Armstrong World Industries (NYSE:AWI) Announces Earnings Results

Armstrong World Industries (NYSE:AWI) issued its earnings results on Tuesday. The construction company reported $1.61 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.67 by ($0.06), FiscalAI reports. Armstrong World Industries had a net margin of 19.08% and a return on equity of 38.97%. The firm had revenue of $388.30 million during the quarter, compared to the consensus estimate of $400.87 million. During the same quarter in the previous year, the firm earned $1.50 earnings per share. The business’s quarterly revenue was up 5.6% compared to the same quarter last year. Armstrong World Industries updated its FY 2026 guidance to 8.050-8.350 EPS.

Here are the key takeaways from Armstrong World Industries’ conference call:

• Armstrong posted record 2025 results — net sales +12% and adjusted EBITDA +14% (fifth consecutive year of sales and earnings growth), with Mineral Fiber achieving a record full‑year margin (~43.5%) driven by AUV improvement and productivity.
• Q4 was softer than expected as Mineral Fiber volumes were pressured by the extended U.S. government shutdown (impacting MRO and Washington, D.C.) and home‑center softness, while several delayed large Architectural Specialties projects temporarily compressed AS margins.
• Management guides 2026 to net sales growth of 8–10% and adjusted EBITDA growth of 8–12%, expecting Mineral Fiber AUV ~6%, volumes flat to +1%, and margin expansion in both segments despite modest SG&A investments.
• Strategic initiatives and M&A remain central — digital tools (ProjectWorks, Kanopi), new products (TEMPLOK, DATAZONE, DYNAMAX LT, SKYLO) and acquisitions (Parallel, Eventscape, Geometrik) are expected to drive above‑market AUV, incremental volume and roughly an additional ~0.5 percentage point of growth contribution in 2026.

Armstrong World Industries Stock Down 9.7%

AWI opened at $174.18 on Wednesday. The firm has a market capitalization of $7.51 billion, a P/E ratio of 24.92, a price-to-earnings-growth ratio of 1.68 and a beta of 1.33. Armstrong World Industries has a one year low of $122.37 and a one year high of $206.08. The company has a fifty day moving average price of $192.67 and a 200-day moving average price of $192.78. The company has a debt-to-equity ratio of 0.47, a current ratio of 1.52 and a quick ratio of 1.04.

Armstrong World Industries Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Thursday, March 19th. Shareholders of record on Thursday, March 5th will be issued a $0.339 dividend. This represents a $1.36 annualized dividend and a yield of 0.8%. The ex-dividend date of this dividend is Thursday, March 5th. Armstrong World Industries’s dividend payout ratio (DPR) is presently 19.46%.

Wall Street Analysts Forecast Growth

AWI has been the topic of a number of research reports. Weiss Ratings restated a “buy (b)” rating on shares of Armstrong World Industries in a research note on Wednesday, January 21st. Wall Street Zen lowered shares of Armstrong World Industries from a “buy” rating to a “hold” rating in a research report on Sunday, November 2nd. JPMorgan Chase & Co. raised their price objective on shares of Armstrong World Industries from $210.00 to $220.00 and gave the stock an “overweight” rating in a report on Wednesday, October 29th. Finally, UBS Group lifted their price objective on shares of Armstrong World Industries from $178.00 to $200.00 and gave the company a “neutral” rating in a research note on Wednesday, October 29th. One analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and four have issued a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $207.50.

Hedge Funds Weigh In On Armstrong World Industries

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Bank of Montreal Can boosted its position in shares of Armstrong World Industries by 18,679.7% during the 4th quarter. Bank of Montreal Can now owns 1,279,086 shares of the construction company’s stock valued at $244,433,000 after acquiring an additional 1,272,275 shares during the last quarter. AQR Capital Management LLC raised its stake in Armstrong World Industries by 64.1% in the third quarter. AQR Capital Management LLC now owns 891,336 shares of the construction company’s stock valued at $173,775,000 after purchasing an additional 348,327 shares in the last quarter. Deutsche Bank AG lifted its position in Armstrong World Industries by 1,074.2% during the fourth quarter. Deutsche Bank AG now owns 230,010 shares of the construction company’s stock valued at $43,955,000 after purchasing an additional 210,421 shares during the last quarter. Corient Private Wealth LLC lifted its position in Armstrong World Industries by 1,219.2% during the fourth quarter. Corient Private Wealth LLC now owns 197,508 shares of the construction company’s stock valued at $37,744,000 after purchasing an additional 182,536 shares during the last quarter. Finally, Ameriprise Financial Inc. grew its stake in Armstrong World Industries by 87.8% in the 3rd quarter. Ameriprise Financial Inc. now owns 365,774 shares of the construction company’s stock worth $71,695,000 after buying an additional 170,983 shares in the last quarter. 98.93% of the stock is currently owned by hedge funds and other institutional investors.

Armstrong World Industries News Roundup

Here are the key news stories impacting Armstrong World Industries this week:

• Positive Sentiment: Underlying profitability remains strong — Q4 showed year‑over‑year revenue growth (~+5.6%), a healthy net margin (≈19%) and high return on equity (~39%), suggesting the business model is still delivering solid cash generation. MarketBeat Q4 release & materials
• Positive Sentiment: Management highlighted continued growth momentum in the quarter on the earnings call (record growth themes cited), which supports longer‑term earnings power if margins hold. Earnings call highlights
• Neutral Sentiment: Revenue guidance for FY‑2026 was given at roughly $1.7B–$1.8B, which is roughly in line with expectations and provides some revenue visibility even as EPS guidance was tightened. Press release / slide deck
• Neutral Sentiment: From a technical/valuation perspective the shares are trading below the 50‑ and 200‑day moving averages, which may amplify short‑term volatility until the next catalyst. MarketBeat stock summary
• Negative Sentiment: Q4 headline miss: EPS of $1.61 came in below consensus ~$1.67 and revenue was $388.3M vs. estimates near $400.9M — the shortfall is the immediate reason for the negative market reaction. Zacks: Q4 miss
• Negative Sentiment: FY‑2026 EPS guidance of $8.05–$8.35 is below the Street (~$8.45), which trimmed forward earnings expectations and is a primary driver of the downward move. Why AWI stock is down (Yahoo)

About Armstrong World Industries

Armstrong World Industries, Inc is a leading global manufacturer of commercial ceiling and wall solutions. The company offers a diverse portfolio of acoustical, decorative and specialty ceiling systems designed to enhance interior environments in offices, healthcare facilities, schools, retail outlets and other non-residential settings. Through its focus on performance, aesthetics and sustainability, Armstrong World Industries addresses both functional and design requirements for architects, contractors and building owners.

Armstrong’s product range includes mineral fiber, fiberglass, wood wool, metal and stone wool ceiling panels, as well as suspension and grid systems.