Armstrong Q4 2022 Earnings Report
Key Takeaways
Armstrong World Industries reported an 8% increase in net sales for Q4 2022 compared to the prior-year quarter. Operating income increased by 27%, and diluted earnings per share from continuing operations rose by 22%. Adjusted EBITDA was up by 5%, while adjusted diluted earnings per share decreased by 1%.
Net sales increased by 8% compared to the prior-year quarter.
Mineral Fiber segment sales were up 4%, and Architectural Specialties segment sales increased by 18%.
Operating income rose by 27% and diluted earnings per share from continuing operations increased by 22% compared to the prior-year quarter.
Adjusted EBITDA increased by 5%, while adjusted diluted earnings per share decreased by 1% compared to the prior-year quarter.
Armstrong
Armstrong
Forward Guidance
Armstrong World Industries issued 2023 guidance, projecting net sales growth of 2% to 6% and adjusted EBITDA growth of 3% to 9% versus the prior year.
Positive Outlook
- Net Sales growth of 2% to 6%
- Adjusted EBITDA growth of 3% to 9%
- Adjusted diluted earnings per share growth of 1% to 7%
- Adjusted free cash flow growth of 4% to 13%
- Benefits from growth initiatives
Challenges Ahead
- Weaker economic conditions
- Inflationary headwinds
- Cost reduction actions
- Weakening market demand in the second half of the year
- Challenging market conditions