NYSE$AWI

Armstrong World Industries Inc. · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Armstrong's Q4 2023 results were record-setting, with steady sales growth and improved adjusted EBITDA margins across both the Mineral Fiber and Architectural Specialties segments.

Armstrong World Industries reported record fourth quarter net sales and adjusted EBITDA results, highlighted by adjusted EBITDA margin expansion in both segments. The company's strong position and momentum are attributed to focused efforts in executing their strategy and the resilience of their business model.

  • Net sales increased by 3% due to better-than-expected Mineral Fiber volumes.
  • Operating income decreased by 6% primarily due to acquisition-related expenses, while adjusted operating income increased by 5%.
  • Adjusted EBITDA increased by 7% and adjusted diluted earnings per share increased by 13%.
  • Mineral Fiber and Architectural Specialties segments both contributed to sales and adjusted EBITDA growth.

Headline financials

Total Revenue

$312M

Previous: $305M+2.6%
EPS (adj)

$1.22

Previous: $1.08+13.0%
Adjusted EBITDA

$98M

Previous: $92M+6.5%
Adjusted EBITDA Margin

31.4%

No prior period
Capital Expenditures

-$13.7M

No prior period
Net Income

$46.8M

Previous: $48.8M-4.1%
Operating Income

$66.3M

Previous: $70.6M-6.1%
Gross Profit

$120M

Previous: $112M+7.2%
Stock-Based Comp

$6.8M

Previous: $3.4M+100.0%

Revenue & EPS history

Armstrong · Revenue · Quarterly

$312M

Q4 2023+2.6%vs Q4 2022
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

Armstrong · $283M total across 2 segments · Q1 2022

  • Mineral Fiber
    $203M
  • Architectural Specialties
    $79.4M

Forward guidance

The company issued 2024 Guidance: Net sales growth of 3% to 6% and adjusted EBITDA growth of 5% to 9%.

Tailwinds

  • Net sales are expected to grow between 3% and 6%.
  • Adjusted EBITDA is projected to increase by 5% to 9%.
  • Adjusted diluted net earnings per share are forecasted to rise by 5% to 11%.
  • Adjusted free cash flow is anticipated to grow by 5% to 10%.
  • Capital allocation priorities remain unchanged as the company continues to execute its strategy and create value for shareholders.

Headwinds

  • Outlook reflects a laser-focused approach to delivering profitable growth, margin expansion and adjusted free cash flow growth despite modestly softer economic conditions.
  • No specific negative aspects were detailed in the provided document.
  • No specific negative aspects were detailed in the provided document.
  • No specific negative aspects were detailed in the provided document.
  • No specific negative aspects were detailed in the provided document.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2023

Historical avgQ4 2023

-1.9%

Avg return

Earnings day

+0.2%

Avg return

5 days after

+1.4%

Avg return

30 days after

42%

27 / 64 earnings

Positive

+14.7%

Q4 2016

Best reaction

-14.3%

Q2 2012

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-4.5%-5.2%-9.9%
Q4 2025-7.4%-10.0%-14.4%
Q3 2025-4.6%-6.0%-5.8%
Q1 2025+1.9%+6.5%+19.3%
Q4 2024+5.2%+5.4%-1.0%
Q3 2024+2.2%+2.4%+16.7%
Q2 2024+0.5%-3.4%-4.2%
Q1 2024-4.0%-2.7%-2.5%
Q4 2023+13.3%+16.4%+18.7%
Q3 2023+5.0%+5.7%+20.7%
Q2 2023+3.2%+3.0%-3.0%
Q1 2023-9.2%-5.9%-13.4%
Q4 2022-2.5%-1.8%-16.3%
Q3 2022-6.5%-5.4%-3.6%
Q2 2022+3.4%+8.0%+9.6%
Q1 2022-6.9%-8.9%-11.2%
Q4 2021-6.2%-5.7%-4.8%
Q3 2021+1.3%+3.8%+12.1%
Q2 2021+1.8%+2.5%-1.3%
Q1 2021+3.5%+3.1%+4.6%
Q4 2020+13.7%+10.2%+16.4%
Q3 2020-8.9%-7.8%+19.7%
Q2 2020-13.3%-12.7%-8.1%
Q1 2020+1.0%-2.8%-1.2%
Q4 2019-0.8%-5.9%-26.4%
Q3 2019-8.9%-8.1%-5.3%
Q2 2019-0.9%-3.6%-6.3%
Q1 2019-1.2%+1.7%-1.1%
Q4 2018+1.7%+1.1%+3.8%
Q3 2018+6.5%+15.3%+15.6%
Q2 2018+1.3%+3.7%+4.3%
Q1 2018+2.0%+2.3%+9.8%
Q4 2017-3.8%-2.7%-9.2%
Q3 2017-4.6%-4.1%+11.7%
Q2 2017+9.8%+6.7%+6.4%
Q1 2017-1.0%-1.9%-10.9%
Q4 2016+14.7%+18.8%+13.5%
Q3 2016-6.5%-7.5%+4.9%
Q2 2016+1.5%+3.7%+5.1%
Q1 2016-3.7%
Q4 2015-5.2%
Q3 2015+3.6%
Q2 2015+4.8%
Q1 2015-2.5%
Q4 2014+1.5%
Q3 2014-7.1%
Q2 2014-10.5%
Q1 2014-0.3%
Q4 2013-9.1%
Q3 2013+1.8%
Q2 2013-1.9%
Q1 2013-2.5%
Q4 2012-7.9%
Q3 2012+6.2%
Q2 2012-14.3%
Q1 2011-3.2%
Q1 2012+3.9%
Q4 2009+1.5%
Q3 2010-14.1%
Q3 2011-14.1%
Q2 2010-10.4%
Q4 2010-10.4%
Q2 2011-10.4%
Q1 2010-8.0%

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