Armstrong World Industries (AWI) Q3 2026 earnings summary

Executive summary

• Record Q3 net sales were $475.8M, up 11.9% YoY; adjusted EBITDA rose 11.0% to $164M and adjusted diluted EPS increased 10.2% to $2.26.

• Growth was led by Architectural Specialties and supported by Mineral Fiber AUV and volume gains, despite inflation, tariffs and lower-AUV mix pressure.

Financial highlights

• Q3 operating income was $131.2M, up 11.9%; net earnings were $91.9M versus $86.3M, and diluted EPS was $2.17 versus $1.98.

• Q3 adjusted free cash flow was $106M, down 13% YoY; 9M adjusted free cash flow was $254M versus $259M, down 2%.

• 9M net sales rose 10.2% to $1,357.7M; adjusted EBITDA increased 7% to $460M and adjusted diluted EPS rose 9%.

• 9M operating cash flow was $222.1M versus $245.5M, mainly reflecting receivables timing and higher income tax payments.

Outlook and guidance

• FY26 net sales guidance rose to $1,788M–$1,803M, or 10%–11% growth, from $1,770M–$1,800M and 9%–11%.

• Adjusted EBITDA guidance narrowed to $602M–$612M, or 8%–10% growth, from $605M–$620M and 9%–12%; adjusted diluted EPS guidance is $8.30–$8.40, or 12%–13% growth.

• Adjusted free cash flow guidance is $380M–$390M, or 10%–13% growth, versus prior guidance of $380M–$395M and 10%–14%.

• Mineral Fiber volume is expected to grow ~1% and AUV ~5.5%; organic AS sales are expected to grow at a low-teens rate with ~20% adjusted EBITDA margin.

• Outlook reflects stronger AS sales, accelerating costs net of mitigation, Mineral Fiber mix headwinds and softer acquisition contributions; AS margin improvement is expected sequentially in Q4.