Armstrong World Industries Reports Record 2025 Results, Expects Continued Growth in 2026

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Armstrong World Industries (NYSE:AWI) executives highlighted record full-year 2025 results alongside a softer-than-expected fourth quarter, while outlining expectations for continued profitable growth in 2026 driven by pricing, productivity, acquisitions, and new product momentum in energy-saving ceilings and data center solutions.

Why it matters

Armstrong World Industries is a leading global manufacturer of commercial ceiling and wall solutions, with a diverse portfolio of acoustical, decorative and specialty ceiling systems. The company's strong 2025 performance and optimistic outlook for 2026 reflect its ability to navigate challenging market conditions and capitalize on growth opportunities in key sectors like transportation, data centers, and office renovations.

The details

For the full year 2025, Armstrong reported net sales up 12%, adjusted EBITDA up 14% with margin expansion, and adjusted diluted EPS up 17%. The company cited contributions from acquisitions, market penetration, growth initiatives, strong average unit value (AUV) performance, productivity gains, and healthy equity earnings from the WAVE joint venture. Fourth-quarter results were softer than anticipated, with temporary disruptions across both the Mineral Fiber and Architectural Specialties segments. An extended government shutdown disrupted maintenance and repair activity, while key project delays in Architectural Specialties reduced operating leverage and increased costs. Looking ahead to 2026, Armstrong expects 8-10% total company net sales growth and 8-12% adjusted EBITDA growth, with margin expansion in both segments. The company cited pricing, productivity, acquisitions like Eventscape, and new product momentum in energy-efficient ceilings and data center solutions as key drivers of the 2026 outlook.

• In the fourth quarter of 2025, Armstrong acquired Parallel Architectural Products.
• In the fourth quarter of 2025, Armstrong reported softer-than-expected results due to temporary disruptions across both business segments.
• On April 1, 2026, Vic Grizzle will transition from CEO to executive chairman, with Mark Hershey becoming president and CEO.

What they’re saying

What’s next

The company expects to complete the acquisition of Eventscape in 2026, which generated approximately $30 million in revenue in 2025 and is expected to contribute positively to Armstrong's results in 2026.