Armstrong World Industries Inc. (NYSE:AWI) reported third-quarter 2026 revenue above analyst expectations on Tuesday, although adjusted earnings per share fell below consensus forecasts as higher input costs, product mix changes and tariff-related expenses affected profitability.
The ceiling and architectural solutions manufacturer recorded revenue of $475.8 million, representing an 11.9% increase compared with the corresponding period of 2025. Adjusted earnings per share totaled $2.26, below the analyst consensus estimate of $2.39.
Armstrong World also issued full-year adjusted earnings guidance with a midpoint below market expectations, while forecasting continued revenue and adjusted EBITDA growth.
Shares declined approximately 6.9% following the announcement.
Armstrong World Reports Higher Third-Quarter Revenue
Armstrong World generated third-quarter revenue of $475.8 million, exceeding the analyst consensus estimate of $472.62 million.
Revenue increased 11.9% compared with the corresponding period of 2025, supported by growth across its Mineral Fiber and Architectural Specialties businesses.
Adjusted earnings per share reached $2.26, compared with the analyst consensus forecast of $2.39.
The earnings figure was $0.13 below expectations despite the company reporting higher sales.
The results reflected increased demand for architectural products alongside cost pressures affecting operating profitability.
Adjusted EBITDA Increases 11% to $164 Million
Armstrong World reported third-quarter adjusted EBITDA of $164 million, representing an 11.0% increase compared with the previous year.
Adjusted EBITDA margin stood at 34.5%, compared with approximately 34.7% in the corresponding period of 2025.
The company reported a margin contraction of approximately 30 basis points.
Higher input costs, changes in the Mineral Fiber product mix and continuing tariff-related expenses affected margins during the quarter.
The increase in adjusted EBITDA accompanied double-digit revenue growth, although the adjusted EBITDA margin was slightly lower than in the prior-year period.
Mineral Fiber Revenue Rises 6.6%
Armstrong World’s Mineral Fiber segment reported third-quarter revenue of $292.1 million, an increase of 6.6% year over year.
The company attributed the growth to favorable pricing and higher sales volumes.
Mineral Fiber average unit value and volume performance contributed to the segment’s revenue increase.
However, changes in product mix within the business also affected consolidated adjusted EBITDA margins.
The segment remained the larger of Armstrong World’s two reported businesses by revenue during the quarter.
Architectural Specialties Revenue Increases 21.5%
The Architectural Specialties segment recorded third-quarter revenue of $183.7 million, representing growth of 21.5% compared with the previous year.
Armstrong World reported organic sales growth across most of its specialty product categories.
The segment’s revenue increase exceeded the growth rate reported by Mineral Fiber.
Architectural Specialties contributed to the company’s overall revenue expansion, with demand for its product portfolio identified as a factor in the quarterly performance.
Together, the two operating segments generated consolidated revenue of $475.8 million.
Chief Executive Comments on Demand and Cost Pressures
Mark Hershey, Chief Executive Officer of Armstrong World Industries, commented on the company’s third-quarter operating performance.
“Strong demand for our broad portfolio of Architectural Specialties solutions and solid Mineral Fiber AUV and volume performance drove another quarter of record top-line results,” Hershey said.
The chief executive also noted that the company delivered double-digit adjusted EBITDA growth despite rising inflationary pressures and timing-related changes in product mix.
Management identified input costs, tariffs and the composition of Mineral Fiber sales as factors affecting profitability during the reporting period.
The comments accompanied the company’s reported 11.9% increase in quarterly revenue and 11.0% growth in adjusted EBITDA.
Armstrong World Forecasts 2026 Adjusted EPS Below Consensus
For fiscal 2026, Armstrong World expects adjusted earnings per share of between $8.30 and $8.40.
The midpoint of the guidance range is $8.35, compared with the analyst consensus estimate of $8.43.
The forecast midpoint is therefore $0.08 below market expectations.
The company provided the earnings outlook alongside projections for full-year revenue and adjusted EBITDA.
The guidance reflects management’s expectations for profitability during the remainder of 2026, including the effects of operating costs and business mix.
Full-Year Revenue Expected to Reach $1.79 Billion to $1.80 Billion
Armstrong World forecasts fiscal 2026 revenue of between $1.788 billion and $1.803 billion.
The range represents expected year-over-year growth of approximately 10% to 11%.
The company’s annual revenue guidance follows third-quarter sales growth of 11.9%, including increases in both Mineral Fiber and Architectural Specialties.
The forecast indicates that management expects consolidated revenue to remain above the previous year’s level for fiscal 2026.
Adjusted EBITDA Guidance Indicates 8% to 10% Annual Growth
Armstrong World expects full-year adjusted EBITDA of between $602 million and $612 million.
The forecast represents growth of approximately 8% to 10% compared with fiscal 2025.
The company reported third-quarter adjusted EBITDA of $164 million, an increase of 11.0% year over year.
Its annual outlook reflects expectations for continued earnings growth despite inflationary pressures, tariff-related costs and product mix effects.
The adjusted EBITDA forecast accompanies the company’s full-year adjusted earnings per share guidance of $8.30 to $8.40.
Armstrong World Shares Decline Following Results
Armstrong World Industries shares fell approximately 6.9% following the release of its third-quarter financial results and annual guidance.
The decline occurred after adjusted earnings per share fell below analyst expectations and the company’s full-year adjusted earnings forecast came in below consensus.
Revenue exceeded estimates, while adjusted EBITDA increased year over year.
The company also reported higher sales in both Mineral Fiber and Architectural Specialties.
The available information does not establish a single cause for the share price movement.
What Should Investors Monitor Following Armstrong World’s Results?
Armstrong World’s third-quarter results showed higher revenue and adjusted EBITDA, supported by growth across its operating segments.
However, adjusted earnings per share missed analyst expectations, and adjusted EBITDA margin declined slightly as higher costs, tariffs and product mix changes affected profitability.
For fiscal 2026, the company expects revenue of $1.788 billion to $1.803 billion, adjusted EBITDA of $602 million to $612 million and adjusted earnings per share of $8.30 to $8.40.
Subsequent financial reports will provide further information about demand for Architectural Specialties products, Mineral Fiber pricing and volumes, input costs, tariff-related expenses and progress against the company’s annual guidance.