Armstrong Q1 2025 Earnings Report
Key Takeaways
Armstrong World Industries delivered a solid start to 2025 with double-digit net sales and earnings growth, driven by strong Mineral Fiber AUV performance, manufacturing productivity, and contributions from recent Architectural Specialties acquisitions. Despite navigating choppy demand in key markets, the company achieved profitable topline growth and adjusted EBITDA margin expansion in both segments.
Consolidated net sales increased 17.3% to $382.7 million in Q1 2025 compared to the prior year.
Diluted net earnings per share increased 16.2% to $1.58 in Q1 2025.
Adjusted EBITDA increased 16.2% to $129 million in Q1 2025.
Architectural Specialties net sales saw significant growth of 58.7%, largely driven by recent acquisitions.
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Armstrong Revenue by Segment
Forward Guidance
Armstrong World Industries is maintaining its full-year 2025 guidance despite expecting a softer market environment in the second half of the year. The company plans to focus on cost controls, AUV growth, and manufacturing productivity to drive margin expansion.
Positive Outlook
- Expected Net Sales of $1.57 billion to $1.61 billion for the full year 2025.
- Expected Adjusted EBITDA of $525 million to $545 million for the full year 2025.
- Expected Adjusted Diluted Net Earnings Per Share of $6.85 to $7.15 for the full year 2025.
- Expected Adjusted Free Cash Flow of $315 million to $335 million for the full year 2025.
- Commitment to driving margin expansion through cost controls, AUV growth, and manufacturing productivity.
Challenges Ahead
- Expectation of a softer market environment in the second half of 2025.
- Elevated macroeconomic uncertainty acknowledged.
- Navigating choppy demand in many key markets is anticipated to continue.
- Potential headwinds in the second half of the year.
- Need to focus on cost controls to offset potential market softness.
Revenue & Expenses
Visualization of income flow from segment revenue to net income