LANCASTER, Pa. - Armstrong World Industries, Inc. (NYSE:AWI), a company specializing in ceiling and wall solutions, has announced a 10% increase in its quarterly cash dividend, raising it to $0.308 per share. The raised dividend is scheduled to be paid on November 21, 2024, to shareholders recorded by the close of business on November 7, 2024.
This decision underscores the sixth year of consecutive dividend growth since the company initiated its dividend program in 2018. Senior Vice President and CFO Chris Calzaretta attributed this increase to the company's strong free cash flow and the Board of Directors' belief in Armstrong's long-term growth strategy. Calzaretta emphasized the company's commitment to returning cash to its shareholders, highlighting it as a fundamental aspect of their capital allocation framework.
The future declaration and payment of dividends, as well as capital allocations, will remain at the discretion of the Board of Directors. These decisions will be based on several factors, including Armstrong's financial position, operational results, and cash flow.
Armstrong World Industries, with a history extending over 160 years, reported revenues of $1.3 billion in 2023. The company employs approximately 3,500 people and operates a manufacturing network of 19 facilities, in addition to seven facilities in its WAVE joint venture. Armstrong continues to focus on innovation and manufacturing excellence, offering products and services designed to enhance the aesthetics, acoustics, and environmental sustainability of various spaces.
The information in this article is based on a press release statement from Armstrong World Industries, Inc.
In other recent news, Armstrong World Industries has been the subject of significant attention following its recent earnings report. The company reported a quarter that exceeded analyst expectations, with a 12% increase in total revenue and a 13% growth in adjusted EBITDA. This strong performance led to an upward revision of its full-year 2024 guidance, now expecting net sales growth of 9% to 11% and adjusted EBITDA growth of 10% to 13%.
Loop Capital responded to these developments by raising the price target for Armstrong World Industries shares from $123 to $135, while maintaining a Hold rating. The firm highlighted the company's stabilizing market conditions, particularly in office demand within coastal regions, and strength in the transportation and data center sectors.
In addition, Armstrong World Industries' recent acquisition of 3form, which is performing in line with expectations, was noted as a positive development. Despite being marginally dilutive initially, the acquisition aligns with the company's overall strategy. These are among the recent developments that have shaped the current outlook for Armstrong World Industries.
InvestingPro Insights
Armstrong World Industries' recent dividend increase aligns with its strong financial performance and shareholder-friendly policies. According to InvestingPro data, the company's revenue for the last twelve months as of Q2 2024 stood at $1,351 million, with a notable revenue growth of 6.79% over the same period. This growth trajectory supports the company's ability to sustain and increase its dividend payments.
An InvestingPro Tip highlights that Armstrong has raised its dividend for 6 consecutive years, which is consistent with the information provided in the article. This demonstrates a commitment to returning value to shareholders, as emphasized by CFO Chris Calzaretta.
The company's profitability is also noteworthy, with a gross profit margin of 39.59% and an operating income margin of 19.82% for the last twelve months as of Q2 2024. These strong margins contribute to Armstrong's ability to generate the free cash flow necessary to support dividend growth.
Another relevant InvestingPro Tip indicates that 7 analysts have revised their earnings upwards for the upcoming period, suggesting positive expectations for the company's near-term performance. This optimism aligns with the Board's confidence in Armstrong's long-term growth strategy.
For investors seeking more comprehensive insights, InvestingPro offers 11 additional tips for Armstrong World Industries, providing a deeper understanding of the company's financial health and market position.
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