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Sep 30, 2025
Armstrong Q3 2025 Earnings Report
Armstrong World Industries reported record third-quarter 2025 net sales and earnings growth driven by strong Mineral Fiber and Architectural Specialties performance.
Key Takeaways
Armstrong delivered a 10% year-over-year increase in net sales to $425.2 million, supported by higher volumes and favorable pricing. Both operating income and adjusted EBITDA grew mid-single digits, while EPS and adjusted EPS each rose 13%. The company achieved growth across both major segments and raised full-year 2025 guidance.
Quarterly net sales rose 10% to $425.2 million, driven by 18% growth in Architectural Specialties and 6% growth in Mineral Fiber.
Operating income increased 5% to $117.2 million, while adjusted EBITDA grew 6% to $148 million.
Diluted EPS rose 13% to $1.98, and adjusted diluted EPS also increased 13% to $2.05.
The company raised full-year 2025 guidance across all key financial metrics.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Armstrong raised its full-year 2025 guidance, expecting 12–13% sales growth, 14–16% adjusted EBITDA growth, and 18–20% growth in adjusted EPS. The company anticipates margin expansion in both core segments and continued strong free cash flow generation.
Positive Outlook
- Full-year 2025 net sales expected to reach $1.62–$1.64 billion, up 12–13%.
- Adjusted EBITDA guidance raised to $553–$563 million.
- Adjusted EPS projected between $7.45 and $7.55.
- Strong free cash flow forecast of $342–$352 million.
- Margin expansion expected across both segments.
Challenges Ahead
- Higher manufacturing and SG&A costs partly offset earnings growth.
- Operating income margin compressed 120 basis points year-over-year.
- Architectural Specialties segment margin declined due to acquisition-related expenses.
- Free cash flow impacted by non-recurring tax benefits.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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