Armstrong World Industries Inc filed its 10-Q with the SEC, and its figures are now in our data. Revenue over the twelve months to Q3 2026 was $1.7 billion, a 9.1% increase from the year before. That growth rate was up 0.5 percentage points on the rate a quarter earlier.
Source: SEC EDGAR XBRL company facts. Latest period shown: FY26 Q3.
View chart data
| Period | Revenue growth, TTM YoY | Operating margin (TTM) | FCF margin (TTM) |
|---|---|---|---|
| FY24 Q4 | 11.6% | 25.9% | 12.7% |
| FY25 Q1 | 14.6% | 25.7% | 12.9% |
| FY25 Q2 | 15.6% | 26.6% | 14.0% |
| FY25 Q3 | 15.1% | 26.3% | 15.1% |
| FY25 Q4 | 12.1% | 26.6% | 15.2% |
| FY26 Q1 | 9.7% | 25.9% | 14.5% |
| FY26 Q2 | 8.6% | 25.8% | 14.6% |
| FY26 Q3 | 9.1% | 25.8% | 12.5% |
What stands out
Capital spending rose 26.3%, faster than operating cash flow’s 0.0%, so less of the cash generated was left over.
Profit and margins
Profit is present at every level. The trailing gross margin stood at 39.8%. The trailing operating margin was 25.8%, down 0.5 percentage points from a year earlier, while the trailing net margin reached 18.4%. Net income over the twelve months totaled $320.9 million, rising 5.1% on the year before.
The cash picture
Spending is outrunning the cash the business brings in, leaving less surplus. Operating cash flow over the twelve months was $332.1 million, up 0.0% on the year before. Capital spending amounted to $114.2 million, or 6.5% of revenue. Consequently, free cash flow, defined as operating cash flow less capital spending, was $217.9 million, down 9.8% on the year before. This represented a free-cash-flow margin of 12.5%, which is down 2.6 percentage points from a year earlier.
Shares outstanding
The average diluted share count fell 2.1% over the year.
In context
Measured against its own history: today’s free-cash-flow margin of 12.5% is higher than 72% of the company’s own past quarterly readings, which have ranged from −11.5% to 17.4%. Today’s operating margin of 25.8% is higher than 71% of past readings (4.8% to 43.4%). Today’s twelve-month revenue growth rate of 9.1% is higher than 66% of past readings (−76.6% to 63.9%).
Guidance
The company raised its for the year ended december 31, 2026 guidance for net sales to a range of $1,770.0 million to $1,800.0 million, for adjusted EBITDA to a range of $605.0 million to $620.0 million, for adjusted diluted net earnings per share to a range of $8.30 to $8.50, and for adjusted free cash flow to a range of $380.0 million to $395.0 million.
What it means for our valuation
These trends feed directly into what the shares are worth in our model. In our model, growth 5 percentage points lower would lower the value by 26.7%, and 5 percentage points higher would raise it by 34.7%. A free-cash-flow margin 1 percentage point lower would lower it by 7.8%.
Next to watch
The next filing will show whether the trends above continue, slow or reverse.
