| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 45 | 22.6x | 17.8x | Around median | |
Growth | 67 | 8.6% | 7.1% | Top tier | |
Quality | 80 | 24.6% | 4.5% | Top tier | |
Safety | 80 | 0.8x | 2.6x | Top tier | |
Capital Return | 49 | 0.82% | 2.12% | Around median | |
Momentum | 39 | -5.5% | 2.9% | Bottom tier | |
Sentiment | 75 | 6 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Armstrong World Industries manufactures ceiling and wall solutions for commercial buildings and generates revenue through two main segments: Mineral Fiber, which sells acoustic ceiling tiles and grid systems, and Architectural Specialties, which provides specialized architectural solutions made from metal, felt, wood, and other materials. The first segment is supported by a combination of price increases and an improved product mix, particularly demand for higher-value SWAT tiles, while the second grows organically and through acquisitions, including Evenscape in February 2026 and Paraline and Geometric in 2025. The company is also expanding its offerings through TEMPLOK for energy efficiency, DYNAMAX, DATAZONE, and containment solutions for data centers, as well as the Kanopi and PROJECTWORKS platforms.
In Q2 fiscal 2026, revenue was $472.0 million, gross profit was $195.0 million, net income was $96.7 million, and earnings per share were $2.26. This equates to a gross margin of approximately 41.3% and a net income margin of approximately 20.5%, while consolidated sales increased 11%, adjusted EBITDA increased 8%, and adjusted diluted earnings per share increased 13% year over year. Data for the twelve months ended in 2026 showed revenue of $1.7 billion, gross profit of $683.3 million, net income of $315.3 million, and earnings per share of approximately $7.38.
Growth in Q2 fiscal 2026 came from both segments, but their drivers differed: Mineral Fiber sales increased 8%, driven by 6% growth in average unit value and 2% volume growth, while its adjusted EBITDA margin reached 44.7%. Architectural Specialties sales grew 17%, including 9% organic growth, with the remainder supported by acquisitions, and its adjusted margin reached 20.4%, or 21.4% on an organic basis. These results reflect the company's ability to deliver double-digit consolidated revenue growth despite management describing market conditions as largely subdued during the first half of fiscal 2026.
Automated analysis for informational purposes only — not investment advice.
The analyst consensus is “Buy,” with an average price target of $202 and a target range of $190 to $215; the average is approximately 2% below the 52-week high of $206.08, while the highest target exceeds it by approximately 4%. The 52-week range extends from $150.28 to $206.08, and the breadth of the target range reflects differing assessments of the ability of growth in Mineral Fiber and Architectural Specialties to offset input inflation and reduce the impact of acquisitions on margins.
Figures in the text are as of 2026-08-30; the live price is shown at the top of the page.
Revenue in Q2 fiscal 2026 was approximately $472.0 million, gross profit was $195.0 million, net income was $96.7 million, and earnings per share were $2.26. Consolidated sales increased 11%, adjusted EBITDA increased 8%, and adjusted diluted earnings per share increased 13% year over year. Growth came from an 8% increase in Mineral Fiber sales and a 17% increase in Architectural Specialties sales. A 6% increase in average unit value, 2% Mineral Fiber volume growth, and 9% organic growth in Architectural Specialties contributed to this result.
TEMPLOK is an energy-efficient ceiling tile that the company markets based on electricity savings, thermal comfort, and the potential to benefit from tax incentives. By the July 28, 2026 call, the number of TEMPLOK project opportunities had more than doubled since the end of Q1 fiscal 2026. In data centers, Armstrong expanded from traditional tiles and grid systems into DYNAMAX, DATAZONE, containment solutions, and structural grid systems through WAVE. The number of data-center project wins since the beginning of fiscal 2026 increased by more than 50% compared with the corresponding period.
Management raised its fiscal 2026 consolidated sales growth forecast to 9%–11%, compared with 8%–10% previously. It expects adjusted EBITDA growth of 9%–12%, adjusted diluted earnings per share growth of 12%–15%, and adjusted free cash flow growth of 10%–14%. It is also targeting approximately 7% sales growth in Mineral Fiber and 15%–17% in Architectural Specialties, with margins of approximately 44% for the former and 19% for the latter. Management explained that the $20 million increase in the midpoint of sales guidance came primarily from Q2 performance, with subdued market conditions assumed to continue in the second half.
The Mineral Fiber segment's adjusted EBITDA margin was approximately 44.7% in Q2 fiscal 2026, compared with 45.2% a year earlier. A 6% increase in average unit value, 2% volume growth, and WAVE's contribution supported profitability, but freight and raw-material inflation and increased selling, general, and administrative expense investments pressured the margin. Management is targeting a margin of approximately 44% for fiscal 2026, which would represent the fourth consecutive year of segment margin expansion. However, expected mid-teens freight inflation makes pricing and productivity critical to achieving this target.
Architectural Specialties sales increased 17% in Q2 fiscal 2026, including 9% organic growth and contributions from Evenscape, Paraline, and Geometric. The adjusted EBITDA margin was 20.4% for the segment and 21.4% on an organic basis, showing that recent acquisitions are still diluting the overall margin. Order intake continued at a double-digit rate for the fourth consecutive quarter, supported by projects in transportation, education, office, and healthcare. Armstrong uses early access to the design process at companies such as Zahner and Evenscape to sell additional solutions from Mineral Fiber, grid systems, and the rest of the Architectural Specialties portfolio.
The main risks are weakness in the commercial market, economic uncertainty, and input inflation, particularly freight, which management expects to rise at a mid-teens rate during fiscal 2026. Recent acquisitions will also continue to dilute Architectural Specialties' full-year margin, with an overall margin of approximately 19% expected versus approximately 20% organically. In data centers, the company faces more fragmented competition, while traditional tiles and grid systems represent a smaller share of project spending than in typical commercial buildings. Valuation adds risk because the average analyst target of $202 is close to the 52-week high of $206.08, increasing the stock's sensitivity to any weakness in margins or execution.
