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Sep 30, 2023
Armstrong Q3 2023 Earnings Report
Armstrong's Q3 2023 performance was marked by strong operating income and adjusted EBITDA growth, driven by both Mineral Fiber and Architectural Specialties segments.
Key Takeaways
Armstrong World Industries reported record-setting net sales and adjusted EBITDA in Q3 2023. The company demonstrated resilience in challenging market conditions, with positive contributions from both the Mineral Fiber and Architectural Specialties segments. Strong financial performance was achieved through diverse end markets, consistent Mineral Fiber average unit value growth, and attractive growth initiatives.
Net sales increased by 7% compared to the prior-year quarter, driven by strong average unit value (AUV) performance.
Operating income rose by 37%, accompanied by a 630 basis points margin expansion, and diluted earnings per share from continuing operations increased by 32% year-over-year.
Adjusted EBITDA increased by 19%, with a 380 basis points margin expansion, and adjusted diluted earnings per share increased by 18% compared to the prior-year quarter.
The company is raising its full-year guidance for all key metrics.
Armstrong
Armstrong
Forward Guidance
Armstrong World Industries raised its full year 2023 guidance, expecting margin improvement in both the Mineral Fiber and Architectural Specialties segments due to strong Q3 results.
Positive Outlook
- Net sales are projected to be between $1,280 million and $1,295 million, representing a 4% to 5% increase year-over-year.
- Adjusted EBITDA is expected to range from $418 million to $426 million, indicating a 9% to 11% growth compared to the previous year.
- Adjusted diluted net earnings per share are anticipated to be between $5.05 and $5.15, reflecting a 7% to 9% increase year-over-year.
- Adjusted free cash flow is projected to be between $245 million and $255 million, representing an 11% to 15% increase compared to the previous year.
- The company anticipates continued margin improvement in both the Mineral Fiber and Architectural Specialties segments.