Armstrong World Industries : Investor Presentation May 2025

Published: 2025-05-10 17:34:04 ET AWI

Published on 05/10/2025 at 17:34

Armstrong World Industries

Investor Presentation

May 2025

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. - impact of adjustments related to the fair value of inventory, contingent third-party professional fees, changes in the fair value of contingent consideration and deferred compensation accruals1 for acquisitions). The Company also 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, the impact of defined benefit plan settlements, gains and losses on sales or impairment of fixed assets, 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 to 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 2025. 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 consolidated statement of cash flows.

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 per share data, and all comparisons are versus the applicable prior-year period unless otherwise noted. Figures may not sum due to rounding.

1. 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. 3

For more than 160 years,

NYSE

AWI

An Americas leader in the design and manufacturing of innovative interior & exterior architectural applications including ceilings, specialty walls and exterior metal solutions

FULL YEAR 2024 CONSOLIDATED RESULTS1

20

Operating Facilities2

~3,600

Employees

NET SALES

Architectural Specialties

NET SALES ADJ. EBITDA*

$460M $82M

JOINT VENTURE

$1,446M

ADJUSTED EBITDA*

$486M

ADJUSTED DILUTED EPS*

$6.31

ADJUSTED FREE CASH FLOW*

$298M

Mineral Fiber

NET SALES ADJ. EBITDA*

$986M $406M

Key Verticals and contribution to AWI Net Sales**

EDUCATION

OFFICE

HEALTHCARE

RETAIL

TRANSPORTATION

Headquartered in

Lancaster, PA

*Non-GAAP measure. See appendix for reconciliation to nearest GAAP measure. | **Based on internal company estimates. | 1. Includes impacts from Unallocated Corporate 4

segment. | 2. Excluding 7 WAVE facilities.

The Armstrong Purpose

Making a positive difference in the spaces where we…

It matters to us, and it matters to our stakeholders

5

Disclaimer

Armstrong World Industries Inc. published this content on May 08, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 10, 2025 at 21:33 UTC.