LANCASTER, Pa. - Armstrong World Industries, Inc. (NYSE:AWI) reported better-than-expected third-quarter earnings on Tuesday, driven by strong sales growth and operational execution.
The company's shares are up 1.24% in premarket trading, reflecting investors' positive reaction to the results and improved outlook.
The ceiling and wall solutions manufacturer also raised its full-year guidance for adjusted EBITDA, adjusted earnings per share, and adjusted free cash flow.
Armstrong World reported Q3 adjusted earnings per share of $1.81, surpassing the analyst estimate of $1.75. Revenue for the quarter came in at $386.6 million, slightly below the consensus estimate of $386.69 million but representing an 11.3% increase from the same period last year.
"With another quarter of record setting sales and strong earnings growth, we continue to demonstrate our ability to deliver growth despite muted market conditions through operational execution and our investments in strategic acquisitions, innovation and digital initiatives," said Vic Grizzle, President and CEO of Armstrong World Industries.
The company's Mineral Fiber segment saw a 3.3% increase in net sales to $258 million, primarily driven by favorable Average Unit Value (AUV). The Architectural Specialties segment reported a significant 31.8% jump in net sales to $128.6 million, largely due to recent acquisitions and increased custom metal project sales.
Armstrong World raised its full-year 2024 guidance, now expecting adjusted earnings per share between $6.15 and $6.25, up from the previous range of $5.32 to $6.15. The company also tightened its revenue forecast to $1.42 billion to $1.435 billion.
Chris Calzaretta, AWI Senior Vice President and CFO, commented, "We remain focused on expanding adjusted EBITDA margin at the total company level and expect to deliver a fourth consecutive year of net sales and earnings growth in 2024."
The company's adjusted EBITDA for the quarter increased 11.2% to $139 million, with an adjusted EBITDA margin of 35.9%.
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