Armstrong World Industries, Inc. (NYSE:AWI) reported first-quarter results on Tuesday that fell short of earnings expectations, even as revenue came in broadly in line with forecasts.
The company’s shares declined 4.37% in premarket trading following the announcement.
Adjusted earnings per share were $1.69, below the analyst consensus estimate of $1.81.
Revenue totaled $409.9 million, essentially matching the expected $409.86 million and representing a 7.1% increase from $382.7 million a year earlier. The growth was supported by $17 million in higher volumes and $10 million from improved average unit value.
Adjusted EBITDA edged up 1% to $130 million, although the margin narrowed by 190 basis points to 31.7%, compared with 33.6% in the prior-year period.
The company said margins in its Architectural Specialties division were impacted by several one-off costs, including a $3 million tariff adjustment, $3 million in acquisition-related expenses tied to the Eventscape deal, and $3 million in severance charges.
“We delivered solid topline growth this quarter, driven by Mineral Fiber AUV and higher volumes, along with double-digit sales growth in Architectural Specialties,” said Mark Hershey, chief executive officer. “We continued to deliver strong Mineral Fiber Adjusted EBITDA performance, while total company Adjusted EBITDA in the quarter was pressured by short-term headwinds in the Architectural Specialties segment.”
The Mineral Fiber segment generated net sales of $257.2 million, up 4.9% year over year, with adjusted EBITDA increasing 3.5% to $109 million.
Architectural Specialties posted net sales of $152.7 million, a rise of 11%, but adjusted EBITDA declined 11.9% to $21 million due to the previously noted cost pressures.
For fiscal 2026, Armstrong maintained its revenue outlook in the range of $1.745 billion to $1.785 billion, slightly below the $1.77 billion consensus estimate. The midpoint of $1.765 billion remains just under expectations. The company also raised its adjusted EPS guidance to between $8.15 and $8.45, with the midpoint of $8.30 aligning with analyst forecasts.