Armstrong World Industries : Investor Presentation May 2026

Published: 2026-05-11 18:50:08 ET AWI

Published on 05/11/2026 at 06:50 pm EDT

Armstrong World Industries

Investor Presentation

May 2026

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, third-party professional fees and changes in the fair value of contingent consideration 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 2026. 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

We define "organic" as total company and/or AS results excluding the impact of the February 2026 acquisition of Event Scape Inc. and Eventscape U.S. Holdings Inc. (collectively, "Eventscape"), the December 2025 acquisition of FGM-Parallel LLC ("Parallel") and the September 2025 acquisition of Geometrik Manufacturing, Inc. ("Geometrik").

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.

For more than 165 years,

we have built our business

NYSE

AWI

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

on trust and integrity

FULL YEAR 2025 CONSOLIDATED RESULTS1

Operating Facilities2

~4,000

Employees

NET SALES

$1,621M

ADJUSTED EBITDA*

$555M

ADJUSTED DILUTED EPS*

$7.41

ADJUSTED FREE CASH FLOW*

$346M

Mineral Fiber

JOINT VENTURE

Architectural Specialties

ADJ. EBITDA*

$108M

NET SALES

$590M

$1,031M $448M

ADJ. EBITDA*

NET SALES

Key Verticals and contribution to AWI Net Sales**

EDUCATION

30%

OFFICE3

30%

HEALTHCARE

20%

RETAIL

10%

TRANSPORTATION

10%

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. | 3. Includes data centers.

The Armstrong Purpose

Making a positive difference in the spaces where we…

LIVE WORK LEARN HEAL PLAY

It matters to us, and it matters to our stakeholders

Three Pillars guide our sustainability program, each with their own ambitions.

Our Approach

We aim to lead a transformation in the design and building of spaces so that occupants, owners, operators and communities can thrive.

Healthy and Circular Products

We are committed to responsible sourcing and to providing transparency in our products. In addition, we will design our products to minimize waste and pollution, support circularity and contribute to the regeneration of natural systems.

Healthy Planet

Our electricity will be either directly or indirectly sourced through renewable energy, and we will reduce carbon, GHG waste and water impacts of our products and solutions.

Thriving People and Communities

Our workforce will be safe, diverse, inclusive and fulfilled, and we will actively contribute to our local communities.

Additional Resources:

AWI Sustainability Website

2025 Sustainability Report

AWI Net Sales1

10%

CAGR

$1,621M

$781M

CAGR

$837M

CAGR

$1,107M

2013

Pre-Spin

2016

Sold international business to focus on the Americas

2021

Added digital capabilities to better serve our customers

2025

Launched

Separated from flooring company to focus on ceilings and walls

Began expanding

AS portfolio with acquisitions

Launched innovative energy saving ceilings

expanded suite

of data center solutions

1. AWI Net Sales represents AWI on a Continuing Operations (Americas, ceilings and walls only) basis.

Completed 14 AS acquisitions between 2017 - 2025 7

Unique company in an attractive industry

Complementary, high performing segments

Focused strategy for consistent, profitable growth

Strong financial returns

Value Creation for Shareholders

Unique company in an attractive industry

Complementary, high performing segments

Focused strategy for consistent, profitable growth

Strong financial returns

Value Creation for Shareholders

Ceiling and wall solutions matter in designing high-performing spaces

Attractive Category

Ceilings and wall category has distinctive attributes in the building products industry

Why We Win

As the industry leader, AWI is advantageously positioned to win within this category

Consolidated industry structure with exposure to diverse end markets

Large Mineral Fiber installed base (est. at ~40 Billion ft2)* generates stable and repeating repair & remodel demand

Highly specified, high-value products with few cost-effective substitutes

Customers demonstrate brand loyalty; rewarding performance, service and innovation

Ceilings are an integral part of evolving solutions to meet increasing demand for total indoor environmental quality

Strong and trusted brand

Broadest, most innovative product portfolio

Specification excellence through deep and long-standing relationships with architects and designers

Large manufacturing scale with strong exclusive distribution partners

Operational excellence supporting best-in-class service and quality

A culture that fosters empowerment, innovation, teamwork and execution across functional areas

*Based on internal company estimates. 10

End Market Vertical Outlook*

% AWI Sales by Vertical** Outlook* Market Insights

10%

Retail

Slightly Negative

Lingering headwinds from online shopping balanced by population shifts to suburbs and multi-use in urban areas.

20%

Transportation

Funding infusion from Infrastructure Investment and Jobs Act totaling

Positive

Slightly Positive

$15 billion1 for airports through 2026.

30%

Healthcare

Continued growth in hospitals and urgent care centers driven by demographic shifts.

Neutral

30%

Office2

Neutral-to-Improving

New construction starts from prior years, increasing back-to-office mandates and data center growth offsetting lingering economic uncertainty.

Education

Stable state & local government funding partially offset by demographic trends.

*12-to-24-month outlook based on internal company estimates and Dodge data and analytics, excluding indirect tariff-related impacts. | **Based on internal company estimates.

1. According to the Federal Aviation Administration. | 2. Includes data centers. 11

Unique company in an attractive industry

Complementary, high performing segments

Focused strategy for consistent, profitable growth

Strong financial returns

Value Creation for Shareholders

Mineral Fiber Segment

Architectural Specialties Segment

5-Year Net Sales CAGR1

New 30%

Major Reno 35%

Net Sales by Project Type2

Repair and Remodel 35%

23%

5-Year Net Sales CAGR1

New 50%

$1,031M

2025 Net Sales

$590M

2025 Net Sales

Net Sales by Project Type2

44%

2025 Adj. EBITDA Margin*

18%

2025 Adj. EBITDA Margin*

Major Reno 50%

Key Attributes

Consistent AUV3 growth supported by innovation

Targeted manufacturing productivity of ~3% annually

Diverse verticals and project types lessen cyclicality

Equity earnings contribution from WAVE

Key Attributes

Focused on major renovation and new construction

High design, custom projects for statement spaces

Lower capital requirements

Strong growth and margin expansion opportunities

*Non-GAAP Measure. Reconciliations provided in the appendix of this presentation. | 1. CAGR represents 2020 to 2025 results. | 2. Based on internal company estimates. | 3. Average Unit Value. 13

Complementary Segments With Strong Profitability

Successful Joint Venture Creates Important Competitive Advantage

WAVE leverages the strengths and expertise of both parent companies

Go to market expertise

Steel procurement and supply chain management expertise

Established in 1992 - 50/50 joint venture

North American market leader

in ceiling suspension system (grid) and integrated solutions

Innovation mindset

Over $500 million in sales in 2025

Over $860 million of cash dividends to AWI since 20171

7 U.S. plants2

~480 employees2

1. Through the year ended December 31, 2025. | 2. As of December 31, 2025. 14

Mineral Fiber

Architectural Specialties

Broadest Portfolio of Products

Operational Excellence

Total Customer Experience

Specification Leadership

Best-in-Class Distribution

Brand Strength

AWI is uniquely positioned to efficiently deliver a broad range of innovative, highly-specified solutions to our customers

AWI is the Supplier of Choice for Large, Complex Projects

Adobe North Tower, San Jose, CA

CISCA Award Winner

Check out the full project here!

Products Specified

AS: MetalWorks Custom Blades

AS: Turf® Custom Grid AS: Tectum®

MF: DesignFlex®

MF: AirAssure®

AS: Arktura® Vapor® Cluster

AS: Arktura® Vapor® Frequency AS: WoodWorks®

WAVE: Axiom®

Unique company in an attractive industry

Complementary, high performing segments

Focused strategy for consistent, profitable growth

Strong financial returns

Value Creation for Shareholders

GROWTH STRATEGY

Market-driven

product innovation

Customer-centric

growth initiatives

Acquisitions to build greater market opportunity

EXPECTED OUTCOMES

Enhances our competitive advantage

Expands volume and AUV growth potential

Consistently strong financial performance

Creates shareholder value

Demonstrated Innovation Focus

Product Vitality Index1

32%

Proven Ability to Consistently Deliver AUV Growth

Mineral Fiber AUV (Average Unit Value)2

CAGR

Post-Spin

Pre-Spin

16%

2011 - 2016 2017 - 2025

2011 2013 2015 2017 2019 2021 2023 2025

Innovation focused on emerging market needs

Energy Efficiency

Sustainability

Labor Efficiency

Fire Safety

Acoustics

Aesthetics

Product Vitality Index represents the percent of total sales from products introduced in the last 5 years. Pre-Spin and Post-Spin refers to the separation from Armstrong Flooring, Inc., completed on April 1, 2016.

US and Canada Mineral Fiber Commercial only.

Solutions Aligned With Market Needs

Deliver Energy Savings

Reduce building HVAC costs and energy consumption

by as much as 15%1

Enable LEED® Credits

Contributes to decarbonization-focused credits in multiple areas

Achieve Sustainability Goals

Reduce embodied and operational carbon emissions for building owners and operators