Armstrong World Industries, Inc. (AWI): Business Model Canvas [Dec-2025 Updated]

You're looking to quickly size up Armstrong World Industries, Inc. (AWI)'s business engine, and honestly, after digging through their latest figures, the model is holding up well, leaning heavily on premium products and smart pricing. As an analyst who's seen a few cycles, what stands out is how they balance the massive, steady Mineral Fiber ceiling business-which still drives about 64% of sales-with the high-growth Architectural Specialties segment, all while guiding for full-year 2025 Net Sales between $1,623 - $1,638 million. If you want to see exactly how this nearly 160-year-old company manages its key partnerships, like the WAVE joint venture, and maintains its pricing power through spec-driven demand, check out the full breakdown below; it's a masterclass in industrial specialty focus.

Armstrong World Industries, Inc. (AWI) - Canvas Business Model: Key Partnerships

You're looking at how Armstrong World Industries, Inc. (AWI) leverages external relationships to drive its business, which is key to understanding its overall financial health. Let's break down the hard numbers tied to these critical alliances as of late 2025.

Worthington Armstrong Venture (WAVE) for ceiling suspension systems

The Worthington Armstrong Venture (WAVE) joint venture remains a significant partner for AWI, specifically for ceiling suspension systems. This partnership is financially material; for instance, in the third quarter of 2025, equity earnings from WAVE added $3 million to AWI's consolidated operating income. That's a tangible contribution, even though it was lower than the $6 million benefit seen in the second quarter of 2025. Looking at the segment reporting, the Mineral Fiber Joint Venture reported net sales of $460M and Adjusted EBITDA of $82M for a recent period, showing the scale of the operation. AWI's year-to-date adjusted free cash flow growth through the first nine months of 2025 was also boosted by higher dividends received from WAVE. WAVE itself operates 7 manufacturing facilities, separate from AWI's 20 operating facilities, and it even expanded its capabilities in August 2024 by acquiring Data Center Resources, LLC to target the growing data center market.

Here's a quick look at the reported financial contribution from this key venture:

Metric	Value (Q3 2025)	Value (Q2 2025)	Context
WAVE Equity Earnings Contribution to AWI Operating Income	$3 million	$6 million	Quarter-over-quarter comparison
WAVE JV Net Sales (Reported)	$460 million	Data not specified for Q2	Mineral Fiber Joint Venture
WAVE JV Adjusted EBITDA (Reported)	$82 million	Data not specified for Q2	Mineral Fiber Joint Venture

Independent distributors and dealers for market reach

Armstrong World Industries, Inc. relies heavily on its distribution network to get products to contractors and end-users. The Distributors channel represents net sales to building materials distributors who then resell AWI's products. While the exact 2025 revenue percentage for this channel isn't explicitly broken out in the latest reports, the company notes that distribution consolidation is an ongoing trend, with leadership discussing the implications of large entities like Home Depot potentially acquiring major distributors. This channel is defintely critical for broad market penetration across the U.S., Canada, and Latin America.

Architects and designers for product specification and pull-through demand

The pull-through demand generated by architects and designers specifying AWI products is evident in the performance of the Architectural Specialties segment. This segment saw substantial growth, indicating strong specification activity. For example, in the second quarter of 2025, Architectural Specialties net sales jumped 37% year-over-year, contributing $43 million to the overall sales increase. In the third quarter of 2025, the segment continued its strong run with net sales up 18% year-over-year, adding $23 million in sales growth. The segment's success is also partly due to acquisitions made in 2024, like 3form and Zahner, which contributed $28 million to Q2 2025 Architectural Specialties sales and $16 million to Q3 2025 Architectural Specialties sales, respectively. This shows a dual partnership benefit: design specification driving organic growth, supported by strategic M&A.

Key raw material and energy suppliers for manufacturing inputs

Armstrong World Industries, Inc. has stated commitments that directly impact its relationships with raw material and energy suppliers. The company is committed to having its electricity sourced either directly or indirectly through renewable energy sources. Also, AWI is focused on reducing the carbon, GHG, waste, and water impacts of its products, which necessitates close alignment with suppliers on sustainable sourcing practices. While specific contract values aren't public, these commitments shape procurement strategy.

Armstrong World Industries Foundation (AWIF) community grant recipients

The Armstrong World Industries Foundation (AWIF) is a key non-financial partnership, supporting the communities where AWI operates. In 2025, AWIF announced grant recipients totaling $400,000. This investment focuses on community enrichment and housing insecurity. The foundation also dedicates almost $130,000 annually to support United Way and other organizations. Since 1985, the total investment from AWIF has surpassed $50 million.

The 2025 Better Building Grants awarded to Lancaster County organizations alone totaled nearly $400,000. Specific allocations for 2025 include:

• $100,000 toward LancasterHistory's Thaddeus Stevens & Lydia Hamilton Center for History and Democracy.
• $100,000 to Tenfold for shelter facility rehabilitation.
• $75,000 to the Lancaster Redevelopment Fund & Lancaster County Homeless Coalition for the Clay Street Emergency Shelter.
• $50,000 to YWCA Lancaster for a multi-phase construction project.

Finance: draft 13-week cash view by Friday.

Armstrong World Industries, Inc. (AWI) - Canvas Business Model: Key Activities

Manufacturing and operational excellence across facilities.

Armstrong World Industries, Inc. maintained a manufacturing network of 20 facilities as of the end of 2024, supplemented by seven facilities dedicated to its Worthington Armstrong Venture (WAVE) joint venture. The company continues to focus on creating efficiencies throughout its operations. In the first quarter of 2025, the company cited manufacturing productivity as a driver of results. Consolidated operating income in the third quarter of 2025 was partially offset by a $6 million increase in manufacturing costs compared to the prior-year period. The company is recognized as one of America's Greenest Companies for 2025.

Metric	Value	Context/Date
Manufacturing Facilities (AWI)	20	As of December 31, 2024
WAVE Joint Venture Facilities	7	As of December 31, 2024
Q3 2025 Manufacturing Cost Increase	$6 million	Compared to Q3 2024

Product innovation in acoustics, aesthetics, and sustainability.

The company invests in market-driven innovation to differentiate its products. This includes the Sustain® family of products and Total Acoustics® solutions. For sustainability, Armstrong World Industries launched the Ultima® Low Embodied Carbon (LEC) ceiling panels, which reduce material-related carbon emissions by 43% compared with standard Armstrong Ultima® ceiling panels. Furthermore, innovative TEMPLOK Energy Saving Ceilings may qualify for up to 50% in Investment Tax Credits.

• Launching Ultima® Low Embodied Carbon (LEC) ceiling panels.
• TEMPLOK Energy Saving Ceilings portfolio expansion.
• New CASTWORKS Walls Designer Panels introduced in November 2025 [cite: 2, 4 from first search].
• 2024 community giving through the AWI Foundation was nearly $1 million.

Strategic acquisitions to expand the Architectural Specialties portfolio.

Armstrong World Industries has expanded its Architectural Specialties segment through acquisitions, notably 3form, LLC and A. Zahner Company in 2024. The 3form business generated approximately $96 million in revenue in 2023. The combined impact of these 2024 acquisitions contributed $16 million to Architectural Specialties net sales in the third quarter of 2025. In the first quarter of 2025, the acquisitions contributed $41 million of net sales.

Commercial execution to drive Average Unit Value (AUV) improvements.

Favorable Average Unit Value (AUV) has been a key driver of financial performance. In the third quarter of 2025, the consolidated results showed a $14 million margin benefit from favorable AUV. The Mineral Fiber segment specifically saw 6% AUV growth in Q3 2025, driven by pricing and mix. For the first quarter of 2025, the favorable AUV contributed $16 million to consolidated net sales. During the second quarter of 2025, AUV growth was reported at 5%.

Period	Segment	AUV Impact / Growth
Q3 2025	Consolidated	$14 million benefit to net sales
Q3 2025	Mineral Fiber	6% growth
Q1 2025	Consolidated	$16 million benefit to net sales
Q2 2025	Consolidated	5% growth

Managing the ceiling recycling program and circular economy initiatives.

Armstrong World Industries operates the nation's first and longest-running Ceilings Recycling Program, which started in 1999. Since its inception, the program has reclaimed over 200 million square feet of discarded ceiling panels. This volume is enough material to fill Central Park more than six times over. The company aims to design products to be recycled, reused, or repurposed, targeting circularity in operations, with customers, and throughout the value chain. The program recycles all brands of dry, pulpable mineral fiber ceiling panels, with a typical minimum recycling amount of 5,000 sq. ft.

• Ceiling tile diverted from landfills since 1999: Over 200 million sq. ft..
• Volume equivalent to filling Central Park over six times.
• Minimum recycling quantity typically accepted: 5,000 sq. ft..
• Program operates in the Continental U.S. and Canada.

Armstrong World Industries, Inc. (AWI) - Canvas Business Model: Key Resources

You're looking at the core assets that keep Armstrong World Industries, Inc. (AWI) ahead in the North American architectural products space. These aren't just line items on a balance sheet; they are the physical and intangible foundations supporting their strong 2025 performance, like the raised full-year guidance expecting net sales growth of 11% to 13%.

Physical and Manufacturing Footprint

The physical network is extensive, covering the Americas. This infrastructure is critical for supporting the core Mineral Fiber segment, which accounted for approximately 64% of total sales in Q3 2025.

• Extensive manufacturing network in the Americas, comprising 20 facilities as of early 2025.
• Seven facilities dedicated to the Worthington Armstrong Joint Venture (WAVE), which contributed a $6 million increase in equity earnings in Q2 2025.

Intellectual Property and Brand Heritage

The brand equity is a massive, non-replicable asset. The history itself is a resource, dating back more than 160 years, which underpins the pricing power that allows for sustained Average Unit Value (AUV) increases.

Resource Component	Metric/Data Point
Brand Age	160+ years of operation in the industry.
Intellectual Property Reliance	AWI relies on proprietary IP, including numerous patents and registered trademarks, to market and sell products.
Market Position	The company is established as the "Kleenex" of ceilings, suggesting near-monopoly status in mindshare.

Installed Base and Market Dominance

The sheer volume of existing product is a resource because the market is heavily weighted toward repair and replacement. This installed base drives consistent demand, even when new commercial construction softens.

• Large installed base of Mineral Fiber ceilings, estimated at approximately 40 Billion ft².
• The Mineral Fiber segment achieved an impressive adjusted EBITDA margin of 43.6% in Q3 2025.

Digital Tools and Technical Expertise

Armstrong World Industries is actively investing in digital capabilities to streamline the specification and design process, creating a competitive moat. The success of these tools is directly linked to the company's ability to drive AUV growth through favorable mix.

• Digital tools and platforms, notably Project Works, which enables 'significant productivity and speed for the customer.'
• Integration of solutions like TEMPLOK Energy Saving Ceilings into leading energy-modeling software supports architects and engineers.

The workforce is the engine that runs these assets. As of the latest reports in late 2025, the company employed approximately 3,800 people. This team is highly skilled in manufacturing excellence and market-driven innovation, which is necessary to maintain segment profitability, such as the 20.4% year-over-year increase in Mineral Fiber operating income seen in Q2 2025.

Armstrong World Industries, Inc. (AWI) - Canvas Business Model: Value Propositions

You're looking at the core reasons customers choose Armstrong World Industries, Inc. (AWI) over the competition. It's not just about putting up a ceiling; it's about performance, health, and long-term operational savings. These value propositions are backed by some concrete numbers from their latest performance data.

High-performance ceiling and wall solutions for commercial spaces.

Armstrong World Industries focuses on providing solutions that meet demanding project specifications across various sectors. The Mineral Fiber segment, which represented approximately 64% of total sales in the third quarter of 2025, delivered revenue of $274 million in that quarter alone. The Architectural Specialties segment, a key growth area, saw net sales of $151.2 million in Q3 2025, marking a 17.6% year-over-year increase.

Improved building occupant well-being via acoustics and healthy materials.

The value here is in the experience of the space. For instance, the ULTIMA® Templok panel is specifically marketed as combining exceptional acoustical performance with energy savings. Furthermore, the company highlights offerings that connect occupants to nature, such as SOUNDSCAPES Blades and Shapes, which come in seven Wood-Look Visuals. The commitment to healthier materials is demonstrated by the fact that Armstrong's Ultima® Templok and Calla® Templok ceiling panels are now PVC-free.

Sustainability benefits like the ceiling recycling program and low-carbon products.

Armstrong World Industries was recognized as one of America's Greenest Companies for 2025 by Newsweek. Their circularity efforts are significant. Since launching in 1999, the Armstrong Ceilings Recycling Program has diverted over 217 million square feet of discarded ceiling panels from landfills. More recently, the 2024 Sustainability Report noted the program has diverted almost 220 million square feet. The company has a stated goal to recycle, reuse, or repurpose 50% of its products by the end of 2030. As of May 2022, 80% of their mineral fiber and fiberglass products met their Sustain classification. The minimum amount they typically recycle in a commercial project is 5,000 sq. ft..

The sustainability focus is clearly integrated into their product development, as seen with the Ultima® Low Embodied Carbon ceiling panels.

Sustainability Metric	Value/Amount	Context/Date
Ceiling Tiles Diverted from Landfill (Cumulative)	Almost 220 million square feet	As highlighted in 2024 Sustainability Report
Ceiling Recycling Program Launch Year	1999	Longest-running in the nation
2030 Product Recycling Goal	50%	Goal to recycle, reuse, or repurpose
Products Meeting Sustain Classification	80%	As of May 2022, for mineral fiber and fiberglass products
Minimum Commercial Recycling Volume	5,000 sq. ft.	Typical minimum for the recycling program

Energy-saving products, such as Templok® Energy Saving Ceilings.

The Templok® line offers quantifiable operational cost reductions. These panels use Phase Change Material (PCM) technology to passively regulate temperature. Armstrong states that Templok products can help reduce a facility's energy costs and consumption by as much as 15%. In a specific simulation for a medium-size office building in Los Angeles, Templok ceilings were shown to generate a 7.2% increase in annual cooling savings and a 30.2% increase in annual heating savings versus a baseline ceiling.

Furthermore, projects utilizing these panels may qualify for up to 50% in tax savings under the Investment Tax Credit (ITC) 48E. The ULTIMA® Templok panel has a documented thermal energy storage capacity of a minimum of 50 BTUs/SF between 62°F and 83°F per ASTM C1784-20.

Highly specified, premium products with few cost-effective substitutes.

The premium nature is supported by the strong margins in the core segment. The Mineral Fiber segment maintained a strong adjusted EBITDA margin of 43.6% in Q3 2025. The company's overall financial health, reflected in its raised full-year 2025 guidance for Net sales between $1,623 million and $1,638 million, suggests pricing power and demand for their specialized offerings. The company has also returned over $1 billion to shareholders since 2018, indicating a history of robust cash generation.

Here's a quick look at the recent financial performance that underpins the premium positioning:

• Q3 2025 Net Sales: $425.2 million
• Q3 2025 Adjusted Diluted EPS: $2.05
• Year-to-Date (9 months 2025) Net Sales: $1,232.5 million
• Raised FY2025 Adjusted Diluted EPS Guidance Range: $7.45 to $7.55

The ability to drive Average Unit Value (AUV) growth, which contributed to Q3 2025 revenue growth alongside volume, supports the premium value proposition.

Finance: draft 13-week cash view by Friday.

Armstrong World Industries, Inc. (AWI) - Canvas Business Model: Customer Relationships

Armstrong World Industries, Inc. focuses its customer relationships on deep engagement with design professionals and reliable partnership with its distribution channel.

Dedicated sales and technical support for architects and specifiers is central to securing project specifications. The primary B2B customer segments, which include architects, interior designers, specifiers, commercial contractors, and facility managers, drive over 60% of Armstrong World Industries, Inc.'s 2024 net sales of approximately $1.35 billion.

The company's focus on high-value sectors shows where this support is concentrated. Project volumes in the healthcare and education sectors are growing by an estimated 8-10% year-over-year in early 2025.

High brand loyalty is reinforced by consistently meeting the evolving demands of these professionals. A 2024 survey indicated that 75% of architects prioritize health and wellness attributes in material selection, a key area Armstrong World Industries, Inc. addresses.

The company's success hinges on product performance and a seamless supply chain, which creates significant switching costs for its B2B clientele.

Digital self-service tools are a major component of modern customer interaction. Over 40% of new project leads in 2024 were generated digitally, showing the importance of these platforms for initial engagement.

The success of digital initiatives like Project Works, mentioned in the Q2 2025 earnings call, enables significant productivity and speed for the customer, acting as a unique competitive advantage.

Long-term relationships with key distribution partners are critical for market reach. The North American geographical market presence accounts for approximately 85% of total net sales as of 2024, indicating the importance of its domestic distribution network.

The company's strategy involves a hybrid approach, blending deep technical engagement with architects and designers alongside sophisticated digital lead generation.

Here are some key metrics related to Armstrong World Industries, Inc.'s customer-facing performance and segment focus as of late 2025:

Customer Relationship Metric	Value/Statistic	Period/Context
Primary Revenue Driver Segment Share	>60%	2024 Net Sales
Architect Priority (Health & Wellness)	75%	2024 Survey
Digital Lead Generation Contribution	>40%	2024 New Project Leads
Fastest Growing Vertical Project Volume Growth	8-10%	Early 2025 YoY
Consolidated Net Sales (Q3 2025)	$425.2 million	Q3 2025
Architectural Specialties Net Sales Growth (Q3 2025)	18%	Q3 2025 YoY

The company's focus on innovation, including new product penetration into specialty walls, interior finishes, and exterior facades, is designed to deepen these existing relationships.

The Mineral Fiber segment, representing approximately 64% of total sales in Q3 2025, maintained a strong adjusted EBITDA margin of 43.6% in that quarter, demonstrating consistent product performance that supports loyalty.

The Architectural Specialties segment saw net sales increase 18% in Q3 2025, partly driven by organic sales growth of $7 million, showing direct customer demand for specialty offerings.

The company's capital allocation reflects confidence in its model, with year-to-date adjusted free cash flow up 22% through the first nine months of 2025, which supports ongoing investment in customer support and digital tools.

The company repurchased 0.1 million shares in Q3 2025 for a total cost of $27 million, showing a commitment to shareholder value that underpins the stability sought by long-term partners.

Armstrong World Industries, Inc. (AWI) - Canvas Business Model: Channels

Network of independent ceiling and wall system distributors.

Armstrong World Industries, Inc. markets and distributes its products to building material contractors and distributors who resell them to builders, installers, contractors and retailers. North America accounted for approximately 85% of total net sales in 2024. The Mineral Fiber segment, which relies heavily on this distribution channel, delivered 6% revenue growth to $274 million in Q3 2025. The company has been navigating distribution channel consolidation for over a decade. The company had approximately 3,700 employees as of 2024. The company operates in the US and Canada.

Direct sales force for large, complex custom projects.

The primary target market, commercial construction and renovation, generated an estimated over 60% of 2024 net sales of approximately $1.35 billion. This segment includes key decision-makers such as architects, interior designers, and commercial contractors who specify materials for large-scale projects. The Architectural Specialties segment, which includes custom work from the 2024 acquisitions of 3form and Zahner, saw net sales increase 18% to $151 million in Q3 2025.

WAVE joint venture for the distribution of suspension systems.

The Worthington Armstrong Joint Venture (WAVE) contributed $6 million to the increase in consolidated operating income in the second quarter of 2025. Year-to-date adjusted free cash flow through the first nine months of 2025 increased 22%, driven in part by higher WAVE joint venture dividends. The direct impact of tariffs on the cost of goods sold for the WAVE joint venture is expected to be approximately 5%. Armstrong World Industries, Inc. had seven facilities dedicated to its WAVE joint venture as of the end of 2024.

Digital platforms and websites for product information and defintely specification.

The success of digital initiatives, such as Project Works, is cited as a unique competitive advantage, enabling significant productivity and speed for the customer.

The following table summarizes key financial metrics relevant to channel performance through the first nine months of 2025:

Metric	Value (9 Months 2025)	Comparison Period
Consolidated Net Sales	$1,232.5 million	Year-over-Year Increase
Mineral Fiber Segment Net Sales	Not Separately Available	Q3 2025 represented 64% of total sales
Architectural Specialties Segment Net Sales	$151 million	Q3 2025 (vs prior year Q3)
WAVE Equity Earnings Contribution	$6 million	Q2 2025 Increase
Adjusted Free Cash Flow	$259 million	Year-to-Date Increase of 22% (vs prior year)

The company's full-year 2025 guidance for total net sales is set between $1,623 million and $1,638 million.

• Architectural Specialties segment adjusted EBITDA margin reached approximately 22% in Q2 2025.
• Mineral Fiber segment adjusted EBITDA margin was a strong 43.6% in Q3 2025.
• The company has been authorized to repurchase up to $1,700 million of common stock through December 2026.

Armstrong World Industries, Inc. (AWI) - Canvas Business Model: Customer Segments

Armstrong World Industries, Inc. (AWI) serves a broad base of customers within the commercial and residential building spaces across the Americas.

The scale of the business serving these segments is reflected in the latest financial figures. Trailing Twelve Months (TTM) revenue ending September 30, 2025, was $1.60B. The company revised its full fiscal year 2025 revenue guidance to a range of $1.623 billion to $1.638 billion.

Customer engagement is channeled through distinct groups, with performance varying across the company's product lines which cater to these groups:

• Commercial building owners and developers (new construction and renovation).
• Architects, interior designers, and engineering firms (specifiers).
• Specialty contractors and ceiling installers.
• Diverse end markets: healthcare, education, office, and retail.

The performance of the two main product segments gives insight into the current demand drivers from these customer groups. For instance, in the third quarter of 2025, Architectural Specialties net sales increased 18% year-over-year, while Mineral Fiber net sales increased 6%. In the second quarter of 2025, Architectural Specialties net sales saw an even higher increase of 37% year-over-year, compared to a 7% increase in Mineral Fiber net sales.

Here is a snapshot of the financial context surrounding the customer base as of late 2025:

Metric	Value (as of Q3 2025 or TTM Sep 30, 2025)	Context
TTM Revenue (ending Sep 30, 2025)	$1.60B	Total sales volume across all segments and customers.
Q3 2025 Net Sales	$425.2 million	Quarterly revenue performance.
FY 2025 Revenue Guidance Midpoint	$1.6305 billion	Company expectation for full-year sales.
Architectural Specialties Q3 Y/Y Sales Growth	18%	Growth rate for products often specified by design firms.
Mineral Fiber Q3 Y/Y Sales Growth	6%	Growth rate for core ceiling products.
Market Capitalization (as of Dec 3, 2025)	$8.13 billion	Overall company valuation reflecting investor confidence in the customer base.

The Architectural Specialties segment, which includes products from the 2024 acquisitions of 3form and Zahner, contributed significantly to top-line growth, with net sales increasing $43 million in Q2 2025 over the prior-year period. This suggests strong demand from customers specifying differentiated, high-design solutions.

The Mineral Fiber segment's growth, driven by a 7% increase in Average Unit Value (AUV) in Q1 2025, shows pricing power with its established customer base, despite softer volumes.

• The company reported a high Return on Equity (ROE) of 39.21%, indicating efficient capital deployment across serving all customer types.
• The P/S Ratio was at 5.67 near the end of 2025, near its 10-year high, suggesting strong sales relative to market value.

For the third quarter of 2025, the company reported diluted net earnings per share of $1.36.

Armstrong World Industries, Inc. (AWI) - Canvas Business Model: Cost Structure

The Cost Structure for Armstrong World Industries, Inc. (AWI) in late 2025 is heavily influenced by production scale, strategic acquisitions, and capital deployment priorities.

Significant manufacturing and input costs remain a core component, though pricing power has helped offset some pressures. For the three months ended September 30, 2025, consolidated manufacturing costs increased by $6 million compared to the prior-year period. The Mineral Fiber segment specifically saw a $3 million increase in manufacturing costs, partly attributed to higher medical claims above the normal run rate. Discrete, timing-related costs impacting both manufacturing and SG&A totaled approximately $6 million in the third quarter of 2025.

Selling, General, and Administrative (SG&A) expenses reflect the ongoing integration and operational scaling following recent strategic moves. For the twelve months ending September 30, 2025, total SG&A expenses reached $338 million. In the third quarter of 2025 alone, SG&A expenses increased by $13 million year-over-year, primarily driven by acquisition-related costs and higher incentive compensation tied to strong financial performance.

The company continues to invest substantial capital back into the business for maintenance and growth initiatives. Capital expenditures for facility maintenance and growth year-to-date Q3 2025 were reported at $62 million. This investment level partially offset the strong year-to-date cash flow from operations, which was up 120% year-to-date through Q3 2025.

Costs related to R&D and product innovation are embedded within operating expenses, supporting the growth in the Architectural Specialties segment, which saw net sales increase by 17.6% in Q3 2025, driven by acquisitions and organic growth.

Capital allocation includes a focus on returning value to shareholders via the share repurchase program. During the third quarter of 2025, Armstrong World Industries, Inc. repurchased 0.1 million shares for a total cost of $27 million, excluding commissions and taxes. The cumulative cost for the share repurchase program year-to-date Q3 2025 was $79 million.

Here's a quick look at key cost and capital allocation figures for the period:

Cost/Allocation Category	Period	Amount (in millions USD)
SG&A Expenses	Twelve Months Ended Q3 2025	338.0
SG&A Expense Increase	Q3 2025 vs. Prior Year	13.0
Manufacturing Cost Increase	Q3 2025 vs. Prior Year	6.0
Capital Expenditures	Year-to-Date Q3 2025	62.0
Share Repurchases	Quarter Ended Q3 2025	27.0
Share Repurchase Program Costs	Year-to-Date Q3 2025	79.0

The cost profile reflects a business balancing integration expenses with operational efficiency:

• Year-to-date Adjusted Free Cash Flow growth was 22% through Q3 2025.
• Architectural Specialties segment adjusted EBITDA margin was 18.8% in Q3 2025.
• Mineral Fiber segment adjusted EBITDA margin was 43.6% for the quarter.
• Total discrete costs impacting Q3 2025 operating expenses were approximately $6 million.

Finance: draft 13-week cash view by Friday.

Armstrong World Industries, Inc. (AWI) - Canvas Business Model: Revenue Streams

You're looking at the hard numbers that fuel Armstrong World Industries, Inc. (AWI)'s top line as of late 2025. It's all about where the money comes from, plain and simple.

Full-Year 2025 Net Sales guidance projects a strong finish, set in the range of $1,623 - $1,638 million. This guidance was raised following strong year-to-date performance.

The revenue streams are clearly segmented, with the core business providing a solid base, while specialty products offer significant upside.

Revenue Stream Breakdown:

• Sales of Mineral Fiber ceiling products account for approximately 64% of total sales.
• Sales of Architectural Specialties products represent the high-growth segment.
• Equity earnings from the Worthington Armstrong Venture (WAVE) contribute to the overall revenue picture.

Here's a look at the segment performance that drives these streams, based on Q3 2025 results and full-year expectations:

Revenue Stream Component	Latest Reported Period Data (Q3 2025)	Full-Year 2025 Projection/Expectation
Mineral Fiber Net Sales	$274.0 million for the three months ended September 30, 2025.	Expected AUV growth of approximately 6%.
Architectural Specialties Net Sales	Net sales increased 10.0% year-over-year in Q3 2025, with a $23 million increase over the prior-year period.	Projected sales growth of approximately 29%.
Equity Earnings from WAVE	$3 million benefit to consolidated operating income in Q3 2025.	Expected to grow high-single digits for the full year.

Revenue growth is clearly being pulled forward by pricing power, which Armstrong World Industries, Inc. (AWI) refers to as Average Unit Value (AUV), alongside volume gains.

Drivers of Revenue Growth:

• In Q3 2025, consolidated net sales growth of 10.0% was driven by higher volumes of $24 million and favorable AUV of $14 million.
• The Mineral Fiber segment saw 6% revenue growth in Q3 2025, driven by 6% AUV growth from pricing and slightly positive volumes.
• For Q2 2025, Mineral Fiber net sales rose 6.7%, fueled by a 5% AUV increase and modest volume growth.
• The Architectural Specialties segment saw net sales increase by 37% in Q2 2025, including 15% organic growth.

The company is definitely seeing results from its pricing strategy.