Armstrong World Industries Q3 Sales Rise 12%; 2026 Outlook Updated

Armstrong World Industries reported double-digit sales and adjusted EBITDA growth for the third quarter of 2026, supported by higher Mineral Fiber pricing and volume as well as broad-based growth in Architectural Specialties. The company also updated its full-year outlook to reflect stronger sales growth and accelerating inflationary pressures.

For the quarter ended September 30, net sales rose 12% to $475.8 million from $425.2 million a year earlier. Net earnings increased to $91.9 million from $86.3 million, while diluted earnings per share advanced to $2.17 from $1.98.

Operating income increased to $131.2 million from $117.2 million, with the operating margin unchanged at 27.6%. Adjusted EBITDA rose 11% to $164 million, though the adjusted EBITDA margin slipped to 34.5% from 34.7%. Excluding recent acquisitions, the company’s organic adjusted EBITDA margin expanded 40 basis points to 35.1%.

Adjusted diluted EPS increased 10% to $2.26 from $2.05. Adjusted free cash flow declined 13% to $106 million from $123 million, and the adjusted free cash flow margin fell to 22.4% from 28.9%.

Mineral Fiber benefits from pricing and volume

Mineral Fiber sales increased 7% to $292.1 million. Segment operating income rose to $106 million from $98.7 million, while adjusted EBITDA increased 8% to $129 million. The adjusted EBITDA margin expanded 40 basis points to 44.0%.

The segment recorded its third consecutive quarter of volume growth. Average unit value increased 6%, driven by like-for-like pricing and, to a lesser extent, product mix. However, the margin benefit from higher average unit value was limited by increased sales through lower-value channels.

Higher freight and raw-material costs weighed on the quarter, while WAVE equity earnings contributed to adjusted EBITDA growth. Selling, general and administrative expenses were favorable compared with the prior-year period, which included higher incentive compensation expense.

Architectural Specialties sales rise 22%

Architectural Specialties sales climbed 22% to $183.7 million, reflecting growth across product categories and contributions from recent acquisitions. Operating income increased to $25.8 million from $19.3 million, and adjusted EBITDA rose 25% to $36 million.

The segment’s adjusted EBITDA margin expanded 60 basis points to 19.4%. On an organic basis, adjusted EBITDA was $36 million and the margin reached 20.4%, up from 18.8% a year earlier. Elevated metal and freight costs and the impact of recent acquisitions limited the margin benefit from higher sales.

The company said pricing, backlog and continued strong order intake support fourth-quarter organic growth and improved profitability in the segment. Recent acquisitions included Eventscape, Parallel and Geometrik.

Full-year guidance updated

Armstrong World Industries now expects 2026 net sales of $1.788 billion to $1.803 billion, representing growth of 10% to 11%. Its prior range was $1.770 billion to $1.800 billion.

Adjusted EBITDA is projected at $602 million to $612 million, or growth of 8% to 10%, compared with the previous range of $605 million to $620 million. Adjusted diluted EPS is expected to be $8.30 to $8.40, narrowing the prior $8.30-to-$8.50 range and implying growth of 12% to 13%.

The company forecasts adjusted free cash flow of $380 million to $390 million, compared with its earlier range of $380 million to $395 million. The new range represents year-over-year growth of 10% to 13%.

For Mineral Fiber, management expects full-year sales growth of about 6.5%, volume growth of approximately 1% and average unit value growth of roughly 5.5%. The segment’s adjusted EBITDA margin is projected at 43% to 44%. Management said softer mix is expected to be partly offset by stronger pricing than previously anticipated, while market conditions remain unchanged.

Architectural Specialties sales are expected to grow 18% to 19%, with an adjusted EBITDA margin of about 19%. Organic Architectural Specialties revenue is projected to increase at a low-teens rate, with an organic adjusted EBITDA margin of approximately 20%. The company also expects its total organic adjusted EBITDA margin to expand modestly.

Through the first nine months of 2026, net sales increased 10% to $1.358 billion and adjusted EBITDA rose 7% to $460 million. The year-to-date adjusted EBITDA margin declined to 33.9% from 35.0%, reflecting pressure from manufacturing, input costs and SG&A expenses. Adjusted free cash flow decreased 2% to $254 million.

The outlook remains subject to inflationary pressure, changes in product and channel mix, acquisition-related effects and broader market conditions. The company noted that its guidance was effective as of October 27, 2026, and that actual results could differ materially from its forward-looking statements.