Armstrong Updates 2026 Sales Outlook After Record Quarter

The Tip Desk · November 8, 2026 · 3 min read

Third-quarter net sales reached a record $475.8 million, up 11.9%, as Architectural Specialties organic growth and Mineral Fiber pricing lifted the year’s pace.

Armstrong World Industries (AWI) reported record third-quarter net sales of $475.8 million, up 11.9% from a year earlier, as year-over-year growth accelerated from 11.2% in the second quarter and 7.1% in the first.

The Americas architectural-products maker said volumes contributed $35 million of the increase and average unit value $16 million. Architectural Specialties net sales rose $33 million and Mineral Fiber net sales rose $18 million.

Operating income increased 11.9% to $131.2 million, reversing a 4.4% year-over-year decline in the first quarter after 8.6% growth in the second. The operating margin held at 27.6%. Adjusted EBITDA rose 11.0% to $164 million, accelerating from 7.5% growth in the second quarter and 0.8% in the first; the adjusted EBITDA margin compressed 30 basis points to 34.5%.

Diluted net earnings were $2.17 a share, up 9.6%, and adjusted diluted earnings were $2.26 a share, up 10.2%.

Architectural Specialties was the faster-growing reportable segment. Net sales increased 21.5% to $183.7 million, including $25 million of organic growth across most specialty product categories and an $8 million inorganic contribution. Operating income rose 33.7% to $25.8 million and adjusted EBITDA 25.5% to $36 million. The operating margin expanded 120 basis points to 14.0% and the adjusted EBITDA margin 60 basis points to 19.4%. The company said a $9 million margin benefit from higher organic net sales, inclusive of lower project margins related to elevated metal costs, was partially offset by a $2 million inorganic impact, primarily SG&A.

Mineral Fiber net sales increased 6.6% to $292.1 million, with $16 million of favorable AUV and $2 million of higher volumes. The company attributed the AUV improvement to favorable like-for-like price and, to a lesser extent, mix, and the volume increase primarily to timing-related demand from Canadian customers and, in part, growth initiatives. Operating income rose 7.4% to $106.0 million and adjusted EBITDA 7.6% to $129 million. The operating margin rose 30 basis points to 36.3% and the adjusted EBITDA margin 40 basis points to 44.0%. A $9 million margin benefit from favorable AUV, a $4 million increase in Worthington Armstrong Joint Venture equity earnings and a $3 million decrease in SG&A were partially offset by an $8 million increase in manufacturing costs, primarily freight and raw-material inflation.

Consolidated operating income was also helped by a $13 million margin benefit from sales-volume growth and a $4 million increase in WAVE equity earnings, offset in part by a $10 million increase in manufacturing costs including input-cost inflation and an inorganic increase from 2026 and 2025 acquisitions. The company said operating and adjusted EBITDA margins versus the year-ago quarter were pressured by higher input-cost inflation, Mineral Fiber mix headwinds and the ongoing impact of tariffs.

President and CEO Mark Hershey said strong demand for Architectural Specialties and solid Mineral Fiber AUV and volume performance drove another quarter of record top-line results, and that teams delivered double-digit adjusted EBITDA growth and margin expansion in both segments despite inflation and timing-related mix headwinds.

The company updated 2026 guidance to net sales of $1.788 billion to $1.803 billion, or 10% to 11% versus 2025 actual of $1.621 billion; adjusted EBITDA of $602 million to $612 million, or 8% to 10%; adjusted diluted earnings of $8.30 to $8.40 a share, or 12% to 13%; and adjusted free cash flow of $380 million to $390 million, or 10% to 13%. CFO Chris Calzaretta said the update reflects an increase in organic Architectural Specialties net sales, accelerating costs in both segments net of mitigation, Mineral Fiber mix headwinds and softer contributions from recent acquisitions.

In the third quarter the company repurchased 0.4 million shares for $75 million at an average $174.36 a share, leaving $1.1 billion remaining under a $2.5 billion authorization through December 2029.