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Mar 31, 2023

Armstrong Q1 2023 Earnings Report

Armstrong's Q1 2023 financial performance was solid, marked by sales growth and strategic cost management.

Key Takeaways

Armstrong World Industries reported a 10% increase in net sales for Q1 2023 compared to the prior year, driven by strong performance in both the Mineral Fiber and Architectural Specialties segments. Operating income and diluted net earnings per share also increased by 11%.

Net sales increased by 10% year-over-year, driven by growth in both Mineral Fiber and Architectural Specialties segments.

Operating income and diluted net earnings per share both increased by 11% compared to the prior-year quarter.

Adjusted EBITDA increased by 9% and adjusted diluted net earnings per share increased by 10% year-over-year.

The company maintains its full-year 2023 outlook, focusing on strategic initiatives and cost management.

Total Revenue
$310M
Previous year: $283M
+9.8%
EPS
$1.12
Previous year: $1.02
+9.8%
Adjusted EBITDA
$96M
Previous year: $87M
+10.3%
Gross Profit
$112M
Previous year: $102M
+9.7%
Cash and Equivalents
$96M
Previous year: $76.1M
+26.1%
Free Cash Flow
$30M
Total Assets
$1.69B
Previous year: $1.71B
-1.2%

Armstrong

Armstrong

Forward Guidance

Armstrong World Industries is maintaining its full-year 2023 outlook, focusing on executing its strategy, delivering manufacturing productivity, managing costs, and growing adjusted free cash flow.

Positive Outlook

  • Net sales are expected to be between $1.26 billion and $1.31 billion.
  • Adjusted EBITDA is projected to be between $395 million and $420 million.
  • Adjusted diluted net earnings per share are anticipated to be between $4.80 and $5.05.
  • Adjusted free cash flow is expected to be between $230 million and $250 million.
  • The company will continue to create long-term value for shareholders through reinvestment, strategic partnerships, and returning excess cash.

Challenges Ahead

  • The company acknowledges the challenging macroeconomic environment and expects weaker market conditions ahead.
  • Uncertainties in forward-looking statements are subject to risks related to future financial and operational results.
  • Expected savings from cost management initiatives.
  • The performance of WAVE joint venture.
  • Market and broader economic conditions.