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Armstrong World
(NYSE:AWI)
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Rating:77Outperform
Price Target:
$192.00
▲(11.25% Upside)
Action:Reiterated
Date:10/21/26
AWI scores well primarily due to strong financial performance (healthy margins, improving cash generation, and a de-risking balance sheet) and a positive earnings update with raised full-year guidance and ongoing shareholder returns. The score is tempered by only mixed technical positioning and a valuation profile that is not especially cheap with a modest dividend yield.
Positive Factors
Strong profitability and cash generation
AWI combines robust margins with substantial operating and free cash flow, demonstrating strong earnings quality and internal funding capacity. This financial profile supports continued investment in growth initiatives, resilience through construction cycles, and durable shareholder returns without relying heavily on external financing.
Negative Factors
Input cost inflation pressures margins
Persistent freight, raw-material, energy, and steel inflation can absorb pricing and volume benefits, limiting margin expansion even when revenue grows. If cost increases remain elevated, AWI may need repeated pricing actions or efficiency gains to protect profitability and sustain its earnings trajectory.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong profitability and cash generation
AWI combines robust margins with substantial operating and free cash flow, demonstrating strong earnings quality and internal funding capacity. This financial profile supports continued investment in growth initiatives, resilience through construction cycles, and durable shareholder returns without relying heavily on external financing.
Read all positive factors
Armstrong World (AWI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$7.16B
Dividend Yield0.8%
Average Volume (3M)335.96K
Price to Earnings (P/E)23.1
Beta (1Y)0.81
Revenue Growth8.57%
EPS Growth8.25%
CountryUS
Employees4,000
SectorIndustrials
Sector Strength72
IndustryConstruction Materials
Share Statistics
EPS (TTM)7.31
Shares Outstanding42,262,825
10 Day Avg. Volume297,952
30 Day Avg. Volume335,963
Financial Highlights & Ratios
PEG Ratio1.60
Price to Book (P/B)9.25
Price to Sales (P/S)5.14
P/FCF Ratio33.86
Enterprise Value/Market Cap1.03
Enterprise Value/Revenue4.34
Enterprise Value/Gross Profit10.76
Enterprise Value/Ebitda13.09
Forecast
1Y Price Target
$212.50Price Target Upside23.13% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)8.43
Revenue Forecast (FY)$1.79B
Armstrong World Business Overview & Revenue Model
Company Description
Armstrong World Industries, Inc. (AWI) specializes in the design, manufacturing, and distribution of diverse ceiling systems, primarily catering to the construction and renovation needs of residential and commercial properties across the United St...
How the Company Makes Money
AWI primarily makes money by selling building products used in construction and renovation projects, with revenue largely tied to the volume and mix of products shipped to customers and the pricing achieved in the market. The company’s core revenu...
Armstrong World Earnings Call Summary
Earnings Call Date:Jul 28, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 27, 2026
Earnings Call Sentiment Positive
The call conveys a positive overall picture: Armstrong reported record net sales and adjusted EBITDA, delivered strong segment-level performance (notably Mineral Fiber AUV and AS organic growth), advanced growth initiatives (Kanopi, PROJECTWORKS, TEMPLOK, data center pipeline), raised full-year guidance across key metrics, and expanded share repurchase authorization. These strengths are tempered by cost inflation (freight, raw materials, steel), incremental SG&A and acquisition-related dilution, and a muted macro environment that could constrain upside. On balance, execution and cash returns outweigh the near-term cost pressures and uncertainty.Positive Updates
Record Company Results
Total company net sales increased 11% year-over-year, adjusted EBITDA increased 8%, and adjusted diluted earnings per share rose 13%; results were modestly ahead of expectations and described as record net sales and adjusted EBITDA.
Negative Updates
Input Cost Inflation
Freight and raw material inflation pressured margins in the quarter; company expects freight inflation in the mid-teens for the full year, energy inflation low-single-digits, raws low-single-digits, and overall input cost inflation in the mid-single-digit range, partially offsetting AUV and volume benefits.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Company Results
Total company net sales increased 11% year-over-year, adjusted EBITDA increased 8%, and adjusted diluted earnings per share rose 13%; results were modestly ahead of expectations and described as record net sales and adjusted EBITDA.
Read all positive updates
Company Guidance
Management raised full‑year guidance: total company net sales growth is now expected to be 9–11% (up from 8–10%), Mineral Fiber net sales ≈7% (AUV ≈6% with ~1 point of volume growth), Architectural Specialties net sales 15–17%, and total‑company adjusted EBITDA growth 9–12% (up from 8–12%); they expect Mineral Fiber adjusted EBITDA margin of ≈44% (Q2 was 44.7%) and AS adjusted EBITDA margin ≈19% (organic AS ≈20%), adjusted diluted net earnings per share growth of 12–15% (up from 10–14%), and adjusted free cash flow growth of 10–14% (up from 9–14%); management also noted Q2 results (net sales +11%, adjusted EBITDA +8%, adjusted diluted EPS +13%), year‑to‑date sales +9% and adjusted EBITDA +4%, YTD adjusted FCF +9%, WAVE equity earnings growing mid‑single digits, and continued capital returns (YTD $135M repurchases, $30M dividends) plus an additional $800M share‑repurchase authorization through 2029.Armstrong World Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
78
Positive
Cash Flow
83
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.70B | 1.62B | 1.45B | 1.30B | 1.23B | 1.11B |
| Gross Profit | 683.30M | 658.70M | 581.90M | 497.00M | 449.30M | 405.90M |
| EBITDA | 561.50M | 553.70M | 387.10M | 434.30M | 368.40M | 370.60M |
| Net Income | 315.30M | 308.70M | 264.90M | 223.70M | 199.60M | 185.00M |
Balance Sheet | ||||||
| Total Assets | 2.01B | 1.92B | 1.84B | 1.67B | 1.69B | 1.71B |
| Cash, Cash Equivalents and Short-Term Investments | 78.60M | 112.70M | 79.30M | 70.80M | 106.00M | 98.10M |
| Total Debt | 579.40M | 531.80M | 599.90M | 640.40M | 687.00M | 671.60M |
| Total Liabilities | 1.12B | 1.02B | 1.09B | 1.08B | 1.15B | 1.19B |
| Stockholders Equity | 884.30M | 900.70M | 757.10M | 591.80M | 535.00M | 519.70M |
Cash Flow | ||||||
| Free Cash Flow | 255.50M | 246.10M | 184.00M | 149.70M | 107.60M | 107.40M |
| Operating Cash Flow | 358.80M | 355.50M | 266.80M | 233.50M | 182.40M | 187.20M |
| Investing Cash Flow | -61.70M | -3.60M | -79.30M | -10.40M | 28.20M | -13.90M |
| Financing Cash Flow | -298.80M | -319.30M | -177.60M | -258.60M | -201.90M | -212.10M |
Armstrong World Technical Analysis
Positive
172.58
Price Trends
168.13
Positive
165.12
Positive
170.01
Positive
Market Momentum
0.89
Negative
62.96
Neutral
81.34
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AWI, the sentiment is Positive. The current price of 172.58 is above the 20-day moving average (MA) of 164.79, above the 50-day MA of 168.13, and above the 200-day MA of 170.01, indicating a bullish trend. The MACD of 0.89 indicates Negative momentum. The RSI at 62.96 is Neutral, neither overbought nor oversold. The STOCH value of 81.34 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AWI.
Armstrong World Risk Analysis
Armstrong World disclosed 24 risk factors in its most recent earnings report. Armstrong World reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Armstrong World Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $7.16B | 23.08 | 35.36% | 0.81% | 8.57% | 8.25% | |
66 Neutral | $912.72M | 13.65 | 13.03% | 2.47% | 3.01% | 55.11% | |
66 Neutral | $15.35B | 103.34 | 2.27% | 2.70% | 42.93% | -67.45% | |
65 Neutral | $13.49B | 19.41 | 41.06% | 1.34% | 1.90% | -2.79% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | $901.86M | 20.07 | 6.19% | 1.60% | 1.26% | ― | |
51 Neutral | $8.84B | -13.79 | -17.10% | 2.82% | -11.79% | -310.77% |
* Industrials Sector Average
AWI
Armstrong World
171.39
-30.14
-14.95%
APOG
Apogee
44.29
6.68
17.77%
CSL
Carlisle Companies
352.60
18.48
5.53%
OC
Owens Corning
116.49
-8.75
-6.99%
NX
Quanex
20.65
5.67
37.88%
JHX
James Hardie Industries PLC
26.54
4.54
20.64%
Armstrong World Corporate Events
Business Operations and StrategyDividends
Armstrong World Boosts Quarterly Dividend, Extends Growth Streak
Positive
Oct 21, 2026
On October 21, 2026, Armstrong World Industries announced that its board approved a 10% increase in the quarterly cash dividend to $0.373 per share, payable on November 19, 2026 to shareholders of record as of November 5, 2026. This move marks the...
Business Operations and StrategyExecutive/Board Changes
Armstrong World Announces Key Sales and Marketing Transition
Neutral
Oct 7, 2026
On October 5, 2026, Armstrong World Industries announced that Jill A. Crager plans to retire as Senior Vice President, Sales and Marketing, effective December 31, 2026, after 28 years with the company. Crager will continue to lead the Sales and Ma...
Business Operations and StrategyFinancial Disclosures
Armstrong World Highlights Growth Strategy in Updated Presentation
Positive
Sep 1, 2026
Armstrong World Industries, Inc. is an Americas-focused building products manufacturer specializing in innovative interior and exterior architectural applications, including ceilings, specialty walls and exterior metal solutions. Headquartered in ...
Business Operations and StrategyExecutive/Board Changes
Armstrong World appoints new chief human resources officer
Positive
Jul 30, 2026
On July 30, 2026, Armstrong World Industries announced the appointment of Jennifer O. Kozak as Senior Vice President, Chief Human Resources Officer and member of the Executive Leadership Team, effective Sept. 9, 2026. The move reflects the company...
Business Operations and StrategyStock BuybackFinancial Disclosures
Armstrong World Posts Record Q2 Results, Raises Guidance
Positive
Jul 28, 2026
On July 28, 2026, Armstrong World Industries reported record second-quarter 2026 results, with consolidated net sales up 11.2% to $472 million, driven by double-digit growth in Architectural Specialties and strong Mineral Fiber performance from bo...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.