Operating margins have shown significant expansion from 14.8% in 2023Q4 to 23.0% in 2026Q1, reflecting effective cost management despite a deceleration in revenue growth to 7.1%.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Sales/Revenue | 1.65B | 1.62B | 1.45B | 1.3B | 1.23B | 1.11B | 936.9M | 1.04B | 975.3M | 893.5M | 835.9M | 1.23B | 2.51B | 2.53B | 2.62B | 2.72B | 2.63B | 2.78B | 3.39B | 3.55B | 3.43B | 3.56B | 3.5B | 3.26B | 3B | 3.14B | 3.25B | 3.05B | 2.75B | 2.2B | 2.01B |
| Revenue Growth % | 9.71% | 12.11% | 11.62% | 5.04% | 11.43% | 18.11% | -9.75% | 6.44% | 9.16% | 6.89% | -31.9% | -51.1% | -0.68% | -3.49% | -3.83% | 3.63% | -5.47% | -18.07% | -4.41% | 3.61% | -3.72% | 1.75% | 7.31% | 8.7% | -4.48% | -3.41% | 6.6% | 11% | 24.9% | 9.26% | -13.45% |
| Cost of Goods Sold | 983.9M | 962.1M | 864.1M | 798.2M | 783.8M | 700.7M | 603.7M | 642.4M | 641.9M | 574.5M | 530.3M | 850.3M | 1.92B | 1.94B | 1.96B | 2.06B | 2.01B | 2.13B | 2.63B | 2.68B | 2.68B | 2.79B | 2.81B | 2.6B | 2.28B | 2.36B | 2.38B | 2.08B | 1.84B | 1.46B | 1.4B |
| COGS % of Revenue | - | 59.36% | 59.77% | 61.63% | 63.56% | 63.32% | 64.44% | 61.88% | 65.82% | 64.3% | 63.44% | 69.27% | 76.35% | 76.7% | 74.76% | 75.57% | 76.54% | 76.65% | 77.39% | 75.55% | 78.2% | 78.45% | 80.38% | 79.7% | 76.14% | 75.34% | 73.39% | 68.26% | 66.95% | 66.48% | 69.45% |
| Gross Profit | 664.1M | 658.7M | 581.6M | 497M | 449.3M | 405.9M | 333.2M | 395.7M | 333.4M | 319M | 305.6M | 377.2M | 593.8M | 588.9M | 660.9M | 665.2M | 616.4M | 649M | 767.1M | 868M | 746.9M | 766.7M | 686.3M | 661.6M | 715.4M | 774M | 864.6M | 967.4M | 907.6M | 737M | 614.8M |
| Gross Margin % | 40.3% | 40.64% | 40.23% | 38.37% | 36.44% | 36.68% | 35.56% | 38.12% | 34.18% | 35.7% | 36.56% | 30.73% | 23.65% | 23.3% | 25.24% | 24.43% | 23.46% | 23.35% | 22.61% | 24.45% | 21.8% | 21.55% | 19.62% | 20.3% | 23.86% | 24.66% | 26.61% | 31.74% | 33.05% | 33.52% | 30.55% |
| Gross Profit Growth % | - | 13.26% | 17.02% | 10.62% | 10.69% | 21.82% | -15.79% | 18.69% | 4.51% | 4.38% | -18.98% | -36.48% | 0.83% | -10.89% | -0.65% | 7.92% | -5.02% | -15.4% | -11.62% | 16.21% | -2.58% | 11.71% | 3.73% | -7.52% | -7.57% | -10.48% | -10.63% | 6.59% | 23.15% | 19.88% | -17.35% |
| Operating Expenses | 210.9M | 227.8M | 308.5M | 262.5M | 237.2M | 237.7M | 163.4M | 155.2M | 159M | 138.6M | 155.5M | 266.8M | 398.5M | 386.9M | 418.3M | 453.5M | 488M | 541.9M | 567.2M | 613.5M | 561M | 654.3M | 633.4M | 672M | 3.06B | 633.9M | 857.9M | 898.9M | 867.7M | 415M | 401.4M |
| OpEx % of Revenue | - | 14.05% | 21.34% | 20.27% | 19.24% | 21.48% | 17.44% | 14.95% | 16.3% | 15.51% | 18.6% | 21.74% | 15.87% | 15.31% | 15.97% | 16.65% | 18.57% | 19.49% | 16.72% | 17.28% | 16.38% | 18.39% | 18.11% | 20.62% | 101.96% | 20.2% | 26.4% | 29.49% | 31.6% | 18.87% | 19.95% |
| Selling, General & Admin | 350.2M | 339.5M | 302M | 257.1M | 232.81M | 222.8M | 148.6M | 139.8M | 142.7M | 121.2M | 137.7M | 247.1M | 367.9M | 357.6M | 388M | 424.3M | 455.1M | 503.9M | 528.4M | 569.7M | 512.2M | 605.8M | 586.8M | 603.1M | 574.5M | 596.6M | 597.2M | 556.2M | 522M | 383.5M | 413.2M |
| SG&A % of Revenue | - | 20.95% | 20.89% | 19.85% | 18.88% | 20.13% | 15.86% | 13.47% | 14.63% | 13.56% | 16.47% | 20.13% | 14.66% | 14.15% | 14.82% | 15.58% | 17.32% | 18.13% | 15.57% | 16.05% | 14.95% | 17.02% | 16.78% | 18.51% | 19.16% | 19.01% | 18.38% | 18.25% | 19.01% | 17.44% | 20.53% |
| Research & Development | 0 | 0 | 0 | 0 | 4.2M | 14.6M | 14.7M | 14.8M | 16.3M | 17.4M | 17.8M | 19.7M | 30.6M | 29.3M | 30.3M | 29.2M | 32.9M | 38M | 38.8M | 43.8M | 48.8M | 48.5M | 46.6M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | 0.34% | 1.32% | 1.57% | 1.43% | 1.67% | 1.95% | 2.13% | 1.6% | 1.22% | 1.16% | 1.16% | 1.07% | 1.25% | 1.37% | 1.14% | 1.23% | 1.42% | 1.36% | 1.33% | - | - | - | - | - | - | - | - |
| Other Operating Expenses | -3M | -111.7M | 6.5M | 5.4M | 200K | 300K | 100K | 600K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 68.9M | 2.48B | 37.3M | 260.7M | 342.7M | 345.7M | 31.5M | -11.8M |
| Operating Income | 453.2M | 430.9M | 273.1M | 234.5M | 212.1M | 168.2M | 169.8M | 240.5M | 174.4M | 180.4M | 150.1M | 110.4M | 195.3M | 202M | 242.6M | 211.7M | 128.4M | 107.1M | 199.9M | 254.5M | 185.9M | 112.4M | 52.9M | -10.4M | -2.34B | 140.1M | 6.7M | 68.5M | 39.9M | 322M | 213.4M |
| Operating Margin % | 27.5% | 26.59% | 18.89% | 18.11% | 17.2% | 15.2% | 18.12% | 23.17% | 17.88% | 20.19% | 17.96% | 8.99% | 7.78% | 7.99% | 9.26% | 7.77% | 4.89% | 3.85% | 5.89% | 7.17% | 5.43% | 3.16% | 1.51% | -0.32% | -78.1% | 4.46% | 0.21% | 2.25% | 1.45% | 14.64% | 10.6% |
| Operating Income Growth % | - | 57.78% | 16.46% | 10.56% | 26.1% | -0.94% | -29.4% | 37.9% | -3.33% | 20.19% | 35.96% | -43.47% | -3.32% | -16.74% | 14.6% | 64.88% | 19.89% | -46.42% | -21.45% | 36.9% | 65.39% | 112.48% | 608.65% | 99.56% | -1771.38% | 1991.04% | -90.22% | 71.68% | -87.61% | 50.89% | 383.9% |
| EBITDA | 602.9M | 433.3M | 376.3M | 323.7M | 295.8M | 264.7M | 253.8M | 312.6M | 253.8M | 247.4M | 204.9M | 189.6M | 324.7M | 311M | 355.3M | 325.5M | 271.7M | 253.9M | 349.7M | 392.3M | 319.3M | 253.4M | 203.9M | 163.2M | -2.34B | 162.9M | 30.6M | 94M | 182.6M | 454.7M | 614.8M |
| EBITDA Margin % | 36.58% | 26.73% | 26.03% | 24.99% | 23.99% | 23.92% | 27.09% | 30.11% | 26.02% | 27.69% | 24.51% | 15.45% | 12.93% | 12.31% | 13.57% | 11.95% | 10.34% | 9.13% | 10.31% | 11.05% | 9.32% | 7.12% | 5.83% | 5.01% | -78.03% | 5.19% | 0.94% | 3.08% | 6.65% | 20.68% | 30.55% |
| EBITDA Growth % | 52.83% | 15.15% | 16.25% | 9.43% | 11.75% | 4.29% | -18.81% | 23.17% | 2.59% | 20.74% | 8.07% | -41.61% | 4.41% | -12.47% | 9.16% | 19.8% | 7.01% | -27.39% | -10.86% | 22.86% | 26.01% | 24.28% | 24.94% | 106.98% | -1536.1% | 432.35% | -67.45% | -48.52% | -59.84% | -26.04% | 114.29% |
| D&A (Non-Cash Add-back) | 149.7M | 0 | 103.2M | 89.2M | 83.7M | 96.5M | 84M | 72.1M | 79.4M | 67M | 54.8M | 79.2M | 129.4M | 109M | 112.7M | 113.8M | 143.3M | 146.8M | 149.8M | 137.8M | 133.4M | 141M | 151M | 173.6M | 0 | 22.8M | 23.9M | 25.5M | 142.7M | 132.7M | 0 |
| EBIT | 428.7M | 433.3M | 392.4M | 345.1M | 284.7M | 274.1M | -97M | 336.4M | 266.2M | 256.6M | 191.8M | 124.6M | 231.2M | 267.4M | 274.2M | 242.3M | 94.3M | 92.9M | 220.2M | 314.2M | 2.18B | 110.7M | -45.8M | 7.6M | -2.34B | 145.6M | 224.7M | 384.3M | 300.3M | 351.7M | 614.8M |
| Net Interest Income | -32.2M | -33M | -41.5M | -43.3M | -26.6M | -31.3M | -29.4M | -33.8M | -33.3M | -32.7M | -40.2M | -42.6M | -43.5M | -65.4M | -50.6M | -45.7M | -14.1M | -14.6M | -20.3M | -39.7M | -11.7M | -3.8M | -4.4M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 0 | 0 | 3.8M | 3.5M | 500K | 100K | 300K | 3.2M | 4.3M | 1.8M | 1M | 1.9M | 2.5M | 3.3M | 3.1M | 2.8M | 7.1M | 3.1M | 10.5M | 15.3M | 6.9M | 4.6M | 4M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 32.2M | 33M | 45.3M | 46.8M | 27.1M | 31.4M | 29.7M | 37M | 37.6M | 34.5M | 41.2M | 44.5M | 46M | 68.7M | 53.7M | 48.5M | 21.2M | 17.7M | 30.8M | 55M | 18.6M | 8.4M | 8.4M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -55.2M | -30.6M | 74M | 63.8M | 45.5M | 74.5M | -296.5M | 58.9M | 68.3M | 41.7M | 500K | -30.3M | -10.1M | -3.3M | -22.1M | -17.9M | -55.3M | -31.9M | -10.5M | 4.7M | 1.97B | -10.1M | -107.1M | -30.6M | -35.2M | -24.4M | -129.5M | -97.3M | -60.5M | -25.8M | -15.7M |
| Pretax Income | 398M | 400.3M | 347.1M | 298.3M | 257.6M | 242.7M | -126.7M | 299.4M | 242.7M | 222.1M | 150.6M | 80.1M | 185.2M | 198.7M | 220.5M | 193.8M | 73.1M | 75.2M | 189.4M | 259.2M | 2.16B | 102.3M | -54.2M | -41M | -2.38B | 115.7M | -122.8M | -28.8M | -20.6M | 296.2M | 197.7M |
| Pretax Margin % | 24.15% | 24.7% | 24.01% | 23.03% | 20.89% | 21.93% | -13.52% | 28.84% | 24.88% | 24.86% | 18.02% | 6.53% | 7.38% | 7.86% | 8.42% | 7.12% | 2.78% | 2.71% | 5.58% | 7.3% | 62.99% | 2.87% | -1.55% | -1.26% | -79.27% | 3.69% | -3.78% | -0.94% | -0.75% | 13.47% | 9.82% |
| Income Tax | 91.6M | 91.6M | 82.2M | 74.5M | 57.7M | 57.4M | -42.6M | 57.1M | 53.1M | 1.5M | 51.3M | 53.5M | 83.2M | 71.4M | 76.1M | 81M | 58M | -2.5M | 109M | 106.4M | 730.4M | 1.6M | 25.1M | -1.7M | -827.8M | 42.5M | -37.7M | -4.8M | -11.3M | 111.2M | 75.4M |
| Effective Tax Rate % | 23.02% | 22.88% | 23.68% | 24.97% | 22.4% | 23.65% | 33.62% | 19.07% | 21.88% | 0.68% | 34.06% | 66.79% | 44.92% | 35.93% | 34.51% | 41.8% | 79.34% | -3.32% | 57.55% | 41.05% | 33.85% | 1.56% | -46.31% | 4.15% | 34.83% | 36.73% | 30.7% | 16.67% | 54.85% | 37.54% | 38.14% |
| Net Income | 306.4M | 308.7M | 264.9M | 223.7M | 199.6M | 185M | -84.2M | 240M | 198.6M | 224.1M | 89.1M | 52.5M | 77.8M | 99.8M | 131.2M | 112.4M | 11M | 77.3M | 81M | 145.3M | 1.36B | 100.7M | -79.7M | -41.8M | -2.14B | 92.8M | 12.2M | 14.3M | -9.3M | 185M | 155.9M |
| Net Margin % | 18.59% | 19.05% | 18.32% | 17.27% | 16.19% | 16.72% | -8.99% | 23.12% | 20.36% | 25.08% | 10.66% | 4.28% | 3.1% | 3.95% | 5.01% | 4.13% | 0.42% | 2.78% | 2.39% | 4.09% | 39.64% | 2.83% | -2.28% | -1.28% | -71.47% | 2.96% | 0.38% | 0.47% | -0.34% | 8.41% | 7.75% |
| Net Income Growth % | 11.78% | 16.53% | 18.42% | 12.07% | 7.89% | 319.72% | -135.08% | 20.85% | -11.38% | 151.52% | 69.71% | -32.52% | -22.04% | -23.93% | 16.73% | 921.82% | -85.77% | -4.57% | -44.25% | -89.3% | 1248.56% | 226.35% | -90.67% | 98.05% | -2409.05% | 660.66% | -14.69% | 253.76% | -105.03% | 18.67% | 26.44% |
| Net Income (Continuing) | 306.4M | 308.7M | 264.9M | 223.8M | 199.9M | 185.3M | -84.1M | 242.3M | 189.6M | 220.6M | 99.3M | 26.6M | 102M | 127.3M | 144.4M | 112.8M | 15.1M | 77.7M | 80.4M | 152.8M | 1.43B | 100.7M | -79.3M | -39.3M | -1.55B | 73.2M | -85.1M | -24M | -9.3M | 185M | 155.9M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 3M | -2.1M | 0 | -1.8M | 9.6M | 4.2M | -9.9M | 26M | -23.7M | -26.8M | -12.2M | -400K | -4.1M | 0 | 600K | -7.5M | -69.5M | 0 | -400K | -2.5M | -3.2M | 19.6M | 97.3M | 38.3M | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 8.6M | 0 | 6.9M | 7.5M | 7.9M | 9.3M | 9.7M | 9.5M | 8.8M | 6.9M | 11.8M | 16.1M | 15M | 12.3M |
| EPS (Diluted) | 7.09 | 7.08 | 6.02 | 4.99 | 4.30 | 3.82 | -1.76 | 4.85 | 3.57 | 2.21 | 1.87 | 1.68 | 1.14 | 1.60 | 2.19 | 1.90 | 0.19 | 1.36 | 1.42 | 2.56 | 24.55 | 2.75 | -1.96 | -0.97 | -52.65 | 2.27 | 0.30 | 0.36 | -0.23 | 4.50 | 3.83 |
| EPS Growth % | 12.8% | 17.61% | 20.64% | 16.05% | 12.57% | 317.05% | -136.29% | 35.85% | 61.54% | 18.18% | 11.31% | 47.37% | -28.75% | -26.94% | 15.26% | 900% | -86.03% | -4.23% | -44.53% | -89.57% | 792.73% | 240.31% | -102.06% | 98.16% | -2419.38% | 656.67% | -16.67% | 256.52% | -105.11% | 17.49% | 43.45% |
| EPS (Basic) | - | 7.08 | 6.06 | 5.00 | 4.31 | 3.84 | -1.76 | 4.93 | 3.62 | 2.23 | 1.88 | 1.69 | 1.15 | 1.62 | 2.21 | 1.91 | 0.19 | 1.36 | 1.42 | 2.59 | 24.69 | 2.77 | -1.97 | -0.97 | -52.91 | 2.29 | 0.30 | 0.36 | -0.23 | 4.55 | 3.84 |
| Diluted Shares Outstanding | 43.2M | 43.6M | 44M | 44.8M | 46.4M | 47.9M | 47.9M | 49.5M | 52.1M | 53.9M | 55.7M | 55.9M | 55.4M | 58.4M | 59.5M | 58.8M | 58.2M | 57M | 56.4M | 56.7M | 55.3M | 40.7M | 40.7M | 40.49M | 40.7M | 40.8M | 40.5M | 40.2M | 40.43M | 41.11M | 40.7M |
| Basic Shares Outstanding | 42.8M | 43.6M | 43.7M | 44.7M | 46.3M | 47.6M | 47.9M | 48.7M | 51.3M | 53.3M | 55.4M | 55.5M | 55M | 57.8M | 58.9M | 58.3M | 57.7M | 56.8M | 56.4M | 56M | 55M | 40.5M | 40.5M | 40.49M | 40.5M | 40.5M | 40.2M | 39.9M | 40.43M | 40.66M | 40.6M |
| Dividend Payout Ratio | - | 17.88% | 19.1% | 20.97% | 22.14% | 22.38% | - | 14.83% | 4.33% | - | - | 2.29% | 1.67% | 1.4% | 386.51% | 0.27% | 7260% | 1.68% | 316.54% | - | - | - | - | - | - | - | 476.23% | 537.76% | - | 37.84% | 44.96% |
Commercial real estate exposure
According to the provided quarterly income statements, AWI's revenue growth has decelerated from a peak of 17.7% in 2024Q4 to 7.1% in 2026Q1, suggesting that the initial post-pandemic demand surge is normalizing as the company faces a more challenging commercial construction environment.
The recent trend indicates that the company is struggling to maintain the double-digit growth rates observed throughout 2024 and early 2025. This deceleration likely reflects the sensitivity of the commercial renovation market to tightening credit conditions and the cyclical nature of large-scale architectural projects.
As reported in financial statements, AWI has maintained gross margins consistently near the 40% threshold, with a peak of 42.4% in 2024Q3, demonstrating significant pricing power and a successful product mix shift toward higher-margin Architectural Specialties despite broader industrial sector headwinds.
The ability to sustain these margins suggests that the company's specification-led model and the WAVE joint venture provide a structural buffer against commodity cost volatility. Investors should monitor whether this pricing power persists if commercial renovation activity continues to soften in the coming quarters.
Based on the income statement data, AWI has demonstrated effective operating leverage, with operating margins expanding from 14.8% in 2023Q4 to a high of 38.7% in 2025Q4, indicating that management has successfully controlled SG&A expenses while scaling the business through its high-margin specialty segments.
The sharp spike in operating margin during 2025Q4 appears to be an outlier, likely influenced by non-recurring items or specific accounting adjustments within the WAVE joint venture. Sustained operating efficiency remains a critical metric for evaluating whether the company can continue to convert revenue growth into bottom-line expansion.
Analysis of the reported figures reveals that stock-based compensation has become a recurring expense, reaching $9.8 million in 2025Q4, which warrants investor scrutiny regarding the true cash-generative capacity of the company's net income relative to its reported earnings per share.
While net income remains robust, the presence of consistent stock-based compensation suggests that GAAP earnings may slightly overstate the operational performance available to common shareholders. Analysts should adjust for these non-cash charges to better understand the underlying profitability of the core manufacturing and joint venture operations.
Based on the provided data, the primary risk to the current narrative is the potential for margin compression if the commercial real estate cycle enters a prolonged downturn, as the company's high fixed-cost structure in its mineral fiber plants could lead to significant under-absorption of costs.
Short-sellers may focus on the reliance on the WAVE joint venture for a disproportionate share of earnings, which could be vulnerable if steel prices or grid demand fluctuate unexpectedly. The current premium valuation appears to assume a level of cyclical resilience that may be tested if office vacancy rates continue to weigh on renovation demand.
Quick answers to the most common questions about buying AWI stock.
For fiscal year 2025, Armstrong World Industries, Inc. (AWI) reported total revenue of $1.62B. This represents a 19.5% decline compared to $2.01B in 1996.
Armstrong World Industries, Inc. (AWI) is profitable, generating $308.7M in net income for the fiscal year ending 2025 with a net profit margin of 19.0%.
Armstrong World Industries, Inc. (AWI) reported an operating income of $430.9M, resulting in an operating profit margin of 26.6%. This margin reflects the operational efficiency of the business before interest and taxes.
Armstrong World Industries, Inc. (AWI) generated $658.7M in gross profit for the year, representing a gross profit margin of 40.6%. This demonstrates the company's core pricing power and production efficiency.