Armstrong World Industries: 2Q Results: Winning in a Muted Market by Pulling Forward the Spec Cycle

研报英文原文证据摘录

Armstrong World Industries: 2Q Results: Winning in a Muted Market by Pulling Forward the Spec Cycle

J P M O R G A N North America Equity Research

29 July 2026

Armstrong World Industries Overweight

AWI, AWI US

2Q Results: Winning in a Muted Market by Pulling Price (28 Jul 26):$178.65

Forward the Spec Cycle Price Target (Dec-27):$220.00

Armstrong delivered a standout 2Q26 under CEO Mark Hershey’s leadership, North America Small and Mid Cap

posting record net sales of $472M (+11% YoY) and adjusted diluted EPS of $2.36 Industrials

(+13% YoY) as the company’s growth playbook continues to convert. MF net sales Tomohiko Sano AC

rose ~8% on ~6% AUV and another quarter of volume growth, while AS climbed (1-212) 622-1099

~17% on ~9% organic growth, which in our view shows the portfolio can win even tomohiko.sano@jpmorgan.com

in a muted market and increasingly pull through across more spaces as it moves Ethan Coyle

earlier in the spec cycle. While total company adj. EBITDA margin compressed (1-212) 270-0613

~110bps to 35.2%, management raised FY26 guidance midpoints to sales growth ethan.coyle@jpmchase.com

of 9% to 11% and adjusted diluted EPS growth of 12% to 15%, largely reflecting Brendan Shea, CFA

(1-212) 622-0770

2Q outperformance with a consistent 2H outlook. We maintain our PT of $220. brendan.shea@jpmorgan.com

• MF Volume Stays Positive, AS Demand Remains Double-Digit: Armstrong J.P. Morgan Securities LLC

posted above-consensus 2Q results, with adjusted EBITDA of $166M (vs.

consensus $163M). Results included a ~$2M IEEPA tariff refund benefit, with Quarterly Forecasts (FYE Dec)

management not expecting anything material in 2H. AS sales rose 16.6% with Adj. EPS ($)

~9% organic growth, and management noted AS order intake remained 2025A 2026E 2027E