10-Q · April 28, 2026
Armstrong reported Q1 net sales of $409.9 million, a 7.1% increase versus Q1 2025, driven by higher AUV (+$10 million) and acquisition contributions. However, consolidated operating income declined 4.4% to $94.2 million…
Earnings analysis · 10-Q
AWI earnings analysis
Filed July 28, 2026 · Our reading of the company's report
The latest report
AWI posted a strong Q2, with revenue rising 11.2% to $472.0 million and GAAP EPS increasing to $2.26 from $2.01 a year earlier. Both reporting segments grew, led by Architectural Specialties' 16.6% sales increase, while…
Read full summary
AWI posted a strong Q2, with revenue rising 11.2% to $472.0 million and GAAP EPS increasing to $2.26 from $2.01 a year earlier. Both reporting segments grew, led by Architectural Specialties' 16.6% sales increase, while Mineral Fiber benefited from $16 million of favorable AUV. Sequential margins recovered sharply, though year-over-year gross and operating margins were modestly lower and first-half Architectural Specialties profitability was pressured by acquisition and tariff-related costs. Liquidity remains adequate, but acquisition cash use lifted revolver borrowings to $90.0 million.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $2.26
What stood out
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Revenue accelerated to $472.0 million
Q2 revenue was $472.0 million, up $47.4 million (11.2%) year over year from $424.6 million and up $62.0 million (15.1%) sequentially from $410.0 million in Q1 2026. Growth reflected $31 million of higher volume and $16 million of favorable Mineral Fiber AUV.
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Margins rebounded sequentially
Gross margin was 41.3% in Q2 2026, versus 41.4% a year ago and 37.9% in Q1 2026. Operating margin was 28.3%, up from 16.3% in Q1 2026 and slightly below 29.0% in Q2 2025; operating income nevertheless rose 8.6% to $133.8 million.
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EPS improved year over year and sequentially
GAAP diluted EPS was $2.26, up $0.25 from $2.01 in Q2 2025 and $0.71 from $1.55 in Q1 2026. Interest expense fell to $7.8 million from $8.6 million a year earlier as effective rates and average debt balances declined.
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Mineral Fiber delivered price/mix-led growth
Mineral Fiber sales increased $21 million to $288.2 million: $16 million came from favorable AUV and $5 million from volume. Segment operating income increased $6.9 million to $105.3 million, while WAVE equity earnings increased to $33.6 million from $32.1 million.
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Architectural Specialties led sales growth
Architectural Specialties revenue increased $26 million to $183.8 million, comprising $15 million of organic growth and an $11 million acquisition contribution. Q2 segment operating income increased $3.8 million to $29.4 million.
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Operating cash flow and liquidity remained solid
First-half operating cash flow increased to $125.9 million from $122.6 million. The company had $78.6 million of cash and $410 million of revolver availability at June 30, 2026, and stated these sources should cover near-term needs.
What to watch
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Architectural Specialties H1 margin pressure
First-half Architectural Specialties operating income declined 4.2% to $38.7 million despite revenue growth of 14.0% to $336.5 million. Its cost of goods sold increased to 62.1% of sales from 59.7%, driven principally by acquisitions and tariff-related costs.
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Input costs remain a margin headwind
Higher freight, raw-material and energy costs reduced operating income by $4 million in Q2 and $6 million in the first six months versus 2025. Higher steel costs also partly offset WAVE's higher sales volume and favorable AUV.
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Acquisition spending increased leverage use
Net investing cash flow was an outflow of $44.9 million in the first six months of 2026, versus a $13.2 million inflow in the prior-year period, primarily due to the Eventscape acquisition. Principal debt outstanding included $405.5 million of Term Loan A and $90.0 million drawn on the revolver at June 30, 2026.
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No material risk-factor updates
Item 1A states there were no material changes to risk factors disclosed in the 2025 Form 10-K. However, management continues to monitor tariffs and geopolitical events, and reported a $2 million negative net tariff impact in the first half of 2026.
Management's outlook
The 10-Q contains no explicit quantitative full-year revenue or EPS guidance; management states that cash on hand, operating cash generation and credit capacity are adequate for near-term liquidity needs based on current expectations.
Earlier filings 4
10-K · February 24, 2026
The 2025 Form 10-K reiterates AWI’s strategy to strengthen its core Mineral Fiber business while expanding Architectural Specialties via product innovation, digital tools and acquisitions. The company completed multiple…
10-Q · July 29, 2025
Armstrong reported Q2 net sales of $424.6 million (up $59.5M, +16.3% vs Q2 2024) and diluted EPS of $2.01 (vs $1.50 a year ago). Operating income expanded to $123.2 million (from $95.0) and operating margin widened to…
10-Q · April 29, 2025
Armstrong reported Q1 net sales of $382.7M, up $56.4M (17.3%) vs. Q1 2024, with gross profit of $149.9M and operating income of $98.5M. Diluted EPS rose to $1.58 from $1.36 a year ago, beating the consensus $1.53.…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.