AWI

EX-99.1

2 awi-ex99_1.htm

EX-99.1

EX-99.1

Exhibit 99.1

Armstrong World Industries Reports

Third-Quarter 2026 Results

• Record third-quarter Net Sales with double-digit growth in Architectural Specialties and solid Mineral Fiber results driven by both Average Unit Value ("AUV") and volume growth

• Operating Income up 12% and Adjusted EBITDA up 11%

• Diluted Net Earnings Per Share and Adjusted Diluted Net Earnings Per Share both up 10%

• 2026 guidance updated to reflect stronger Net Sales growth and accelerating inflationary pressures

(All comparisons are versus the prior-year period unless otherwise stated)

LANCASTER, Pa., Oct. 27, 2026 -- Armstrong World Industries, Inc. (NYSE:AWI), an Americas leader in the design and manufacture of innovative interior and exterior architectural applications including ceilings, specialty walls and exterior metal solutions, today reported third-quarter 2026 financial results highlighted by double-digit net sales and adjusted EBITDA growth.

"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. In relatively stable end market conditions, our growth initiatives continue to enable us to deliver profitable growth ahead of the market," said AWI President and CEO, Mark Hershey. "Despite rapidly rising inflationary pressures, as well as timing-related mix headwinds impacting Mineral Fiber sales, our teams delivered double-digit adjusted EBITDA growth along with adjusted EBITDA margin expansion in both segments. Across the enterprise, we have responded to accelerating cost pressures, while remaining squarely focused on delivering our updated full-year outlook and advancing our attractive growth initiatives."

Third-Quarter Consolidated Results

(Dollar amounts in millions except per-share data)

For the Three Months Ended September 30,

2026

2025

Change

Net sales

$

475.8

$

425.2

11.9%

Operating income

$

131.2

$

117.2

11.9%

Operating income margin (Operating income as a % of net sales)

27.6

%

27.6

%

0bps

Net earnings

$

91.9

$

86.3

6.5%

Diluted net earnings per share

$

2.17

$

1.98

9.6%

Additional Non-GAAP* Measures

Adjusted EBITDA

$

164

$

148

11.0%

Adjusted EBITDA margin (Adjusted EBITDA as a % of net sales)

34.5

%

34.7

%

(30)bps

Adjusted net earnings

$

96

$

89

7.2%

Adjusted diluted net earnings per share

$

2.26

$

2.05

10.2%

* The Company uses non-GAAP adjusted measures in managing the business and believes the adjustments provide meaningful comparisons of operating performance between periods and are useful alternative measures of performance. Reconciliations of the most comparable generally accepted accounting principles in the United States ("GAAP") measure are found in the tables at the end of this press release. Excluding per share data, non-GAAP figures are rounded to the nearest million and

corresponding percentages are rounded to the nearest decimal based on unrounded figures. Basis point changes are calculated based on unrounded margin percentages and rounded to the nearest ten basis points.

Consolidated net sales for the third quarter of 2026 increased 11.9% from the prior-year quarter due to higher volumes of $35 million and favorable AUV of $16 million. Architectural Specialties net sales increased $33 million and Mineral Fiber net sales increased $18 million from the prior-year quarter. Architectural Specialties segment net sales improved due to a $25 million increase in organic net sales and an $8 million inorganic contribution. Mineral Fiber net sales growth was driven by favorable AUV and an increase in sales volumes.

Consolidated operating income increased 11.9% in the third quarter of 2026 compared to the prior-year period, primarily due to a $13 million margin benefit from sales volume growth, a $9 million margin benefit from favorable AUV and a $4 million increase in equity earnings from the Worthington Armstrong Joint Venture ("WAVE"). These benefits were partially offset by a $10 million increase in manufacturing costs, including input cost inflation, predominantly driven by higher freight and raw material costs, and an inorganic increase from our 2026 and 2025 acquisitions.

Operating and adjusted EBITDA margins in the third quarter of 2026 as compared to the prior-year quarter were pressured by higher input cost inflation, mix headwinds within Mineral Fiber and the ongoing impact of tariffs.

Third-Quarter Segment Results

Mineral Fiber

(Dollar amounts in millions)

For the Three Months Ended September 30,

2026

2025

Change

Net sales

$

292.1

$

274.0

6.6%

Operating income

$

106.0

$

98.7

7.4%

Adjusted EBITDA*

$

129

$

119

7.6%

Operating income margin

36.3

%

36.0

%

30bps

Adjusted EBITDA margin*

44.0

%

43.6

%

40bps

Mineral Fiber net sales increased $18 million in the third quarter of 2026 compared to the prior-year due to $16 million of f

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