

• Innovation in energy-saving and data center solutions, with new products supporting sustainability and high-performance infrastructure.