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Sep 30, 2022

Armstrong Q3 2022 Earnings Report

Armstrong's Q3 2022 earnings reflected solid sales growth in both Mineral Fiber and Architectural Specialties, tempered by economic uncertainty and project delays.

Key Takeaways

Armstrong World Industries reported an 11% increase in net sales compared to the prior-year quarter. Operating income increased by 2%, and diluted earnings per share from continuing operations increased by 11%. The company is revising its 2022 guidance to reflect net sales growth of 10% to 12% and adjusted EBITDA growth of 4% to 6% versus the prior year.

Net sales increased by 11% compared to the prior-year quarter.

Operating income increased by 2% year-over-year.

Adjusted EBITDA increased by 5% year-over-year.

Revised 2022 guidance includes net sales growth of 10% to 12% and adjusted EBITDA growth of 4% to 6%.

Total Revenue
$325M
Previous year: $292M
+11.2%
EPS
$1.36
Previous year: $1.17
+16.2%
Adjusted EBITDA
$105M
Previous year: $99M
+6.1%
Gross Profit
$118M
Previous year: $111M
+6.1%
Cash and Equivalents
$86.8M
Previous year: $94.3M
-8.0%
Free Cash Flow
$9.6M
Previous year: $58M
-83.4%
Total Assets
$1.74B
Previous year: $1.7B
+2.0%

Armstrong

Armstrong

Forward Guidance

The company expects Mineral Fiber volumes to remain challenged into the fourth quarter and is lowering its full-year 2022 financial outlook due to third-quarter results and overall increased economic uncertainty.

Challenges Ahead

  • Mineral Fiber volumes are expected to remain challenged into the fourth quarter.
  • Full-year 2022 financial outlook is being lowered.
  • Increased economic uncertainty is impacting the outlook.
  • Cost control and adjustments will be implemented.
  • Long-term growth strategy will still be supported.