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Specialty chemicals · Basic Materials · Fiscal year ends Dec 31
Armstrong World Industries reported revenue of $1.6B in the fiscal year ended Dec 2025, up 12.1% from the year before. Operating income was $431M, an operating margin of 26.6%, and net income was $309M. Operating cash flow of $356M less capital expenditure of $109M left free cash flow of $246M. Net debt was $294M.
Ranks among the 20 specialty chemicals companies we cover (1st = best; for debt, the least indebted). Green = top third, red = bottom third.
Last 5 fiscal years
| Fiscal year | Dec 2021 | Dec 2022 | Dec 2023 | Dec 2024 | Dec 2025 |
|---|---|---|---|---|---|
| Revenue | 1,107 | 1,233 | 1,295 | 1,446 | 1,621 |
| Cost of revenue | 701 | 784 | 798 | 864 | 962 |
| Gross profit | 406 | 449 | 497 | 582 | 659 |
| Research & development | 14.6 | 14.9 | 14.5 | 15.7 | 16.4 |
| Selling, general & admin | 237 | 237 | 263 | 309 | 340 |
| Operating income | 260 | 279 | 324 | 374 | 431 |
| Interest expense | 22.9 | 27.1 | 35.3 | 39.8 | 33.0 |
| Pre-tax income | 243 | 258 | 298 | 347 | 400 |
| Income tax | 57.4 | 57.7 | 74.5 | 82.2 | 91.6 |
| Net income | 183 | 203 | 224 | 265 | 309 |
| Diluted EPS | 3.82 | 4.37 | 4.99 | 6.02 | 7.08 |
| Diluted shares | 47.9 | 46.4 | 44.8 | 44.0 | 43.6 |
| Fiscal year | Dec 2021 | Dec 2022 | Dec 2023 | Dec 2024 | Dec 2025 |
|---|---|---|---|---|---|
| Cash & equivalents | 98.1 | 106 | 70.8 | 79.3 | 113 |
| Receivables | 109 | 112 | 111 | 134 | 130 |
| Inventory | 90.2 | 110 | 104 | 110 | 125 |
| Current assets | 322 | 357 | 313 | 349 | 392 |
| Net PP&E | 543 | 554 | 566 | 599 | 631 |
| Goodwill | 167 | 167 | 176 | 203 | 218 |
| Total assets | 1,710 | 1,687 | 1,672 | 1,843 | 1,925 |
| Payables | 106 | 105 | 91.0 | 106 | 124 |
| Deferred revenue | – | – | – | 26.6 | 37.2 |
| Current liabilities | 210 | 183 | 195 | 250 | 267 |
| Short-term debt | 25.0 | 0.0 | 22.5 | 22.5 | 10.3 |
| Long-term debt | 606 | 651 | 564 | 503 | 396 |
| Total liabilities | 1,190 | 1,152 | 1,081 | 1,086 | 1,024 |
| Shareholders' equity | 520 | 535 | 592 | 757 | 901 |
| Fiscal year | Dec 2021 | Dec 2022 | Dec 2023 | Dec 2024 | Dec 2025 |
|---|---|---|---|---|---|
| Operating cash flow | 187 | 182 | 234 | 267 | 356 |
| Capital expenditure | 79.8 | 74.8 | 83.8 | 82.8 | 109 |
| Free cash flow | 107 | 108 | 150 | 184 | 246 |
| Depreciation & amortisation | 96.5 | 83.7 | 89.2 | 103 | 120 |
| Stock-based compensation | 11.3 | 14.3 | 18.8 | 18.3 | 21.9 |
| Acquisitions | 0.7 | 2.8 | 26.5 | 124 | 13.9 |
| Share buybacks | 80.0 | 165 | 132 | 56.3 | 129 |
| Dividends paid | 41.4 | 44.2 | 46.9 | 50.6 | 55.2 |
| Dividend per share | 0.86 | 0.95 | 1.04 | 1.15 | 1.26 |
| Fiscal year | Dec 2021 | Dec 2022 | Dec 2023 | Dec 2024 | Dec 2025 |
|---|---|---|---|---|---|
| Revenue growth (YoY) | – | 11.4% | 5.0% | 11.6% | 12.1% |
| Operating income growth (YoY) | – | 7.2% | 16.1% | 15.6% | 15.1% |
| EPS growth (YoY) | – | 14.4% | 14.2% | 20.6% | 17.6% |
| Gross margin | 36.7% | 36.4% | 38.4% | 40.2% | 40.6% |
| Operating margin | 23.5% | 22.6% | 25.0% | 25.9% | 26.6% |
| Net margin | 16.6% | 16.5% | 17.3% | 18.3% | 19.0% |
| Return on equityBlank when equity is negative | 35.3% | 37.9% | 37.8% | 35.0% | 34.3% |
| ROCEEBIT ÷ (assets − current liabilities) | 17.3% | 18.5% | 21.9% | 23.5% | 26.0% |
| Free cash flow margin | 9.7% | 8.7% | 11.6% | 12.7% | 15.2% |
| Cash conversion (CFO ÷ net income) | 1.02x | 0.90x | 1.04x | 1.01x | 1.15x |
| Receivable days | 36 | 33 | 31 | 34 | 29 |
| Inventory days | 47 | 51 | 48 | 46 | 47 |
| Payable days | 55 | 49 | 42 | 45 | 47 |
| Interest cover | 11.4x | 10.3x | 9.17x | 9.40x | 13.1x |
| Debt ÷ equity | 1.21x | 1.22x | 0.99x | 0.69x | 0.45x |
| Net debtDebt − cash & equivalents; excludes investments; negative = net cash | 533 | 545 | 516 | 446 | 294 |
| Current ratio | 1.54x | 1.95x | 1.61x | 1.40x | 1.46x |
Standardised figures from the company's XBRL filings with the SEC (10-K, 10-Q). Line items follow US GAAP tags, so a company's own statement layout may differ and some lines show “–” where the company does not report that item. Ratios are calculated from these figures. For education only; not investment advice or a recommendation.