Armstrong World Industries reported strong fourth-quarter and full-year 2024 results, achieving record-setting sales and earnings.

Fourth-quarter net sales were $368 million, an increase of 18 percent from the prior year, driven by strong volume growth and favorable pricing. Operating income increased 24 percent, while diluted net earnings per share rose 34 percent. Adjusted EBITDA grew 14 percent, and adjusted diluted net earnings per share increased 23 percent. The company completed its acquisition of A. Zahner Company during the quarter.

For the full year, net sales reached a record $1.4 billion, an increase of 12 percent. Operating income grew 16 percent, while diluted net earnings per share rose 21 percent. Adjusted EBITDA increased 13 percent, and adjusted diluted net earnings per share improved by 19 percent. The company generated strong free cash flow and executed two key acquisitions to expand its Architectural Specialties business.

The Mineral Fiber segment saw an 8.1 percent increase in net sales for the fourth quarter, primarily due to favorable average unit value, driven by mix improvements and pricing actions. Operating income grew 12.6 percent, with adjusted EBITDA increasing 10.3 percent. The Architectural Specialties segment experienced a 40.8 percent rise in net sales, driven by the contributions from acquisitions and growth in custom projects. Operating income for this segment grew 136.7 percent, with adjusted EBITDA increasing 33.3 percent.

For 2025, the company expects continued growth across key financial metrics. Net sales are projected to increase by 9 to 11 percent, reaching a range of $1.57 to $1.61 billion. Adjusted EBITDA is expected to grow 8 to 12 percent, while adjusted diluted net earnings per share is forecasted to increase by 9 to 13 percent. Adjusted free cash flow is projected to grow 6 to 12 percent.

The company continued its share repurchase program in 2024, buying back 0.5 million shares for $55 million. As of year-end, $662 million remained available under the current authorization.

Looking ahead, Armstrong World Industries remains focused on profitable growth and margin expansion across both its Mineral Fiber and Architectural Specialties businesses, while maintaining a disciplined approach to capital deployment.

source: Armstrong World Industries, February 25, 2025.