Armstrong World Industries

AWI · NYSE · Industrials · Financials, fiscal 2016 to 2025

AWI · Last close · November 6, 2026

$171.23

Value Armstrong World Industries yourself

Armstrong World Industries' revenue rose 12.1% to $1.6 billion in fiscal 2025. Its operating margin was 26.6%, up from 25.9% a year earlier. Free cash flow was $246 million, up 33.8%. It paid out $184 million in dividends and buybacks, 75% of free cash flow. The diluted share count fell 0.9%.

ARMSTRONG WORLD INDUSTRIES, INC. Latest fiscal year ended December 31, 2025 10-K filed February 24, 2026 · 0001193125-26-065183 Updated November 5, 2026

Revenue

$1.6B

12.1%

Operating margin

26.6%

0.7 pts

Net income

$309M

16.5%

Free cash flow

$246M

33.8%

Return on capital

26.9%

2.8 pts

Market cap

$7.2B

Nov 6 close

P/E

22.8x

On $7.50 EPS, 4 qtrs

Operating margin is operating income as a share of revenue. Free cash flow is cash from operations minus capital spending. Return on capital is after-tax operating income as a share of the money invested in the business: debt plus equity, minus cash. Market cap is the last closing share price times the latest diluted share count, so it is approximate. P/E is the last close divided by diluted earnings per share over the last four quarters, or the latest fiscal year where the quarters aren't available; there is none when the company made a loss.

Charts show fiscal years, from the 10-K filings.

What Armstrong World Industries does

Armstrong World Industries designs and makes ceilings, specialty walls and exterior metal products for buildings. It makes products from mineral fiber, fiberglass, metal, felt, architectural resin and glass, wood and other materials. It sells mostly in the United States, Canada and Latin America, and most of its revenue comes from commercial construction, such as offices (including data centers), schools, healthcare and retail, both new and renovation work.

It reports two operating segments plus unallocated corporate items. Mineral Fiber makes suspended ceiling systems sold mainly to distributors, ceiling contractors, wholesalers and retailers. This segment also includes its 50% share in a joint venture with Worthington Enterprises, called WAVE, that makes the metal grid that holds ceiling tiles. Architectural Specialties makes specialty ceilings, walls and exterior architectural products, some of them sourced from outside producers.

It has recently bought several smaller makers to grow Architectural Specialties, including Parallel in December 2025 and Geometrik in September 2025. It says it competes with other makers of ceiling products, drywall and specialty ceiling and exterior metal products.

Its biggest risks, as it describes them

Weak commercial construction activity, which drives most of its revenue.
Debt and the cash it needs to operate and invest.
Benefits from its strategic initiatives and acquisitions not arriving as expected.
Customers consolidating or facing pressure, and failing to win new customers.
Dependence on outside vendors and suppliers.

From Armstrong World Industries's annual report on Form 10-K, filed February 24, 2026, in our words; the 10-K has the full description and every risk factor. Updated with each new annual report.

Income statement

Revenue and net income

US$ billions, fiscal years; net losses in red. Revenue on the left axis, net income on the right; zero is the same line on both.

Revenue (left axis)Net income (right axis)

Gross profit, R&D and operating income

US$ billions, fiscal years. Gross profit is revenue minus the cost of what was sold; research and development is one of the costs paid from it; what remains after all operating costs is operating income. Losses in red.

Gross profitResearch and developmentOperating income

Margins

Percent of revenue

GrossOperatingNetFree cash flow

From fiscal 2016 to 2025, earnings per share grew 15.9% a year and net income 12.8% a year, as buybacks cut the share count by 22%.

Diluted earnings per share

US$ per share, fiscal years, restated for any stock splits; loss years in red.

Returns on capital

Return on capital and on equity

Percent. Return on capital is after-tax operating income over the money invested in the business (debt plus equity, minus cash); return on equity is net income over shareholders' equity. Both use the average of opening and closing balances.

Return on capitalReturn on equity

Balance sheet

Cash and debt

US$ billions, at each fiscal year end. Debt includes finance leases.

Cash and short-term investmentsDebt

Assets, liabilities and equity

US$ billions, at each fiscal year end. Assets equal liabilities plus equity; negative equity in red.

Total assetsTotal liabilitiesShareholders' equity

Debt and liquidity ratios

Times. Debt to equity, current assets over current liabilities, and net debt over EBITDA (a full year's).

Debt to equityCurrent ratioNet debt to EBITDA

Five years at a glance

Fiscal year end	FY21	FY22	FY23	FY24	FY25
Cash and short-term investments	98	106	71	79	113
Debt incl. finance leases	650	668	613	562	446
Net debt (negative means net cash)	552	562	542	483	333
Net debt to EBITDA	1.6x	1.6x	1.3x	1.0x	0.6x
Debt to equity	1.2x	1.2x	1.0x	0.7x	0.5x
Interest coverage	11.3x	10.3x	9.2x	9.4x	13.1x
Current ratio	1.5x	1.9x	1.6x	1.4x	1.5x
Quick ratio	1.1x	1.4x	1.1x	1.0x	1.0x

US$ millions unless stated, at each fiscal year end. Net debt to EBITDA is debt minus cash, divided by operating income before depreciation and amortization: roughly how many years of those earnings the net debt equals. Debt to equity is debt as a multiple of shareholders' equity. Interest coverage is operating income divided by interest expense. The current ratio is current assets over current liabilities; the quick ratio leaves out inventory.

Cash flow

Cash from operations, capital spending and free cash flow

US$ billions, fiscal years. Free cash flow is cash from operations minus capital spending; negative years in red.

Cash from operationsCapital spendingFree cash flow

Stock-based compensation and buybacks

US$ billions, fiscal years. Shares paid to employees (stock-based compensation, a cost that uses no cash) against cash spent buying shares back. Buybacks that only match it leave the share count roughly where it was.

Stock-based compensationShare buybacks

Dividends and buybacks

US$ billions, cash paid in each fiscal year

DividendsShare buybacks

Diluted share count

Weighted-average diluted shares, millions

Projections

Project Armstrong World Industries' revenue, net income and earnings per share five years ahead in a bull, a base and a bear case with your own figures, and see the share prices your P/E estimates give them, or value it with a discounted cash flow model. Every projected figure is yours: it is not a forecast of ours.

Open Armstrong World Industries' projections

Insider trades

Over the 12 months between November 7, 2025 and November 6, 2026, 1 insider bought $99,998 of Armstrong World Industries shares on the open market, and none sold any.

Buys and sells by month

US$ millions, open-market purchases (up) and sales (down) by officers, directors and 10% owners in each month.

BoughtSold

Date	Insider	Trade	Shares	Price	Value	Filing
Feb 27, 2026	Roy W TemplinDirector	Bought	575	$173.91	$99,998	Form 4

Open-market purchases and sales by officers, directors and 10% owners, from their Form 4 filings with the SEC: one row per person, day and filing, at the day's average price. Grants, option exercises and shares withheld for tax aren't counted. Insiders buy and sell for many reasons, such as taxes, spreading their savings or a plan set up months earlier, so a trade on its own says little about where a company is heading. For information only, not investment advice. Insider trades at all companies

Indicators

Four widely used measures, worked out from the company's filings. The cutoffs are the ones their authors or users go by, not a verdict of ours.

Indicator	FY23	FY24	FY25
Piotroski F-score	8 of 9	8 of 9	9 of 9
Rule of 40	16.6%	24.4%	27.3%
Altman Z''	4.97	5.21	5.92
Accruals ratio	−0.6%	−0.1%	−2.5%

Piotroski F-score: how many of nine simple tests of profitability, funding and efficiency the company passed in the year (Piotroski, 2000); 8 or 9 is strong, 0 to 2 weak. Rule of 40: revenue growth plus free cash flow margin; software investors treat 40% or more as the bar. Altman Z'': working capital, retained earnings, operating income and equity weighed against assets and liabilities (Altman, 1995); Altman puts above 2.6 in the safe zone and below 1.1 in the distress zone. Accruals ratio: net income minus cash from operations, over average total assets; lower means profit is backed by cash.

The nine F-score tests

Test	FY23	FY24	FY25
Net income is positive	Pass	Pass	Pass
Cash from operations is positive	Pass	Pass	Pass
Return on assets rose	Pass	Pass	Pass
Cash from operations exceeds net income	Pass	Pass	Pass
Debt fell relative to assets	Pass	Pass	Pass
Current ratio rose	Fail	Fail	Pass
Share count didn't rise	Pass	Pass	Pass
Gross margin rose	Pass	Pass	Pass
Revenue rose relative to assets	Pass	Pass	Pass
F-score	8 of 9	8 of 9	9 of 9

Companies that report no gross profit are scored on the other eight.

Compare

Put Armstrong World Industries side by side with any other company we cover: revenue, growth, margins, cash flow and returns, with ten years of charts.

Similar companies

Company	Year	Revenue growth	Operating margin	Free cash flow margin	Return on capital	Net debt to EBITDA	F-score	Compare
Armstrong World Industries	FY25	12.1%	26.6%	15.2%	26.9%	0.6x	9
AAON	FY25	20.1%	10.1%	—	10.8%	1.8x	3	Compare
Quanex Building Products	FY25	43.8%	−10.6%	5.6%	−10.2%	—	4	Compare
Apogee Enterprises	FY26	3.2%	6.0%	6.8%	8.3%	1.4x	6	Compare
Worthington Enterprises	FY26	19.7%	5.5%	12.3%	5.1%	2.1x	7	Compare

Each company's latest fiscal year. Fiscal years end in different months, so the periods don't line up exactly. Free cash flow margin is free cash flow as a share of revenue. Net debt to EBITDA is explained under the balance sheet, and the F-score under Indicators.

10 years of figures

Fiscal year	FY16	FY17	FY18	FY19	FY20	FY21	FY22	FY23	FY24	FY25
Income statement
Revenue	837	894	975	1,038	937	1,107	1,233	1,295	1,446	1,621
Revenue growth	4.0%	6.7%	9.1%	6.4%	−9.8%	18.1%	11.4%	5.0%	11.6%	12.1%
Gross profit	307	315	334	395	333	406	449	497	582	659
Research and development	18	17	16	15	15	15	15	14	16	16
Operating income	196	244	249	317	255	260	279	324	374	431
Net income	105	120	186	214	−99	183	203	224	265	309
Diluted EPS (US$)	1.87	2.21	3.56	4.32	−2.07	3.82	4.37	4.99	6.02	7.08
Diluted shares (millions)	56	54	52	50	48	48	46	45	44	44
Cash flow
Cash from operations	49	170	203	183	219	187	182	234	267	356
Capital expenditure	104	90	72	71	55	80	75	84	83	109
Free cash flow	−55	81	131	111	163	107	108	150	184	246
Dividends paid	0	0	9	36	39	41	44	47	51	55
Share buybacks	44	80	307	131	44	80	165	132	56	129
Acquisitions	0	31	22	56	165	1	3	26	124	14
Stock-based compensation	12	10	14	10	7	11	14	19	18	22
Balance sheet at fiscal year end
Cash and short-term investments	142	160	326	45	137	98	106	71	79	113
Debt incl. finance leases	874	850	820	611	736	650	668	613	562	446
Total assets	1,758	1,874	1,838	1,493	1,718	1,710	1,687	1,672	1,843	1,925
Total liabilities	1,492	1,489	1,612	1,128	1,268	1,190	1,152	1,081	1,086	1,024
Shareholders' equity	266	384	226	365	451	520	535	592	757	901
Margins and ratios
Gross margin	36.7%	35.3%	34.2%	38.1%	35.5%	36.6%	36.4%	38.4%	40.2%	40.6%
Operating margin	23.4%	27.3%	25.6%	30.6%	27.2%	23.5%	22.6%	25.0%	25.9%	26.6%
Net margin	12.5%	13.4%	19.1%	20.7%	−10.6%	16.6%	16.4%	17.3%	18.3%	19.1%
Free cash flow margin	−6.6%	9.0%	13.5%	10.7%	17.4%	9.7%	8.7%	11.6%	12.7%	15.2%
Rule of 40 (growth + FCF margin)	−2.6%	15.8%	22.6%	17.2%	7.7%	27.8%	20.2%	16.6%	24.4%	27.3%
Return on capital	10.2%	23.4%	21.7%	31.1%	20.3%	18.7%	19.9%	21.8%	24.1%	26.9%
Return on equity	20.2%	36.8%	60.9%	72.6%	−24.3%	37.8%	38.5%	39.7%	39.3%	37.2%
Return on assets	4.7%	6.6%	10.0%	12.9%	−6.2%	10.7%	11.9%	13.3%	15.1%	16.4%
Net debt to EBITDA	2.6x	2.1x	1.5x	1.4x	1.8x	1.6x	1.6x	1.3x	1.0x	0.6x

US$ millions unless stated. Where a later 10-K restated a year, the latest filed figure is shown. Download all figures (CSV, US$ millions)

Source: Armstrong World Industries' Form 10-K filings, from SEC EDGAR. For information only, not investment advice. The Filing Desk is not affiliated with Armstrong World Industries.