It has been about a month since the last earnings report for Armstrong World Industries (AWI Quick QuoteAWI - Free Report) . Shares have lost about 0.6% in that time frame, outperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Armstrong World Industries due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.

Armstrong World Q3 Earnings & Sales Top, Raises 2025 Outlook

Armstrong World posted robust third-quarter 2025 results, beating the Zacks Consensus Estimates on adjusted earnings and net sales and growing year over year.

Revenues and Earnings Beat the Street

Adjusted earnings were $2.05 per share, up 13.3% from $1.81 in the prior year and above the Zacks Consensus Estimate of $1.99 by 3%.

Net sales rose 10% year over year to $425.6 million and also surpassed the consensus mark of $425 million by 5.2%.

Segment Highlights

Mineral Fiber: Net sales climbed 6.2% to $274 million, driven by improvement in Average Unit Value (AUV) and higher volume growth. Adjusted EBITDA rose 5.5% to $119 million.

Architectural Specialties: Net sales surged 17.6% to $151.2 million, largely from the 2024 acquisitions of 3form and Zahner, along with $7 million increase in organic net sales. Adjusted EBITDA increased 9.7% to $28 million.

Margin Expansion Remains the Standout

Gross profit reached $178.5 million, up from $164.1 million in the prior year quarter. Adjusted operating income rose 4.4% to $118 million, while operating margin contracted 120 basis points (bps) to 27.6%.

Adjusted EBITDA increased 6.4% year over year to $148 million, while margin contracted 120 bps to 34.7%.

2025 Guidance Raised

Armstrong World now anticipates net sales to be within $1.623-$1.638 billion (up from $1.60-$1.63 billion expected earlier), indicating a 12-13% increase from the year-ago figure.

Adjusted EBITDA is now estimated to be within $553-$563 million (up from $545-$560 million expected earlier), indicating a rise of 14-16% year over year. Adjusted earnings per share are now expected to be between $7.45 and $7.55 (compared with $7.15-$7.30 expected earlier), implying growth of 18-20% from the reported figure of 2024.

Adjusted free cash flow is now anticipated to be between $342 million and $352 million (up from $330-$345 million expected earlier), indicating a 15-18% increase year over year.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a upward trend in estimates review.

The consensus estimate has shifted 10.6% due to these changes.

VGM Scores

Currently, Armstrong World Industries has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. Following the exact same course, the stock has a score of D on the value side, putting it in the bottom 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Armstrong World Industries has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.