$AWI

ARMSTRONG WORLD INDUSTRIES INC

CIK:0000007431|SEC Filings

Condensed Consolidated Statements of Earnings and Comprehensive Income - USD ($) shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Income Statement [Abstract]
Net sales	$ 472.0	$ 424.6	$ 881.9	$ 807.3
Cost of goods sold	277.0	248.8	531.6	481.6
Gross profit	195.0	175.8	350.3	325.7
Selling, general and administrative expenses	93.7	84.4	182.1	162.1
Loss related to change in fair value of contingent consideration, net	0.9	0.1	0.9	0.4
Equity (earnings) from unconsolidated affiliates, net	(33.4)	(31.9)	(60.7)	(58.5)
Operating income	133.8	123.2	228.0	221.7
Interest expense	7.8	8.6	15.1	17.1
Other non-operating (income), net	(0.9)	(0.7)	(2.4)	(1.4)
Earnings before income taxes	126.9	115.3	215.3	206.0
Income tax expense	30.2	27.5	51.8	49.1
Net earnings	96.7	87.8	163.5	156.9
Other comprehensive (loss) income, net of tax:
Foreign currency translation adjustments	(2.4)	1.5	(3.1)	1.8
Derivative gain (loss), net	1.2	(0.3)	2.3	(1.8)
Pension and postretirement adjustments	0.7	0.7	1.3	1.3
Total other comprehensive (loss) income, net of tax	(0.5)	1.9	0.5	1.3
Total comprehensive income	$ 96.2	$ 89.7	$ 164.0	$ 158.2
Net earnings per share of common stock:
Basic	$ 2.28	$ 2.02	$ 3.84	$ 3.62
Diluted	$ 2.26	$ 2.01	$ 3.81	$ 3.59
Average number of common shares outstanding:
Basic	42.5	43.4	42.6	43.4
Diluted	42.7	43.7	42.9	43.7

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Cash flows from operating activities:
Net earnings	$ 163.5	$ 156.9
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization	59.9	59.8
Deferred income taxes	3.2	(3.0)
Share-based compensation	9.8	9.8
Equity earnings from unconsolidated affiliates, net	(60.7)	(58.5)
Loss related to change in fair value of contingent consideration, net	0.9	0.4
Payments of contingent consideration in excess of acquisition-date fair value	(1.5)	(0.7)
Other non-cash adjustments, net	(0.3)	0.9
Changes in operating assets and liabilities:
Receivables	(62.4)	(25.6)
Inventories	(2.7)	(6.4)
Accounts payable and accrued expenses	7.1	(17.1)
Income taxes receivable and payable, net	3.2	6.8
Other assets and liabilities	5.9	(0.7)
Net cash provided by operating activities	125.9	122.6
Cash flows from investing activities:
Purchases of property, plant and equipment	(41.7)	(39.0)
Return of investment from joint venture	57.6	51.3
Acquisitions, net of cash acquired	(64.8)	0.8
Proceeds from company owned life insurance, net	4.0	0.1
Net cash (used for) provided by investing activities	(44.9)	13.2
Cash flows from financing activities:
Proceeds from revolving credit facility	115.0	10.0
Payments of revolving credit facility	(25.0)	(40.0)
Payments of long-term debt	(5.1)	(11.3)
Payments for finance leases	(4.7)	(5.1)
Payments of vendor financed property, plant and equipment purchases	(2.6)	0.0
Dividends paid	(30.2)	(27.2)
Payments of tax withholdings for share-based compensation plans, net of issuances	(24.2)	(7.9)
Payments of acquisition-related contingent consideration	0.0	(0.8)
Payments for treasury stock acquired	(137.4)	(52.4)
Net cash (used for) financing activities	(114.2)	(134.7)
Effect of exchange rate changes on cash and cash equivalents	(0.9)	0.7
Net (decrease) increase in cash and cash equivalents	(34.1)	1.8
Cash and cash equivalents at beginning of year	112.7	79.3
Cash and cash equivalents at end of period	78.6	81.1
Supplemental cash flow disclosures:
Interest paid	13.5	16.5
Income tax payments, net	45.5	45.3
Amounts in accounts payable for capital expenditures	9.4	3.1
Purchases of property, plant and equipment through vendor financing	$ 0.0	$ 1.6

Condensed Consolidated Balance Sheets - USD ($) $ in Millions	Jun. 30, 2026	Dec. 31, 2025
Current assets:
Cash and cash equivalents	$ 78.6	$ 112.7
Accounts and notes receivable, net	188.6	130.3
Inventories, net	127.4	124.6
Income taxes receivable	4.7	0.0
Other current assets	26.0	23.9
Total current assets	425.3	391.5
Property, plant, and equipment, net of accumulated depreciation and amortization of $768.7 and $735.9, respectively	629.8	630.7
Operating lease assets	49.0	46.4
Finance lease assets	34.4	35.9
Prepaid pension costs	103.1	99.7
Investments in unconsolidated affiliates	29.6	26.6
Goodwill	259.2	217.8
Intangible assets, net	432.1	425.2
Other non-current assets	44.3	50.9
Total assets	2,006.8	1,924.7
Current liabilities:
Current installments of long-term debt	10.3	10.3
Accounts payable and accrued expenses	240.7	237.1
Operating lease liabilities	12.2	10.5
Finance lease liabilities	6.0	6.3
Income taxes payable	10.8	3.2
Total current liabilities	280.0	267.4
Long-term debt, less current installments	481.7	396.4
Operating lease liabilities	39.0	37.9
Finance lease liabilities	30.2	32.5
Postretirement benefit liabilities	31.7	32.7
Pension benefit liabilities	23.6	24.3
Other long-term liabilities	32.2	33.9
Income taxes payable	8.5	6.1
Deferred income taxes	195.6	192.8
Total non-current liabilities	842.5	756.6
Shareholders' equity:
Common stock, $0.01 par value per share, 200 million shares authorized, 63,511,150 shares issued and 42,327,893 shares outstanding as of June 30, 2026 and 63,300,018 shares issued and 42,916,593 shares outstanding as of December 31, 2025	0.6	0.6
Capital in excess of par value	602.7	617.2
Retained earnings	1,947.8	1,814.1
Treasury stock, at cost, 21,183,257 shares as of June 30, 2026 and 20,383,425 shares as of December 31, 2025	(1,564.2)	(1,428.1)
Accumulated other comprehensive (loss)	(102.6)	(103.1)
Total shareholders' equity	884.3	900.7
Total liabilities and shareholders' equity	$ 2,006.8	$ 1,924.7