Architectural solutions firm Armstrong's Q4 sales rise 6% on Mineral Fiber unit strength

Overview

• Architectural solutions firm's Q4 revenue grew 6% but missed analyst expectations

• Adjusted EPS for Q4 missed analyst expectations

• Company repurchased 0.3 mln shares for $50 mln in Q4

Outlook

• Company expects 2026 net sales of $1.745 bln to $1.785 bln

• Company forecasts 2026 adjusted EBITDA of $600 mln to $620 mln

• Company anticipates 2026 adjusted EPS of $8.05 to $8.35

Result Drivers

• MINERAL FIBER SALES - Mineral Fiber sales increased 2.7% due to favorable AUV, despite lower volumes

• ARCHITECTURAL SPECIALTIES GROWTH - Architectural Specialties sales rose 11% due to acquisitions and organic growth

• OPERATING INCOME DRIVERS - Operating income rose 12.3% due to AUV benefits and increased WAVE equity earnings

Company press release: ID:nBw116SkFa

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 5 "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 $205.00, about 6.3% above its February 23 closing price of $192.83

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

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