Core Insights - Armstrong World Industries, Inc. (AWI) is experiencing positive prospects due to strategic inorganic efforts, digital initiatives, and new product innovation [1] - The company maintains a balanced capital allocation approach, effectively using free cash to reward shareholders while investing in business growth [1][8] Inorganic Growth Strategy - AWI follows a systematic inorganic strategy that includes buyouts and profitable partnerships to enhance its portfolio [3] - In December 2024, AWI acquired A. Zahner Company, a designer and manufacturer of exterior metal architectural solutions, and in April 2024, it acquired 3form, LLC, a designer and manufacturer of architectural resin and glass products [4][5] Digital Advancements - Continuous investments in digital initiatives, such as Healthy Spaces and Project Works, are enhancing AWI's project win growth, with nearly double the number of projects received in 2024 [6][7] - The focus on digital advancements aims to support average unit volume (AUV) and volume growth by reaching markets not served by traditional channels [7] Capital Allocation and Shareholder Returns - AWI employs efficient capital allocation strategies to deliver shareholder returns while investing in growth initiatives [8] - On October 23, 2024, the company announced a 10% increase in its quarterly cash dividend to 30.8 cents per share, marking its sixth consecutive year of dividend increments [9]

Core Viewpoint - Armstrong World Industries, Inc. (AWI) reported strong fourth-quarter 2024 results, with earnings and net sales exceeding expectations and showing year-over-year growth [1][5]. Financial Performance - Adjusted EPS for the quarter was $1.50, surpassing the Zacks Consensus Estimate of $1.37 by 9.5%, and grew 23% year-over-year from $1.22 [5]. - Net sales reached $367.7 million, exceeding the consensus mark of $350.1 million by 5% and increasing 17.7% year-over-year [5]. - Adjusted EBITDA rose 14% from the previous year to $112 million, although the adjusted EBITDA margin contracted by 100 basis points to 30.4% [6]. Segment Performance - **Mineral Fiber Segment**: Net sales grew 8.1% year-over-year to $238.2 million, driven by a favorable average unit value (AUV) of $20 million, despite a $2 million decline in sales volume [7]. - **Architectural Specialties Segment**: Net sales surged 40.8% year-over-year to $129.5 million, bolstered by a $25 million contribution from recent acquisitions [9]. Annual Highlights - For the full year 2024, AWI reported net sales of $1.4 billion, an 11.6% increase from $1.3 billion in 2023 [11]. - Adjusted earnings for the year were $6.31 per share, up from $5.32 in 2023 [11]. - Adjusted EBITDA for the year increased 13.1% to $486 million, with an adjusted EBITDA margin of 33.6% [12]. Cash Flow and Share Repurchase - As of December 31, 2024, AWI had cash and cash equivalents of $79.3 million, up from $70.8 million at the end of 2023 [13]. - Adjusted free cash flow for the fourth quarter was $86 million, an increase from $68 million in the same quarter of the previous year [13]. - The company repurchased 0.1 million shares for $15 million during the quarter, with $662 million remaining under the current share repurchase program [14]. 2025 Guidance - AWI anticipates net sales between $1,570 million and $1,610 million, indicating a 9-11% increase from the previous year [15]. - Adjusted EBITDA is expected to be between $525 million and $545 million, reflecting an 8-12% year-over-year rise [16]. - The company projects adjusted earnings per share to be between $6.85 and $7.15, implying growth of 9-13% from 2024 [16].

Financial Data and Key Metrics Changes - For the full year 2024, net sales increased nearly 12% from 2023 results, adjusted EBITDA grew 13%, and adjusted diluted earnings per share were up 19% [8][30] - Adjusted free cash flow rose 13%, representing 21% of net sales and 61% of adjusted EBITDA [30][32] - Total company adjusted EBITDA margin compressed 100 basis points due to recent acquisitions, but excluding these, the margin expanded 40 basis points [28][30] Business Line Data and Key Metrics Changes - Mineral Fiber segment achieved approximately 6% net sales growth and 11% adjusted EBITDA growth, with adjusted EBITDA margin expanding by more than 200 basis points [10] - Architectural Specialties segment generated year-over-year net sales growth of 27% and adjusted EBITDA growth of 24%, with organic sales growth of 15% [10][25] - Mineral Fiber segment adjusted EBITDA margin finished above 41% for the full year, while Architectural Specialties segment adjusted EBITDA margin expanded 40 basis points to approximately 19% [27][29] Market Data and Key Metrics Changes - New construction starts were positive throughout 2024, particularly in education, transportation, and data centers, contributing positively to market conditions [41][42] - Discretionary renovation activity has been weak due to uncertainty around tariffs and policy changes, impacting overall market dynamics [66][70] Company Strategy and Development Direction - The company aims to leverage recent acquisitions to expand its addressable market, particularly in the architectural specialty segment, which now exceeds $2.5 billion [18][115] - Focus on energy-saving solutions, such as the Temploc technology, is expected to drive future growth and innovation [47][128] - The company plans to continue executing its growth initiatives while navigating uncertain market conditions, emphasizing the importance of innovation and customer needs [44][51] Management's Comments on Operating Environment and Future Outlook - Management anticipates a choppy market in 2025, with flattish mineral fiber volume growth expected [34][41] - The company remains optimistic about new construction as a tailwind for growth, despite ongoing uncertainty in discretionary renovation [70][72] - Management highlighted the importance of energy-saving solutions and the potential for Temploc to significantly impact market adoption and growth [49][127] Other Important Information - The company completed the acquisition of Zaynor for $46 million, which is expected to enhance its capabilities in exterior architectural metal applications [33][115] - The company has $662 million remaining under its share repurchase authorization, indicating a strong commitment to returning cash to shareholders [33] Q&A Session Summary Question: Can you discuss the new products and their impact on AUV growth? - Management noted that initiatives like the Canopy platform and ProjectWorks have contributed positively to AUV growth, with Canopy's AUV nearly double that of mineral fiber [60][62] Question: What is the outlook for discretionary renovation activity? - Management indicated that discretionary renovation has been weak due to uncertainty, but new construction is expected to be a tailwind moving forward [70][72] Question: How should quarterly cadence be modeled for 2025? - Management expects softer performance in the first half of 2025, with a more favorable outlook in the second half as market conditions stabilize [77] Question: What end-user market is expected to be the strongest? - Management highlighted transportation and data centers as key growth areas, along with healthcare and education [90][91] Question: How will tariffs on steel and aluminum impact WAVE earnings? - Management stated that the impact from tariffs is limited, with mitigation plans in place to minimize overall effects [97][101] Question: What is the expected market size for Temploc? - Management indicated that Temploc represents a significant market opportunity, with potential for widespread adoption in the renovation sector [127]

4th Quarter and Full Year 2024 Earnings Presentation February 25, 2025 Safe Harbor Statement Disclosures in this presentation contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including without limitation, those relating to future financial and operational results, market and broader economic conditions and guidance. Those statements provide our future expectations or forecasts and can be identified by our use of words such as "anticipate," "estim ...

For the quarter ended December 2024, Armstrong World Industries (AWI) reported revenue of $367.7 million, up 17.7% over the same period last year. EPS came in at $1.50, compared to $1.22 in the year-ago quarter.The reported revenue represents a surprise of +5.01% over the Zacks Consensus Estimate of $350.14 million. With the consensus EPS estimate being $1.37, the EPS surprise was +9.49%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare ...

Armstrong World Industries (AWI) came out with quarterly earnings of $1.50 per share, beating the Zacks Consensus Estimate of $1.37 per share. This compares to earnings of $1.22 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 9.49%. A quarter ago, it was expected that this ceiling and wall systems manufacturer would post earnings of $1.75 per share when it actually produced earnings of $1.81, delivering a surprise of 3.43%.Ove ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to _________ Commission File Number 1-2116 ARMSTRONG WORLD INDUSTRIES, INC. (Exact name of registrant as specified in its charter) | Pennsylvania 23-0366390 | | | ...

Financial Performance - Fourth-quarter 2024 net sales reached $367.7 million, an increase of 17.7% compared to $312.3 million in Q4 2023[3] - Full-year 2024 net sales totaled $1.4457 billion, reflecting an 11.6% increase from $1.2952 billion in 2023[12] - Operating income for Q4 2024 was $81.9 million, up 23.5% from $66.3 million in Q4 2023, with an operating income margin of 22.3%[3] - Diluted net earnings per share for Q4 2024 increased by 34.0% to $1.42, compared to $1.06 in Q4 2023[3] - Net earnings for the year 2024 were $264.9 million, up 18.4% from $223.8 million in 2023[32] - Adjusted diluted EPS for Q4 2024 was $1.50, a 23.0% increase compared to $1.22 in Q4 2023[45] Segment Performance - Architectural Specialties segment net sales surged 40.8% in Q4 2024, driven by acquisitions and increased custom project sales[10] - The Mineral Fiber segment reported net sales of $238.2 million in Q4 2024, up from $220.3 million in Q4 2023[28] - Architectural Specialties segment net sales increased to $129.5 million in Q4 2024, compared to $92.0 million in Q4 2023, marking a 40.7% growth[28] - Net sales for the Mineral Fiber segment increased to $238 million in Q4 2024, up from $220 million in Q4 2023, representing an 8.2% growth[39] - Adjusted EBITDA for the Mineral Fiber segment reached $89 million in Q4 2024, compared to $81 million in Q4 2023, reflecting a 9.9% increase[39] - Architectural Specialties net sales rose to $130 million in Q4 2024, a significant increase from $92 million in Q4 2023, marking a 41.3% growth[41] Cash Flow and Guidance - Adjusted free cash flow for 2024 was $298 million, with a guidance of $315 million to $335 million for 2025, indicating a growth of 6% to 12%[18] - The company reported a $33 million increase in cash flows from operating activities in 2024 compared to the prior year[15] - The company reported a net cash provided by operating activities of $87 million in Q4 2024, compared to $57 million in Q4 2023, representing a 52.6% increase[43] - The company expects adjusted EBITDA for the year ending December 31, 2025, to be between $525 million and $545 million[48] - Adjusted Free Cash Flow guidance for 2025 is projected to be between $315 million and $335 million[53] Future Projections - For 2025, the company projects net sales between $1.57 billion and $1.61 billion, representing a growth of 9% to 11%[18] - The company anticipates net earnings for 2025 to be between $293 million and $297 million, translating to an adjusted diluted EPS of $6.72 to $6.84[50] Acquisition and Assets - The company completed the acquisition of A. Zahner Company, contributing to growth in Architectural Specialties[4] - Total assets as of December 31, 2024, were $1.8427 billion, an increase from $1.6724 billion in 2023[31] Tax and Reporting - The effective tax rate for adjusted net earnings is estimated to be approximately 25%[52] - The company expects to file its annual report for the year ended December 31, 2024, with the SEC today, which will include a detailed discussion of performance and future outlook[23]

Core Insights - Armstrong World Industries (AWI) is expected to report quarterly earnings of $1.37 per share, reflecting a 12.3% increase year over year [1] - Analysts forecast revenues of $350.14 million for the quarter, indicating a 12.1% year-over-year growth [1] - The consensus EPS estimate has remained unchanged over the last 30 days, suggesting a reevaluation of initial estimates by analysts [1] Revenue Estimates - Revenue from 'Architectural Specialties' is estimated at $119.96 million, representing a 30.4% increase year over year [4] - The consensus estimate for 'Mineral Fiber' revenue stands at $230.18 million, indicating a 4.5% increase from the previous year [4] Operating Income Estimates - Adjusted Operating Income for 'Architectural Specialties' is projected to be $12.89 million, slightly down from $13 million in the year-ago period [4] - Adjusted Operating Income for 'Mineral Fiber' is estimated at $71.46 million, up from $62 million in the previous year [5] Stock Performance - Over the past month, AWI shares have recorded a return of -2.2%, compared to a -0.5% change in the Zacks S&P 500 composite [6] - AWI holds a Zacks Rank of 2 (Buy), indicating a likelihood of outperforming the overall market in the upcoming period [6]

Group 1: Zacks Premium Overview - Zacks Premium offers various tools for investors to enhance their stock market strategies, including daily updates on Zacks Rank and Industry Rank, access to the Zacks 1 Rank List, Equity Research reports, and Premium stock screens [1] - The service aims to help investors become more knowledgeable and confident in their investment decisions [1] Group 2: Zacks Style Scores - Zacks Style Scores are indicators designed to assist investors in selecting stocks with the highest potential to outperform the market within 30 days, rated from A to F based on value, growth, and momentum [2] - The Style Scores are categorized into four types: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [3][4][5][6] Group 3: Value Score - The Value Score identifies stocks that are undervalued based on financial ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow, appealing to value investors [3] Group 4: Growth Score - The Growth Score evaluates stocks based on projected and historical earnings, sales, and cash flow, targeting growth investors interested in sustainable long-term growth [4] Group 5: Momentum Score - The Momentum Score helps investors capitalize on price trends by analyzing short-term price changes and earnings estimate revisions, catering to momentum investors [5] Group 6: VGM Score - The VGM Score combines the three Style Scores to provide a comprehensive rating, helping investors identify stocks with attractive value, strong growth potential, and positive momentum [6] Group 7: Zacks Rank Integration - The Zacks Rank is a proprietary model that uses earnings estimate revisions to simplify portfolio building, with 1 (Strong Buy) stocks achieving an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [7][8] - To maximize returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [9] Group 8: Stock Highlight - Armstrong World Industries (AWI) - Armstrong World Industries, a leading global producer of ceiling systems, holds a Zacks Rank of 2 (Buy) and a VGM Score of B, indicating strong investment potential [11] - The company has a Momentum Style Score of B, with shares increasing by 8.6% over the past four weeks, and an upward revision in earnings estimates for fiscal 2024 [12]