Building materials company Armstrong World's Q2 sales beat estimates

Overview

• Armstrong Q2 sales rise 16% to $425 mln, beating analyst expectations

• Adjusted EPS for Q2 up 29%, surpassing consensus estimates

• Company raises full-year 2025 guidance amid macroeconomic uncertainties

Outlook

• Company raises full-year 2025 net sales guidance to $1.6 bln-$1.63 bln

• Company expects 2025 adjusted EBITDA of $545 mln to $560 mln

• Company forecasts 2025 adjusted EPS of $7.15 to $7.30

• Company anticipates 2025 adjusted free cash flow of $330 mln to $345 mln

Result Drivers

• VOLUME GROWTH - Net sales increased due to higher volumes

• ACQUISITIONS - Architectural Specialties net sales rose $28 mln from acquisitions of 3form and Zahner

• FAVORABLE AUV - Mineral Fiber net sales benefited from $14 mln favorable Average Unit Value

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the construction supplies & fixtures peer group is "buy"

• Wall Street's median 12-month price target for Armstrong World Industries Inc is $160.00, about 5.5% below its July 28 closing price of $168.82

• The stock recently traded at 23 times the next 12-month earnings vs. a P/E of 20 three months ago

Press Release: ID:nBw2T0nsHa