8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): April 30, 2024

ARMSTRONG WORLD INDUSTRIES, INC.

(Exact name of registrant as specified in its charter)

Pennsylvania	1-2116	23-0366390
(State or other jurisdiction of incorporation or organization)	(Commission File Number)	(IRS Employer Identification No.)
2500 Columbia Avenue P.O. Box 3001 Lancaster, Pennsylvania		17603
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code: (717) 397-0611

NA

(Former name or former address if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.01 par value per share	AWI	New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ◻

Section 2 - Financial Information

Item 2.02 Results of Operations and Financial Condition.

On April 30, 2024, Armstrong World Industries, Inc. (the "Company") issued a press release announcing its first quarter 2024 consolidated financial results. The full text of the press release is attached hereto as Exhibit 99.1.

The information in Item 2.02 of this Current Report on Form 8-K, including Exhibit 99.1, is being furnished herewith and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended (the “Act”), or the Exchange Act, except as expressly set forth by specific reference in such filing.

Section 7 – Regulation FD

Item 7.01 Regulation FD Disclosure.

On April 30, 2024, the Company issued a press release announcing that it will report its first quarter 2024 consolidated financial results via a webcast and conference call on April 30, 2024 at 11:00 a.m. Eastern Time which can be accessed through the “Investors” section of the Company’s website, www.armstrongceilings.com. During this report, the Company will reference a slide presentation, a copy of which is attached hereto as Exhibit 99.2 and incorporated herein by reference.

The information in Item 7.01 of this Current Report on Form 8-K, including Exhibit 99.2, is being furnished herewith and shall not be deemed “filed” for the purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference into any filing under the Act, or the Exchange Act, except as expressly set forth by specific reference in such filing.

Section 9 – Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

No. 99.1	Press Release of Armstrong World Industries, Inc. dated April 30, 2024
No. 99.2	Earnings Call Presentation First Quarter 2024 dated April 30, 2024
No. 104	Cover Page Interactive Data File (embedded within the Inline XBRL document)

2

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

ARMSTRONG WORLD INDUSTRIES, INC.
By:	/s/ Austin K. So
	Austin K. So
	Senior Vice President, General Counsel, Secretary and Chief Compliance Officer

Date: April 30, 2024

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EX-99.1

 

Exhibit 99.1

Armstrong World Industries Reports

Record-Setting First-Quarter 2024 Results

•Net sales up 5% with mid-single digit growth in both Mineral Fiber and Architectural Specialties segments versus the prior-year period

•Operating income increased 23% and diluted net earnings per share increased 31% versus the prior-year period

•Adjusted EBITDA up 16% and adjusted diluted net earnings per share up 23% versus the prior-year period

•Recently announced acquisition of 3form, LLC to expand Architectural Specialties portfolio

•Raising full-year 2024 guidance

LANCASTER, Pa., April 30, 2024 -- Armstrong World Industries, Inc. (NYSE:AWI), a leader in the design, innovation and manufacture of ceiling and wall solutions in the Americas, today reported record first-quarter 2024 financial results highlighted by solid sales growth and strong operational performance driving operating income and adjusted EBITDA margin expansion.

“The record results we delivered this quarter reflect the resilience of our business model and the momentum we carried into the year. The ability to drive sales and earnings growth with margin expansion while facing choppy, uncertain market conditions is an ongoing testament to the strong commercial and operational execution of our teams,” said Vic Grizzle, President and CEO of Armstrong World Industries. “We are also excited about our recently announced acquisition of 3form that further broadens our Architectural Specialties portfolio and enhances our relationship with architects and designers, positioning Armstrong to sell more products in more spaces. With this acquisition, the solid start to the year and our consistent operational excellence, we have raised our 2024 guidance and expect to generate strong sales and earnings growth for the fourth consecutive year while continuing to face an uncertain economic backdrop.”

First-Quarter Results

(Dollar amounts in millions except per-share data)	For the Three Months Ended March 31,
	2024			2023			Change
Net sales	$	326.3		$	310.2		5.2%
Operating income	$	86.1		$	70.2		22.6%
Operating income margin (Operating income as a % of net sales)		26.4	%		22.6	%	380bps
Net earnings	$	59.9		$	47.3		26.6%
Diluted net earnings per share	$	1.36		$	1.04		30.8%
Additional Non-GAAP* Measures
Adjusted EBITDA	$	111		$	96		16.0%
Adjusted EBITDA margin (Adjusted EBITDA as a % of net sales)		33.9	%		30.9	%	300bps
Adjusted net earnings	$	61		$	51		19.8%
Adjusted diluted net earnings per share	$	1.38		$	1.12		23.2%

* 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.

First-quarter 2024 consolidated net sales increased 5.2% from prior-year results, driven by favorable Average Unit Value (dollars per unit sold, or "AUV") of $20 million, partially offset by lower sales volumes of $4 million. Mineral Fiber net sales increased $11 million and Architectural Specialties net sales increased $5 million.

Consolidated operating income increased 22.6% in the first quarter of 2024 primarily due to a benefit from favorable AUV, an increase in equity earnings from the Worthington Armstrong Joint Venture ("WAVE"), and severance costs recorded in the prior-year period. These benefits were partially offset by an increase in selling, general and administrative expenses ("SG&A") and lower sales volumes.

First-Quarter Segment Results

Mineral Fiber

(Dollar amounts in millions)	For the Three Months Ended March 31,
	2024			2023			Change
Net sales	$	239.6		$	228.4		4.9%
Operating income	$	79.2		$	63.8		24.1%
Adjusted EBITDA*	$	99		$	84		17.6%
Operating income margin		33.1	%		27.9	%	520bps
Adjusted EBITDA margin*		41.2	%		36.8	%	450bps

Mineral Fiber net sales increased 4.9% in the first quarter of 2024 due to $19 million of favorable AUV, partially offset by $8 million of lower sales volumes. The improvement in AUV was driven by favorable like-for-like pricing and favorable mix. The decrease in volumes was primarily driven by prior-year period inventory level increases at our home center customers that did not occur in the current-year period.

Mineral Fiber operating income increased in the first quarter of 2024 primarily due to a $13 million benefit from favorable AUV, a $7 million increase in WAVE equity earnings and a $3 million decrease in manufacturing and input costs, partially offset by a $5 million decrease from lower sales volumes. Operating income was also negatively impacted by a $2 million increase in SG&A expenses, which included increases in deferred compensation related charges and higher depreciation, partially offset by the benefit from severance expense recorded in the prior-year period.

Architectural Specialties

(Dollar amounts in millions)	For the Three Months Ended March 31,
	2024			2023			Change
Net sales	$	86.7		$	81.8		6.0%
Operating income	$	7.7		$	7.2		6.9%
Adjusted EBITDA*	$	12		$	12		4.3%
Operating income margin		8.9	%		8.8	%	10bps
Adjusted EBITDA margin*		14.0	%		14.3	%	(20)bps

First-quarter 2024 Architectural Specialties net sales increased 6.0% from prior-year results, driven primarily by contributions from our July 2023 acquisition of BOK Modern, LLC ("BOK") and increased custom metal project sales.

Architectural Specialties operating income increased in the first quarter of 2024 primarily due to a $4 million margin benefit from increased sales, driven largely by improved custom project margins, and a $1 million reduction in acquisition-related expenses. These increases were partially offset by higher manufacturing costs and selling expenses due in part to the acquisition of BOK and additional investments in selling capabilities.

Unallocated Corporate

Unallocated Corporate operating loss was $1 million in the first quarter of 2024 and 2023.

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Cash Flow

Cash flows from operating activities in 2024 increased slightly in comparison to the prior-year period, while cash flows from investing activities increased $7 million versus the prior-year period. The $8 million, or 30.8%, increase in operating and investing cash flows was primarily due to higher cash earnings and lower purchases of property, plant and equipment, partially offset by unfavorable working capital impacts.

Share Repurchase Program

During the first quarter of 2024, we repurchased 0.1 million shares of common stock for a total cost of $15 million, excluding the cost of commissions and taxes. As of March 31, 2024, there was $702 million remaining under the Board of Directors' current authorized share repurchase program**.

** In July 2016, our Board of Directors approved a share repurchase program authorizing us to repurchase up to $150 million of our outstanding common stock through July 2018 (the “Program”). Pursuant to additional authorization and extensions of the Program approved by our Board of Directors, including $500 million authorized on July 18, 2023, we are authorized to purchase up to $1,700 million of our outstanding shares of common stock through December 2026. Since inception and through March 31, 2024, we have repurchased 14.3 million shares under the Program for a total cost of $998 million, excluding commissions and taxes.

Updating 2024 Outlook

“With strong first-quarter results and our recently announced acquisition of 3form, we are raising our full-year 2024 guidance,” said Chris Calzaretta, AWI Senior Vice President and CFO. “We remain focused on consistently delivering profitable growth, adjusted EBITDA margin expansion and adjusted free cash flow growth despite lingering macroeconomic uncertainty in the back-half of this year. The acquisition of 3form further demonstrates our ability to deliver on all of our capital allocation priorities and to continue creating value for shareholders.”

			For the Year Ended December 31, 2024
(Dollar amounts in millions except per-share data)	2023 Actual		Current Guidance					VPY Growth %
Net sales	$	1,295	$	1,395	to	$	1,435	8%	to	11%
Adjusted EBITDA*	$	430	$	465	to	$	485	8%	to	13%
Adjusted diluted net earnings per share*	$	5.32	$	5.80	to	$	6.05	9%	to	14%
Adjusted free cash flow*	$	263	$	285	to	$	300	8%	to	14%

Earnings Webcast

Management will host a live webcast conference call at 11:00 a.m. ET today, to discuss first-quarter 2024 results. This event will be available on the Company's website. The call and accompanying slide presentation can be found on the investor relations section of the Company's website at www.armstrongworldindustries.com. The replay of this event will be available on the website for up to one year after the date of the call.

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Uncertainties Affecting Forward-Looking Statements

Disclosures in this release contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including without limitation, those relating to future financial and operational results, expected savings from cost management initiatives, the performance of our WAVE joint venture, market and broader economic conditions and guidance. Those statements provide our future expectations or forecasts and can be identified by our use of words such as “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “believe,” “outlook,” “target,” “predict,” “may,” “will,” “would,” “could,” “should,” “seek,” and other words or phrases of similar meaning in connection with any discussion of future operating or financial performance. This includes annual guidance. Forward-looking statements, by their nature, address matters that are uncertain and involve risks because they relate to events and depend on circumstances that may or may not occur in the future. As a result, our actual results may differ materially from our expected results and from those expressed in our forward-looking statements. A more detailed discussion of the risks and uncertainties that could cause our actual results to differ materially from those projected, anticipated or implied is included in the “Risk Factors” and “Management’s Discussion and Analysis” sections of our reports on Form 10-K and Form 10-Q filed with the U.S. Securities and Exchange Commission (“SEC”), including our quarterly report for the quarter ended March 31, 2024, that the Company expects to file today. Forward-looking statements speak only as of the date they are made. We undertake no obligation to update any forward-looking statements beyond what is required under applicable securities law.

About Armstrong and Additional Information

Armstrong World Industries, Inc. is a leader in the design, innovation and manufacture of innovative ceiling and wall system solutions in the Americas. With $1.3 billion in revenue in 2023, AWI has approximately 3,500 employees and a manufacturing network of 19 facilities, plus seven facilities dedicated to its WAVE joint venture. For over 160 years, Armstrong has delivered products and services to our customers that can transform how people design, build and experience spaces with aesthetics, acoustics, wellbeing and sustainability in mind.

More details on the Company’s performance can be found in its report on Form 10-Q for the quarter ended March 31, 2024, that the Company expects to file with the SEC today.

Contact

Investors & Media: Theresa Womble, tlwomble@armstrongceilings.com or (717) 396-6354

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Reported Financial Results

(Amounts in millions, except per share data)

SELECTED FINANCIAL RESULTS

Armstrong World Industries, Inc. and Subsidiaries

(Unaudited)

	For the Three Months Ended March 31,
	2024			2023
Net sales	$	326.3		$	310.2
Cost of goods sold		202.0			198.1
Gross profit		124.3			112.1
Selling, general and administrative expenses		65.7			62.7
(Gain) related to change in fair value of contingent consideration		(0.3	)		-
Equity (earnings) from unconsolidated affiliates, net		(27.2	)		(20.8	)
Operating income		86.1			70.2
Interest expense		9.0			8.7
Other non-operating (income), net		(3.1	)		(2.4	)
Earnings before income taxes		80.2			63.9
Income tax expense		20.3			16.6
Net earnings	$	59.9		$	47.3
Diluted net earnings per share of common stock	$	1.36		$	1.04
Average number of diluted common shares outstanding		44.1			45.5

SEGMENT RESULTS

Armstrong World Industries, Inc. and Subsidiaries

(Unaudited)

	For the Three Months Ended March 31,
	2024		2023
Net Sales
Mineral Fiber	$	239.6	$	228.4
Architectural Specialties		86.7		81.8
Total net sales	$	326.3	$	310.2

	For the Three Months Ended March 31,
	2024			2023
Segment operating income (loss)
Mineral Fiber	$	79.2		$	63.8
Architectural Specialties		7.7			7.2
Unallocated Corporate		(0.8	)		(0.8	)
Total consolidated operating income	$	86.1		$	70.2

5

SELECTED BALANCE SHEET INFORMATION

Armstrong World Industries, Inc. and Subsidiaries

	Unaudited
	March 31, 2024		December 31, 2023
Assets
Current assets	$	330.7	$	313.0
Property, plant and equipment, net		559.9		566.4
Other non-current assets		800.9		793.0
Total assets	$	1,691.5	$	1,672.4
Liabilities and shareholders’ equity
Current liabilities	$	184.4	$	194.5
Non-current liabilities		880.3		886.1
Shareholders' equity		626.8		591.8
Total liabilities and shareholders’ equity	$	1,691.5	$	1,672.4

SELECTED CASH FLOW INFORMATION

Armstrong World Industries, Inc. and Subsidiaries

(Unaudited)

	For the Three Months Ended March 31,
	2024			2023
Net earnings	$	59.9		$	47.3
Other adjustments to reconcile net earnings to net cash provided by operating activities		(0.1	)		(1.4	)
Changes in operating assets and liabilities, net		(33.4	)		(19.7	)
Net cash provided by operating activities		26.4			26.2
Net cash provided by (used for) investing activities		5.9			(1.5	)
Net cash (used for) financing activities		(33.1	)		(34.7	)
Effect of exchange rate changes on cash and cash equivalents		(0.4	)		—
Net (decrease) in cash and cash equivalents		(1.2	)		(10.0	)
Cash and cash equivalents at beginning of year		70.8			106.0
Cash and cash equivalents at end of period	$	69.6		$	96.0

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Supplemental Reconciliations of GAAP to non-GAAP Results (unaudited)

(Amounts in millions, except per share data)

To supplement its consolidated financial statements presented in accordance with accounting principles generally accepted in the United States (“GAAP”), the Company provides additional measures of performance adjusted to exclude the impact of certain discrete expenses and income including adjusted Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA"), adjusted diluted earnings per share ("EPS") and adjusted free cash flow. Investors should not consider non-GAAP measures as a substitute for GAAP measures. The Company excludes certain acquisition related expenses (i.e. – changes in the fair value of contingent consideration and deferred compensation accruals for acquisitions). The deferred compensation accruals were for cash and stock awards that are recorded over each award's respective vesting period, as such payments were subject to the sellers’ and employees’ continued employment with the Company. The Company excludes all acquisition-related intangible amortization from adjusted net earnings and in calculations of adjusted diluted EPS. Examples of other excluded items have included plant closures, restructuring charges and related costs, impairments, separation costs and other cost reduction initiatives, environmental site expenses and environmental insurance recoveries, endowment level charitable contributions, and certain other gains and losses. The Company also excludes income/expense from its U.S. Retirement Income Plan (“RIP”) in the non-GAAP results as it represents the actuarial net periodic benefit credit/cost recorded. For all periods presented, the Company was not required and did not make cash contributions to the RIP based on guidelines established by the Pension Benefit Guaranty Corporation, nor does the Company expect to make cash contributions to the plan in 2024. Adjusted free cash flow is defined as cash from operating and investing activities, adjusted to remove the impact of cash used or proceeds received for acquisitions and divestitures, environmental site expenses and environmental insurance recoveries. Management's adjusted free cash flow measure includes returns of investment from WAVE and cash proceeds received from the settlement of company-owned life insurance policies, which are presented within investing activities on our condensed consolidated statement of cash flows. The Company uses these adjusted performance measures in managing the business, including communications with its Board of Directors and employees, and believes that they provide users of this financial information with meaningful comparisons of operating performance between current results and results in prior periods. The Company believes that these non-GAAP financial measures are appropriate to enhance understanding of its past performance, as well as prospects for its future performance. The Company also uses adjusted EBITDA and adjusted free cash flow (with further adjustments, when necessary) as factors in determining at-risk compensation for senior management. These non-GAAP measures may not be defined and calculated the same as similar measures used by other companies. Non-GAAP financial measures utilized by the Company may not be comparable to non-GAAP financial measures used by other companies. A reconciliation of these adjustments to the most directly comparable GAAP measures is included in this release and on the Company’s website. These non-GAAP measures should not be considered in isolation or as a substitute for the most comparable GAAP measures.

In the following charts, numbers may not sum due to rounding. Excluding adjusted diluted EPS, non-GAAP figures are rounded to the nearest million and corresponding percentages are rounded to the nearest percent based on unrounded figures.

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Consolidated Results – Adjusted EBITDA

	For the Three Months Ended March 31,
	2024			2023
Net sales	$	326		$	310
Net earnings	$	60		$	47
Add: Income tax expense		20			17
Earnings before income taxes	$	80		$	64
Add: Interest/other income and expense, net		6			6
Operating income	$	86		$	70
Add: RIP expense (1)		1			1
Add: Acquisition-related impacts (2)		-			1
Add: Cost reduction initiatives		-			3
Adjusted operating income	$	86		$	75
Add: Depreciation and amortization		24			21
Adjusted EBITDA	$	111		$	96
Operating income margin		26.4	%		22.6	%
Adjusted EBITDA margin		33.9	%		30.9	%

(1) RIP expense represents only the plan service cost that is recorded within Operating income. For all periods presented, we were not required to and did not make cash contributions to our RIP.

(2) Represents the impact of acquisition-related adjustments for changes in fair value of contingent consideration, deferred compensation and restricted stock expenses.

Mineral Fiber

	For the Three Months Ended March 31,
	2024			2023
Net sales	$	240		$	228
Operating income	$	79		$	64
Add: Cost reduction initiatives		-			3
Adjusted operating income	$	79		$	66
Add: Depreciation and amortization		20			18
Adjusted EBITDA	$	99		$	84
Operating income margin		33.1	%		27.9	%
Adjusted EBITDA margin		41.2	%		36.8	%

Architectural Specialties

	For the Three Months Ended March 31,
	2024			2023
Net sales	$	87		$	82
Operating income	$	8		$	7
Add: Acquisition-related impacts (1)		-			1
Adjusted operating income	$	8		$	8
Add: Depreciation and amortization		4			3
Adjusted EBITDA	$	12		$	12
Operating income margin		8.9	%		8.8	%
Adjusted EBITDA margin		14.0	%		14.3	%

(1) Represents the impact of acquisition-related adjustments for changes in fair value of contingent consideration, deferred compensation and restricted stock expenses.

8

Unallocated Corporate

	For the Three Months Ended March 31,
	2024			2023
Operating (loss)	$	(1	)	$	(1	)
Add: RIP expense (1)		1			1
Adjusted operating (loss)	$	-		$	-
Add: Depreciation and amortization		-			-
Adjusted EBITDA	$	-		$	-

(1) RIP expense represents only the plan service cost that is recorded within Operating income. For all periods presented, we were not required to and did not make cash contributions to our RIP.

Consolidated Results – Adjusted Free Cash Flow

	For the Three Months Ended March 31,
	2024		2023
Net cash provided by operating activities	$	26	$	26
Net cash provided by (used for) investing activities	$	6		(2	)
Net cash provided by operating and investing activities	$	32	$	25
Add: Acquisitions, net		6	-
Add: Arktura deferred compensation (1)		6	-
Add: Contingent consideration in excess of acquisition-date fair value (2)	-			5
Adjusted Free Cash Flow	$	43	$	30

(1) Contingent consideration payments related to 2020 acquisition recorded as a component of net cash provided by operating activities.

(2) Contingent compensation payments related to the acquisition.

Consolidated Results – Adjusted Diluted Earnings Per Share (EPS)

	For the Three Months Ended March 31,
	2024					2023
	Total			Per Diluted Share		Total			Per Diluted Share
Net earnings	$	60		$	1.36	$	47		$	1.04
Add: Income tax expense		20					17
Earnings before income taxes	$	80				$	64
Add: Acquisition-related impacts (1)		-					1
Add: Acquisition-related amortization (2)		2					1
Add: Cost reduction initiatives		-					3
Adjusted net earnings before income taxes	$	82				$	69
(Less): Adjusted income tax expense (3)		(21	)				(18	)
Adjusted net earnings	$	61		$	1.38	$	51		$	1.12
Adjusted diluted EPS change versus prior year				23.2%
Diluted shares outstanding					44.1					45.5
Effective tax rate				25%					26%

(1) Represents the impact of acquisition-related adjustments for changes in fair value of contingent consideration, deferred compensation and restricted stock expenses.

(2) Represents acquisition-related intangible amortization, including customer relationships, developed technology, software, trademarks and brand names, non-compete agreements and other intangibles.

(3) Adjusted income tax expense is calculated using the effective tax rate multiplied by the adjusted earnings from continuing operations before income taxes.

9

Adjusted EBITDA Guidance

	For the Year Ending December 31, 2024
	Low				High
Net earnings	$	253		to	$	259
Add: Income tax expense		84				86
Earnings before income taxes	$	337		to	$	345
Add: Interest expense		40				42
Add: Other non-operating (income), net		(10	)			(8	)
Operating income	$	367		to	$	379
Add: RIP expense (1)		2				2
Adjusted operating income	$	369		to	$	381
Add: Depreciation and amortization		96				104
Adjusted EBITDA	$	465		to	$	485

(1) RIP expense represents only the plan service cost that is recorded within Operating income. For all periods presented, we do not expect to make cash contributions to our RIP.

Adjusted Diluted Net Earnings Per Share Guidance

	For the Year Ending December 31, 2024
	Low			Per Diluted Share(1)			High			Per Diluted Share(1)
Net earnings	$	253		$	5.74	to	$	259		$	5.91
Add: Income tax expense		84						86
Earnings before income taxes	$	337				to	$	345
Add: RIP (credit) (2)		(2	)					(1	)
Add: Acquisition-related amortization (3)		7						8
Adjusted earnings before income taxes	$	342				to	$	352
(Less): Adjusted income tax expense (4)		(86	)					(88	)
Adjusted net earnings	$	256		$	5.80	to	$	264		$	6.05

(1) Adjusted diluted EPS guidance for 2024 is calculated based on approximately 44 million of diluted shares outstanding.

(2) RIP (credit) represents the entire actuarial net periodic pension (credit) recorded as a component of net earnings. We do not expect to make any cash contributions to our RIP.

(3) Represents acquisition-related intangible amortization, including customer relationships, developed technology, software, trademarks and brand names, non-compete agreements and other intangibles.

(4) Income tax expense is based on an adjusted effective tax rate of approximately 25%, multiplied by adjusted earnings before income taxes.

Adjusted Free Cash Flow Guidance

	For the Year Ending December 31, 2024
	Low				High
Net cash provided by operating activities	$	271		to	$	286
Add: Return of investment from joint venture		94				104
Adjusted net cash provided by operating activities	$	365		to	$	390
Less: Capital expenditures		(80	)			(90	)
Adjusted Free Cash Flow	$	285		to	$	300

10

EX-99.2

1st Quarter 2024Earnings Presentation April 30, 2024 Exhibit 99.2

Safe Harbor Statement Worthington Armstrong Joint Venture (“WAVE”). Disclosures in this presentation contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including without limitation, those relating to future financial and operational results, expected savings from cost management initiatives, the performance of our WAVE1 joint venture, market and broader economic conditions and guidance. Those statements provide our future expectations or forecasts and can be identified by our use of words such as “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “believe,” “outlook,” “target,” “predict,” “may,” “will,” “would,” “could,” “should,” “seek,” and other words or phrases of similar meaning in connection with any discussion of future operating or financial performance. This includes annual guidance. Forward-looking statements, by their nature, address matters that are uncertain and involve risks because they relate to events and depend on circumstances that may or may not occur in the future. As a result, our actual results may differ materially from our expected results and from those expressed in our forward-looking statements. A more detailed discussion of the risks and uncertainties that could cause our actual results to differ materially from those projected, anticipated or implied is included in the “Risk Factors” and “Management’s Discussion and Analysis” sections of our reports on Form 10-K and Form 10-Q filed with the U.S. Securities and Exchange Commission (“SEC”), including our quarterly report for the three months ended March 31, 2024, that the Company expects to file today. Forward-looking statements speak only as of the date they are made. We undertake no obligation to update any forward-looking statements beyond what is required under applicable securities law. In addition, we will be referring to non-Generally Accepted Accounting Principles in the United States (“GAAP”) financial measures within the meaning of SEC Regulation G. A reconciliation of the differences between these measures with the most directly comparable financial measures calculated in accordance with GAAP is included within this presentation and available on the Investor Relations page of our website at www.armstrongceilings.com. The guidance in this presentation is only effective as of the date given, April 30, 2024, and will not be updated or affirmed unless and until we publicly announce updated or affirmed guidance.

Basis of Presentation Explanation The deferred compensation accruals were for cash and stock awards that are recorded over each awards’ respective vesting period, as such payments were subject to the sellers’ and employees’ continued employment with the Company. Results throughout this presentation are presented on a normalized basis. We remove the impact of certain discrete expenses and income in certain measures including adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”), adjusted diluted earnings per share (“EPS”) and adjusted free cash flow. The Company excludes certain acquisition related expenses (i.e. – changes in the fair value of contingent consideration and deferred compensation accruals1 for acquisitions). The Company excludes all acquisition-related amortization from adjusted net earnings and in calculations of adjusted diluted EPS. Examples of other excluded items have included plant closures, restructuring charges and related costs, impairments, separation costs and other cost reduction initiatives, environmental site expenses and environmental insurance recoveries, endowment level charitable contributions, and certain other gains and losses. The Company also excludes income/expense from its U.S. Retirement Income Plan (“RIP”) in the non-GAAP results as it represents the actuarial net periodic benefit credit/cost recorded. Our tax rate may be adjusted for certain discrete items which are identified in the footnotes. Investors should not consider non-GAAP measures as a substitute for GAAP measures. Excluding adjusted diluted EPS, non-GAAP figures are rounded to the nearest million and corresponding percentages are based on unrounded figures. Operating Segments: “MF”: Mineral Fiber, “AS”: Architectural Specialties, “UC”: Unallocated Corporate All dollar figures throughout the presentation are in $ millions, except share and per share data, and all comparisons are versus the applicable prior-year period unless otherwise noted. Figures may not sum due to rounding.

GAAP and non-GAAP Financial Results AWI Consolidated Results Q1 2024 Q1 2023 Net sales $326.3 $310.2 Net earnings $59.9 $47.3 Operating income $86.1 $70.2 Adj. EBITDA* $111 $96 Operating income margin (operating income % of net sales) 26.4% 22.6% Adj. EBITDA margin* (Adj. EBITDA % of net sales) 33.9% 30.9% Diluted net earnings per share $1.36 $1.04 Adj. diluted net earnings per share* $1.38 $1.12 Net cash provided by operating & investing activities $32.3 $24.7 Adj. free cash flow* $43 $30 Net cash provided by operating & investing activities % of net sales 9.9% 8.0% Adj. free cash flow margin* (Adj. free cash flow % of net sales) 13.3% 9.6% Segment Results Q1 2024 Q1 2023 MF AS UC MF AS UC Net sales $239.6 $86.7 - $228.4 $81.8 - Operating income (loss) $79.2 $7.7 ($0.8) $63.8 $7.2 ($0.8) Adj. EBITDA* $99 $12 - $84 $12 - Operating income margin (operating income % of net sales) 33.1% 8.9% NM 27.9% 8.8% NM Adj. EBITDA margin* (Adj. EBITDA % of net sales) 41.2% 14.0% NM 36.8% 14.3% NM *Non-GAAP measure. See appendix for reconciliation to nearest GAAP measure. “NM”: Not meaningful.

$326M (+5% VPY) Net Sales $111M (+16% VPY) Adj. EBITDA* $1.38 (+23% VPY) Adj. Diluted EPS* $43M (+46% VPY) Adj. Free Cash Flow* 1st Quarter 2024 Key Takeaways Delivering Strong Earnings and Cash Flow Growth *Non-GAAP measure. See appendix for reconciliation to nearest GAAP measure. Average Unit Value (“AUV”). Includes both like-for-like price and mix impacts. Worthington Armstrong Joint Venture (“WAVE”). AWI net sales up 5% and adj. EBITDA* up 16% Total company adj. EBITDA margin* expanded 300bps to 33.9% Mineral Fiber segment adj. EBITDA* up 18%Adj. EBITDA margin* expanded 450bps to 41.2%, with strong AUV1 improvement and healthy contribution from WAVE2 equity earnings Architectural Specialties segment adj. EBITDA* up 4%Steady sales growth pressured by modest cost headwinds and project timing Raising 2024 Guidance Reflecting acquisition of 3form, LLC and improved Mineral Fiber profitability

Enhances relationship with architects and designers and strengthens AWI’s market position 3form Acquisition Expands Architectural Specialties Product Portfolio ~390 employees 3 production facilities ~$96M of sales in 2023 3form at a Glance A design-driven category leader in translucent finishings 6

Mineral Fiber Q1 2024 Results Robust Adj. EBITDA Margin* Expansion on Strong AUV & WAVE *Non-GAAP measure. See appendix for reconciliation to nearest GAAP measure. Excludes the change in depreciation and amortization throughout the presentation. Includes raw material, energy and freight impacts, in addition to inventory valuation impacts. Excludes the change in depreciation and amortization throughout the presentation. Net Sales Growth VPY Q1 Mineral Fiber Key Highlights ● 8% topline AUV growth driven by favorable like-for-like pricing and favorable mix ● Negative volumes driven by lapping prior-year home center inventory build ● Adj. EBITDA margin* expanded 450bps to 41.2% ● Strong WAVE contribution with higher volumes and margin improvement ● Advancing innovative ceiling tiles focused on reducing the carbon footprint in the built environment Adj. EBITDA* VPY Q1 2023 Adj. EBITDA* $84 AUV 13 Volume (5) Manufacturing1 - Input Costs2 4 SG&A3 (4) WAVE 7 2024 Adj. EBITDA* $99 % Change 18% +5%

Architectural Specialties Q1 2024 Results Consistent Sales Growth Pressured by Project Timing *Non-GAAP measure. See appendix for reconciliation to nearest GAAP measure. Excludes the change in depreciation and amortization throughout the presentation. Excludes the change in depreciation and amortization throughout the presentation. Adj. EBITDA* Comparison VPY Q1 2023 Adj. EBITDA* $12 Sales 4 Manufacturing1 (1) SG&A2 (2) 2024 Adj. EBITDA* $12 % Change 4% Q1 Architectural Specialties Key Highlights ● Sales growth driven by 2023 acquisition of BOK Modern and strength in metal category ● Adj. EBITDA margin* compressed 20bps on modest cost headwinds ● Choppy start to the year … continuing to monitor project timelines and overall market backdrop ● Transportation bidding activity remains strong and supports multi-year opportunity Net Sales Growth VPY +6%

Q1 2024 Consolidated Company Key Metrics Strong AUV & WAVE Earnings Drives Adj. EBITDA Margin* Expansion Q1 2023 Q1 2024 Variance Net Sales $310 $326 5% Adj. EBITDA* $96 $111 16% Adj. EBITDA Margin* (Adj. EBITDA % of Net Sales) 30.9% 33.9% 300bps Adj. Diluted Earnings Per Share* $1.12 $1.38 23% Adj. Free Cash Flow* $30 $43 46% *Non-GAAP measure. See appendix for reconciliation to nearest GAAP measure. Excludes the change in depreciation and amortization throughout the presentation. 2. Includes raw material, energy and freight impacts, in addition to inventory valuation impacts. 3. Excludes the change in depreciation and amortization throughout the presentation.. 1 2 3

Cash flow generation supports all capital allocation priorities Substantial Adjusted Free Cash Flow* Growth to Start the Year *Non-GAAP measure. See appendix for reconciliation to nearest GAAP measure. Includes cash earnings, working capital and other current assets and liabilities. Q1 2024 Capital Deployment Q1 2024 Adj. Free Cash Flow* Up 46% vs Prior Year $30 $43 1 $ - $ -

Remaining focused on solid execution and margin expansion Raising Full Year 2024 Guidance Commentary1 Prior: $1,335M to $1,375M 3% to 6% YoY Net Sales Growth Prior: $5.60 to $5.90 5% to 11% YoY Adj. Diluted EPS* Prior: $450M to $470M 5% to 9% YoY Adj. EBITDA* Prior: $275M to $290M 5% to 10% YoY Adj. Free Cash Flow* $1,395M to $1,435M 8% to 11% YoY Reflects update from prior guidance Expecting slower economic growth in 2H Initiatives partially offset lower market demand, resulting in MF volume down low-single digits MF AUV grows at historic average and improved WAVE performance, driving margin expansion AS segment continues to penetrate fragmented market & deliver profitable growth Includes contribution from recently announced 3form acquisition $285M to $300M 8% to 14% YoY $465M to $485M 8% to 13% YoY $5.80 to $6.05 9% to 14% YoY Non-GAAP measure. See appendix for reconciliation to nearest GAAP measure Additional assumptions available in the appendix of this presentation.

Appendix

Updating Full Year 2024 Assumptions Segment1 Net Sales Adjusted EBITDA Margin* Mineral Fiber +2% to +5% growth >40% (prior: ~40%) Architectural Specialties +21% to +24% growth (prior: +6% to +9%) ~18% (prior: ~19%) Consolidated Metrics Full Year 2024 Capital expenditures $80M to $90M Depreciation and amortization $96M to $104M (prior: $90M to $100M) Interest expense $40M to $42M Book / cash tax rate ~25%/ 25% to 26% Shares outstanding ~44M (prior: ~43M to 44M) Return of investment from joint venture $94M to $104M (prior: $85M to $95M) Shipping Days vs Prior Year 2023 2024 20252 Q1 +1 - - Q2 - - - Q3 (1) +1 - Q4 - +1 - Full Year - +2 - 13 *Non-GAAP Measure. Architectural Specialties includes recent acquisition of 3form but does not reflect any other future acquisitions. Based on preliminary expectations. Subject to change.

RIP expense represents only the plan service cost that is recorded within Operating income. For all periods presented, we were not required to and did not make cash contributions to our RIP. Represents the impact of acquisition-related adjustments for changes in fair value of contingent consideration, deferred compensation and restricted stock expenses. Represents acquisition-related intangible amortization, including customer relationships, developed technology, software, trademarks and brand names, non-compete agreements and other intangibles. Adjusted income tax expense is calculated using the effective tax rate multiplied by the adjusted earnings from continuing operations before income taxes. For the Three Months Ended March 31, 2024 2023 Net sales $326 $310 Net earnings $60 $47 Add: Income tax expense 20 17 Earnings before income taxes $80 $64 Add: Interest/other income and expense, net 6 6 Operating income $86 $70 Add: RIP expense1 1 1 Add: Acquisition-related impacts2 - 1 Add: Cost reduction initiatives - 3 Adjusted operating income $86 $75 Add: Depreciation and amortization 24 21 Adjusted EBITDA $111 $96 Operating income margin 26.4% 22.6% Adjusted EBITDA margin 33.9% 30.9% For the Three Months Ended March 31, 2024 2023 Net earnings $60 $47 Add: Income tax expense 20 17 Earnings before income taxes $80 $64 Add: Acquisition-related impacts2 - 1 Add: Acquisition-related amortization3 2 1 Add: Cost reduction initiatives - 3 Adjusted net earnings before income taxes $82 $69 Less: Adjusted income tax expense4 (21) (18) Adjusted net earnings $61 $51 Diluted shares outstanding 44.1 45.5 Effective tax rate 25% 26% Diluted net earnings per share $1.36 $1.04 Adjusted diluted net earnings per share $1.38 $1.12 Adjusted EBITDA Reconciliation Adjusted Diluted EPS Reconciliation

Contingent compensation payments related to 2020 acquisition recorded as a component of net cash provided by operating activities. Contingent consideration payments related to the acquisition. RIP expense represents only the plan service cost related to the RIP that is recorded within Operating Income. For all periods presented, we were not required to and did not make cash contributions to our RIP. Represents the impact of acquisition-related adjustments for changes in fair value of contingent consideration, deferred compensation and restricted stock expenses. “NM”: Not meaningful. For the Three Months Ended March 31, 2024 2023 Net cash provided by operating activities $26 $26 Net cash provided by (used for) investing activities $6 ($2) Net cash provided by operating and investing activities $32 $25 Add: Acquisitions, net 6 - Add: Contingent consideration in excess of acquisition-date fair value1 - 5 Add: Arktura deferred compensation2 6 - Adjusted free cash flow $43 $30 For the Three Months Ended March 31, MF AS UC UNALLOCATED CORPORATE 2024 2023 2024 2023 2024 2023 Net sales $240 $228 $87 $82 - - Operating income (loss) $79 $64 $8 $7 ($1) ($1) Add: RIP expense3 - - - - 1 1 Add: Acquisition-related impacts4 - - - 1 - - Add: Cost reduction initiatives and other - 3 - - - - Adjusted operating income $79 $66 $8 $8 - - Add: Depreciation and amortization 20 18 4 3 - - Adjusted EBITDA $99 $84 $12 $12 - - Operating income margin (Operating income % of net sales) 33.1% 27.9% 8.9% 8.8% NM NM Adjusted EBITDA margin (Adjusted EBITDA % of net sales) 41.2% 36.8% 14.0% 14.3% NM NM Adjusted Free Cash Flow Reconciliation Segment Adj. EBITDA Reconciliation

Full Year 2024 Low High Net cash provided by operating activities $271 $286 Add: Return of investment from joint venture 94 104 Adjusted net cash provided by operating activities $365 $390 Less: Capital expenditures (80) (90) Adjusted Free Cash Flow $285 $300 Full Year 2024 Low High Net earnings $253 $259 Add: Income tax expense 84 86 Earnings before income taxes $337 $345 Add: Interest expense 40 42 Add: Other non-operating (income), net (10) (8) Operating income $367 $379 Add: RIP expense1 2 2 Adjusted operating income $369 $381 Add: Depreciation and amortization 96 104 Adjusted EBITDA $465 $485 2024 Adj. EBITDA Guidance Reconciliation 2024 Adj. Free Cash Flow Guidance Reconciliation 2024 Adj. Diluted EPS Guidance Reconciliation Full Year 2024 Low High Net earnings $253 $259 Add: Income tax expense 84 86 Earnings before income taxes $337 $345 Add: RIP (credit)2 (2) (1) Add: Acquisition-related amortization3 7 8 Adjusted earnings before income taxes $342 $352 Less: Adjusted income tax expense4 (86) (88) Adjusted net earnings $256 $264 Diluted net earnings per share5 $5.74 $5.91 Adjusted diluted net earnings per share5 $5.80 $6.05 RIP expense represents only the plan service cost related to the RIP that is recorded within Operating income. We do not expect to make cash contributions to our RIP. RIP (credit) represents the entire actuarial net periodic pension (credit) recorded as a component of Net earnings. We do not expect to make cash contributions to our RIP. Represents acquisition-related intangible amortization, including customer relationships, developed technology, software, trademarks and brand names, non-compete agreements and other intangibles. Adjusted income tax expense is based on an adjusted effective tax rate of ~25%, multiplied by adjusted earnings before income tax. Based on ~44 million shares outstanding.

XML

Document And Entity Information	Apr. 30, 2024
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Apr. 30, 2024
Entity Registrant Name	ARMSTRONG WORLD INDUSTRIES, INC.
Entity Central Index Key	0000007431
Entity Emerging Growth Company	false
Securities Act File Number	1-2116
Entity Tax Identification Number	23-0366390
Entity Address, Address Line One	2500 Columbia Avenue P.O. Box 3001
Entity Address, City or Town	Lancaster
Entity Address, State or Province	PA
Entity Address, Postal Zip Code	17603
City Area Code	717
Local Phone Number	397-0611
Entity Incorporation, State or Country Code	PA
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Stock, $0.01 par value per share
Trading Symbol	AWI
Security Exchange Name	NYSE