Armstrong reports strong earnings; raises guidance with acquisition

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Armstrong World Industries, Inc. expects a profitable 2024 after reporting record first-quarter financial results and the recent acquisition of 3form LLC. 

First-quarter 2024 net earnings rose 26.6% over the first quarter 2023, the company said. 

Consolidated net sales increased 5.2% from prior-year results, driven by favorable Average Unit Value of $20 million, partially offset by lower sales volumes of $4 million, AWI said.  

“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.” 

Utah-based 3form, a manufacturer of sustainably crafted architectural resins for ceiling and wall applications, is expected to boost the company’s architectural specialties portfolio. 

AWI said the acquisition supports the mission of the two companies to transform experiences for customers and building occupants through innovative and sustainable design, AWI said. 

The addition of 3form’s capabilities gives architects access to all architectural finishing requirements in any space, the company said. 

“We are delighted to welcome 3form to the Armstrong family and to expand our portfolio of highly specifiable ceiling and wall solutions with new translucent materials,” said Vic Grizzle, president and CEO, Armstrong World Industries. “3form is a well-established leader in architectural resins and high-performance glass and adds exciting and new complementary materials and design capabilities to our Architectural Specialties portfolio.” 

 The acquisition is expected to expand the unique, specifiable solutions the company can provide architects and designers and increase the company’s ability to sell more products, Grizzle said. 

AWI, which employs approximately 3,100, said net sales increased five percent overall with mid-single digit growth in both the mineral fiber and architectural specialty segments and operating income increased 23%. Diluted net earnings per share increased 31% over the first quarter of 2023. 

“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,” Grizzle said.  

“We are also excited about our recently announced acquisition of 3form,” Grizzle said. “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.”