Fourth-Quarter 2024
- Net sales of $368 million, an increase of 18%
- Operating income increased 24% and diluted net earnings per
share increased 34%
- Adjusted EBITDA up 14% and adjusted diluted net earnings per
share up 23%
- Completed acquisition of A. Zahner Company ("Zahner")
Full-Year 2024
- Record setting net sales of $1.4 billion, an increase of
12%
- Operating income increased 16% and diluted net earnings per
share increased 21%
- Adjusted EBITDA up 13% and adjusted diluted net earnings per
share up 19%
- Issuing 2025 Guidance with solid growth across all key
metrics
(Comparisons above are versus the prior-year period unless
otherwise stated.)
Armstrong World Industries, Inc. (NYSE:AWI), an Americas leader
in the design and manufacture of innovative interior and exterior
architectural applications including ceilings, specialty walls and
exterior metal solutions, today reported fourth-quarter and
full-year 2024 financial results highlighted by robust sales and
earnings growth.
“These strong fourth-quarter results capped off another year of
significant growth for Armstrong with record-setting sales and
earnings, strong free cash flow generation, and two meaningful
acquisitions to grow our Architectural Specialties capabilities,”
said Vic Grizzle, President and CEO of Armstrong World Industries.
“These achievements are a testament to our teams’ ability to
execute our consistent and sustainable growth model in challenging
market conditions while continuing our investments in
industry-leading innovation and digital initiatives. Our proven
record of success gives us confidence we can sustain our consistent
growth trajectory in 2025.”
Fourth-Quarter Consolidated
Results
(Dollar amounts in millions except
per-share data)
For the Three Months Ended
December 31,
2024
2023
Change
Net sales
$
367.7
$
312.3
17.7%
Operating income
$
81.9
$
66.3
23.5%
Operating income margin (Operating income
as a % of net sales)
22.3
%
21.2
%
110bps
Net earnings
$
62.2
$
46.8
32.9%
Diluted net earnings per share
$
1.42
$
1.06
34.0%
Additional Non-GAAP* Measures
Adjusted EBITDA
$
112
$
98
14.0%
Adjusted EBITDA margin (Adjusted EBITDA as
a % of net sales)
30.4
%
31.4
%
(100)bps
Adjusted net earnings
$
66
$
54
22.3%
Adjusted diluted net earnings per
share
$
1.50
$
1.22
23.0%
* The Company uses non-GAAP adjusted measures in managing the
business and believes the adjustments provide meaningful
comparisons of operating performance between periods and are useful
alternative measures of performance. Reconciliations of the most
comparable generally accepted accounting principles in the United
States ("GAAP") measure are found in the tables at the end of this
press release. Excluding per share data, non-GAAP figures are
rounded to the nearest million and corresponding percentages are
rounded to the nearest decimal.
Consolidated fourth-quarter 2024 net sales increased 17.7% due
to higher sales volumes of $36 million and favorable Average Unit
Value ("AUV") of $20 million. Mineral Fiber net sales increased $18
million, while Architectural Specialties net sales increased $38
million. The increase in Mineral Fiber net sales was driven by
improved AUV, as a result of favorable mix and increased
like-for-like pricing, partially offset by lower sales volumes.
Architectural Specialties segment net sales improved primarily due
to a $25 million contribution from the recent acquisitions of
Zahner, 3form, LLC ("3form") and BOK Modern, LLC ("BOK"), in
addition to increased custom project net sales.
Consolidated fourth-quarter 2024 operating income increased
23.5% primarily due to a $21 million margin benefit from
Architectural Specialties sales volume growth, a $10 million margin
benefit from AUV, and a $4 million increase in equity earnings from
Worthington Armstrong Venture ("WAVE"). These benefits were
partially offset by a $12 million increase in selling, general and
administrative ("SG&A") expenses and a $7 million increase in
manufacturing and input costs. Higher operating costs were driven
primarily by the acquisition of 3form and increased employee costs,
partially offset by lower acquisition-related expenses. The
acquisitions of Zahner, 3form and BOK drove the 100 basis points of
adjusted EBITDA margin compression in the quarter.
Fourth-Quarter Segment Results
Mineral
Fiber
(Dollar amounts in millions)
For the Three Months Ended
December 31,
2024
2023
Change
Net sales
$
238.2
$
220.3
8.1%
Operating income
$
68.6
$
60.9
12.6%
Adjusted EBITDA*
$
89
$
81
10.3%
Operating income margin
28.8
%
27.6
%
120bps
Adjusted EBITDA margin*
37.5
%
36.8
%
70bps
Mineral Fiber net sales increased 8.1% in the fourth quarter of
2024 due to $20 million of favorable AUV, partially offset by $2
million of lower sales volumes. The improvement in AUV was driven
by both favorable mix and like-for-like pricing.
Mineral Fiber operating income increased by 12.6% in the fourth
quarter of 2024 primarily due to a $10 million margin benefit from
favorable AUV and a $5 million increase in WAVE equity earnings.
These benefits were partially offset by a $5 million increase in
SG&A expenses, primarily driven by higher employee costs as
well as a decrease in company-owned officer life insurance gains
related to deferred compensation plans, and a $2 million increase
in manufacturing and input costs.
Architectural
Specialties
(Dollar amounts in millions)
For the Three Months Ended
December 31,
2024
2023
Change
Net sales
$
129.5
$
92.0
40.8%
Operating income
$
14.2
$
6.0
136.7%
Adjusted EBITDA*
$
23
$
17
33.3%
Operating income margin
11.0
%
6.5
%
450bps
Adjusted EBITDA margin*
17.4
%
18.4
%
(100)bps
Architectural Specialties net sales increased 40.8% in the
fourth quarter of 2024 driven primarily by a $25 million increase
due to the acquisitions of Zahner, 3form and BOK, and partially due
to improved custom project net sales.
Architectural Specialties operating income increased by $8
million in the fourth quarter of 2024 primarily due to a $22
million margin benefit from higher sales volumes, partially offset
by a $5 million increase in manufacturing costs. In addition,
SG&A expenses increased by $8 million in the fourth quarter of
2024, primarily driven by an $11 million increase related to the
acquisitions of Zahner, 3form and BOK and a $2 million increase in
selling expenses to support sales growth, partially offset by a $6
million decrease in acquisition-related expenses.
Full-Year Consolidated Results
(Dollar amounts in millions)
For the Year Ended December
31,
2024
2023
Change
Net sales
$
1,445.7
$
1,295.2
11.6%
Operating income
$
374.3
$
323.7
15.6%
Operating income margin
25.9
%
25.0
%
90bps
Net earnings
$
264.9
$
223.8
18.4%
Diluted net earnings per share
$
6.02
$
4.99
20.6%
Net cash provided by operating and
investing activities
$
187.5
$
223.1
(16.0)%
Additional Non-GAAP* Measures
Adjusted EBITDA
$
486
$
430
13.1%
Adjusted EBITDA margin
33.6
%
33.2
%
50bps
Adjusted net earnings
$
277
$
238
16.5%
Adjusted diluted net earnings per
share
$
6.31
$
5.32
18.6%
Adjusted free cash flow
$
298
$
263
13.5%
Consolidated net sales for 2024 increased 11.6% due to higher
sales volumes of $89 million and favorable AUV of $62 million.
Mineral Fiber net sales increased $54 million, while Architectural
Specialties net sales increased $97 million. The increase in
Mineral Fiber net sales was primarily driven by improved AUV, as a
result of increased like-for-like pricing and favorable mix,
partially offset by lower sales volumes. The decrease in volumes
for 2024 was driven primarily within our home center customer
channel, most notably due to prior-year first quarter inventory
level increases that did not repeat in the current-year period,
partially offset by two additional shipping days in 2024 and the
positive contribution from our growth initiatives compared to the
prior-year period. Architectural Specialties net sales improved
primarily due to a $73 million contribution from the acquisitions
of Zahner, 3form and BOK, in addition to increased custom project
net sales.
Consolidated operating income increased 15.6% primarily due to a
$53 million margin benefit from higher sales volumes, a $39 million
benefit from favorable AUV and a $14 million increase in equity
earnings from unconsolidated affiliates. These increases were
partially offset by a $46 million increase in SG&A expenses and
a $7 million increase in manufacturing and input costs, primarily
driven by higher costs from the acquisitions of Zahner, 3form and
BOK, partially offset by improved Mineral Fiber manufacturing
productivity.
The year-over-year increase in SG&A expenses was primarily
driven by a $32 million increase related to the acquisitions of
Zahner, 3form and BOK, an $8 million increase in selling expenses,
primarily due to higher employee costs, a $7 million increase in
incentive compensation and a $6 million decrease in company-owned
officer life insurance gains related to deferred compensation
plans. These increases were partially offset by a $9 million
decrease in acquisition-related expenses.
Cash Flow
Cash flows from operating activities in 2024 increased $33
million in comparison to prior year. The favorable change in
operating cash flows was primarily driven by higher cash earnings,
partially offset by unfavorable net working capital impacts. Cash
flows used for investing activities increased $69 million versus
the prior year primarily due to $124 million of cash paid for the
Zahner and 3form acquisitions, partially offset by proceeds
received from sales of real estate.
Share Repurchase Program
In the fourth quarter of 2024, we repurchased 0.1 million shares
of common stock for a total cost of $15 million, excluding the cost
of commissions and taxes. For the full year 2024, we repurchased
0.5 million shares of common stock for a total cost of $55 million,
excluding the cost of commissions and taxes. As of December 31,
2024, there was $662 million remaining under our Board of
Directors' current authorized share repurchase program**.
** In July 2016, our Board of Directors approved a share
repurchase program authorizing us to repurchase up to $150 million
of our outstanding common stock through July 2018 (the “Program”).
Pursuant to additional authorizations and extensions of the Program
approved by our Board of Directors, including $500 million
authorized on July 18, 2023, we are authorized to purchase up to
$1,700 million of our outstanding shares of common stock through
December 2026. Since inception and through December 31, 2024, we
have repurchased 14.6 million shares under the Program for a total
cost of $1,038 million, excluding commissions and taxes.
2025 Outlook
“We delivered strong results across both segments in 2024,
demonstrating the resilience of our growth model, despite
challenging market conditions,” said Chris Calzaretta, AWI Senior
Vice President and CFO. “Turning to 2025, our focus remains on
delivering profitable growth and navigating a choppy operating
environment to drive margin expansion in both our Mineral Fiber and
Architectural Specialties businesses. We remain focused on adjusted
free cash flow growth, which will continue to fuel our balanced
approach to capital deployment for value creation.”
For the Year Ended December 31,
2025
(Dollar amounts in millions except
per-share data)
2024 Actual
Guidance
VPY Growth %
Net sales
$
1,446
$
1,570
to
$
1,610
9%
to
11%
Adjusted EBITDA*
$
486
$
525
to
$
545
8%
to
12%
Adjusted diluted net earnings per
share*
$
6.31
$
6.85
to
$
7.15
9%
to
13%
Adjusted free cash flow*
$
298
$
315
to
$
335
6%
to
12%
Earnings Webcast
Management will host a live webcast conference call at 10:00
a.m. ET today, to discuss fourth-quarter and full-year 2024
results. This event will be available on the Company's website. The
call and accompanying slide presentation can be found on the
investor relations section of the Company's website at
www.armstrongworldindustries.com. The replay of this event will be
available on the website for up to one year after the date of the
call.
Uncertainties Affecting Forward-Looking Statements
Disclosures in this release contain forward-looking statements
within the meaning of the Private Securities Litigation Reform Act
of 1995, including without limitation, those relating to future
financial and operational results, market and broader economic
conditions and guidance. Those statements provide our future
expectations or forecasts and can be identified by our use of words
such as “anticipate,” “estimate,” “expect,” “project,” “intend,”
“plan,” “believe,” “outlook,” “target,” “predict,” “may,” “will,”
“would,” “could,” “should,” “seek,” and other words or phrases of
similar meaning in connection with any discussion of future
operating or financial performance. This includes annual guidance.
Forward-looking statements, by their nature, address matters that
are uncertain and involve risks because they relate to events and
depend on circumstances that may or may not occur in the future. As
a result, our actual results may differ materially from our
expected results and from those expressed in our forward-looking
statements. A more detailed discussion of the risks and
uncertainties that could cause our actual results to differ
materially from those projected, anticipated or implied is included
in the “Risk Factors” and “Management’s Discussion and Analysis”
sections of our reports on Form 10-K and Form 10-Q filed with the
U.S. Securities and Exchange Commission (“SEC”), including our
annual report for the year ended December 31, 2024, that the
Company expects to file today. Forward-looking statements speak
only as of the date they are made. We undertake no obligation to
update any forward-looking statements beyond what is required under
applicable securities law.
About Armstrong and Additional Information
Armstrong World Industries, Inc (AWI) is an Americas leader in
the design and manufacture of innovative interior and exterior
architectural applications including ceilings, specialty walls and
exterior metal solutions. For more than 160 years, Armstrong has
delivered products and capabilities that enable architects,
designers and contractors to transform building design and
construction with elevated aesthetics, acoustics and sustainable
attributes. With $1.4 billion in revenue in 2024, AWI has
approximately 3,600 employees and a manufacturing network of 20
facilities, plus seven facilities dedicated to its WAVE joint
venture.
More details on the Company’s performance can be found in its
report on Form 10-K for the year ended December 31, 2024, that the
Company expects to file with the SEC today.
Reported Financial Results
(Amounts in millions, except per share data)
SELECTED FINANCIAL RESULTS
Armstrong World Industries, Inc.
and Subsidiaries
(Quarterly data is unaudited)
For the Three Months Ended
December 31,
For the Year Ended December
31,
2024
2023
2024
2023
Net sales
$
367.7
$
312.3
$
1,445.7
$
1,295.2
Cost of goods sold
223.8
192.8
864.1
798.2
Gross profit
143.9
119.5
581.6
497.0
Selling, general and administrative
expenses
85.4
73.3
308.5
262.5
Loss related to change in fair value of
contingent consideration
1.0
0.1
1.6
0.1
Loss on sales of fixed assets, net
0.3
-
0.6
-
Equity (earnings) from unconsolidated
affiliates, net
(24.7
)
(20.2
)
(103.4
)
(89.3
)
Operating income
81.9
66.3
374.3
323.7
Interest expense
9.2
8.6
39.8
35.3
Other non-operating (income), net
(3.3
)
(3.0
)
(12.6
)
(9.9
)
Earnings before income taxes
76.0
60.7
347.1
298.3
Income tax expense
13.8
13.9
82.2
74.5
Net earnings
$
62.2
$
46.8
$
264.9
$
223.8
Diluted net earnings per share of common
stock
$
1.42
$
1.06
$
6.02
$
4.99
Average number of diluted common shares
outstanding
43.9
44.2
44.0
44.8
SEGMENT RESULTS
Armstrong World Industries, Inc.
and Subsidiaries
(Quarterly data is unaudited)
For the Three Months Ended
December 31,
For the Year Ended December
31,
2024
2023
2024
2023
Net Sales
Mineral Fiber
$
238.2
$
220.3
$
986.0
$
932.4
Architectural Specialties
129.5
92.0
459.7
362.8
Total net sales
$
367.7
$
312.3
$
1,445.7
$
1,295.2
For the Three Months Ended
December 31,
For the Year Ended December
31,
2024
2023
2024
2023
Segment operating
income (loss)
Mineral Fiber
$
68.6
$
60.9
$
322.5
$
285.7
Architectural Specialties
14.2
6.0
55.3
40.9
Unallocated Corporate
(0.9
)
(0.6
)
(3.5
)
(2.9
)
Total consolidated operating income
$
81.9
$
66.3
$
374.3
$
323.7
SELECTED BALANCE SHEET
INFORMATION
Armstrong World Industries, Inc.
and Subsidiaries
December 31, 2024
December 31, 2023
Assets
Current assets
$
348.9
$
313.0
Property, plant and equipment, net
598.8
566.4
Other non-current assets
895.0
793.0
Total assets
$
1,842.7
$
1,672.4
Liabilities and
shareholders’ equity
Current liabilities
$
249.7
$
194.5
Non-current liabilities
835.9
886.1
Shareholders' equity
757.1
591.8
Total liabilities and shareholders’
equity
$
1,842.7
$
1,672.4
SELECTED CASH FLOW
INFORMATION
Armstrong World Industries, Inc.
and Subsidiaries
For the Year Ended December
31,
2024
2023
Net earnings
$
264.9
$
223.8
Other adjustments to reconcile net
earnings to net cash provided by operating activities
20.4
12.5
Changes in operating assets and
liabilities, net
(18.5
)
(2.8
)
Net cash provided by operating
activities
266.8
233.5
Net cash (used for) investing
activities
(79.3
)
(10.4
)
Net cash (used for) financing
activities
(177.6
)
(258.6
)
Effect of exchange rate changes on cash
and cash equivalents
(1.4
)
0.3
Net increase (decrease) in cash and cash
equivalents
8.5
(35.2
)
Cash and cash equivalents at beginning of
year
70.8
106.0
Cash and cash equivalents at end of
period
$
79.3
$
70.8
Supplemental Reconciliations of GAAP to
non-GAAP Results (unaudited) (Amounts in millions,
except per share data)
To supplement its consolidated financial statements presented in
accordance with accounting principles generally accepted in the
United States (“GAAP”), the Company provides additional measures of
performance adjusted to exclude the impact of certain discrete
expenses and income including adjusted Earnings Before Interest,
Taxes, Depreciation and Amortization ("EBITDA"), adjusted diluted
earnings per share ("EPS") and adjusted free cash flow. Investors
should not consider non-GAAP measures as a substitute for GAAP
measures. The Company excludes certain acquisition related expenses
(i.e. – impact of adjustments related to the fair value of
inventory, contingent third-party professional fees, changes in the
fair value of contingent consideration and deferred compensation
accruals for acquisitions). Acquisition related deferred
compensation accruals excluded from adjusted EBITDA represented
cash and stock awards that were recorded over each award's
respective vesting period, as such payments were subject to the
sellers’ and employees’ continued employment with the Company. The
Company also excludes all acquisition-related intangible
amortization from adjusted net earnings and in calculations of
adjusted diluted EPS. Examples of other excluded items have
included plant closures, restructuring charges and related costs,
impairments, separation costs and other cost reduction initiatives,
environmental site expenses and environmental insurance recoveries,
endowment level charitable contributions, the impact of defined
benefit plan settlements, gains and losses on sales or impairment
of fixed assets, and certain other gains and losses. The Company
also excludes income/expense from its U.S. Retirement Income Plan
(“RIP”) in the non-GAAP results as it represents the actuarial net
periodic benefit credit/cost recorded. For all periods presented,
the Company was not required and did not make cash contributions to
the RIP based on guidelines established by the Pension Benefit
Guaranty Corporation, nor does the Company expect to make cash
contributions to the plan in 2025. Adjusted free cash flow is
defined as cash from operating and investing activities, adjusted
to remove the impact of cash used or proceeds received for
acquisitions and divestitures, environmental site expenses and
environmental insurance recoveries. Management's adjusted free cash
flow measure includes returns of investment from WAVE and cash
proceeds received from the settlement of company-owned life
insurance policies, which are presented within investing activities
on our consolidated statement of cash flows. The Company uses these
adjusted performance measures in managing the business, including
communications with its Board of Directors and employees, and
believes that they provide users of this financial information with
meaningful comparisons of operating performance between current
results and results in prior periods. The Company believes that
these non-GAAP financial measures are appropriate to enhance
understanding of its past performance, as well as prospects for its
future performance. The Company also uses adjusted EBITDA and
adjusted free cash flow (with further adjustments, when necessary)
as factors in determining at-risk compensation for senior
management. These non-GAAP measures may not be defined and
calculated the same as similar measures used by other companies.
Non-GAAP financial measures utilized by the Company may not be
comparable to non-GAAP financial measures used by other companies.
A reconciliation of these adjustments to the most directly
comparable GAAP measures is included in this release and on the
Company’s website. These non-GAAP measures should not be considered
in isolation or as a substitute for the most comparable GAAP
measures.
In the following charts, numbers may not sum due to rounding.
Excluding adjusted diluted EPS, non-GAAP figures are rounded to the
nearest million and corresponding percentages are rounded to the
nearest percent based on unrounded figures.
Consolidated
Results – Adjusted EBITDA
For the Three Months Ended
December 31,
For the Year Ended December
31,
2024
2023
2024
2023
Net sales
$
368
$
312
$
1,446
$
1,295
Net earnings
$
62
$
47
$
265
$
224
Add: Income tax expense
14
14
82
75
Earnings before income taxes
$
76
$
61
$
347
$
298
Add: Interest/other income and expense,
net
6
6
27
25
Operating income
$
82
$
66
$
374
$
324
Add: RIP expense (1)
1
1
2
3
Add: Acquisition-related impacts (2)
2
7
4
11
Add: Cost reduction initiatives and
other
-
1
-
3
Add: WAVE pension settlement (3)
(1
)
-
-
-
Add: Loss on sales of fixed assets, net
(4)
-
-
1
-
Add: Environmental expense
-
-
2
-
Adjusted operating income
$
84
$
75
$
383
$
340
Add: Depreciation and amortization
27
23
103
89
Adjusted EBITDA
$
112
$
98
$
486
$
430
Operating income margin
22.3
%
21.2
%
25.9
%
25.0
%
Adjusted EBITDA margin
30.4
%
31.4
%
33.6
%
33.2
%
- RIP expense represents only the plan service cost that is
recorded within Operating income. For all periods presented, we
were not required to and did not make cash contributions to our
RIP.
- Represents the impact of acquisition-related adjustments for
the fair value of inventory, contingent third-party professional
fees, changes in fair value of contingent consideration, deferred
compensation and restricted stock expenses.
- Represents the Company's 50% share of WAVE's settlement of
their defined benefit pension plan.
- Includes the impact of a loss on sale of an undeveloped parcel
of land adjacent to our corporate headquarters, partially offset by
a gain on sale of our idled Mineral Fiber plant in St. Helens,
Oregon.
Mineral
Fiber
For the Three Months Ended
December 31,
For the Year Ended December
31,
2024
2023
2024
2023
Net sales
$
238
$
220
$
986
$
932
Operating income
$
69
$
61
$
323
$
286
Add: Cost reduction initiatives and
other
-
1
-
3
Add: WAVE pension settlement (1)
(1
)
-
-
-
Add: Loss on sales of fixed assets, net
(2)
-
-
1
-
Add: Environmental expense
-
-
2
-
Adjusted operating income
$
68
$
62
$
325
$
289
Add: Depreciation and amortization
21
19
80
75
Adjusted EBITDA
$
89
$
81
$
406
$
364
Operating income margin
28.8
%
27.6
%
32.7
%
30.6
%
Adjusted EBITDA margin
37.5
%
36.8
%
41.2
%
39.1
%
- Represents the Company's 50% share of WAVE's settlement of
their defined benefit pension plan.
- Includes the impact of a loss on sale of an undeveloped parcel
of land adjacent to our corporate headquarters, partially offset by
a gain on sale of our idled Mineral Fiber plant in St. Helens,
Oregon.
Architectural
Specialties
For the Three Months Ended
December 31,
For the Year Ended December
31,
2024
2023
2024
2023
Net sales
$
130
$
92
$
460
$
363
Operating income
$
14
$
6
$
55
$
41
Add: Acquisition-related impacts (1)
2
7
3
11
Adjusted operating income
$
16
$
13
$
59
$
52
Add: Depreciation and amortization
6
4
23
14
Adjusted EBITDA
$
23
$
17
$
82
$
66
Operating income margin
11.0
%
6.5
%
12.0
%
11.3
%
Adjusted EBITDA margin
17.4
%
18.4
%
17.8
%
18.1
%
- Represents the impact of acquisition-related adjustments for
the fair value of inventory, contingent third-party professional
fees, changes in fair value of contingent consideration, deferred
compensation and restricted stock expenses.
Unallocated
Corporate
For the Three Months Ended
December 31,
For the Year Ended December
31,
2024
2023
2024
2023
Operating (loss)
$
(1
)
$
(1
)
$
(4
)
$
(3
)
Add: RIP expense (1)
1
1
2
3
Adjusted operating (loss)
$
-
$
-
$
(1
)
$
-
Add: Depreciation and amortization
-
-
-
-
Adjusted EBITDA
$
-
$
-
$
(1
)
$
-
- RIP expense represents only the plan service cost that is
recorded within Operating loss. For all periods presented, we were
not required to and did not make cash contributions to our
RIP.
Consolidated
Results – Adjusted Free Cash Flow
For the Three Months Ended
December 31,
For the Year Ended December
31,
2024
2023
2024
2023
Net cash provided by operating
activities
$
87
$
57
$
267
$
234
Net cash (used for) investing
activities
$
(18
)
$
-
$
(79
)
$
(10
)
Net cash provided by operating and
investing activities
$
69
$
57
$
188
$
223
Add: Cash paid for acquisitions, net of
cash acquired and investment in unconsolidated affiliate
30
3
129
27
Add: Environmental expenses, net
-
1
-
1
Add: Arktura deferred compensation (1)
1
8
6
8
Add: Contingent consideration in excess of
acquisition-date fair value (2)
-
-
-
5
(Less): Proceeds from sales of facilities
(3)
(13
)
-
(24
)
-
Adjusted Free Cash Flow
$
86
$
68
$
298
$
263
- Deferred compensation and contingent consideration payments
related to 2020 acquisitions were recorded as components of net
cash provided by operating activities.
- Contingent compensation payments related to the acquisition of
Turf Design, Inc.
- Proceeds related to the sale of Architectural Specialties
design center, our idled Mineral Fiber plant in St. Helens, Oregon
and undeveloped land adjacent to our corporate headquarters.
Consolidated
Results – Adjusted Diluted Earnings Per Share (EPS)
For the Three Months Ended
December 31,
For the Year Ended December
31,
2024
2023
2024
2023
Total
Per Diluted Share
Total
Per Diluted Share
Total
Per Diluted Share
Total
Per Diluted Share
Net earnings
$
62
$
1.42
$
47
$
1.06
$
265
$
6.02
$
224
$
4.99
Add: Income tax expense
14
14
82
75
Earnings before income taxes
$
76
$
61
$
347
$
298
(Less): RIP (credit) (1)
-
-
(1
)
(1
)
Add: Acquisition-related impacts (2)
2
7
4
11
Add: Acquisition-related amortization
(3)
3
2
11
6
Add: Cost reduction initiatives and
other
-
1
-
3
Add: WAVE pension settlement (4)
(1
)
-
-
-
Add: Loss on sales of fixed assets, net
(5)
-
-
1
-
Add: Environmental expense
-
-
2
-
Adjusted net earnings before income
taxes
$
81
$
70
$
364
$
318
(Less): Adjusted income tax expense
(6)
(15
)
(16
)
(86
)
(79
)
Adjusted net earnings
$
66
$
1.50
$
54
$
1.22
$
277
$
6.31
$
238
$
5.32
Adjusted diluted EPS change versus prior
year
23.0%
18.6%
Diluted shares outstanding
43.9
44.2
44.0
44.8
Effective tax rate
18%
23%
24%
25%
- RIP (credit) represents the entire actuarial net periodic
pension (credit) recorded as a component of net earnings. For all
periods presented, we were not required to and did not make cash
contributions to our RIP.
- Represents the impact of acquisition-related adjustments for
the fair value of inventory, contingent third-party professional
fees, changes in fair value of contingent consideration, deferred
compensation and restricted stock expenses.
- Represents acquisition-related intangible amortization,
including customer relationships, developed technology, software,
trademarks and brand names, non-compete agreements and other
intangibles.
- Represents the Company's 50% share of WAVE's settlement of
their defined benefit pension plan.
- Includes the impact of a loss on sale of an undeveloped parcel
of land adjacent to our corporate headquarters, partially offset by
a gain on sale of our idled Mineral Fiber plant in St. Helens,
Oregon.
- Adjusted income tax expense is calculated using the effective
tax rate multiplied by the adjusted net earnings before income
taxes.
Adjusted EBITDA
Guidance
For the Year Ending December 31,
2025
Low
High
Net earnings
$
293
to
$
297
Add: Income tax expense
96
102
Earnings before income taxes
$
389
to
$
399
Add: Interest expense
34
37
Add: Other non-operating (income), net
(14
)
(13
)
Operating income
$
409
to
$
423
Add: RIP expense (1)
1
2
Adjusted operating income
$
410
to
$
425
Add: Depreciation and amortization
115
120
Adjusted EBITDA
$
525
to
$
545
- RIP expense represents only the plan service cost that is
recorded within Operating income. We do not expect to make cash
contributions to our RIP.
Adjusted Diluted
Net Earnings Per Share Guidance
For the Year Ending December 31,
2025
Low
Per Diluted Share(1)
High
Per Diluted Share(1)
Net earnings
$
293
$
6.72
to
$
297
$
6.84
Add: Income tax expense
96
102
Earnings before income taxes
$
389
to
$
399
Add: RIP (credit) (2)
(1
)
(1
)
Add: Acquisition-related amortization
(3)
13
15
Adjusted earnings before income
taxes
$
401
to
$
413
(Less): Adjusted income tax expense
(4)
(101
)
(102
)
Adjusted net earnings
$
299
$
6.85
to
$
311
$
7.15
- Adjusted diluted EPS guidance for 2025 is calculated based on
approximately 43 to 44 million of diluted shares outstanding.
- RIP (credit) represents the entire actuarial net periodic
pension (credit) recorded as a component of net earnings. We do not
expect to make any cash contributions to our RIP.
- Represents acquisition-related intangible amortization,
including customer relationships, developed technology, software,
trademarks and brand names, non-compete agreements, trade secrets
and other intangibles.
- Income tax expense is based on an adjusted effective tax rate
of approximately 25%, multiplied by adjusted earnings before income
taxes.
Adjusted Free
Cash Flow Guidance
For the Year Ending December 31,
2025
Low
High
Net cash provided by operating
activities
$
297
to
$
319
Add: Return of investment from joint
venture
108
116
Less: Capital expenditures
(90
)
(100
)
Adjusted Free Cash Flow
$
315
to
$
335
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250225229437/en/
Investors & Media: Theresa Womble,
tlwomble@armstrongceilings.com or (717) 396-6354
Grafico Azioni Armstrong World Industries (NYSE:AWI)
Storico
Da Feb 2025 a Mar 2025
Grafico Azioni Armstrong World Industries (NYSE:AWI)
Storico
Da Mar 2024 a Mar 2025
