Armstrong Q4 2020 Earnings Report
Key Takeaways
Armstrong World Industries reported a 3% decrease in net sales and a 29% decrease in operating income compared to the prior year quarter. Despite these challenges, the company invested in digital tools and initiatives, launched new products, and completed three acquisitions, including Arktura. The company delivered over $200 million in free cash flow.
Net sales decreased by 3% compared to the prior year quarter.
Operating income decreased by 29% compared to the prior year quarter.
Adjusted EBITDA decreased by 19% compared to the prior year quarter.
Arktura, LLC was acquired during the quarter.
Armstrong
Armstrong
Forward Guidance
Armstrong expects sequential improvements in end markets and anticipates sales growth of 10% to 13% in 2021, with adjusted EBITDA growth of 9% to 13% and a free cash flow margin of 19%.
Positive Outlook
- Expect sequential improvements in our end markets as market conditions improve
- Vaccinations allow businesses to return to more normal operations
- Growth initiatives including Healthy Spaces
- Growth initiatives including kanopi
- Year-on-year benefit of our 2020 acquisitions