Armstrong World Industries (AWI) Q2 2026 earnings summary

Executive summary

• Achieved record Q2 2026 net sales, up 11.2% year-over-year to $472.0M, with both Mineral Fiber and Architectural Specialties segments contributing to growth.

• Adjusted EBITDA rose 8% to $166M, and operating income increased 8.6% to $133.8M, driven by strong execution, innovation, and favorable pricing.

• Adjusted diluted EPS grew 13% to $2.36, and net earnings reached $96.7M, up 10.1% year-over-year.

• Performance exceeded expectations despite muted market conditions, supported by digital initiatives and high-end product demand.

• Raised 2026 guidance midpoints across all key metrics, reflecting confidence in continued growth.

Financial highlights

• Q2 2026 net sales: $472M (up 11.2%); adjusted EBITDA: $166M (up 8%); adjusted diluted EPS: $2.36 (up 13%).

• Mineral Fiber net sales grew 7.9% to $288.2M; adjusted EBITDA margin at 44.7%.

• Architectural Specialties net sales up 16.6% to $183.8M; adjusted EBITDA margin at 20.4%.

• Adjusted free cash flow for Q2 2026 was $100M, up 14% year-over-year; year-to-date cash flows from operating activities increased $3M (3%).

• Operating income margin for Q2 2026 was 28.3%; adjusted EBITDA margin was 35.2%.

Outlook and guidance

• Full-year 2026 net sales guidance raised to $1.77B–$1.80B (9–11% growth); adjusted EBITDA $605M–$620M (9–12% growth).

• Adjusted diluted EPS guidance increased to $8.30–$8.50 (12–15% growth); adjusted free cash flow $380M–$395M (10–14% growth).

• Mineral Fiber net sales growth expected at ~7% (AUV ~6%, volume ~1%); AS net sales growth expected at 15%–17%.

• Adjusted EBITDA margin guidance: Mineral Fiber ~44%, AS ~19%.

• Further pricing actions planned for Mineral Fiber and WAVE products in Q3 2026.