Armstrong World Industries grows Q3 sales 11.9% and updates 2026 outlook amid inflation

Armstrong World Industries posted record third-quarter sales and updated its full-year outlook, even as it warned about rising costs.

The ceilings and specialty walls maker said Tuesday that net sales rose 11.9% to $475.8 million, according to its earnings release filed with the SEC. Diluted EPS rose 9.6% to $2.17, and adjusted diluted EPS, a non-GAAP measure, rose 10.2% to $2.26.

Adjusted EBITDA climbed 11.0% to $164 million, though the adjusted EBITDA margin slipped to 34.5% from 34.7% on input cost inflation, mix and tariffs.

Specialty products lead

Architectural Specialties sales jumped 21.5% to $183.7 million, including $25 million of organic growth and an $8 million contribution from acquisitions. Mineral Fiber sales rose 6.6% to $292.1 million on higher pricing and volumes.

"Despite rapidly rising inflationary pressures, as well as timing-related mix headwinds impacting Mineral Fiber sales, our teams delivered double-digit adjusted EBITDA growth," President and CEO Mark Hershey said in the release.

2026 outlook

Armstrong now expects 2026 net sales of $1.788 billion to $1.803 billion, up 10% to 11%, adjusted EBITDA of $602 million to $612 million and adjusted diluted EPS of $8.30 to $8.40. The company said the update reflects stronger Architectural Specialties sales and accelerating costs in both segments.

Armstrong bought back 0.4 million shares for $75 million in the quarter and had $1.1 billion left under its buyback authorization at quarter-end.

Sources

1. Armstrong World Industries, Inc., Form 8-K with third quarter 2026 earnings release, filed Oct. 27, 2026 (accession 0001193125-26-432543)

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