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Jun 30, 2024

Armstrong Q2 2024 Earnings Report

Armstrong's second-quarter results demonstrated business resilience and strong growth initiatives, with double-digit net sales growth and record earnings.

Key Takeaways

Armstrong World Industries reported record second-quarter 2024 financial results, marked by strong sales and earnings growth. Net sales increased by 12% driven by Mineral Fiber AUV growth and Architectural Specialties acquisitions. The company is raising its full-year 2024 guidance.

Net sales increased by 12% due to solid Mineral Fiber AUV growth and Architectural Specialties' acquisitions.

Operating income rose by 9% and diluted net earnings per share increased by 12%.

Adjusted EBITDA was up by 13%, and adjusted diluted net earnings per share increased by 17%.

Full-year 2024 guidance has been raised.

Total Revenue
$365M
Previous year: $325M
+12.2%
EPS
$1.62
Previous year: $1.38
+17.4%
Adjusted EBITDA
$125M
Previous year: $111M
+12.6%
Gross Profit
$149M
Previous year: $124M
+20.4%
Cash and Equivalents
$73.6M
Previous year: $102M
-27.6%
Free Cash Flow
$62M
Previous year: $73M
-15.1%
Total Assets
$1.82B
Previous year: $1.71B
+6.3%

Armstrong

Armstrong

Forward Guidance

Armstrong is increasing its guidance for all key metrics, expecting operating conditions in the second half of the year to be similar to the first half and anticipating expansion of Adjusted EBITDA margin at the total company level.

Positive Outlook

  • Net sales are projected to be between $1,415 million and $1,440 million, representing a 9% to 11% growth.
  • Adjusted EBITDA is expected to range from $474 million to $486 million, indicating a 10% to 13% increase.
  • Adjusted diluted net earnings per share are forecasted to be between $6.00 and $6.15, reflecting a 13% to 16% rise.
  • Adjusted free cash flow is anticipated to be between $288 million and $300 million, showing a 10% to 14% growth.
  • Company expects to expand Adjusted EBITDA margin at the total company level