Armstrong World Industries Q1 2025 Summary

- Net sales were $382.7 million, up 17 percent year-over-year
- Operating income reached $98.5 million, a 14 percent increase
- Net earnings were $69.1 million, compared to $59.9 million a year earlier
- Diluted earnings per share were $1.58, up from $1.36
- Adjusted EBITDA rose to $129 million, a 16 percent increase
- Adjusted diluted EPS was $1.66, up 20 percent
- Free cash flow was $48 million, compared to $43 million in Q1 2024

Segment results:

Mineral Fiber
- Net sales were $245.1 million, up 2 percent
- Adjusted EBITDA was $105 million, up 7 percent
- Gains were driven by favorable pricing and mix (AUV), offset by lower volumes

Architectural Specialties
- Net sales reached $137.6 million, up 59 percent
- Adjusted EBITDA was $24 million, up 94 percent
- Growth driven by acquisitions (3form and Zahner) and custom project sales

Cash and share repurchase:

- Cash balance was $82.8 million at the end of the quarter
- The company repurchased $22 million in shares
- $640 million remains under the current repurchase authorization

2025 full-year guidance remains unchanged:

- Net sales expected between $1.57 billion and $1.61 billion, growth of 9 to 11 percent
- Adjusted EBITDA forecasted between $525 million and $545 million, growth of 8 to 12 percent
- Adjusted EPS projected between $6.85 and $7.15, up 9 to 13 percent
- Adjusted free cash flow targeted between $315 million and $335 million, up 6 to 12 percent

The company expects a softer second half of 2025 but plans to maintain margin growth through pricing, productivity, and cost control.