Armstrong World Industries, Inc. (NYSE:AWI) reported fourth-quarter results on Tuesday that came in below analyst forecasts, with both earnings and revenue missing consensus estimates amid challenges tied to the federal government shutdown and weaker demand from home center channels.
The company’s shares declined 1.73% in premarket trading following the release.
Adjusted earnings per share totaled $1.61 for the quarter, falling short of analyst expectations of $1.68. Revenue reached $388.3 million, representing a 6% year-on-year increase but missing the consensus estimate of $400.9 million. The figure compared with $367.7 million recorded in the same quarter a year earlier.
Looking ahead, Armstrong World provided fiscal 2026 guidance of $8.05 to $8.35 in earnings per share on projected revenue between $1.745 billion and $1.785 billion. The midpoint of the EPS outlook, $8.20, sits below the analyst consensus of $8.44, while the revenue midpoint of $1.765 billion also trails market expectations.
“These results represent another strong year for Armstrong with record-setting sales and earnings for both the quarter and the full year,” said Vic Grizzle, President and CEO. “For the second consecutive year, we have achieved double-digit growth in both annual sales and earnings.”
Within its business segments, the Mineral Fiber division generated sales of $244.6 million, up 3% year-on-year, supported by favorable average unit value gains of $15 million, partly offset by an $8 million decline in sales volumes.
The Architectural Specialties segment reported revenue of $143.7 million, an 11% increase year-on-year, including an $8 million contribution from acquisitions completed in 2024.
Operating income rose 12% to $92.0 million, while adjusted EBITDA increased 11% to $124 million. Operating margin expanded by 140 basis points to 23.7%, and adjusted EBITDA margin improved by 160 basis points to 32.0%.
For the full year 2025, Armstrong World posted record net sales of $1.62 billion, up 12% year-on-year, alongside adjusted diluted earnings per share of $7.41, representing a 17% increase compared with the previous year.