Armstrong World Industries

AWI on NYSE. Armstrong World Industries sells ceilings and walls to distributors and contractors. Market value $6.9bn.

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Price checks use the past 12 months to June 2026. Quality checks use five annual reports, the latest for the year to December 2025.

Should I look at this?

Worth a closer look

Read what could go wrong

This is not advice. Check the numbers below.

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Cash yield
past 12 months to June 2026
3.5%fair

For every $100 of what the whole company costs, it produced $3.54 of spare cash in the past 12 months. A savings account pays about $4.

Price to profit
past 12 months to June 2026
17.0×full

You pay 17.0 years of operating profit for the business. The average large US company costs around 18.

Return on capital
five annual reports to December 2025
22.5%five-year median

Each dollar kept in the business earns 23 cents a year. Above 10 is good.

Quality score: 100 of 100. Price score: 68 of 100. Our list needs 70 on quality and 60 on price.

$164.87 a share, 10% above its 1-year low

Over the past year the price has ranged from $150.28 to $206.08.

Dividend: 0.8% a year

Paid every year for at least 5 years

Prices from Tuesday’s close (6 October).

Five years of cash, in billions

0.1
0.1
0.1
0.2
0.2
0.2
2021202220232024202512 monthsto Jun '26
Revenue
$1.1bn$1.2bn$1.3bn$1.4bn$1.6bn
Operating margin
23.5%22.6%25.0%25.9%26.6%
Debt to equity
1.251.251.040.740.49
Shares outstanding
0.05bn0.04bn0.04bn0.04bn0.04bn

Health checks

  • Free cash flow positive5 of 5 years
  • Accounting looks honest (Beneish)Nothing unusual
  • Financial strength (Piotroski)9 of 9
  • Profit backed by cash (accruals)Yes
  • Debt0.49× equity
  • Revenue growth, five yearsStrong, 11.6% a year
  • Buying back its own sharesYes, 7% fewer since 2021

The quarter to June 2026

How the business did, compared with the same quarter a year earlier.

  • Sales: $472 million last quarter, up 11% on a year ago.
  • Profit: $97 million, up 10% on a year ago.
  • It keeps 26 cents of each $1 of sales as operating profit, down from 27 cents a year earlier.
  • Spare cash over the past 12 months: $247 million, up from $219 million.
  • 2% fewer shares than a year ago. Each share owns a bit more of the company.
  • Debt is $450 million more than cash, up from $441 million a year ago.
  • Sales grew on a year ago in each of the last 4 quarters.
Sales by quarter
Sales by quarter
Quarter toAmount
September 2024$387m
December 2024$368m
March 2025$383m
June 2025$425m
September 2025$425m
December 2025$388m
March 2026$410m
June 2026$472m
Profit by quarter
Profit by quarter
Quarter toAmount
September 2024$77m
December 2024$62m
March 2025$69m
June 2025$88m
September 2025$86m
December 2025$66m
March 2026$67m
June 2026$97m

From the company's quarterly reports to the SEC.

Dates

Next results (estimated)
n/a
Last annual report (10-K)
24 February 2026
Next quarterly (estimated, 10-Q)
27 October 2026

Who owns it

8 long-term investors we follow own it, unchanged from 8 last quarter. 477 funds in all.

Jun '25
Dec '25
Jun '26

Sold out this quarter

Largest holders overall

From 13F filings for the quarter ended 30 June 2026.

Big holders and activists

3 investors own more than 5%.

From Schedule 13D and 13G filings: anyone owning more than 5% must file one.

What insiders did

In the last 12 months, 1 insider bought $99,998 of shares on the open market.

  • TEMPLIN ROY W
    Director
    Bought
    Date
    27 February 2026
    Shares
    575
    Price
    $173.91
    Value
    $99,998

From Form 4 filings: insiders must report trades in their own company's shares within two days.

Warning signs in its filings

Problems the company itself reported to the SEC, in its own words.

None of the warning signs we check for were found.

We look for five warning signs: doubt it can keep going, weak checks on its own accounts, a notice that its past accounts can't be relied on, a change of auditor, and one customer bringing in a big share of sales. We don't check lawsuits, investigations or debt yet.

We checked the auditor's report, internal controls, restatement notices, auditor changes and big customers in the 10-K filed 24 Feb 2026, plus the 10-Q filed 28 Jul 2026 and 9 later 8-Ks.

A 10-K is the yearly report every US company files with the SEC. An 8-K is a short notice of a big event.

What could go wrong

Cheap for a reason is the question the numbers cannot answer.

Whether the price already reflects the risks is what the deep dive is for.

The deep dive

Everything above is arithmetic on public filings. The deep dive reads the last ten years of annual reports, the proxy statements, and the earnings calls, then argues the case the way Buffett, Klarman, and Hohn would, and checks every claim against the source.

  • What the business is worth, as a range, and the margin of safety at today’s price
  • Prices to start buying, buy, and buy hard
  • The three things that would make this a mistake
  • Every number footnoted to the filing it came from
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What a finished deep dive looks like

Not advice. Numbers on this page come from SEC filings and are updated each night; prices are updated again after the US market closes. The five-year figures are rounded.