Armstrong World Industries

2025 Annual Report

Net Sales
2021
2022
2023
2024
2025
Mineral Fiber  
Net Sales
Architectural Specialties 
Net Sales
$1,107
$1,233
$1,295
$1,446
$1,621
Total Company
2021
2022
2023
2024
2025
Operating 
Income
Adjusted 
EBITDA *
Operating  
Income & 
Adjusted  
EBITDA *
$260   $372
$279   $385
$324   $430 
$374   $486
$431   $555
As Reported 
Diluted EPS
Adjusted  
Diluted EPS *
As Reported  
& Adjusted 
Diluted EPS * 1
$3.86   $4.36
$4.30   $4.74
$4.99   $5.32
$6.02   $6.31
$7.08   $7.41
Cash Flow 
from Operating 
and Investing 
Activities
$173
$211
$223
$188
$352
Adjusted Free 
Cash Flow *
$190
$221
$263
$298
$346
* Non-GAAP Measure. Reconciliations to nearest GAAP measure provided at the end of this report. 
EBITDA: Earnings before interest, taxes, depreciation and amortization. EPS: Earnings per share.
1  Represents AWI on a continuing operations basis.
Financial Score Card
Dollars in millions except per share.
$307 M
2025 Capital 
Deployment
36%
Capital  
Expenditures
4%
Acquisitions, net 
of cash acquired
42%
Share  
Repurchases
18%
Dividends

Highlights from 2025
•    Strong safety performance with diligence across our  
operations to prioritize risk assessment and mitigation,  
enabling us to maintain our best-in-class safety performance
•    Record-setting total company net sales of $1.6 billion,  
an increase of 12%, with operating income growth of  
15% and adjusted EBITDA* growth of 14%
•    Strong Mineral Fiber segment profitability with operating income 
and adjusted EBITDA* growth of 12% and 10%, respectively,  
as the benefits from improved Average Unit Value (“AUV”), 
higher WAVE equity earnings and productivity savings more  
than offset modestly lower Mineral Fiber sales volumes
•    Continued expansion of our Architectural Specialties capabilities 
with acquisitions in the wood and exterior metal categories
•    Architectural Specialties net sales growth of 28% with  
operating income and adjusted EBITDA* growth of 31% and  
32%, respectively, fueled by full year contributions from our  
2024 acquisitions of 3form, LLC (“3form”) and A. Zahner 
Company (“Zahner”) along with healthy organic performance
•    Innovation across our product portfolio, including a next- 
generation version of our Energy Saving Ceilings product 
Templok® and an expanded set of solutions specifically 
designed for data centers, among other advancements
•    Strong cash flow generation and execution across all  
capital allocation priorities including capital investments  
in operations, two acquisitions, increased cash  
dividends and share repurchases
Dear Fellow  
Shareholders,
2025 marked another year of strong execution and durable  
value creation for Armstrong World Industries, Inc. ("Armstrong"). 
Despite continued muted macroeconomic conditions, our teams 
delivered record financial results, extending our multi-year track 
record of profitable top-line growth.
This performance reflects the resilience of our business model 
featuring our strong market position, diverse set of end-markets  
and attractive growth initiatives. Together, these attributes  
support Armstrong’s ability to deliver consistent revenue  
and earnings growth throughout economic cycles.
Our 2025 results are a testament to the relentless focus and dedication of our approximately 4,000 employees to executing 
our strategy. Their ongoing pursuit of operational excellence, industry-leading innovation, and best-in-class service levels 
have differentiated Armstrong and are fundamental to advancing our competitive advantage.
Geometrik Manufacturing, Inc., acquired in 2025
*  Non-GAAP Measure. Reconciliations to nearest GAAP measure provided at the end of this report. EBITDA: Earnings before interest, taxes, depreciation and amortization
Parallel Architectural Products, acquired in 2025

Advancing Innovation to Drive Growth 
Over the last 165 years, innovation has been a distinguishing hallmark  
of Armstrong. This innovation enables us to effectively develop  
product solutions to meet our customers’ needs and supports 
consistent growth. In 2025, we prioritized innovation aligned with 
two powerful macro trends: the increasing need to reduce energy 
consumption as power demand and electricity costs rise and the  
rapid global build-out of data centers driven by the proliferation  
of cloud computing and Artificial Intelligence.
of US total electricity 
consumption driven  
by heating and  
cooling buildings
40%
In 2025, to help address the increasing need for energy efficiency  
within buildings, we launched the next generation of our Templok® 
Energy Saving Ceilings panels. This new version is now part of our 
Sustain® portfolio and has enhanced passive heating and cooling 
performance, improved fire rating and thermal comfort, and gives 
architects more design flexibility. These improvements are helping  
to increase market adoption of this one-of-a-kind solution. This  
energy efficiency solution transforms ceilings into an investment  
with economic returns and has the potential to meaningfully  
increase Mineral Fiber sales volumes over time.
To address the growing demand for data center construction,  
our innovation expands beyond ceiling tiles to include engineered 
infrastructure. In 2025, we launched DataZone™ panels and  
DynaMax® LT structural grid which is produced by our Worthington 
Armstrong joint venture. These solutions are designed for  
mission-critical environments that require higher load capacity,  
better airflow management and faster installation. We also  
expanded into other high-performance environments with  
the launch of Skylo™, our integrated walkable ceiling system  
for clean rooms, advanced manufacturing and cold storage.
Together with our digital growth initiatives Kanopi® by Armstrong  
and ProjectWorks®, these innovations are expected to continue  
driving Mineral Fiber volume growth ahead of the market and to  
support future AUV growth.
Building a Leading Architectural Specialties Portfolio 
Another key element of Armstrong’s transformation and growth over  
the past decade has been the expansion of our Architectural Specialties 
segment through acquisitions that offer innovative capabilities and 
specifiable attributes. Through these acquisitions we have assembled  
an industry leading portfolio of products and custom design solutions.
During 2025, we added Parallel Architectural Products (“Parallel”) 
and Geometrik Manufacturing, Inc. (“Geometrik”) to the Armstrong 
family. Parallel enhances our capabilities in exterior architectural 
metal products, complementing the platform we have built through 
our prior acquisitions of Zahner and BOK Modern. Geometrik extends 
our portfolio in natural materials and differentiated wood aesthetics, 
enabling Armstrong to better serve demand for the warm, natural  
wood look that many customers desire today.
We have continued to add to our portfolio in 2026 with the February 
acquisition of Eventscape, Inc., a leader in the design, fabrication and 
installation of high-design, complex architectural features for multiple 
applications including ceilings, feature walls and facades. Together  
with prior acquisitions such as 3form and Zahner, these new additions  
to Armstrong deepen our expertise across materials, fabrication and 
design. Importantly, our ability to scale these acquisitions on the 
Armstrong go-to-market platform improves our access to attractive 
projects and allows us to sell more products into more spaces.
Looking Forward With Consistency
As we move into 2026, we will continue our focus on execution 
throughout our operations and drive our growth strategy forward  
with the aim to increase sales and profitability regardless of underlying 
market conditions. Our strategic priorities remain consistent, and we 
see clear opportunities ahead to strengthen our Mineral Fiber business 
and expand our Architectural Specialties business from both organic 
and inorganic growth. We also expect our free cash flow generation 
to remain strong and to continue deploying a disciplined approach of 
capital allocation with investments back in our business, executing 
strategic acquisitions to expand our Architectural Specialties  
capabilities into attractive adjacencies as well as providing returns  
to shareholders through dividend and share repurchases.
In closing, we want to recognize, again, the incredible contributions 
of our employees. Through their commitment to excellence in 
innovation and customer service – values that have been part  
of our company’s DNA for over 165 years – our people continue  
to drive our performance and progress. We thank them for their  
hard work and passion. We also thank you, our shareholders, for  
your continued trust and support. We remain steadfast in our  
mission to create sustainable, long-term value for our investors,  
and we believe that the best days for Armstrong are ahead.
In January 2026, we announced a CEO transition following a thoughtful succession 
planning process by our board of directors. Effective April 1, 2026, Vic Grizzle  
became Executive Chair of the Board of Directors and Mark Hershey assumed  
the role of President and CEO and Member of the Board of Directors.
Over the 10 years of Vic’s CEO tenure, Armstrong evolved into a more focused,  
resilient and consistently growing company, anchored by a culture of execution  
and innovation. Mark has worked side-by-side with Vic throughout this period and  
has played a pivotal role in the company’s growth. This has included leading the 
development and execution of our strategy and the completion of 15 acquisitions  
that have significantly contributed to the growth of our Architectural Specialties 
segment. With deep operational knowledge and a clear strategic vision, Mark  
ensures continuity while positioning Armstrong for its next phase of growth.
Victor D. Grizzle 
Executive Chair of the Board
Mark A. Hershey 
President and Chief Executive Officer
Executive 
Leadership 
Update
Sincerely,

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-K
(Mark One)
☒ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 2025
OR
☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from
to _________
Commission File Number 1-2116
ARMSTRONG WORLD INDUSTRIES, INC.
(Exact name of registrant as specified in its charter)
Pennsylvania
23-0366390
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer
Identification No.)
2500 Columbia Avenue, Lancaster, Pennsylvania
17603
(Address of principal executive offices)
(Zip Code)
Registrant’s telephone number, including area code (717) 397-0611
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading
Symbol(s)
Name of each exchange on which registered
Common Stock, $0.01 par value per share
AWI
New York Stock Exchange
Securities registered pursuant to Section 12(g) of the Act: None
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.
Yes ☒
No ☐
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.
Yes ☐
No ☒
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the
preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90
days.
Yes ☒
No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T
(§232.405 of this chapter) during the preceding 12 months (or for such shorter time period that the registrant was required to submit such files).
Yes ☒
No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging
growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of
the Exchange Act.
Large accelerated filer
☒
Accelerated filer
☐
Non-accelerated filer
☐
Smaller reporting company
☐
Emerging growth company
☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised
financial accounting standards provided pursuant to Section 13(a) of the Exchange Act
☐
Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over
financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report.
☒
If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the
correction of an error to previously issued financial statements. ☐
Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the
registrant’s executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).
Yes ☐
No ☒
The aggregate market value of the Common Stock of Armstrong World Industries, Inc. held by non-affiliates based on the closing price ($162.44 per share) on the New
York Stock Exchange (trading symbol AWI) as of June 30, 2025 was approximately $7.0 billion. As of February 18, 2026, the number of shares outstanding of the
registrant's Common Stock was 42,834,049.
Documents Incorporated by Reference
Certain sections of Armstrong World Industries, Inc.’s definitive Proxy Statement for use in connection with its 2026 annual meeting of shareholders, to be filed no
later than April 30, 2026 (120 days after the last day of our 2025 fiscal year), are incorporated by reference into Part III of this Form 10-K Report where indicated.
Auditor Name: KPMG LLP
Auditor Location: Philadelphia, PA
Auditor Firm ID: 185

2
TABLE OF CONTENTS
PAGE
............................................................................................
Cautionary Note Regarding Forward-Looking Statements
3
PART I
Item 1.
..........................................................................................................................................................................
Business
5
Item 1A.
....................................................................................................................................................................
Risk Factors
11
Item 1B.
...........................................................................................................................................
Unresolved Staff Comments
19
Item 1C.
..................................................................................................................................................................
Cybersecurity
19
Item 2.
........................................................................................................................................................................
Properties
20
Item 3.
...........................................................................................................................................................
Legal Proceedings
20
Item 4.
.................................................................................................................................................
Mine Safety Disclosures
21
PART II
Item 5.
....................................................................................................................................................................
Market for the Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity
Securities
22
Item 6.
.......................................................................................................................................................................
[Reserved]
22
Item 7.
........................................
Management’s Discussion and Analysis of Financial Condition and Results of Operations
23
Item 7A.
.......................................................................................
Quantitative and Qualitative Disclosures About Market Risk
34
Item 8.
..............................................................................................................
Financial Statements and Supplementary Data
35
Item 9.
........................................
Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
81
Item 9A.
.................................................................................................................................................
Controls and Procedures
81
Item 9B.
...........................................................................................................................................................
Other Information
81
Item 9C.
...........................................................................
Disclosure Regarding Foreign Jurisdictions that Prevent Inspections
81
PART III
Item 10.
.............................................................................................
Directors, Executive Officers and Corporate Governance
82
Item 11.
................................................................................................................................................
Executive Compensation
82
Item 12.
......................
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
83
Item 13.
...............................................................
Certain Relationships and Related Transactions, and Director Independence
83
Item 14.
.........................................................................................................................
Principal Accountant Fees and Services
83
PART IV
Item 15.
..................................................................................................................
Exhibits and Financial Statement Schedules
84
Item 16.
......................................................................................................................................................
Form 10-K Summary
86
.........................................................................................................................................................................................
Signatures
87

3
When we refer to “AWI,” the “Company,” “we,” “our” or “us,” we are referring to Armstrong World Industries, Inc. and its subsidiaries.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
Certain statements in this Annual Report on Form 10-K and the documents incorporated by reference herein may constitute forward-
looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Those forward-looking statements are
subject to various risks and uncertainties and include all statements that are not historical statements of fact and those regarding our
intent, belief or expectations, including, but not limited to, our expectations concerning our markets and demand for our products,
tariffs, broader economic conditions and their effect on our operating results; our expectations regarding the payment of dividends and
stock repurchases; and our ability to increase revenues, earnings and earnings before interest, taxes, depreciation and amortization.
Words such as “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “believe,” “outlook,” “target,” “predict,” “may,” “will,”
“would,” “could,” “should,” “seek,” and similar expressions are intended to identify such forward-looking statements. These
statements are based on management’s current expectations and beliefs and are subject to a number of factors that could lead to actual
results materially different from those described in the forward-looking statements. Although we believe that the assumptions
underlying the forward-looking statements are reasonable, we can give no assurance that our expectations will be attained. Factors that
could have a material adverse effect on our financial condition, liquidity, results of operations or future prospects or which could cause
actual results to differ materially from our expectations include, but are not limited to:
Risks Related to Our Operations
•
changes in key customer relationships;
•
availability and costs of manufacturing inputs or sourced products, which may be impacted by governmental trade
policies, including tariffs, geopolitical events, and other supply chain disruptions or inflationary pressures;
•
financial contribution of Worthington Armstrong Venture (“WAVE”), our joint venture with Worthington Enterprises,
Inc.;
•
ability to achieve productivity and cost savings initiatives;
•
labor costs, relations and shortages;
•
regulatory, financial and stakeholder expectation risks related to climate change and other sustainability matters, including
progress towards meeting sustainability goals;
Risks Related to Our Strategy
•
ability to achieve benefits from strategic initiatives, including investments in product innovation and digitalization;
•
identification, completion and successful integration of strategic transactions;
Risks Related to Financial Matters
•
ability to meet liquidity needs and indebtedness;
•
ability to make dividend payments and stock repurchases;
•
unanticipated negative tax consequences;
•
changes in defined benefit plan obligations;
Risks Related to Legal and Regulatory Matters
•
claims, litigation and regulatory actions;
•
environmental liability exposure and related regulatory compliance costs;
•
effectiveness of intellectual property rights protection;
•
operations in Canada and Latin America;
Risks Related to General Economic and Other Factors
•
changing economic conditions;
•
construction activity;
•
market competition;

4
•
continued customer consolidation;
•
information technology disruptions and cybersecurity breaches;
•
dependence on third-party vendors and suppliers;
•
geographic concentration;
•
public health epidemics or pandemics; and
•
other risks detailed from time to time in our filings with the Securities and Exchange Commission (the “SEC”), press
releases and other communications, including those set forth under “Risk Factors” included elsewhere in this Annual
Report on Form 10-K.
Such forward-looking statements speak only as of the date they are made. We expressly disclaim any obligation to release publicly
any updates or revisions to any forward-looking statements to reflect any change in our expectations with regard thereto or change in
events, conditions or circumstances on which any statement is based.

5
PART I
ITEM 1. BUSINESS
Armstrong World Industries, Inc. (“AWI” or the “Company”) is a Pennsylvania corporation incorporated in 1891. When we refer to
“we,” “our” and “us” in this report, we are referring to AWI and its subsidiaries.
AWI is an Americas leader in the design and manufacture of innovative interior and exterior architectural applications including
ceilings, specialty walls and exterior metal solutions. We manufacture and source products made of numerous materials, including
mineral fiber, fiberglass, metal, felt, architectural resin and glass, wood, wood fiber and glass-reinforced-gypsum. We also
manufacture ceiling suspension system (grid) products through a joint venture with Worthington Enterprises, Inc. called Worthington
Armstrong Venture (“WAVE”).
Reportable Segments
Our operating segments are as follows: Mineral Fiber, Architectural Specialties and Unallocated Corporate.
Mineral Fiber – produces suspended mineral fiber and fiberglass ceiling systems. Our mineral fiber products offer various
performance attributes such as acoustical control, rated fire protection, and energy efficiency, along with other health and
sustainability features and aesthetic appeal. Ceiling products are primarily sold to resale distributors, ceiling systems contractors and
wholesalers, and retailers (including large home centers). The Mineral Fiber segment also includes the results of WAVE, which
manufactures and sells suspension system (grid) products and ceiling component products that are invoiced by both AWI and WAVE.
Segment results relating to WAVE consist primarily of equity earnings and reflect our 50% equity interest in the joint venture. Ceiling
component products consist of ceiling perimeters and trim, in addition to grid products that support drywall ceiling systems, structural
and walkable grid systems. For some customers, WAVE sells its suspension system products to AWI for resale to customers. Mineral
Fiber segment results reflect those sales transactions. The Mineral Fiber segment also includes all assets and liabilities not specifically
allocated to our Architectural Specialties or Unallocated Corporate segment, including all property and related depreciation associated
with our Lancaster, Pennsylvania headquarters. Operating results for the Mineral Fiber segment include a significant majority of
allocated Corporate administrative expenses that represent a reasonable allocation of general services to support its operations.
Architectural Specialties – designs, produces and sources specialty ceilings, walls, and other interior and exterior architectural
applications primarily for use in commercial settings. Products are available in numerous materials, such as metal, felt, architectural
resin and glass, wood, wood fiber and glass-reinforced-gypsum in various colors, shapes and designs. These products offer a range of
design options and performance attributes such as acoustical control, rated fire protection, light, aesthetic appeal, energy conservation
and building performance. We sell standard, premium and customized products, a portion of which are sourced from third-party
producers. Architectural Specialties products are sold primarily to direct customers, primarily ceiling systems contractors, and resale
distributors. This segment’s revenues are primarily project driven, which can lead to more variability in sales patterns. Operating
results for the Architectural Specialties segment include a portion of allocated Corporate administrative expenses that represent a
reasonable allocation of general services to support its operations.
Unallocated Corporate – includes certain assets, liabilities, income and expenses that have not been allocated to our other business
segments and consists of: cash and cash equivalents, our Overcast Innovations LLC investment and related equity earnings and losses,
the net funded status of our U.S. Retirement Income Plan (“RIP”), the estimated fair value of interest rate swap contracts, outstanding
borrowings under our senior secured credit facility and income tax balances.
Overview
Our business has been built on providing high-quality, innovative products through a highly effective service model as well as by
maintaining strong brand awareness and trust. We are committed to delivering profitable revenue growth, strong cash flow generation
and sustainable shareholder value by strengthening our core Mineral Fiber segment and expanding our Architectural Specialties
segment into new, adjacent business categories and sectors. Through this strategy, we have delivered consistent growth in mineral
fiber sales dollars per unit sold through product innovation, including our Templok® energy saving ceiling tiles, Total Acoustics®
solutions and Sustain® family of products, and we have built a broad portfolio of architectural specialties products for ceilings,
specialty walls and exterior metal architectural applications. Our growth initiatives continue to focus on market-driven innovation and
digital tools to accelerate renovation and further differentiate our products and solutions. In addition, we continue to invest in
expanding our Architectural Specialties market and reach capabilities into new adjacencies through both organic investment and
acquisitions.

6
Acquisitions and Investments in Unconsolidated Affiliates
In December 2025, we acquired all of the issued and outstanding stock of FGM-Parallel LLC (“Parallel”), based in Englewood,
Colorado. Parallel is a designer and manufacturer of extruded aluminum products primarily used in exterior architectural applications.
The operations, assets and liabilities of Parallel are included in our Architectural Specialties segment.
In September 2025, we acquired all of the issued and outstanding stock of Geometrik Manufacturing, Inc. (“Geometrik”), based in
Kelowna, British Columbia, Canada. Geometrik is a designer and manufacturer of wood acoustical ceiling and wall systems. The
operations, assets and liabilities of Geometrik are included in our Architectural Specialties segment.
In December 2024, we acquired all of the issued and outstanding stock of A. Zahner Company (“Zahner”), based in Kansas City,
Missouri. Zahner is a designer and manufacturer of exterior metal architectural solutions. The operations, assets and liabilities of
Zahner are included in our Architectural Specialties segment.
In April 2024, we acquired all of the issued and outstanding membership interests in 3form, LLC (“3form”), based in Salt Lake City,
Utah from Hunter Douglas, Inc. 3form is a designer and manufacturer of architectural resin and glass products used for specialty
walls, partitions and ceilings. The operations, assets and liabilities of 3form are included in our Architectural Specialties segment.
In January 2024, we entered into a strategic partnership and equity investment in Overcast Innovations LLC (“Overcast”) with
McKinstry Essention, LLC whereby we contributed $5.5 million in exchange for an initial 19.5% ownership interest in Overcast
(currently 19.2%). Overcast is a solutions company offering prefabricated ceiling cloud systems, modular grid platforms and
engineering design services to reduce waste and inefficiencies in the built environment. Our investment and equity earnings and losses
in Overcast are included in our Unallocated Corporate segment.
In October 2023, we acquired a portion of the business and certain assets of Insolcorp, LLC (“Insolcorp”), based in Albemarle, North
Carolina. Insolcorp develops, tests and manufactures energy saving products deployed in building and roofing installations. The
acquired operations, assets and liabilities of Insolcorp are included in our Mineral Fiber segment.
In July 2023, we acquired all of the issued and outstanding stock of BOK Modern, LLC (“BOK”), based in San Rafael, California.
BOK is a designer of exterior metal architectural solutions. The operations, assets and liabilities of BOK are included in our
Architectural Specialties segment.
Markets
We primarily serve markets in the United States, Canada and Latin America. We believe we are well positioned in the industry sectors
and categories in which we operate, often holding a leadership position. Our products compete against mineral fiber and fiberglass
ceiling products from other manufacturers, as well as drywall and a wide range of specialty ceiling and exterior metal products. We
compete directly with other domestic and international suppliers of these products. The major markets in which we compete are:
Commercial Construction. Our revenue opportunities come from new construction as well as renovation of existing buildings. Most of
our revenue comes from the following sectors of commercial construction: office (including data centers), education, healthcare,
transportation and retail. We closely monitor publicly available macroeconomic data and trends that provide insight into commercial
construction market activity, including, but not limited to, gross domestic product (“GDP”), office vacancy rates, the Architecture
Billings Index, new commercial construction starts, government spending, corporate profits and retail sales. Our revenue from new
construction can lag behind construction starts by as much as 24 months. We believe that these statistics, taking into account the time-
lag effect, provide a reasonable indication of our future revenue opportunity from commercial renovation and new construction.
Additionally, we believe that customer preferences for product type, style, color, performance attributes (such as acoustics, energy
efficiency, sustainability and health attributes), availability, affordability and ease of installation also affect our revenue.
In our Mineral Fiber segment, we estimate that a majority of our commercial construction market sales are used for existing building
renovation purposes by end-users of our products. We classify our renovation opportunities as major renovation projects, which tend
to be larger in scope, or repair and remodel projects, which generally involve the replacement of old products with new products. In
our Architectural Specialties segment, we estimate that a majority of our commercial construction market sales are used for new
building construction by end-users of our products. The end-use of our products is based on management estimates as such
information is not easily determinable.
Residential Construction. We also sell a small portion of our products for use in single and multi-family housing. We estimate that
existing home renovation work represents the majority of the residential construction market opportunity. Key U.S. statistics that

7
indicate market opportunity include existing home sales (a key indicator for renovation opportunity), housing starts, housing
completions, home prices, interest rates and consumer confidence.
Customers
We have developed long-standing relationships with our customers based on our product quality, broad product portfolio, design
capabilities, service, innovation and brand recognition. We principally sell commercial products to building materials distributors,
who re-sell our products to contractors, subcontractors’ alliances, large architect and design firms, and major facility owners. Our
design services and sales teams also work directly with architects, design firms and general contractors to ensure our products are
included in project specifications. We have important relationships with home center customers, direct customers and certain national
account customers, including wholesalers who re-sell our products to dealers who service builders, and maintenance, repair and
operating supply (“MRO”) companies.
In 2025, approximately 63% of our consolidated net sales were to building materials distributors. Sales to home center customers
accounted for nearly 7% of our consolidated net sales. Our remaining sales were primarily to direct customers, independent retailers,
national account customers and online customers.
In September 2025, GMS, Inc., one of our largest distributor customers, was acquired by The Home Depot, Inc. In addition, in
October 2025, Foundation Building Materials, Inc., another one of our largest distributor customers, was acquired by Lowe's
Companies, Inc.
Gross sales to Lowe's Companies, Inc. (including sales to Foundation Building Materials, Inc.) and The Home Depot, Inc. (including
sales to GMS, Inc.) totaled $937.8 million and each individually exceeded 10% of our consolidated gross sales in 2025. Sales to these
customers were included in both our Mineral Fiber and Architectural Specialties segment net sales.
Working Capital
We primarily produce goods for inventory and sell on credit to our customers. Generally, we believe our distributors and home center
customers carry inventory as needed to meet local or rapid delivery requirements. We sell our products to select, pre-approved
customers using customary trade terms that allow for payment in the future. These practices are typical within the industry.
Competition
The markets in which our products are sold are highly competitive. Principal factors of competition include product performance and
attributes, product styling, service and price. Competition comes from both domestic and international manufacturers. Additionally,
some of our ceiling products compete with alternative products or finishing solutions, namely, drywall and exposed structure (also
known as open plenum). Excess industry capacity exists for certain products, which tends to increase price competition. The following
companies are our primary competitors:
CertainTeed Corporation (a subsidiary of Saint-Gobain), Chicago Metallic Corporation (owned by Rockwool International A/S),
Rockfon A/S (owned by Rockwool International A/S), USG Corporation (owned by Gebr. Knauf KG), Ceilings Plus (owned by USG
Corporation), Rulon International, SAS International, and 9Wood.
Raw Materials
We purchase raw materials from numerous suppliers in the ordinary course of business. Our principal raw materials are fiberglass,
perlite, recycled paper and starch. Other raw materials we purchase include clays, felt, pigment, resin, wood and wood fiber. We
manufacture most of our mineral wool needs at one of our facilities. Finally, we use aluminum and steel in the production of metal
products by us and by WAVE, our joint venture that manufactures ceiling and wall grid products.
We also purchase significant amounts of packaging materials and consume substantial amounts of energy, such as electricity and
natural gas, and water.
In general, adequate supplies of raw materials are available to all of our operations. However, availability can change for a number of
reasons, including environmental conditions, laws and regulations, shifts in demand by other industries competing for the same
materials, transportation disruptions and/or business decisions made by, or events that affect, our suppliers. There is no assurance that
these raw materials will remain in adequate supply to us.

8
Prices for certain high usage raw materials can fluctuate dramatically, including due to tariffs. Cost increases for these materials can
have a significant adverse impact on our manufacturing costs. Given the competitiveness of our markets, we may not be able to
recover the increased manufacturing costs through increasing selling prices to our customers.
Sourced Products
Some of the products we sell are sourced from third parties. Our primary sourced products include specialty ceiling and exterior metal
products. A portion of our sourced products are from suppliers located outside of the U.S., primarily from Europe and the Pacific Rim.
Sales of sourced products represented less than 10% of our total consolidated revenue in 2025.
In general, we believe we have adequate supplies of sourced products. However, we cannot guarantee that the supply will remain
adequate.
Seasonality
Historically, our sales tend to be stronger in the second and third quarters of our fiscal year due to more favorable weather conditions,
customer business cycles and the timing of renovation and new construction activity.
Patent and Intellectual Property Rights
Patent protection is important to our business. We hold a broad collection of intellectual property rights relating to certain aspects of
our products and processes developed or perfected within AWI or obtained through acquisitions and licenses. This includes patents,
trademarks, designs, copyrights, trade secrets and other forms of intellectual property rights in the U.S. and various foreign countries.
Patent protection extends for varying periods according to the date of patent filing or grant and the legal term of a patent in the various
countries where patent protection is obtained. The actual protection afforded by a patent, which can vary from country to country,
depends upon the type of patent, the scope of its coverage and the availability of legal remedies. Although we consider that, in the
aggregate, our patents, trademarks, designs, copyrights, trade secrets and licenses constitute a valuable asset of material importance to
our business, we do not believe we are materially dependent upon any single one of these intellectual property rights.
Certain of our trademarks, including without limitation,
, Armstrong®, 3form®, ACOUSTIBuilt®, Arktura®, BŌK
Modern®, Calla®, CastWorks®, Cirrus®, Cortega®, DESIGNFlex®, Dune™, Feltworks®, Infusions®, Kanopi®, LightArt®,
Lyra®, MetalWorks™, Móz™, Optima®, ProjectWorks®, Soundscapes®, Sustain®, Tectum®, Templok®, Total Acoustics®,
Turf®, Ultima®, WoodWorks® and Zahner®, are important to our business because of their significant brand name recognition.
Registrations are generally for fixed, but renewable, terms.
In connection with the separation and distribution of our former flooring business into a separate publicly traded company, Armstrong
Flooring, Inc. (“AFI”), in 2016, we entered into several agreements with AFI that, together with a plan of division, provided for the
separation and allocation of assets between AWI and AFI. These agreements include a Trademark License Agreement and a
Transition Trademark License Agreement. Pursuant to the Trademark License Agreement, AWI provided AFI with a perpetual,
royalty-free license to use the “Armstrong” trade name and logo. Further, in 2022, as part of the AFI bankruptcy and with AWI
consent, all rights, obligations and protections that existed as part of the arrangement with AFI were transferred to AHF Products,
LLC (“AHF”) in North America, Zhejiang GIMIG Tech Co., Ltd. in China and various countries throughout the Pacific Rim, India,
Russia, Africa, and the geographical regions in the Middle East and Middle Asia and to Braeside Mills Investments Pty Ltd in
Australia and New Zealand. During 2024, AWI terminated the license with AHF and sold the flooring specific trademarks previously
licensed to AHF. None of these transactions had or are expected to have any material impact on the integrity of the Armstrong
trademark.
In connection with the sale of certain subsidiaries comprising our businesses and operations in Europe, the Middle East and Africa
(including Russia) (“EMEA”) and the Pacific Rim, including the corresponding businesses and operations conducted by WAVE
(collectively, the “Sale”), to Knauf International GmbH (“Knauf”) in 2019, we entered into a royalty-free intellectual property License
Agreement with Knauf for its benefit (and, under sublicense, to the buyers of certain businesses divested by Knauf) under which they
license certain patents, trademarks and know-how from us for use in certain licensed territories.
We review the carrying value of indefinite-lived trademarks at least annually for potential impairment. See the “Critical Accounting
Estimates” section of Management’s Discussion and Analysis of Financial Condition and Results of Operations in Item 7 of this Form
10-K for further information.

9
Sustainability and Environmental Matters
As a leading building products manufacturer, we are committed to operating sustainably across all areas of our business. This
commitment is reflected in our ongoing initiatives to design and develop sustainable interior and exterior architectural applications,
including ceilings, specialty walls and exterior metal solutions. Our sustainability focus reflects our mission to make a positive
difference in the lives of people where they live, work, learn, heal and play. Our approach to sustainability is designed to support our
strategic priorities, align with stakeholder interests, and be visible and measurable.
Our sustainability program is organized around three program pillars: Healthy and Circular Products, Healthy Planet and Thriving
People and Communities.
Our Healthy and Circular Products pillar broadly focuses on ensuring our products are free of chemicals of concern, reducing our
products’ water intensity and carbon footprint, improving the circularity of our products so they can be recycled, reused or repurposed,
and continuing to invest in solutions that meet customer demand for building products that align with their sustainability goals. These
efforts also include our mineral fiber ceilings recycling program, which aims to divert reclaimed ceiling tiles from landfills. We expect
that there will be increased demand over time for products, systems and services that meet evolving regulatory and customer
sustainability standards and preferences and decreased demand for products that generate significant greenhouse gas emissions. We
also believe that our ability to continue to provide these products, systems and services to our customers, including through our
Sustain® portfolio, is aligned with our growth strategy.
Our Healthy Planet pillar broadly focuses on reducing our greenhouse gas footprint, reducing or reclaiming water in our operations,
and reducing waste in our operations. These efforts include achieving emissions reductions through operational efficiency and product
design improvements and exploring renewable electricity options where we operate. Additionally, we are committed to complying
with all environmental laws and regulations that are applicable to our operations.
Our Thriving People and Communities pillar broadly focuses on creating a safe working environment for our employees, increasing
our engagement in the communities where we operate, evaluating our benefits and compensation structure for all levels of the
organization, promoting and maintaining a diverse, inclusive, talented and thriving workforce, and encouraging and protecting human
rights.
The adoption of environmentally responsible building codes and standards such as the Leadership in Energy and Environmental
Design (“LEED”) rating system established by the U.S. Green Building Council, has the potential to increase demand for products,
systems and services that contribute to sustainable buildings. Many of our products meet the requirements for the award of LEED
credits, and we are continuing to develop new products, systems and services to address market demand for products that enable
construction of buildings that require fewer natural resources to build, operate and maintain.
In 2025, we published our fifth Sustainability Report which measures our progress towards achieving our 2030 sustainability goals
and provides insights into our sustainability efforts. We expect to update our progress regularly. The report is available in the
“Sustainability” section of our website, which is listed below. Information in the 2025 Sustainability Report or the Company's website
is not incorporated herein by reference.
Human Capital
Workforce Demographics. As of December 31, 2025 and 2024, we had approximately 3,800 and 3,600 full-time and part-time
employees, respectively. During 2025, our total voluntary and involuntary turnover rates were approximately 8% and 3%,
respectively, for non-production employees and 12% and 7%, respectively, for production employees.
As of December 31, 2025, approximately 54% of our approximately 1,700 production employees in the U.S. were represented by
labor unions. Collective bargaining agreements covering approximately 260 employees at one U.S. plant will expire during 2026. We
believe that our relations with our employees are constructive and positive.
Employee Health and Safety. Safety is a core value at AWI and our culture is committed to making safety a personal core value for
every employee. Our overall goal is to eliminate workplace injuries. We promote and foster an environment of empowerment and
sharing throughout the company at all levels and in all locations. We engage our employees on safety with a focus on risk
identification and elimination and through tracking various leading indicators. We track Occupational Safety and Health
Administration (“OSHA”) recordable injuries and lost time rates by location monthly. We establish safety targets annually, which are
tracked and reported to leadership monthly and reviewed with our Board of Directors.

10
Compensation, Benefits and Wellness. Employee compensation is based on defined job descriptions and position grades that are
evaluated against external market data that we believe is competitive and fair. We offer competitive health and wellness benefits to
eligible employees and periodically conduct analyses of plan utilization to further tailor our employee benefits to meet their ongoing
needs. In recent years we added parental leave and adoption benefits for all employees and launched a wellness program to promote
physical, mental and financial well-being. In addition, we offer on-site wellness screenings at our manufacturing facilities in
partnership with our medical provider. Finally, we offer mental well-being support and nutrition and financial wellness education to
all employees.
People and Workplace Culture. We believe that an inclusive workplace supports our ability to attract, develop and retain talented
employees and is important to our success. This focus is reflected in the Thriving People and Communities Pillar of our Sustainability
program, which is led by our Vice President of Talent Sustainability and Talent Acquisition. Through our merit-based selection
process, we strive to hire qualified candidates based on skills and experiences to foster a work environment that values collaboration
and professionalism. In addition, we engage in events and outreach and provide employee resources to support workforce
development and a positive workplace culture across our organization.
Product Innovation
Product innovation activities are important and necessary in helping us improve our products’ competitiveness. Principal product
innovation functions include the development and improvement of products and manufacturing processes. We engage in research and
development activities with a focus on market-driven product innovation to maintain our competitive position and enable growth, as
well as innovation in our manufacturing processes to increase productivity.
Legal and Regulatory Proceedings
Regulatory activities of particular importance to our operations include proceedings under the Comprehensive Environmental
Response, Compensation and Liability Act (“CERCLA”), and state Superfund and similar type environmental laws governing existing
or potential environmental contamination at two domestically owned locations allegedly resulting from past industrial activity. We are
one of several potentially responsible parties in these matters and have agreed to jointly fund the required investigation, while
preserving our defenses to the liability. We may also have rights of contribution or reimbursement from other parties or coverage
under applicable insurance policies.
Most of our facilities are affected by various federal, state and local environmental requirements relating to the discharge of materials
or the protection of the environment. We make expenditures necessary for compliance with applicable environmental requirements at
each of our operating facilities. We have not experienced a material adverse effect upon our capital expenditures or competitive
position as a result of environmental control legislation and regulations.
From time to time, we are involved in various other lawsuits, claims, investigations and other legal matters that arise in the ordinary
course of business, including matters involving our products, intellectual property, relationships with suppliers, relationships with
distributors, relationships with competitors, employees and other matters. In connection with those matters, we may have rights of
contribution or reimbursement from other parties or coverage under applicable insurance policies. When applicable and appropriate,
we will pursue coverage and recoveries under those policies but are unable to predict the outcome of those demands. While complete
assurance cannot be given to the outcome of any proceedings relating to these matters, we do not believe that any current claims,
individually or in the aggregate, will have a material adverse effect on our financial condition, liquidity or results of operations.
Liabilities for environmental matters that we consider probable and for which a reasonable estimate of the probable liability could be
made were $4.1 million and $4.6 million as of December 31, 2025 and 2024, respectively. See Note 26 to the Consolidated Financial
Statements and Risk Factors in Item 1A of this Form 10-K, for information regarding the possible effects that compliance with
environmental laws and regulations may have on our businesses and operating results.
Website
We maintain a website at https://www.armstrong.com. Information contained on our website is not incorporated into this document.
Our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and all amendments to those reports
and other information about us are available free of charge through this website. Documents filed with the SEC are available on our
website as soon as reasonably practicable after the reports are electronically filed with the SEC. We also file annual, quarterly and
current reports, proxy statements and other information with the SEC. The SEC maintains a website that contains reports, proxy and
information statements, and other information regarding issuers, including us, that file electronically with the SEC at https://sec.gov.
Reference in this Form 10-K to our website and the SEC’s website is an inactive text reference only.

11
ITEM 1A. RISK FACTORS
Risks Related to Our Operations
Sales fluctuations and changes in our relationships with key customers could have a material adverse effect on our financial
condition, liquidity or results of operations.
The loss, reduction, or fluctuation of sales to key customers, including national home center customers or independent distributors, or
any adverse change in our business relationships with them, whether as a result of changing customer demands and expectations,
competition, industry consolidation, supply chain constraints or otherwise, could have a material adverse effect on our financial
condition, liquidity or results of operations.
If the availability of our manufacturing inputs or sourced products decreases, or the cost of those inputs or sourced products
increases and we are unable to pass along increased costs resulting from supply chain or inflationary pressures, our financial
condition, liquidity or results of operations could be materially and adversely affected.
The availability and cost of raw materials, packaging materials, energy and sourced products are critical to our operations and our
results of operations. For example, we use substantial quantities of natural gas and some petroleum-based raw materials in our
manufacturing operations. We source some materials from a limited, or single, number of suppliers, which, among other things,
increases the risk of unavailability. Limited availability could require us to reformulate products or limit our production. Supply chain
disruptions could decrease access to manufacturing inputs or sourced products or significantly increase the cost to purchase these
items. Future input cost volatility could occur because of our suppliers’ exposure to governmental trade policies, including tariffs, or
geopolitical events. A decrease in availability or increases in costs of manufacturing inputs or sourced products, and any inability to
pass along such costs through price increases, could have a material adverse effect on our financial condition, liquidity or results of
operations.
The performance of our WAVE joint venture is important to our financial results. Changes in the demand for, or quality of,
WAVE products, or in the operational or financial performance of the WAVE joint venture, could have a material adverse effect
on our financial condition, liquidity or results of operations. Similarly, if there is a change with respect to our joint venture partner
that adversely impacts its relationship with us, WAVE’s performance could be materially and adversely impacted.
Our equity investment in our WAVE joint venture remains important to our financial results. WAVE’s markets are highly competitive
and changes in the demand for, or quality of, WAVE products, or in the operational or financial performance of the WAVE joint
venture, could have a material adverse effect on its financial condition, liquidity or results of operations. Similarly, the availability and
cost of raw materials, packaging materials, energy and sourced products, and the ability to pass along increased costs, are critical to
WAVE’s operations and its results of operations.
We believe the relationship with our partner, Worthington Enterprises, Inc., is an important element in the success of this joint
venture. If there is a change in ownership, a change in control, a change in management philosophy, a change in business strategy or
another event with respect to our partner that adversely impacts our relationship, WAVE’s performance could be materially and
adversely impacted. In addition, our partner may develop economic or business interests or goals that are different from or
inconsistent with our interests or goals, which may impact our ability to influence or align WAVE’s strategy and operations with our
interests or goals.
We continuously pursue productivity initiatives and periodically engage in cost-saving initiatives. Execution of these initiatives
may result in interruptions in production and/or may result in lower-than-expected savings in our operating cost structure or may
not improve our operating results.
We seek ways to make our operations more efficient and effective. We may reduce, move, modify or expand our plants and
operations, as well as our sourcing and supply chain arrangements, and invest in technology, as needed, to control costs and improve
productivity. Such actions involve substantial planning, often require capital investments and may result in charges for fixed asset
impairments or obsolescence and substantial severance costs. Our ability to achieve the cost savings and other benefits within
expected time frames is subject to many estimates and assumptions. These estimates and assumptions are subject to significant
economic, competitive and other uncertainties, some of which are beyond our control. If these estimates and assumptions are
incorrect, if we experience delays resulting from equipment failures or other interruptions in production, or if other unforeseen events
occur, our financial condition, liquidity or results of operations could be materially and adversely affected.

12
Increased labor costs, labor disputes, work stoppages or union organizing activity, as well as increased labor shortages, or an
inability to attract and retain talented employees could delay or impede production and could have a material adverse effect on our
financial condition, liquidity or results of operations.
We rely on our employees to manufacture and sell our products. Because most of our manufacturing employees are represented by
unions and covered by collective bargaining or similar agreements, we often incur costs attributable to periodic renegotiation of those
agreements, which may be difficult to project. Collective bargaining agreements covering approximately 260 employees at one U.S.
plant will expire during 2026. We are also subject to the risk that strikes or other conflicts with organized personnel may arise or that
we may become the subject of union organizing activity at our facilities that do not currently have union representation. Prolonged
negotiations, conflicts or related activities could also lead to costly work stoppages, loss of productivity and reduced service levels to
our customers.
Our success is also dependent upon attracting and retaining a qualified workforce. In many cases, we rely upon our employees’ high
degree of technical knowledge and industry experience. There can be no assurance that we will continue to attract and retain talented
employees, particularly during times of increased labor costs or labor shortages. The impact from our inability to attract and retain a
sufficient number of employees could have a material adverse effect on our financial condition, liquidity or results of operations.
We are subject to certain regulatory, financial and other risks related to climate change, climate transition, and other sustainability
matters. Should our efforts to address these risks fail to align with new regulations or stakeholder expectations, fail to achieve the
anticipated benefits, or result in unanticipated costs, our corporate reputation, financial condition, liquidity or results of operations
could be materially and adversely impacted.
Evolving and/or conflicting governmental regulations, customer and societal views related to climate change, climate transition,
responsible sourcing and supply chain transparency, resource stewardship, diversity, human rights, social responsibility and other
sustainability matters and our efforts to manage and report on them, as well as accomplish our sustainability goals, present numerous
operational, regulatory, reputational, financial, legal, and other risks, any of which could have a material adverse impact.
In May 2025, we published our annual Sustainability Report, which includes certain 2030 sustainability goals and describes our
progress towards meeting those goals. We may not achieve the anticipated benefits we expect from these goals, which may damage
our reputation, or these efforts may not align with new regulations or expectations of stakeholders. Many factors, including changes in
regulations and tax policies, lagging industry innovation in sustainable technologies and unfavorable market conditions for
sustainability-related investments may adversely affect the timeline for achievement of our sustainability goals. Efforts to achieve
these goals may also result in higher or unforeseen costs. In addition, we may encounter challenges in meeting our sustainability goals
by 2030 and/or in measuring our progress towards the achievement of our sustainability goals.
Further, concerns related to climate change have resulted in domestic and foreign legislative or regulatory actions as well as changing
customer preferences and policies, such as environmentally responsible building codes and standards. New legislation and regulations
in local, state and federal jurisdictions in the U.S. and in the foreign countries in which we operate could impose restrictions, caps,
taxes, or other controls on emissions of greenhouse gases, which could have a material adverse effect on our operations and financial
results. While we have a comprehensive sustainability strategy, including, greenhouse gas reduction targets, transparent disclosures
related to our sustainability impacts and product innovation to respond to these evolving codes, standards and customer preferences,
there is no certainty we will be successful in our approach.
Overall, climate change, its effects, the impacts of government regulation, and consumer, investor and business preferences are
inherently difficult to predict and could have a material adverse impact on our business by increasing our energy costs, result in
substantial, additional capital expenditures and operating costs in the form of taxes, emissions allowances, carbon offsets, or required
equipment upgrades or require that we modify our products or processes in a manner that increases our costs and/or reduces our
profitability. Any of the foregoing factors could impair our operating efficiency and productivity and result in higher operating costs.
Risks Related to Our Strategy
We may not experience the anticipated benefits from our strategic initiatives, including investments in product innovation and
digitalization.
We continue to evaluate and may pursue strategic initiatives involving the development or use of new or innovative products,
solutions and tools, including those related to Templok® energy saving ceiling tiles, as well as the expansion of our ecommerce
platform, Kanopi®, and our automated design service, ProjectWorks®. These initiatives are designed to grow revenue, improve
profitability and increase shareholder value. Our results of operations and financial position could be materially and adversely affected

13
if we are unable to successfully execute these initiatives or if we are unable to achieve the investment cases or realize expected
competitive advantages from the initiatives in a timely and efficient manner.
We are likely to pursue strategic transactions, including mergers, acquisitions, joint ventures, strategic alliances or other
investments, which could create risks and present unforeseen integration obstacles or costs, any of which could have a material
adverse effect on our financial condition, liquidity or results of operations.
We regularly evaluate potential mergers, acquisitions, joint ventures, strategic alliances or other investments that we believe could
complement, enhance or expand our current businesses or product lines or that might otherwise offer us growth opportunities,
particularly in our Architectural Specialties segment for which we have completed nine acquisitions from July 2020 through
December 31, 2025. Any such strategic transaction involves a number of risks, including potential disruption of our ongoing business
and distraction of management, difficulty with integrating or separating personnel and business operations and infrastructure,
increasing or decreasing the scope, geographic diversity and complexity of our operations and markets as we expand into new ceiling
and wall adjacencies and exterior metal architectural applications, offering products with new attributes and/or increasing the size and
scope of solutions offered, including design offerings and the installation of products. Strategic transactions could involve payment by
us of a substantial amount of cash, assumption of liabilities and indemnification obligations, subjecting us to new regulatory
requirements, incurrence of a substantial amount of debt or issuance of a substantial amount of equity. Certain strategic opportunities
may not result in the consummation of a transaction or may fail to realize the intended benefits and synergies. If we fail to identify,
consummate and integrate our strategic transactions in a timely and cost-effective manner, our financial condition, liquidity or results
of operations could be materially and adversely affected.
Risks Related to Financial Matters
We require a significant amount of liquidity to fund our operations, and our indebtedness may have a material adverse effect on
our ability to operate and invest in our business, execute on our strategic initiatives, and return cash to shareholders.
Our level of indebtedness and degree of leverage could:
•
limit our flexibility in planning for, or reacting to, changes in our business and the industry in which we operate;
•
make us more vulnerable to adverse changes in general economic, industry and competitive conditions and adverse
changes in government regulation;
•
place us at a competitive disadvantage compared to our competitors that are less leveraged and, therefore, more able to
take advantage of opportunities that our leverage prevents us from pursuing;
•
limit our ability to refinance existing indebtedness or borrow additional amounts for working capital, capital expenditures,
acquisitions, debt service requirements, execution of our business strategy or other purposes;
•
restrict our ability to pay dividends on or repurchase our capital stock; and
•
make it more difficult for us to satisfy our obligations with respect to our indebtedness.
Additionally, the agreements that govern our indebtedness include covenants that impose significant operating and financial
restrictions, including restrictions on our ability to engage in activities that may be in our best long-term interests. Under the terms of
our amended senior secured credit facility, we are required to maintain specified leverage and interest coverage ratios. Our ability to
meet these ratios could be affected by events beyond our control, and we cannot ensure that we will continue to meet them. A breach
of any of the restrictive covenants or ratios would result in a default under the senior secured credit facility. If any such default occurs,
the lenders under the senior secured credit facility may be able to elect to declare all outstanding borrowings under our facility,
together with accrued interest and other fees, to be immediately due and payable, or enforce their security interest. The lenders may
also have the right in these circumstances to terminate commitments to provide further borrowings.
Our liquidity needs vary throughout the year. If our business experiences materially negative, unforeseen events, we may be unable to
generate sufficient cash flow from operations to fund our needs or maintain sufficient liquidity to operate and may seek to incur
additional indebtedness, which could exacerbate the risks detailed above. In addition, to the extent that our indebtedness bears interest
at floating rates, our sensitivity to interest rate fluctuations will increase. Further, we cannot guarantee financial institutions’ capacity
in the future to provide credit, or alternatively access to capital markets, which may limit our ability to obtain new debt financing or
refinance existing debt obligations.
Any of the above factors could have a material adverse effect on our financial condition, liquidity or results of operations.

14
We cannot guarantee future cash dividend payments or future repurchases of our common stock pursuant to a share repurchase
program.
Since December 2018, our Board of Directors has declared a quarterly dividend on our common stock. The payment of any future
cash dividends to our shareholders is not guaranteed and will depend on decisions that will be made by our Board of Directors based
upon our financial condition, results of operations, cash flows, business requirements and a determination that the declaration of cash
dividends is in the best interest of our shareholders and is in compliance with all laws and agreements applicable to the payment of
dividends.
As of December 31, 2025, we were authorized to repurchase up to $532.8 million of our outstanding shares of common stock under a
share repurchase program first adopted in July 2016 and authorized through December 31, 2026 (the “Program”). Repurchases under
the Program may be made through open market, block and privately negotiated transactions, including Rule 10b5-1 plans, at such
times and in such amounts as management deems appropriate, subject to market and business conditions, regulatory requirements and
other factors. The Program does not obligate us to repurchase any particular amount of common stock and may be suspended or
discontinued at any time without notice. Furthermore, there can be no assurance that we will be able to repurchase our common stock,
and we may discontinue plans to repurchase common stock at any time.
Negative tax consequences can have an unanticipated effect on our financial results.
We are subject to the tax laws of the various jurisdictions in which we operate. The tax laws are complex, and the manner in which
they apply to our operations, results and tax planning strategies is sometimes open to interpretation. Our income tax expense and
reported net earnings may fluctuate significantly and may be materially different than forecasted or experienced in the past. Our
financial condition, liquidity or results of operations could be materially and adversely affected by changes in effective tax rates,
changes in our overall profitability, changes in tax legislation, the results of examinations of previously filed tax returns, and ongoing
assessments of our tax exposures.
Our financial condition, liquidity or results of operations could also be materially and adversely affected by changes in the valuation
of deferred tax assets and liabilities. We have substantial deferred tax assets related to state net operating losses (“NOLs”), which are
available to offset future state taxable income. However, our ability to utilize the current carrying value of these deferred tax assets
may be impacted by certain future events, such as changes in tax legislation and insufficient future taxable income prior to expiration
of the NOLs.
Significant changes in factors and assumptions used to measure our defined benefit plan obligations, actual investment returns on
pension assets and other factors could negatively impact our operating results and cash flows.
We maintain pension and postretirement plans in the U.S. The recognition of costs and liabilities associated with these plans for
financial reporting purposes is affected by assumptions made by management and used by actuaries engaged by us to calculate the
benefit obligations and the expenses recognized for these plans.
The inputs used in developing the required estimates are calculated using multiple assumptions and represent management’s best
estimate of the future. The assumptions that have the most significant impact on reported results are the discount rate, the estimated
long-term return on plan assets for the funded plans, retirement rates, and mortality rates and, for postretirement plans, the estimated
inflation in health care costs. These assumptions are generally updated annually.
In the aggregate, our U.S. defined benefit pension plans were overfunded by $74.6 million as of December 31, 2025. Our unfunded
postretirement plan liabilities were $36.2 million as of December 31, 2025. If our cash flows and capital resources are insufficient to
fund our pension and postretirement plans obligations, we could be forced to reduce or delay investments and capital expenditures,
seek additional capital, or refinance or obtain additional indebtedness.
As a result of our acquisition of Zahner, we contribute to a multi-employer defined benefit pension plan (“Multi-Employer Plan”)
under the terms of collective bargaining agreements that cover its union-represented employees. Assets contributed to the Multi-
Employer Plan may be used to provide benefits to employees of other participating employers. If a participating employer stops
contributing to the Multi-Employer Plan, the unfunded obligations of the plan may be borne by the remaining participating employers.
In the event we choose to stop participating in the Multi-Employer Plan, we may be required to pay a withdrawal liability based on the
underfunded status of the plan. Because we believe the Multi-Employer Plan is adequately funded at this time, and we have no current

15
intention of withdrawing from the Multi-Employer Plan, we have not recorded a liability associated with this plan on our Consolidated
Balance Sheets.
Risks Related to Legal and Regulatory Matters
Potential regulatory actions, product and service claims, environmental claims and other litigation could be costly and have a
material adverse effect on our financial condition, liquidity or results of operations. Insurance coverage may not be available or
adequate in all circumstances.
In the ordinary course of business, we are subject to various claims and litigation. Any such claims, whether with or without merit,
could be time-consuming and expensive to defend and could divert management’s attention and resources. While we strive to ensure
that our products and services comply with applicable government regulatory standards and internal requirements, and that our
products and services perform effectively and safely, customers from time to time could claim that our products and services do not
meet warranty or contractual requirements, and users could claim to be harmed by use or misuse of our products and services. These
claims could give rise to breach of contract, warranty or recall claims, or claims for negligence, product liability, strict liability,
personal injury or property damage. They could also result in negative publicity.
In addition, claims and investigations may arise related to patent infringement, customer relationships, commercial contracts, antitrust
or competition law requirements, employment matters, employee benefits issues, and other compliance and regulatory matters,
including anti-corruption and anti-bribery matters. While we have processes and policies designed to mitigate these risks and to
investigate and address such claims as they arise, we cannot predict or, in some cases, control the costs to defend or resolve such
claims.
We currently maintain insurance against some, but not all, of these potential claims. In the future, we may not be able to maintain
insurance at commercially acceptable premium levels. In addition, the levels of insurance we maintain may not be adequate to fully
cover any and all losses or liabilities. If any significant judgment or claim is not fully insured or indemnified against, it could have a
material adverse effect on our financial condition, liquidity or results of operations.
We may be subject to liability under, and may make substantial future expenditures to comply with, environmental laws and
regulations, which could have a material adverse effect on our financial condition, liquidity or results of operations.
We are actively involved in environmental investigation and remediation activities relating to two domestically owned locations
allegedly resulting from past industrial activity, for which our ultimate liability may exceed the currently estimated and accrued
amounts. See Note 26 to the Consolidated Financial Statements for further information related to our current environmental matters
and the potential liabilities associated therewith. It is also possible that we could become subject to additional environmental matters
and corresponding liabilities in the future.
The building materials industry has been subject to claims relating to raw materials such as silicates, polychlorinated biphenyl
(“PCB”), polyvinyl chloride (“PVC”), formaldehyde, per- and polyfluoroalkyl substances (“PFAS”), fire-retardants and claims
relating to other issues such as mold and toxic fumes, as well as claims for incidents of catastrophic loss, such as building fires. We
have not received any significant claims involving our raw materials or our product performance; however, product liability insurance
coverage may not be available at commercially acceptable premium levels or at all, or such coverage may not be adequate in all
circumstances to cover claims that may arise in the future.
In addition, our operations are subject to various environmental, health, and safety laws and regulations. These laws and regulations
not only govern our current operations and products but may also impose potential liability on us for our past operations and past
operations at sites on which we operate. Our costs to comply with these laws and regulations may increase as these requirements
become more stringent in the future.
Our intellectual property rights may be infringed, misappropriated, invalidated or otherwise circumvented, which could have a
material adverse impact on our financial condition, liquidity or results of operations.
We rely on our proprietary intellectual property, including numerous patents, trademarks, designs, copyrights and trade secrets, as well
as our licensed intellectual property to market, promote and sell our products. We monitor and protect against activities that might
infringe, dilute, or otherwise harm our patents, trademarks, designs, copyrights, trade secrets and other intellectual property and rely
on the laws of the U.S. and other countries. Despite our efforts, the steps we have taken to protect our intellectual property may be
inadequate. Existing trade secret, patent, design, trademark and copyright laws offer only limited protection. Our patents could be
invalidated or circumvented. In addition, others may develop substantially equivalent or superseding proprietary technology, or
competitors may offer similar competing products that do not infringe on our intellectual property rights, thereby substantially

16
reducing the value of our intellectual property rights. Litigation may be necessary to defend and enforce our intellectual property
rights. Engaging in litigation may cause us to incur substantial costs and divert resources, which could harm our business regardless of
the outcome. Despite our efforts to protect and maintain our intellectual property rights, both in the U.S. and abroad, we may be
unsuccessful in some matters. In addition, the laws of some non-U.S. jurisdictions, particularly those of certain emerging markets,
provide less protection for our proprietary rights than the laws of the U.S. and present greater risks of counterfeiting and other
infringement. To the extent we cannot protect our intellectual property, unauthorized use and misuse of our intellectual property could
harm our competitive position. All of the above could have a material adverse effect on our financial condition, liquidity or results of
operations.
We are subject to risks associated with our operations in Canada and Latin America. Legislative, political, regulatory and
economic volatility, as well as vulnerability to infrastructure and labor disruptions, could have a material adverse effect on our
financial condition, liquidity or results of operations.
A portion of our net sales are generated in Canada and Latin America. While these sales are minor in comparison to our total
consolidated net sales, they are subject to currency exchange fluctuations, trade regulations, import duties, logistics costs, delays and
other related risks. Our Canadian and Latin American operations are also subject to various tax rates, tariffs, credit risks in emerging
markets, political risks, uncertain legal systems, and loss of sales to local competitors following currency devaluations in countries
where we import products for sale.
In addition, in countries outside of the U.S., particularly in those with developing economies, it may be common for others to engage
in business practices prohibited by laws and regulations applicable to us, such as the Foreign Corrupt Practices Act or similar local
anti-corruption or anti-bribery laws. These laws generally prohibit companies and their employees, contractors or agents from making
improper payments to government officials for the purpose of obtaining or retaining business. Failure to comply with these laws, as
well as U.S. and foreign export and trading laws, could subject us to civil and criminal penalties. As we continue to expand our
business, we may have difficulty anticipating and effectively managing these and other risks that our operations may face, which may
have a material adverse effect our business outside the U.S. and our financial condition, liquidity or results of operations.
Risks Related to General Economic and Other Factors
Unstable market and economic conditions could have a material adverse impact on our financial condition, liquidity or results of
operations.
Our business is influenced by market and economic conditions, including inflation, deflation, interest rates, tariffs, availability and
cost of capital, consumer spending rates, energy availability, the effects of governmental trade policies or spending programs and the
impacts of geopolitical events. Volatility in financial markets and softness or deterioration of national and global economic conditions
could have a material adverse effect on our financial condition, liquidity or results of operations, including as follows:
•
the financial stability of our customers or suppliers may be compromised, which could result in additional bad debts for us
or non-performance by suppliers;
•
consumers of our products may postpone spending in response to tighter credit, negative financial news and/or stagnation
or further declines in income or asset values, which could have a material adverse impact on the demand for our products;
•
the value of investments underlying our defined benefit pension plan may decline, which could result in significant cash
contributions to the plan in order to meet obligations or regulatory requirements; and
•
our asset impairment assessments and underlying valuation assumptions may change, which could result from changes to
estimates of future sales and cash flows that may lead to substantial impairment charges.
Continued or sustained deterioration of economic conditions would likely exacerbate and prolong these adverse effects.
Our business is dependent on construction activity in North America. Downturns or delays in construction activity could have a
material adverse effect on our financial condition, liquidity or results of operations.
Our business has greater sales opportunities when construction activity, including both new building construction and renovation of
existing buildings, is strong and, conversely, has fewer opportunities when such activity declines. The cyclical nature of construction
activity, including construction activity funded by the public sector, tends to be influenced by prevailing economic conditions,
including the rate of growth in GDP, financing availability, prevailing interest rates, government spending patterns, business, investor

17
and consumer confidence, inflation, availability of labor, adequately functioning supply chains and other factors beyond our control.
Our revenue opportunities come from new construction as well as renovation of existing buildings. Most of our revenue comes from
the following sectors of commercial construction – office, education, healthcare, transportation and retail. Commercial construction
activity for these sectors can be influenced by the changing needs for spaces, including potential declines in demand for office space
as a result of sustained remote or hybrid work models. Prolonged downturns or delays in construction activity could have a material
adverse effect on our financial condition, liquidity or results of operations.
Our markets are highly competitive. Competition could reduce demand for our products or impact our profitability. Failure to
compete effectively by meeting consumer preferences, developing and marketing innovative solutions, maintaining strong
customer service and distribution relationships, and expanding our solutions capabilities and reach could have a material adverse
effect on our financial condition, liquidity or results of operations.
Our customers consider product performance attributes, product styling, customer service and price when deciding whether to
purchase our products. Failure to meet shifting consumer preferences in our highly competitive markets, whether for product
performance attributes, such as acoustics, energy efficiency, sustainability, health attributes, or styling preferences, or our inability to
develop and offer new competitive performance features could have a material adverse effect on our sales. Similarly, our ability to
identify, protect and market new and innovative solutions is critical to our long-term growth strategy, namely, to sell into more spaces
and sell more solutions in every space. If our competitors offer discounts on certain products or provide new or alternative offerings
that the marketplace perceives as more cost-effective, it could have a material adverse effect on our price realization. Any of the above
factors could have a material adverse impact on our financial condition, liquidity or results of operations.
Customer consolidation, and competitive, economic and other pressures facing our customers, and our potential failure to attract
new customers in our markets, may negatively impact our net sales, operating margins and profitability.
A number of our customers, including distributors and contractors, have consolidated in recent years and consolidation could continue,
further concentrating an increasing portion of our net sales within a smaller group of key customers. Further consolidation could
impact margin growth and profitability as larger customers may realize certain operational and other benefits of scale. The economic
and competitive landscape for our customers is constantly changing, and our customers' responses to those changes could impact our
business. The demand for our products can also be impacted by the buying patterns of certain customers and how they manage their
inventory levels. These factors could have a material adverse impact on our financial condition, liquidity or results of operations.
Indicative of the trend of customer consolidation within the building products markets of the Americas, in September 2025, GMS,
Inc., one of our largest distributor customers, was acquired by The Home Depot, Inc. In addition, in October 2025, Foundation
Building Materials, Inc., another one of our largest distributor customers, was acquired by Lowe's Companies, Inc.
We rely on operating and information systems that may experience a failure, a compromise of security, or a violation of data
privacy laws or regulations, which could interrupt or damage our operations and have a material adverse effect on our financial
condition, liquidity or results of operations.
In the conduct of our business, we collect, use, transmit and store data on information systems, which are vulnerable to disruption and
an increasing threat of continually evolving cybersecurity risks. These information systems may be disrupted or fail as a result of
events that are wholly or partially beyond our control, including events such as power loss, software or hardware defects, ransomware,
malware, phishing, social engineering attacks, supply chain attacks or other cyber-attacks. All of these risks are also applicable where
we rely on outside vendors to provide services, which may operate in a cloud environment. We are dependent on third-party vendors
for critical services, and any compromise of their systems could result in a service interruption or loss of our data. Any events which
deny us use of vital operating or information systems may seriously disrupt our normal business operations.
We also compete through our use of information technology. We strive to provide customers with timely, accurate, easy-to-access
information about product availability, orders and delivery status using state-of-the-art systems. While we have processes for short-
term failures and disaster recovery capability, a prolonged disruption of system or other failures in the reliability of our systems may
have a material adverse effect on our operating results.
We could also experience a disruption of service or a compromise of our information security due to technical system flaws, clerical,
data input or record-keeping errors, migration to new systems, or tampering or manipulation of our systems by employees or
unauthorized third parties. Information security risks also exist with respect to the use of portable electronic devices, such as laptops
and smartphones, which are particularly vulnerable to loss and theft. Any security breach or compromise of our information systems
could significantly damage our reputation, cause the disclosure of confidential customer, employee, supplier or company information,
including our intellectual property, and result in significant losses, litigation, fines and costs. The security measures we have
implemented to protect against unauthorized access to our information systems and data may not be sufficient to prevent breaches.

18
The regulatory environment related to information security, data collection and privacy is evolving, with new and constantly changing
requirements applicable to our business, and compliance with those requirements could result in additional costs.
Additionally, our key partners, distributors or suppliers could experience a compromise of their information security due to technical
system flaws, clerical, data input or record-keeping errors, or tampering or manipulation of their respective systems by employees or
third parties, which may have an impact on our commercial sales, vendor, partner or other relationships.
Finally, we, along with third parties, may use data from our information systems and publicly available sources in a manner that
incorporates artificial intelligence (“AI”) technologies and tools. The use of AI may increase risks, including flawed algorithms,
hallucinations, and biased outputs. Other risks include data exposure and misuse, including unauthorized access or unintentional
disclosure of proprietary manufacturing processes, product designs, pricing data, or other sensitive information. Output generated by
AI technologies could result in inaccurate solutions that adversely affect operational decisions, customer relationships, or product
quality. As the use of AI technologies continues to evolve, including by competitors, the effectiveness of our cybersecurity, regulatory
compliance and intellectual property protection programs may be impacted. In addition, faster or more advanced use of AI by
competitors, customers, or other third parties could create competitive or operational disruptions to our business. Failure to
successfully govern, integrate, or safeguard the use of AI could subject us to enhanced regulatory scrutiny, litigation, reputational
harm, or competitive disadvantage.
Our business is dependent upon third-party vendors and suppliers whose failure to perform adequately could have a material
adverse effect on our financial condition, liquidity or results of operations.
We source a significant portion of raw materials and sourced products from third parties, including international suppliers. Our ability
to select and retain reliable vendors and suppliers who provide timely deliveries of quality raw materials and sourced products will
impact our success in meeting customer demand for timely delivery of quality products.
The ability of third-party suppliers to timely deliver raw materials and sourced products may be affected by events beyond their
control, such as inability of shippers to timely deliver merchandise due to work stoppages or slowdowns, demand volatility or port
congestion, unavailability of shipping containers or other equipment, or significant weather and health conditions affecting
manufacturers and/or shippers. Any adverse change in our relationships with our third-party suppliers, the financial condition of third-
party suppliers, the ability of third-party suppliers to manufacture and deliver outsourced raw materials or sourced products on a
timely basis could have a material adverse effect on our financial condition, liquidity or results of operations.
In addition, the financial condition of our vendors and suppliers may be adversely affected by general economic conditions, such as
credit difficulties and the uncertain macroeconomic environment. Our international suppliers may be impacted by tariffs or other trade
matters. Any inability of our vendors and suppliers to timely deliver quality raw materials and sourced products or any unanticipated
change in supply, quality or pricing of products could have a material adverse effect on our financial condition, liquidity or results of
operations.
The geographic concentration of our business could subject us to risks, including those associated with climate change, which may
be greater than our competitors and could have a material adverse effect on our financial condition, liquidity or results of
operations.
We primarily operate in the U.S., Canada and Latin America. Our concentrated operations in the Americas could subject us to a
greater degree of risk relative to our global, diversified competitors. We are particularly vulnerable to adverse events (including
geopolitical events, acts of terrorism, natural disasters, weather conditions, labor market disruptions and government actions) and
economic conditions in the U.S., Canada and Latin America. While our operations are primarily in the U.S., Canada and Latin
America, we are exposed to downstream risks from global events. Adverse events or conditions in these geographic areas could have a
material adverse effect on our financial condition, liquidity or results of operations.
Climate change and related extreme weather events in these geographic areas could impact:
•
our manufacturing capability if one of our facilities is affected by such an event;
•
demand from our customers through changes in construction activity in the markets in which we operate;
•
availability or increased costs of manufacturing inputs or sourced products from our vendors and suppliers; and
•
our broader supply chain through inability to ship and receive goods.
We may not be able to forecast the likelihood or severity of any of these impacts. Any of these could have a material adverse effect on
our financial condition, liquidity or results of operations.

19
Public health epidemics or pandemics could have a material adverse effect on our financial condition, liquidity or results of
operations.
Public health epidemics or pandemics may impact our employees, operations, customers, suppliers and financial results. The extent of
the impact will depend on numerous evolving factors that we may not be able to accurately predict, including: the duration and scope
of an epidemic or pandemic; government actions taken in response to an epidemic or pandemic, including required shutdowns; the
availability, acceptance, distribution and effectiveness of vaccines; the impact on construction activity; supply chain disruptions; rising
inflation; labor shortages; sustained remote or hybrid work models; our ability to manufacture and sell our products; and the ability of
our customers to pay for our products. Any of these events could have a material adverse effect on our financial condition, liquidity or
results of operations.
ITEM 1B. UNRESOLVED STAFF COMMENTS
None.
ITEM 1C. CYBERSECURITY
Our use of information systems for collecting, using, transmitting and storing data is a vital aspect of our business operations.
Information systems are inherently vulnerable to a range of cybersecurity threats that could potentially have a material impact on our
strategy, financial condition, liquidity or results of operations.
Cybersecurity Risk Management and Strategy. The Company actively maintains an enterprise risk management program.
Management’s role is to identify, mitigate, guide and review the efforts of our business units, consider whether the residual risks are
acceptable, and approve plans to deal with serious risks. Cybersecurity is a key risk management category within our enterprise risk
management program.
The Vice President and Chief Information Officer (“CIO”), who also serves as a member of the Company’s enterprise risk council,
works closely with key business leaders and functions to develop and enhance the Company’s cybersecurity strategy. Our
cybersecurity program is designed to safeguard against an evolving threat landscape through effective prevention, detection, response
and recovery processes. Our cybersecurity risk management processes include frequent assessment of our top cyber risks and
mitigations.
Our cybersecurity risk program is a comprehensive framework designed to safeguard our organization and stakeholders from evolving
threats. Central to this approach is our commitment to threat and vulnerability management, where we proactively identify, prioritize
and address potential cybersecurity gaps to strengthen our overall security posture. We emphasize identity and access management by
implementing access controls and robust authentication methods to protect user identities and secure information technology systems.
We maintain data protection and privacy processes designed to reduce risk of unauthorized access, use or exfiltration of sensitive
information. Our cybersecurity capabilities include network security, endpoint detection and response, identity controls, privileged
access controls and continuous monitoring. The purpose of these systems and technologies is to stay ahead of potential threats. To
prepare for and respond to potential cybersecurity events, we conduct regular incident response exercises, ensuring our readiness and
resilience. Additionally, we invest in employee training and awareness programs to promote a culture of security mindfulness and
reduce risks associated with human error. Recognizing the importance of third-party relationships, we maintain a vendor risk
management program that includes monitoring the cybersecurity practices of our vendors, and if applicable, performing user access
reviews and evaluating System and Organization Controls reports at both inception and on an ongoing basis. Together, these efforts
reflect our dedication to building a secure and compliant environment that protects our operations, data and the trust of our
stakeholders.
Our program incorporates an Incident Response Plan to guide the evaluation, response and escalation of cybersecurity incidents. This
plan is overseen by our CIO and executed by a cross-functional Cybersecurity Incident Response Team. The incident response plan
establishes clear protocols for incident identification, impact assessment, containment and resolution, with defined escalation paths
based on incident severity. Cybersecurity incidents above a defined threshold of criticality are evaluated for materiality by a cross-
functional group to determine reporting and disclosure requirements. To enhance our response capabilities, we conduct periodic
assessments, including third-party reviews, and simulate incidents through regular tabletop exercises.
Our Cybersecurity program’s effectiveness is periodically evaluated against established quantifiable goals and other external
benchmarks, including the National Institute of Standards and Technology Cybersecurity Framework (“CSF”). This evaluation is
carried out through internal and external risk assessments and compliance audits. We regularly engage third parties to help conduct
these evaluations, assessments and audits, advise us on the effectiveness of our cybersecurity processes and assist the Company in
remediating any identified vulnerabilities.

20
We do not believe that risks from cybersecurity threats, individually or in the aggregate, including any previous cybersecurity
incidents, have materially affected, or are reasonably likely to materially affect, our strategy, financial condition, liquidity or results of
operations. For additional information on how cybersecurity risk may affect our business, refer to Item 1A. Risk Factors of this Form
10-K under the heading “We rely on operating and information systems that may experience a failure, a compromise of security, or a
violation of data privacy laws or regulations, which could interrupt or damage our operations and have a material adverse effect on our
financial condition, liquidity or results of operations.”
Governance. Our Board of Directors has responsibility for oversight of management’s cybersecurity risk program and receives regular
updates from our CIO. These updates, provided on a semi-annual basis, cover a range of topics, including the performance of our
cybersecurity program against established goals and external standards, insights into the evolving cybersecurity landscape, current
events and recent cybersecurity threats, and progress in enhancing the Company’s cybersecurity posture. Pursuant to its charter, the
Audit Committee of our Board of Directors is responsible for reviewing management’s cybersecurity incident reporting process,
methodology and tools. In addition, the Audit Committee is responsible for reviewing management's materiality assessments of
cybersecurity incidents identified as significant by management.
Our CIO holds an advanced degree in Information Technology with over 20 years of experience, including senior leadership roles in
technology at various companies. The CIO oversees a cybersecurity team, comprised of internal and external subject matter experts
who work collaboratively to achieve our cybersecurity objectives. In addition, our CIO leads the Information Security Steering
Committee, a group comprised of key information technology employees and business leaders, including our Senior Vice President,
Chief Financial Officer and Senior Vice President, General Counsel, Head of Government Relations & Chief Sustainability Officer.
This committee meets regularly to review and discuss the Company's cybersecurity strategies and developments, ensuring a
comprehensive approach to managing cybersecurity risk.
ITEM 2. PROPERTIES
We own a 100-acre, multi-building campus in Lancaster, Pennsylvania comprising the site of our corporate headquarters and most of
our non-manufacturing operations.
As of December 31, 2025, we operated 22 manufacturing plants, including 19 plants located within the U.S. and three plants in
Canada.
WAVE operates seven additional plants in the U.S. to produce suspension system (grid) products, which we use and sell in our ceiling
systems.
Fourteen of our plants are leased and the remaining eight are owned.
Operating Segment
Number
of
Plants
Location of Principal Facilities
Mineral Fiber
5
U.S. (Florida, Georgia, Ohio, Pennsylvania and West Virginia)
Architectural Specialties
17
U.S. (California (3), Colorado, Illinois (2), Missouri (2), Ohio (3), North Carolina, Texas,
Utah) and Canada (British Columbia, Ontario and Quebec)
Sales and administrative offices are leased and/or owned, and leased facilities are used to supplement our owned warehousing
facilities.
Production capacity and the extent of utilization of our facilities are difficult to quantify with certainty. In any one facility, utilization
of our capacity varies periodically depending upon demand for the product that is being manufactured. We believe our facilities are
adequate and suitable to support the business. Additional incremental investments in plant facilities are made as appropriate to balance
capacity with anticipated demand, improve quality and service, and reduce costs.
ITEM 3. LEGAL PROCEEDINGS
See the “Specific Material Events” subheading under the “Environmental Matters” section of Note 26 to the Consolidated Financial
Statements, which is incorporated herein by reference, for a description of our significant legal proceedings. We are party to various
other lawsuits, claims, investigations and other legal matters that arise in the ordinary course of business, including matters involving
our products, intellectual property, relationships with suppliers, relationships with distributors, other customers or end users,
relationships with competitors, employees and other matters. We do not believe that any such current claims, individually or in the

21
aggregate, will have a material adverse effect on our financial condition, liquidity or results of operations. However, regardless of
outcome, litigation and related matters can have an adverse impact on us due to defense and settlement costs, diversion of
management resources, negative publicity, reputational harm and other factors.
ITEM 4. MINE SAFETY DISCLOSURES
Not applicable.

22
PART II
ITEM 5. MARKET FOR THE REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND
ISSUER PURCHASES OF EQUITY SECURITIES
AWI’s common shares trade on the New York Stock Exchange under the ticker symbol “AWI.” As of February 18, 2026, there were
152 holders of record of AWI’s common stock.
Dividends are payable when declared by our Board of Directors and in accordance with restrictions set forth in our debt agreements.
In general, our debt agreements allow us to make “restricted payments,” which include dividends and stock repurchases, subject to
certain limitations and other restrictions and provided that we are in compliance with the financial and other covenants of our debt
agreements and meet certain liquidity requirements after giving effect to the restricted payment. We declared dividends on a quarterly
basis, totaling $1.263 per share in 2025. On February 18, 2026, our Board of Directors declared a dividend of $0.339 per common
share outstanding. The dividend will be paid on March 19, 2026, to shareholders of record as of the close of business on March 5,
2026. For further discussion of the debt agreements, see the Financial Condition and Liquidity section of Management’s Discussion
and Analysis of Financial Condition and Results of Operations in Item 7 and Risk Factors in Item 1A in this Form 10-K.
Issuer Purchases of Equity Securities
Period
Total Number
of Shares
Purchased (1)
Average Price
Paid per Share
Total Number of
Shares Purchased
as Part of Publicly
Announced Plans
or Programs
Maximum
Approximate Value
of Shares that may
yet be Purchased
under the Plans or
Programs
October 1 – 31, 2025
77,674
$
197.15
74,306
$
568,118,032
November 1 – 30, 2025
187,206
$
187.08
187,206
$
533,096,274
December 1 – 31, 2025
1,620
$
190.64
1,620
$
532,787,440
Total
266,500
263,132
(1)
Includes shares reacquired through the withholding of shares to pay employee tax obligations upon the vesting of restricted shares previously granted under our
long-term incentive plans. For more information regarding securities authorized for issuance under our equity compensation plans, see Note 21 to the
Consolidated Financial Statements included in this Form 10-K.
On July 29, 2016, our Board of Directors approved a share repurchase program authorizing us to repurchase up to $150.0 million of
our outstanding shares of common stock (the “Program”). Since inception of the Program, this authorization has been increased to
permit repurchases of up to an aggregate of $1,700.0 million of our outstanding shares of common stock through December 31, 2026.
We had $532.8 million remaining under the Board’s repurchase authorization as of December 31, 2025.
Repurchases of our common stock under the Program may be made through open market, block and privately negotiated transactions,
including Rule 10b5-1 plans, at such times and in such amounts as management deems appropriate, subject to market and business
conditions, regulatory requirements and other factors. The Program does not obligate AWI to repurchase any particular amount of
common stock and may be suspended or discontinued at any time without notice.
During 2025, we repurchased 0.8 million shares under the Program for a total cost of $129.0 million, excluding commissions and
taxes, or an average price of $167.75 per share. Since inception through December 31, 2025, we have repurchased 15.4 million shares
under the Program for a total cost of $1,167.2 million, excluding commissions and taxes, or an average price of $75.72 per share.
ITEM 6. [RESERVED]

23
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
Armstrong World Industries, Inc. (“AWI”) is a Pennsylvania corporation incorporated in 1891.
This discussion should be read in conjunction with the financial statements, the accompanying notes, the cautionary note regarding
forward-looking statements and risk factors included in this Form 10-K.
Overview
AWI is an Americas leader in the design and manufacture of innovative interior and exterior architectural applications including
ceilings, specialty walls and exterior metal solutions. We manufacture and source products made of numerous materials, including
mineral fiber, fiberglass, metal, felt, architectural resin and glass, wood, wood fiber and glass-reinforced-gypsum. We also
manufacture ceiling suspension system (grid) products through a joint venture with Worthington Enterprises, Inc. called Worthington
Armstrong Venture (“WAVE”).
Acquisitions
In December 2025, we acquired all of the issued and outstanding stock of FGM-Parallel LLC (“Parallel”), based in Englewood,
Colorado. Parallel is a designer and manufacturer of extruded aluminum products primarily used in exterior architectural applications.
The operations, assets and liabilities of Parallel are included in our Architectural Specialties segment.
In September 2025, we acquired all of the issued and outstanding stock of Geometrik Manufacturing, Inc. (“Geometrik”), based in
Kelowna, British Columbia, Canada. Geometrik is a designer and manufacturer of wood acoustical ceiling and wall systems. The
operations, assets and liabilities of Geometrik are included in our Architectural Specialties segment.
In December 2024, we acquired all of the issued and outstanding stock of A. Zahner Company (“Zahner”), based in Kansas City,
Missouri. Zahner is a designer and manufacturer of exterior metal architectural solutions. The operations, assets and liabilities of
Zahner are included in our Architectural Specialties segment.
In April 2024, we acquired all of the issued and outstanding membership interests in 3form, LLC (“3form”), based in Salt Lake City,
Utah from Hunter Douglas, Inc. 3form is a designer and manufacturer of architectural resin and glass products used for specialty
walls, partitions and ceilings. The operations, assets and liabilities of 3form are included in our Architectural Specialties segment.
In January 2024, we entered into a strategic partnership and equity investment in Overcast Innovations LLC (“Overcast”) with
McKinstry Essention, LLC whereby we contributed $5.5 million in exchange for an initial 19.5% ownership interest in Overcast
(currently 19.2%). Overcast is a solutions company offering prefabricated ceiling cloud systems, modular grid platforms and
engineering design services to reduce waste and inefficiencies in the built environment. Our investment and equity earnings and losses
in Overcast are included in our Unallocated Corporate segment.
In October 2023, we acquired a portion of the business and certain assets of Insolcorp, LLC (“Insolcorp”), based in Albemarle, North
Carolina. Insolcorp develops, tests and manufactures energy saving products deployed in building and roofing installations. The
acquired operations, assets and liabilities of Insolcorp are included in our Mineral Fiber segment.
In July 2023, we acquired all of the issued and outstanding stock of BOK Modern, LLC (“BOK”), based in San Rafael, California.
BOK is a designer of exterior metal architectural solutions. The operations, assets and liabilities of BOK are included in our
Architectural Specialties segment.
Manufacturing Plants
As of December 31, 2025, we operated 22 manufacturing plants, including 19 plants located within the U.S. and three plants in
Canada.
WAVE operates seven additional plants in the U.S. to produce suspension system (grid) products, which we use and sell in our ceiling
systems.

24
Reportable Segments
Our operating segments are as follows: Mineral Fiber, Architectural Specialties and Unallocated Corporate.
Mineral Fiber – produces suspended mineral fiber and fiberglass ceiling systems. Our mineral fiber products offer various
performance attributes such as acoustical control, rated fire protection, and energy efficiency, along with other health and
sustainability features and aesthetic appeal. Ceiling products are primarily sold to resale distributors, ceiling systems contractors and
wholesalers, and retailers (including large home centers). The Mineral Fiber segment also includes the results of WAVE, which
manufactures and sells suspension system (grid) products and ceiling component products that are invoiced by both AWI and WAVE.
Segment results relating to WAVE consist primarily of equity earnings and reflect our 50% equity interest in the joint venture. Ceiling
component products consist of ceiling perimeters and trim, in addition to grid products that support drywall ceiling systems, structural
and walkable grid systems. For some customers, WAVE sells its suspension system products to AWI for resale to customers. Mineral
Fiber segment results reflect those sales transactions. The Mineral Fiber segment also includes all assets and liabilities not specifically
allocated to our Architectural Specialties or Unallocated Corporate segment, including all property and related depreciation associated
with our Lancaster, Pennsylvania headquarters. Operating results for the Mineral Fiber segment include a significant majority of
allocated Corporate administrative expenses that represent a reasonable allocation of general services to support its operations.
Architectural Specialties – designs, produces and sources specialty ceilings, walls, and other interior and exterior architectural
applications primarily for use in commercial settings. Products are available in numerous materials, such as metal, felt, architectural
resin and glass, wood, wood fiber and glass-reinforced-gypsum in various colors, shapes and designs. These products offer a range of
design options and performance attributes such as acoustical control, rated fire protection, light, aesthetic appeal, energy conservation
and building performance. We sell standard, premium and customized products, a portion of which are sourced from third-party
producers. Architectural Specialties products are sold primarily to direct customers, primarily ceiling systems contractors, and resale
distributors. This segment’s revenues are primarily project driven, which can lead to more variability in sales patterns. Operating
results for the Architectural Specialties segment include a portion of allocated Corporate administrative expenses that represent a
reasonable allocation of general services to support its operations.
Unallocated Corporate – includes certain assets, liabilities, income and expenses that have not been allocated to our other business
segments and consists of: cash and cash equivalents, our Overcast investment and related equity earnings and losses, the net funded
status of our U.S. Retirement Income Plan (“RIP”), the estimated fair value of interest rate swap contracts, outstanding borrowings
under our senior secured credit facility and income tax balances.
Factors Affecting Revenues
For information on our segments’ 2025 net sales by geography and disaggregated expenses, see Note 3 to the Consolidated Financial
Statements included in this Form 10-K. For information on our segments’ 2025 net sales disaggregated by major customer groups, see
Note 4 to the Consolidated Financial Statements included in this Form 10-K.
Markets. We compete in the building product markets of the Americas. We closely monitor publicly available macroeconomic data
and trends that provide insight into commercial construction market activity, including, but not limited to, GDP, office vacancy rates,
the Architecture Billings Index, new commercial construction starts, state and local government spending, corporate profits and retail
sales. The Company continues to monitor the impacts of tariffs and other governmental trade policies and geopolitical events, neither
of which had a material direct impact on our financial condition, liquidity or results of operations during 2025 or 2024. In September
2025, GMS, Inc., one of our largest distributor customers, was acquired by The Home Depot, Inc. In addition, in October 2025,
Foundation Building Materials, Inc., another one of our largest distributor customers, was acquired by Lowe's Companies, Inc. These
acquisitions had no material impact on our financial condition, liquidity or results of operations during 2025. Additionally, in the
fourth quarter of 2025, the U.S. federal government experienced a six-week shutdown of non-essential operations. While the
shutdown contributed to certain short-term indirect headwinds that impacted our results for the fourth quarter of 2025, these
disruptions were temporary in nature and did not have a material impact on our financial condition, liquidity or results of operations
for the full year ended December 31, 2025.
Several factors and trends within our markets affected our business performance during 2025 compared to 2024, most notably a $94
million increase in net sales within Architectural Specialties due to our December 2024 acquisition of Zahner and April 2024
acquisition of 3form (collectively, the “2024 Acquisitions”). The increase in net sales attributable to the December 2025 acquisition of
Parallel and the September 2025 acquisition of Geometrik (collectively, the “2025 Acquisitions”) was not material to consolidated net

25
sales. The following table presents the impact of the 2024 Acquisitions and the 2025 Acquisitions on our net sales (dollar amounts in
millions):
2025
2024
2024 Acquisitions
$
163.1
$
69.6
2025 Acquisitions
1.1
-
Total
$
164.2
$
69.6
Also contributing to the increase in net sales was a $36 million increase in organic Architectural Specialties net sales, partially offset
by a $14 million impact from lower sales volumes in our Mineral Fiber segment.
Average Unit Value. We periodically modify sales prices of our products due to changes in costs for raw materials and energy, market
conditions and the competitive environment. Typically, realized price increases are less than announced price increases because of
project pricing, competitive adjustments and changing market conditions. We also offer a wide assortment of products that are
differentiated by style, design and performance attributes. Pricing and margins for products within the assortment vary. In addition,
changes in the relative quantity of products purchased at different price points can impact year-to-year comparisons of net sales and
operating income. Within our Mineral Fiber segment, we focus on improving sales dollars per unit sold, or average unit value
(“AUV”), as a measure that accounts for the varying assortment of products and like-for-like pricing impacting our revenues.
Favorable AUV increased our total consolidated net sales for the year ended December 31, 2025 by approximately $58 million
compared to the same period in 2024. Our Architectural Specialties segment revenues are primarily generated from individual
contracts that include project-specific mixes of manufactured and sourced products. As such, we do not track AUV performance for
this segment but rather attribute all changes in net sales to volume, including gross to net sales adjustments.
During the first quarter and third quarters of 2025, we implemented price increases on Mineral Fiber ceiling products. During the first
and second quarters of 2025, WAVE implemented price increases on grid products. In the fourth quarter of 2025, we announced price
increases on Mineral Fiber ceiling products and WAVE announced price increases on grid products that became effective in the first
quarter of 2026. Future pricing actions for Mineral Fiber, Architectural Specialties and WAVE products may be implemented based
on numerous factors, including the impact of tariffs, the rate and pace of inflation and its impact on our business.
Seasonality. Historically, our sales tend to be stronger in the second and third quarters of our fiscal year due to more favorable weather
conditions, customer business cycles and the timing of renovation and new construction projects.
Factors Affecting Operating Costs
Operating Expenses. Our operating expenses are comprised of direct production costs (principally raw materials, labor, and energy),
manufacturing overhead costs, freight, costs to purchase sourced products, tariffs and selling, general and administrative (“SG&A”)
expenses.
Our largest raw material expenditures are primarily for fiberglass, perlite, recycled paper, and starch. Other raw materials include
clays, felt, pigment, architectural resin and glass, wood and wood fiber. We manufacture substantially all of our mineral wool at one of
our manufacturing facilities. We use aluminum and steel in the production of metal building products by us and by WAVE. Finally,
natural gas and packaging materials also represent significant input costs. Fluctuations in the prices of these inputs impact our
financial results. In 2025, higher energy and raw material costs were partially offset by lower freight costs, resulting in a $5 million
negative impact to operating income compared to 2024.
Acquisition-Related Expenses and Losses
In connection with our acquisitions of Parallel in December 2025, Geometrik in September 2025, Zahner in December 2024, 3form in
April 2024, Insolcorp in October 2023, BOK in July 2023 and Arktura LLC (“Arktura”) in December 2020, we recorded certain

26
acquisition-related expenses and losses to operating income for the years ended December 31, 2025, 2024, and 2023, summarized as
follows (dollar amounts in millions):
2025
2024
2023
Affected Line Item on the Consolidated
Statements of Earnings and Comprehensive
Income
Inventory
$
0.1
$
0.3
$
-
Cost of goods sold
Acquisition costs
1.0
1.8
-
SG&A expenses
Deferred cash and restricted stock expenses
-
-
10.7
SG&A expenses
Loss related to change in fair value of
contingent consideration
1.4
1.6
0.1
Loss related to change in fair value of
contingent consideration
Negative impact to operating income
$
2.5
$
3.7
$
10.8
The inventory amounts above reflect the post-acquisition expenses associated with recording inventory at fair value as part of
purchase accounting for the Geometrik and 3form acquisitions. Acquisition costs above reflect certain contingent third-party
professional fees incurred due to the Parallel, Geometrik, Zahner and 3form acquisitions. Expenses related to deferred cash and
restricted stock awards were for Arktura’s former owners and employees that were recorded over their respective service periods, as
such payments were subject to the awardees’ continued employment with AWI. The change in fair value of contingent consideration
was related to our Geometrik, Insolcorp and BOK acquisitions and is remeasured quarterly during each acquisition's earn-out periods.
See Note 18 to the Consolidated Financial Statements for further information.
Depreciation and amortization of fixed and intangible assets acquired have been excluded from the table above. See Note 5 to the
Consolidated Financial Statements for further information.
RESULTS OF OPERATIONS
The following discussion includes year-to-year comparisons between 2025 and 2024. Discussions of year-to-year comparisons
between 2024 and 2023 that are not included in this Form 10-K can be found in Management’s Discussion and Analysis of Financial
Condition and Results of Operations in Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2024. Please
refer to Note 3 to the Consolidated Financial Statements for a reconciliation of segment operating income to consolidated earnings
before income taxes.
CONSOLIDATED RESULTS FROM OPERATIONS
(dollar amounts in millions)
2025
2024
Change is Favorable
Total consolidated net sales
$
1,620.8
$
1,445.7
12.1%
Operating income
$
430.9
$
374.3
15.1%
Consolidated net sales for 2025 increased 12.1% versus the prior year due to higher volumes of $117 million and favorable AUV of
$58 million. Architectural Specialties net sales increased $130 million and Mineral Fiber net sales increased $45 million. Architectural
Specialties segment net sales improved due to a $94 million year-over-year increase attributable to the 2024 Acquisitions and a $36
million increase in organic net sales. The increase in Mineral Fiber net sales was driven by favorable AUV, partially offset by lower
sales volumes.
Cost of goods sold during 2025 was 59.4% of net sales, compared to 59.8% for 2024. The year-over-year decrease in cost of goods
sold as a percent of net sales was primarily driven by favorable AUV benefits, improved manufacturing productivity and favorable
inventory valuation impacts. These benefits were partially offset by an increase in manufacturing costs.
SG&A expenses in 2025 were $339.5 million, or 20.9% of net sales, compared to $308.5 million, or 21.3% of net sales, in 2024. The
reduction in SG&A expenses as a percent of net sales was due to disciplined cost control, partially offset by inflation. The year-over-
year increase in SG&A expenses compared to the prior year was primarily driven by a $27 million increase related to the 2024
Acquisitions, a $4 million increase in incentive compensation and a $3 million increase in Architectural Specialties selling and
advertising expenses, driven primarily by higher net sales as well as additional investments in selling capabilities. These increases
were partially offset by a $2 million increase in company-owned officer life insurance gains related to deferred compensation plans
and a prior-period increase in reserves for environmental remediation matters of $2 million that did not recur in the current period.
In 2025, we recorded $1.4 million of remeasurement losses for changes in the fair value of contingent consideration related to the
acquisitions of Geometrik, BOK and Insolcorp. In the same period in 2024, we recorded $1.6 million of remeasurement losses for

27
changes in the fair value of contingent consideration related to the acquisitions of BOK and Insolcorp. See Note 18 to the
Consolidated Financial Statements for further information.
In 2025, we recorded $0.8 million of net gains on sales of fixed assets, which were primarily comprised of a $0.9 million gain on the
sale of a parcel of land at a Mineral Fiber plant. In 2024, we recorded $0.6 million of net losses on sales of fixed assets, which were
comprised of a $5.2 million loss on the sale of undeveloped land adjacent to our Corporate headquarters, partially offset by a $4.6
million gain on the sale of our idled Mineral Fiber plant in St. Helens, Oregon.
Equity earnings from unconsolidated affiliates were $112.3 million in 2025, compared to $103.4 million in 2024. WAVE equity
earnings were $113.2 million in 2025 compared to $104.3 million in 2024. The increase in WAVE equity earnings was primarily
driven by the benefit from favorable AUV, partially offset by the negative impact of lower sales volumes. See Note 10 to the
Consolidated Financial Statements for further information.
Interest expense was $33.0 million in 2025 compared to $39.8 million in 2024. The decrease in interest expense was primarily due to
lower average debt balances, partially offset by higher average effective interest rates.
Other non-operating income, net was $2.4 million during 2025 compared to $12.6 million during 2024. The decrease in other non-
operating income, net, was primarily driven by the non-service cost components of pension and postretirement net periodic benefit
costs and a decrease in interest income.
Income tax expense was $91.6 million in 2025 compared to $82.2 million in 2024. The effective tax rate was 22.9% in 2025 compared
to 23.7% in 2024. The effective tax rate for 2025 was lower compared to 2024 primarily due to a greater benefit recognized in the
current year from statute closures as well as the benefit from an investment tax credit generated in the current year, offset partially by
unfavorable adjustments related to our valuation allowance for capital loss carryforwards compared to 2024.
Total Other Comprehensive Income (“OCI”) was $7.1 million in 2025 compared to Total Other Comprehensive Loss (“OCL”) of $5.5
million in 2024. The change from OCL to OCI was primarily driven by favorable pension and postretirement actuarial adjustments
and higher foreign currency translation gains, driven primarily by the Canadian dollar. To a lesser extent, the change was also driven
by lower interest rate swap derivative losses in 2025 compared to 2024. Pension and postretirement adjustments represent the actuarial
gains and losses related to our defined benefit pension and postretirement plans. Foreign currency translation adjustments represent the
change in the U.S. dollar value of assets and liabilities denominated in foreign currencies. Derivative losses represent the mark-to-
market value adjustments of our derivative assets and liabilities, and the recognition of gains and losses previously deferred in
accumulated OCL.
REPORTABLE SEGMENT RESULTS
Mineral Fiber
(dollar amounts in millions)
2025
2024
Change is Favorable
Total segment net sales
$
1,030.7
$
986.0
4.5%
Operating income
$
362.0
$
322.5
12.2%
Mineral Fiber net sales increased $45 million due to $58 million of favorable AUV, partially offset by $14 million of lower sales
volumes. The improvement in AUV was due to favorable like-for-like price and, to a lesser extent, favorable mix. The increase in net
sales was primarily driven by our strong execution and benefits from growth initiatives, which contributed both volume and mix
benefits. These benefits were partially offset by a decrease in volumes driven by softer demand, primarily from home centers.
Cost of goods sold during 2025 was $603 million, or 58.5% of net sales, compared to $586 million, or 59.5% of net sales, for 2024.
Gross profit increased $28 million, or 6.9%, compared to 2024 due to a $38 million benefit from favorable AUV, partially offset by a
$9 million negative impact from lower sales volumes and a $2 million increase in manufacturing costs. The increase in manufacturing
costs was primarily due to higher input costs, net of a $7 million benefit from favorable inventory valuations.
SG&A expenses were $179 million, or 17.4% of net sales in 2025, compared to $181 million, or 18.3% of net sales, for 2024. The
year-over-year decrease in SG&A expenses was primarily driven by a $2 million increase in company-owned officer life insurance
gains related to deferred compensation plans and a prior period increase in reserves for environmental matters of $2 million that did
not recur in the current period. These decreases were partially offset by a $3 million increase in incentive compensation.

28
Equity earnings from our WAVE joint venture were $113 million in 2025, compared to $104 million in 2024. The increase in WAVE
equity earnings was primarily driven by the benefit from favorable AUV, partially offset by the negative impact of lower sales
volumes.
Architectural Specialties
(dollar amounts in millions)
2025
2024
Change is Favorable
Total segment net sales
$
590.1
$
459.7
28.4%
Operating income
$
72.2
$
55.3
30.6%
Architectural Specialties net sales increased $130 million, primarily due to a $94 million increase from the 2024 Acquisitions, in
addition to a $36 million increase in organic net sales driven by strong growth across most of our specialty product categories.
Cost of goods sold during 2025 was $357 million, or 60.6% of net sales, compared to $276 million, or 60.1% of net sales, for 2024.
Gross profit increased $49 million, or 26.9%, compared to 2024. The increase in cost of goods sold as a percentage of sales was driven
primarily by an increase in manufacturing costs within our organic business due to less favorable operating leverage driven by project
timing, partially offset by improved custom project margins. The 2024 Acquisitions contributed a $36 million benefit to gross profit,
with the remaining increase primarily driven by the benefit from higher organic sales volumes.
SG&A expenses were $160 million, or 27.0% of net sales, in 2025 compared to $127 million, or 27.6% of net sales, for 2024. The
year-over-year increase in SG&A expenses was primarily driven by a $27 million increase related to the 2024 Acquisitions and a $3
million increase in selling and advertising expenses, driven primarily by higher net sales as well as additional investments in selling
capabilities.
Unallocated Corporate
Unallocated Corporate operating loss was $3 million in 2025 compared to $4 million in 2024.
FINANCIAL CONDITION AND LIQUIDITY
Cash Flow
Operating activities for 2025 provided $355.5 million of cash, compared to $266.8 million in 2024. The favorable change in cash from
operating activities was driven by higher cash earnings compared to the prior year, including a benefit from a decrease in income taxes
paid due to the impact of 2025 federal tax reform. Also contributing to the increase in cash flows from operating activities was a
favorable timing related working capital change in accounts receivable, partially offset by an unfavorable change in inventory.
Net cash used for investing activities was $3.6 million for 2025, compared to $79.3 million in 2024. The favorable change in cash was
primarily due to a $110 million reduction in cash paid for acquisitions and an increase in dividends from WAVE, partially offset by an
increase in purchases of property, plant and equipment and a decrease in proceeds from the sale of fixed assets, due primarily to 2024
cash proceeds received from the sales of our idled St. Helens manufacturing plant and undeveloped land adjacent to our corporate
headquarters.
Net cash used for financing activities was $319.3 million in 2025, compared to $177.6 million in 2024. The unfavorable change in
cash used for financing activities was primarily due to increased debt repayments, net of borrowings, under our senior secured credit
facility. Borrowings were significantly higher in the prior year primarily due to the 2024 acquisition of 3form. Also contributing to the
increase in cash used for financing activities was an increase in repurchases of our outstanding common stock.
Liquidity
Our liquidity needs for operations vary throughout the year. We retain lines of credit to facilitate our seasonal cash flow needs, since
cash flow is historically lower during the first and fourth quarters of our fiscal year.
On December 10, 2025, we amended our second amended and restated $950.0 million variable rate senior secured credit facility. The
amendment to our senior secured credit facility decreased our principal balance to $910.6 million and is comprised of a $500.0 million
revolving credit facility (with a $150.0 million sublimit for letters of credit) and a $410.6 million Term Loan A. The terms of the
amended senior secured credit facility resulted in a lower interest rate spread for both the revolving credit facility and Term Loan A
(upon refinance, from 1.375% over the Secured Overnight Financing Rate (“SOFR”), plus a 10-basis point SOFR adjustment to 1.25%
over SOFR, with no incremental SOFR basis point adjustment). The interest rate can fluctuate based upon our election of the floating
rate, with the applicable margin subject to adjustment based on our consolidated net leverage ratio. We also extended the maturity of

29
both the revolving credit facility and Term Loan A from December 2027 to December 2030. In connection with the refinancing, we
incurred $2.7 million of bank, legal and other fees, of which $2.6 million were capitalized. These fees are reflected as a component of
long-term debt and amortized into interest expense over the lives of the underlying debt. Additionally, during the fourth quarter of
2025, we wrote off $0.2 million of unamortized debt financing costs, included as a component of interest expense, related to our
previous credit facility. We also have a $25.0 million bi-lateral letter of credit facility separate from the senior secured credit facility.
As of December 31, 2025, total borrowings outstanding under our senior credit facility were $410.6 million under Term Loan A, and
the revolving credit facility was undrawn.
The senior credit facility includes two financial covenants that require the ratio of consolidated earnings before interest, taxes,
depreciation and amortization (“EBITDA”) to consolidated cash interest expense minus consolidated cash interest income to be
greater than or equal to 3.0 to 1.0, and requires the ratio of consolidated funded indebtedness, minus AWI and domestic subsidiary
unrestricted cash and cash equivalents up to $100 million, to EBITDA, to be less than or equal to 3.75 to 1.0 (subject to certain
exceptions for certain acquisitions). As of December 31, 2025, we were in compliance with all covenants of the senior credit facility.
The Term Loan A is currently priced on a variable interest rate basis. We use interest rate swaps to minimize the fluctuations in
earnings caused by interest rate volatility associated with our senior credit facility.
The following table summarizes our interest rate swaps, including forward interest rate swaps (dollar amounts in millions):
Coverage Period
Notional
Amount
Risk Coverage
Trade Date
March 2025 to March 2026
$
50.0
USD-SOFR
March 27, 2025
March 2024 to June 2026
$
50.0
USD-SOFR
March 25, 2024
March 2025 to September 2026
$
25.0
USD-SOFR
March 27, 2025
November 2023 to December 2026
$
50.0
USD-SOFR
October 10, 2023
March 2024 to June 2027
$
50.0
USD-SOFR
March 27, 2024
November 2023 to November 2027
$
50.0
USD-SOFR
September 29, 2023
June 2024 to June 2028
$
50.0
USD-SOFR
June 26, 2024
Under the terms of the interest rate swaps above, we pay a fixed rate monthly and receive a floating rate based on SOFR. These swaps
are designated as cash flow hedges against changes in SOFR for a portion of our variable rate debt.
We use lines of credit and other commercial commitments to ensure that adequate funds are available to meet operating requirements.
Letters of credit are currently arranged through our revolving credit facility and our bi-lateral facility. Letters of credit may be issued
to third party suppliers, insurance companies and financial institutions and typically can only be drawn upon in the event of AWI’s
failure to pay its obligations to the beneficiary. The following table presents details related to our letters of credit facilities (dollar
amounts in millions):
December 31, 2025
Financing Arrangements
Limit
Used
Available
Bi-lateral facility
$
25.0
$
7.7
$
17.3
Revolving credit facility
150.0
-
150.0
Total
$
175.0
$
7.7
$
167.3
The following table reflects scheduled future payments of long-term debt, excluding $3.9 million of unamortized debt financing costs,
and the related interest payments, which are projected based on market-based interest rate swap curves (dollar amounts in millions):
2026
2027
2028
2029
2030
Thereafter
Total
Long-term debt
$
10.3
$
10.3
$
20.5
$
20.5
$
349.0
$
-
$
410.6
Scheduled interest payments
22.3
20.0
19.1
18.5
16.9
-
96.8
As of December 31, 2025, we had $112.7 million of cash and cash equivalents, $92.0 million in the U.S. and $20.7 million in various
foreign jurisdictions, primarily Canada. As of December 31, 2025, we also had $500 million of borrowing capacity available under
our revolving credit facility. We believe cash on hand and cash generated from operations, together with borrowing capacity under our
credit facility, will be adequate to address our near-term liquidity needs based on current expectations of our business operations,
capital expenditures and scheduled payment of debt obligations. In 2026, we expect to spend approximately $100 million to $110
million on capital expenditures and approximately $60 million on dividends. In addition, in February 2026 we paid $64.1 million
associated with the acquisition of Eventscape, Inc. and Eventscape U.S. Holdings Inc. (collectively, “Eventscape”). See Note 28 to the
Consolidated Financial Statements for more information.

30
In July 2016, our Board of Directors approved a share repurchase program authorizing us to repurchase up to $150.0 million of our
outstanding shares of common stock (the “Program”). Since inception of the Program, this authorization has been increased to permit
repurchases of up to an aggregate of $1,700.0 million of our outstanding shares of common stock through December 31, 2026. We had
$532.8 million remaining under the Board’s repurchase authorization as of December 31, 2025.
Repurchases of our common stock under the Program may be made through open market, block and privately negotiated transactions,
including Rule 10b5-1 plans, at such times and in such amounts as management deems appropriate, subject to market and business
conditions, regulatory requirements and other factors. The Program does not obligate AWI to repurchase any particular amount of
common stock and may be suspended or discontinued at any time without notice.
CRITICAL ACCOUNTING ESTIMATES
In preparing our Consolidated Financial Statements in accordance with U.S. generally accepted accounting principles (“GAAP”), we
are required to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of
contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the
reporting period. We evaluate our estimates and assumptions on an ongoing basis, using relevant internal and external
information. We believe that our estimates and assumptions are reasonable; however, actual results may differ from what was
estimated and could have a significant impact on our financial statements.
We have identified the following as our critical accounting estimates and have discussed these with our Audit Committee.
U.S. Pension Credit and Postretirement Benefit Costs – We maintain significant pension and postretirement plans in the U.S. Our
defined benefit pension and postretirement benefit costs are developed from actuarial valuations. These valuations are calculated using
a number of assumptions, which represent management’s best estimate of the future. The assumptions that have the most significant
impact on reported results are the discount rate, the estimated long-term return on plan assets and the estimated inflation in health care
costs. These assumptions are generally updated annually.
Management utilizes the Aon AA Above Median yield curve, which is a hypothetical AA yield curve comprised of a series of
annualized individual discount rates, as the primary basis for determining discount rates. As of December 31, 2025 and 2024, we
assumed discount rates of 5.47% and 5.68%, respectively, for our U.S. defined benefit pension plans. As of December 31, 2025 and
2024, we assumed discount rates of 5.36% and 5.61%, respectively, for our U.S. postretirement plan. The effects of the change in
discount rate will be amortized into earnings as described below. Absent any other changes, a one-quarter percentage point increase or
decrease in the discount rates for the U.S. pension and postretirement plans would not have a material impact on 2026 non-operating
income.
We manage two U.S. defined benefit pension plans, our RIP, which is a qualified funded plan, and a nonqualified unfunded plan. For
the RIP, the expected return on plan assets represents a long-term view of the future estimated investment return on plan assets. This
estimate is determined based on the target allocation of plan assets among asset classes and input from investment professionals on the
expected performance of the asset classes over 10 to 20 years. Historical asset returns are monitored and considered when we develop
our expected return on plan assets. An incremental component is added for the expected return from active management based on
historical information obtained from the plan’s investment consultants. These forecasted gross returns are reduced by estimated
management fees and expenses. Over the 10-year period ended December 31, 2025, the historical annualized return was
approximately 3.43% compared to an average expected return of 5.63%. The actual gain on plan assets incurred for 2025 was 8.36%,
net of fees. The difference between the actual and expected rate of return on plan assets will be amortized into earnings as described
below.
The expected return on plan assets used in determining our 2025 U.S. pension cost was 6.00%. We have assumed a return on plan
assets for 2026 of 6.00%. The 2026 expected return on assets was calculated in a manner consistent with 2025. Absent any other
changes, a one-quarter percentage point increase or decrease in this assumption would impact 2026 non-operating income by $1.0
million.
Contributions to the unfunded pension plan were $3.0 million in 2025 and were made on a monthly basis to fund benefit payments.
We estimate the 2026 contributions will be approximately $2.7 million. See Note 17 to the Consolidated Financial Statements for
more information.

31
The estimated inflation in health care costs represents a 5 to 10-year view of the expected inflation in our postretirement health care
costs. We separately estimate expected health care cost increases for pre-65 retirees and post-65 retirees due to the influence of
Medicare coverage at age 65, as illustrated below:
Assumptions
Actual
Post-65
Pre-65
Post-65
Pre-65
2024
10.5%
7.8%
11.8%
12.0%
2025
12.0%
8.6%
25.8%
49.4%
2026
18.6%
8.7%
The difference between the actual and expected health care costs is amortized into earnings as described below. As of December 31,
2025, health care cost increases are estimated to decrease ratably until 2036, after which they are estimated to be constant at 4.50%.
See Note 17 to the Consolidated Financial Statements for more information.
Actual results that differ from our various pension and postretirement plan estimates are captured as actuarial gains/losses. When
certain thresholds are met, the gains and losses are amortized into future earnings over the remaining life expectancy of participants.
Changes in assumptions could have significant effects on earnings in future years.
Total net actuarial losses related to our U.S. pension benefit plans decreased by $10.7 million in 2025 primarily due to a favorable
actual return on RIP assets and the amortization of actuarial losses, partially offset by the impact of a 21-basis point decrease in the
discount rate. The $10.7 million change in actuarial loss impacting our U.S. pension plans is reflected as a component of other
comprehensive income on our Consolidated Statements of Earnings and Comprehensive Income along with actuarial gains and losses
from our foreign pension plan and our postretirement benefit plans.
Income Taxes – Our effective tax rate is primarily determined based on our pre-tax income, statutory income tax rates in the
jurisdictions in which we operate, and the tax impacts of items treated differently for tax purposes than for financial reporting
purposes. Some of these differences are permanent, such as expenses that are not deductible in our tax returns, and some of these
differences are temporary, reversing over time, such as depreciation expense. These temporary differences create deferred income tax
assets and liabilities. Deferred income tax assets are also recorded for state net operating losses (“NOL”) and capital loss
carryforwards.
As of December 31, 2025, we have recorded valuation allowances totaling $16.6 million for various federal and state deferred tax
assets. While we have considered future taxable income in assessing the need for the valuation allowances based on our best available
projections, if these estimates and assumptions change in the future or if actual results differ from our projections, we may be required
to adjust our valuation allowances accordingly. Such adjustments could be material to our Consolidated Financial Statements.
As further described in Note 15 to the Consolidated Financial Statements, our Consolidated Balance Sheet as of December 31, 2025,
includes deferred income tax liabilities of $192.8 million, which is net of $69.5 million of deferred tax assets. We have established
$16.6 million of valuation allowances consisting of $16.3 million for state deferred tax assets, primarily net operating loss
carryforwards, and $0.3 million for federal and state capital loss carryforwards. Inherent in determining our effective tax rate are
judgments regarding business plans and expectations about future operations. These judgments include the amount and geographic
mix of future taxable income, limitations on usage of NOL carryforwards, the impact of ongoing or potential tax audits, and other
future tax consequences.
As of December 31, 2025 and 2024, we had $337.2 million and $622.9 million, respectively, of gross state NOL carryforwards
expiring between 2026 and 2044. We estimate we will need to generate future U.S. taxable income of approximately $106.5 million
for state income tax purposes during the respective realization periods (ranging from 2026 to 2044) to be able to fully realize the gross
state NOL carryforwards offset by related valuation allowances.
Our ability to utilize deferred tax assets may be impacted by certain future events, such as changes in tax legislation and insufficient
future taxable income prior to expiration of certain deferred tax assets.
Impairments of Tangible Assets, Intangible Assets and Goodwill – Our indefinite-lived assets include goodwill and other intangibles,
primarily trademarks and brand names. Those trademarks and brand names are integral to our corporate identity and are expected to
contribute indefinitely to our corporate cash flows. Accordingly, they have been assigned an indefinite life. We conduct our annual
impairment tests for these indefinite-lived intangible assets and goodwill during the fourth quarter. These assets undergo more
frequent tests if an indication of possible impairment exists. We conduct impairment tests for tangible assets and definite-lived
intangible assets when indicators of impairment exist for the asset group, such as operating losses and/or negative cash flows.

32
The principal assumptions used in our impairment tests for definite-lived intangible assets is operating profit adjusted for depreciation
and amortization and, if required to estimate the fair value, the discount rate. The principal assumptions used in our impairment tests
for indefinite-lived intangible assets include revenue growth rates, discount rate and royalty rate. The principal assumptions used in
our impairment tests for goodwill include after-tax cash flows growth rates and discount rate. Revenue growth rates, after-tax cash
flows growth rates and operating profit assumptions are derived from those used in our operating plan and strategic planning
processes. The discount rate assumption is calculated based upon an estimated weighted average cost of capital which reflects the
overall level of inherent risk and the rate of return a market participant would expect to achieve. The royalty rate assumption
represents the estimated contribution of the intangible assets to the overall profits of the related businesses. Methodologies used for
valuing our intangible assets did not change from prior periods.
In 2025, indefinite-lived intangibles and goodwill were tested for impairment based on the identified asset (for indefinite-lived
intangibles) or on our identified reporting units (for goodwill). There were no impairment charges recorded in 2025, 2024 or 2023
related to intangible assets. We did not test tangible assets or amortizing intangible assets for impairment in 2025, 2024 or 2023 as no
indicators of impairment existed.
The revenue and cash flow estimates used in applying our impairment tests are based on management’s analysis of information
available at the time of the impairment test and represent a market participant view. Actual cash flows lower than the estimate could
lead to significant future impairments. If subsequent testing indicates that fair values have declined, the carrying values would be
reduced and our future statements of earnings would be affected.
We cannot predict the occurrence of certain events that might lead to material impairment charges in the future. Such events may
include, but are not limited to, the impact of economic environments, particularly related to the commercial construction industry,
material adverse changes in relationships with significant customers, or strategic decisions made in response to economic and
competitive conditions. See Notes 9 and 12 to the Consolidated Financial Statements for further information.
Environmental Liabilities – We are actively involved in the investigation, closure and/or remediation of existing or potential
environmental contamination under the Comprehensive Environmental Response, Compensation and Liability Act (“CERCLA”), and
state Superfund and similar environmental laws at two domestically owned locations allegedly resulting from past industrial activity.
In both cases, we are one of several potentially responsible parties and have agreed to jointly fund the required investigation, while
preserving our defenses to the liability. We may also have rights of contribution or reimbursement from other parties or coverage
under applicable insurance policies.
We provide for environmental remediation costs and penalties when the responsibility to remediate is probable and the amount of
associated costs is reasonably determinable. Accruals are estimates based on the judgment of management related to ongoing
proceedings. Estimates of our future liability at the environmental sites are based on evaluations of currently available facts regarding
each individual site. In determining the probability of contribution, we consider the solvency of other parties, the site activities of
other parties, whether liability is being disputed, the terms of any existing agreements and experience with similar matters, and the
effect of both our October 2006 Chapter 11 reorganization and separation with AFI upon the validity of the claim.
We evaluate the measurement of recorded liabilities each reporting period based on current facts and circumstances specific to each
matter. The ultimate losses incurred upon final resolution may materially differ from the estimated liability recorded. Changes in
estimates are recorded in earnings in the period in which such changes occur.
We are unable to predict the extent to which any recoveries from other parties or coverage under insurance policies might cover our
final share of costs for these sites. Our final share of investigation and remediation costs may exceed any such recoveries, and such
amounts net of insurance recoveries may be material. However, we do not expect the total future costs to have a material adverse
effect on our liquidity or financial condition as the cash payments may be made over many years.
Business Combinations and Contingent Consideration – Acquired businesses are accounted for using the acquisition method of
accounting, which requires that the purchase price be allocated to the assets acquired and liabilities assumed at their respective fair
values. Any excess of the purchase price over the estimated fair values of the assets acquired and liabilities assumed is recorded as
goodwill. The estimated fair value of contingent consideration is recorded as a liability on our Consolidated Balance Sheets at the date
of acquisition.
The purchase price allocation requires us to make significant estimates and assumptions with respect to intangible assets and
contingent consideration. Although we believe the assumptions and estimates we have made are reasonable, they are based in part on
historical experience and information obtained from the management of the acquired companies.

33
We engage independent, third-party valuation specialists to assist in determining the fair values of acquired intangible assets and
contingent consideration.
The Geometrik acquisition in 2025 and the Insolcorp and BOK acquisitions in 2023 include the potential for future contingent earn-
out payments based on the financial or operational performance of the acquired companies. We estimated the fair value of these
contingent consideration liabilities upon acquisition and are required to measure these liabilities at fair value each reporting period
until the contingencies are resolved, with changes in fair value after the acquisition date affecting earnings in the period of the
estimated fair value change. See Notes 5 and 18 to the Consolidated Financial Statements for further information.
The principal assumptions used in valuing certain intangible assets include discount rates, royalty rates, future expected cash flows
from sales attributed to the acquired company's developed technologies, trade names and customer relationships, as well as
assumptions about the period of time such assets will continue to be used in the combined company's portfolio. The principal
assumptions used in valuing contingent consideration include the probability of meeting the future revenue and EBITDA growth
targets and discount rates.
These estimates are inherently uncertain and unpredictable, and if different estimates were used, the total consideration including the
estimated fair value of the contingent consideration, could be allocated to the acquired assets and liabilities differently from the
allocation that we have made. In addition, unanticipated events and circumstances may occur, which may affect the accuracy or
validity of such estimates, and if such events occur, we may be required to record a charge against the value assigned to an acquired
asset or an increase in the amounts recorded for assumed liabilities.
ACCOUNTING PRONOUNCEMENTS EFFECTIVE IN FUTURE PERIODS
See Note 2 to the Consolidated Financial Statements for further information.

34
ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Market Risk
Our primary exposure to market risk is from changes in interest rates that could impact our results of operations, cash flows and
financial condition. We use interest rate derivatives to manage our exposures to interest rates. We use these derivative financial
instruments as risk management tools and not for speculative trading purposes. In addition, our derivative financial instruments are
entered into with a diversified group of major financial institutions in order to manage our exposure to potential nonperformance on
such instruments.
Counterparty Risk
We only enter into derivative transactions with established financial institution counterparties having an investment-grade credit
rating. We monitor counterparty credit ratings on a regular basis. All of our derivative transactions with counterparties are governed
by master International Swap and Derivatives Association agreements (“ISDAs”) with netting arrangements. These agreements can
limit our exposure in situations where we have gain and loss positions outstanding with a single counterparty. We do not post, nor do
we receive, cash collateral with any counterparty for our derivative transactions. These ISDAs do not have any credit-contingent
features; however, a default under our bank credit facility would trigger a default under these agreements. Exposure to individual
counterparties is controlled and we consider the risk of counterparty default to be negligible.
Interest Rate Sensitivity
We are subject to interest rate variability on our Term Loan A and revolving credit facility. A hypothetical increase of one-quarter
percentage point in SOFR interest rates from December 31, 2025 levels would increase 2026 interest expense by approximately $0.3
million. We have active interest rate swaps outstanding, which effectively fix the interest rates for a portion of our debt. These interest
rate swaps are included in this calculation.
As of December 31, 2025, we had interest rate swaps outstanding with notional amounts of $325 million. We use interest rate swaps
to minimize the fluctuations in earnings caused by interest rate volatility. Under the terms of these swaps, we receive floating rate
SOFR and pay a fixed rate over the hedged period. The following table summarizes our interest rate swaps as of December 31, 2025
(dollar amounts in millions):
Coverage Period
Notional
Amount
Risk Coverage
Trade Date
March 2025 to March 2026
$
50.0
USD-SOFR
March 27, 2025
March 2024 to June 2026
$
50.0
USD-SOFR
March 25, 2024
March 2025 to September 2026
$
25.0
USD-SOFR
March 27, 2025
November 2023 to December 2026
$
50.0
USD-SOFR
October 10, 2023
March 2024 to June 2027
$
50.0
USD-SOFR
March 27, 2024
November 2023 to November 2027
$
50.0
USD-SOFR
September 29, 2023
June 2024 to June 2028
$
50.0
USD-SOFR
June 26, 2024
These swaps are designated as cash flow hedges against changes in SOFR for a portion of our variable rate debt. The net liability
measured at fair value was $3.4 million as of December 31, 2025.
The table below provides information about our long-term debt obligations as of December 31, 2025, including payment requirements
and related weighted-average interest rates inclusive of the stated SOFR interest rate spread under our credit facility by scheduled
maturity dates. Weighted average variable rates are based on implied forward rates in the yield curve and are exclusive of our interest
rate swaps.
Scheduled maturity date
(dollar amounts in millions)
2026
2027
2028
2029
2030
After 2030
Total
Variable rate principal payments
$
10.3
$
10.3
$
20.5
$
20.5
$
349.0
$
-
$ 410.6
Average interest rate
4.61%
4.37%
4.57%
4.74%
4.91%
-
4.86%
Variable rate principal payments reflected in the preceding table exclude $3.9 million of unamortized debt financing costs as of
December 31, 2025.

35
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
The following consolidated financial statements are filed as part of this Annual Report on Form 10-K:
Management’s Report on Internal Control over Financial Reporting.
Reports of Independent Registered Public Accounting Firm.
Consolidated Statements of Earnings and Comprehensive Income for the Years Ended December 31, 2025, 2024 and 2023.
Consolidated Balance Sheets as of December 31, 2025 and 2024.
Consolidated Statements of Shareholders’ Equity for the Years Ended December 31, 2025, 2024 and 2023.
Consolidated Statements of Cash Flows for the Years Ended December 31, 2025, 2024 and 2023.
Notes to Consolidated Financial Statements.
Schedule II for the Years Ended December 31, 2025, 2024 and 2023.

36
Management’s Report on Internal Control over Financial Reporting
Our management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is
defined in Rules 13a-15(f) and 15d-15(f) under the Securities Exchange Act of 1934, as amended. Our internal control over financial
reporting was designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of our
financial statements for external purposes in accordance with generally accepted accounting principles.
Because of inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of
any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in
conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, conducted an evaluation of the
effectiveness of our internal control over financial reporting based on the framework in Internal Control-Integrated Framework
(2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Based on this evaluation and the
criteria in the COSO framework, our management concluded that our internal control over financial reporting was effective as of
December 31, 2025.
KPMG LLP, an independent registered public accounting firm, audited our internal control over financial reporting as of December
31, 2025, as stated in their report included herein.
/s/ Victor D. Grizzle
Victor D. Grizzle
Director, President and Chief Executive Officer
/s/ Christopher P. Calzaretta
Christopher P. Calzaretta
Senior Vice President and Chief Financial Officer
/s/ James T. Burge
James T. Burge
Vice President and Controller
February 24, 2026

37
Report of Independent Registered Public Accounting Firm
To the Shareholders and Board of Directors
Armstrong World Industries, Inc.:
Opinion on Internal Control Over Financial Reporting
We have audited Armstrong World Industries, Inc. and subsidiaries' (the Company) internal control over financial reporting as of
December 31, 2025, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of
Sponsoring Organizations of the Treadway Commission. In our opinion, the Company maintained, in all material respects, effective
internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control – Integrated
Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States)
(PCAOB), the consolidated balance sheets of the Company as of December 31, 2025 and 2024, the related consolidated statements of
earnings and comprehensive income, shareholders’ equity, and cash flows for each of the years in the three-year period ended
December 31, 2025, and the related notes and financial statement schedule II (collectively, the consolidated financial statements), and
our report dated February 24, 2026 expressed an unqualified opinion on those consolidated financial statements.
Basis for Opinion
The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of
the effectiveness of internal control over financial reporting, included in the accompanying Management's Report on Internal Control
over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based
on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the
Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange
Commission and the PCAOB.
We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects.
Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting,
assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control
based on the assessed risk. Our audit also included performing such other procedures as we considered necessary in the circumstances.
We believe that our audit provides a reasonable basis for our opinion.
Definition and Limitations of Internal Control Over Financial Reporting
A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of
financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting
principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the
maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the
company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in
accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in
accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding
prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect
on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections
of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in
conditions, or that the degree of compliance with the policies or procedures may deteriorate.
/s/ KPMG LLP
Philadelphia, Pennsylvania
February 24, 2026

38
Report of Independent Registered Public Accounting Firm
To the Shareholders and Board of Directors
Armstrong World Industries, Inc.:
Opinion on the Consolidated Financial Statements
We have audited the accompanying consolidated balance sheets of Armstrong World Industries, Inc. and subsidiaries (the Company)
as of December 31, 2025 and 2024, the related consolidated statements of earnings and comprehensive income, shareholders’ equity,
and cash flows for each of the years in the three-year period ended December 31, 2025, and the related notes and financial statement
schedule II (collectively, the consolidated financial statements). In our opinion, the consolidated financial statements present fairly, in
all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its
cash flows for each of the years in the three-year period ended December 31, 2025, in conformity with U.S. generally accepted
accounting principles.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States)
(PCAOB), the Company’s internal control over financial reporting as of December 31, 2025, based on criteria established in Internal
Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission, and our
report dated February 24, 2026 expressed an unqualified opinion on the effectiveness of the Company’s internal control over financial
reporting.
Basis for Opinion
These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an
opinion on these consolidated financial statements based on our audits. We are a public accounting firm registered with the PCAOB
and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable
rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to
error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial
statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining,
on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included
evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall
presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion.
Critical Audit Matter
The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements
that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are
material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments. The
communication of a critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a
whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or
on the accounts or disclosures to which it relates.
Pension and postretirement benefit obligations
As discussed in Note 17 to the consolidated financial statements, the Company’s pension projected benefit obligations and the
fair value of plan assets for certain U.S. plans were $324.0 million and $398.6 million, respectively, as of December 31, 2025,
resulting in a funded status of $74.6 million. Additionally, the Company’s U.S. accumulated postretirement benefit obligation
was $35.6 million, which is an unfunded liability.
We identified the evaluation of the Company’s measurement of the U.S. benefit obligations to be a critical audit matter.
Subjective auditor judgment was required to evaluate the discount rates, as minor changes in the rates could have a significant
impact on the benefit obligations. Additionally, the assessment of the discount rates required specialized actuarial skills and
knowledge.
The following are the primary procedures we performed to address this critical audit matter. We evaluated the design and tested
the operating effectiveness of certain internal controls over the Company’s benefit obligations process, including controls
related to the actuarial determination of the discount rates used in the valuation of the benefit obligations. Additionally, we

39
involved an actuarial professional with specialized skill and knowledge, who assisted in the evaluation of the Company’s
discount rates by:
•
assessing changes in the discount rates from the prior year against changes in published indices;
•
assessing the discount rates based on the plan type, plan provisions and pattern of cash flows; and
•
evaluating the selected yield curve, the consistency of the yield curve with the prior year, and the spot rates.
/s/ KPMG LLP
We have served as the Company’s auditor since 1929.
Philadelphia, Pennsylvania
February 24, 2026

40
Armstrong World Industries, Inc., and Subsidiaries
Consolidated Statements of Earnings and Comprehensive Income
(amounts in millions, except per share data)
Years Ended December 31,
2025
2024
2023
Net sales
$
1,620.8
$
1,445.7
$
1,295.2
Cost of goods sold
962.1
864.1
798.2
Gross profit
658.7
581.6
497.0
Selling, general and administrative expenses
339.5
308.5
262.5
Loss related to change in fair value of contingent consideration
1.4
1.6
0.1
(Gain) loss on sales of fixed assets, net
(0.8)
0.6
-
Equity (earnings) from unconsolidated affiliates, net
(112.3)
(103.4)
(89.3)
Operating income
430.9
374.3
323.7
Interest expense
33.0
39.8
35.3
Other non-operating (income), net
(2.4)
(12.6)
(9.9)
Earnings before income taxes
400.3
347.1
298.3
Income tax expense
91.6
82.2
74.5
Net earnings
$
308.7
$
264.9
$
223.8
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments
1.7
(3.2)
0.5
Derivative (loss), net
(1.5)
(1.6)
(9.0)
Pension and postretirement adjustments
6.9
(0.7)
3.9
Total other comprehensive income (loss)
7.1
(5.5)
(4.6)
Total comprehensive income
$
315.8
$
259.4
$
219.2
Net earnings per share of common stock:
Basic
$
7.13
$
6.06
$
5.00
Diluted
$
7.08
$
6.02
$
4.99
Average number of common shares outstanding:
Basic
43.3
43.7
44.7
Diluted
43.6
44.0
44.8
See accompanying Notes to Consolidated Financial Statements beginning on page 44.

41
Armstrong World Industries, Inc., and Subsidiaries
Consolidated Balance Sheets
(amounts in millions, except share and per share data)
December 31, 2025
December 31, 2024
Assets
Current assets:
Cash and cash equivalents
$
112.7
$
79.3
Accounts and notes receivable, net
130.3
134.4
Inventories, net
124.6
109.8
Income taxes receivable
-
3.9
Other current assets
23.9
21.5
Total current assets
391.5
348.9
Property, plant and equipment, net
630.7
598.8
Operating lease assets
46.4
36.6
Finance lease assets
35.9
34.6
Prepaid pension costs
99.7
88.3
Investment in unconsolidated affiliates
26.6
27.2
Goodwill
217.8
203.2
Intangible assets, net
425.2
455.0
Other non-current assets
50.9
50.1
Total assets
$
1,924.7
$
1,842.7
Liabilities and Shareholders' Equity
Current liabilities:
Current installments of long-term debt
$
10.3
$
22.5
Accounts payable and accrued expenses
237.1
215.3
Operating lease liabilities
10.5
8.1
Finance lease liabilities
6.3
3.8
Income taxes payable
3.2
-
Total current liabilities
267.4
249.7
Long-term debt, less current installments
396.4
502.6
Operating lease liabilities
37.9
29.7
Finance lease liabilities
32.5
33.2
Postretirement benefit liabilities
32.7
35.3
Pension benefit liabilities
24.3
24.6
Other long-term liabilities
33.9
28.4
Income taxes payable
6.1
15.0
Deferred income taxes
192.8
167.1
Total non-current liabilities
756.6
835.9
Shareholders' equity:
Common stock, $0.01 par value per share, 200 million shares authorized, 63,300,018
shares issued and 42,916,593 shares outstanding as of December 31, 2025 and
63,176,007 shares issued and 43,561,649 shares outstanding as of December 31, 2024
0.6
0.6
Capital in excess of par value
617.2
604.0
Retained earnings
1,814.1
1,560.7
Treasury stock, at cost, 20,383,425 shares as of December 31, 2025 and 19,614,358
shares as of December 31, 2024
(1,428.1)
(1,298.0)
Accumulated other comprehensive (loss)
(103.1)
(110.2)
Total shareholders' equity
900.7
757.1
Total liabilities and shareholders' equity
$
1,924.7
$
1,842.7
See accompanying Notes to Consolidated Financial Statements beginning on page 44.

42
Armstrong World Industries, Inc., and Subsidiaries
Consolidated Statements of Shareholders’ Equity
(dollar amounts in millions, except share and per share data)
Accumulated
Capital in
Other
Total
Common Stock
Excess of
Retained
Treasury Stock
Comprehensive
Shareholders'
Shares
Amount
Par Value
Earnings
Shares
Amount
(Loss)
Equity
December 31, 2022
45,572,185
$
0.6
$
573.6
$
1,169.9
17,364,635
$ (1,109.0)
$
(100.1)
$
535.0
Stock issuance, net
115,701
-
0.1
-
1,819
(0.1)
-
-
Cash dividends - $1.042 per common share
-
-
-
(47.1)
-
-
-
(47.1)
Share-based employee compensation
-
-
18.0
-
-
-
-
18.0
Net earnings
-
-
-
223.8
-
-
-
223.8
Other comprehensive (loss)
-
-
-
-
-
-
(4.6)
(4.6)
Acquisition of treasury stock
(1,785,825)
-
-
-
1,785,825
(133.3)
-
(133.3)
December 31, 2023
43,902,061
$
0.6
$
591.7
$
1,346.6
19,152,279
$ (1,242.4)
$
(104.7)
$
591.8
Stock issuance, net
121,667
-
-
-
-
-
-
-
Cash dividends - $1.148 per common share
-
-
-
(50.8)
-
-
-
(50.8)
Share-based employee compensation
-
-
12.3
-
-
-
-
12.3
Net earnings
-
-
-
264.9
-
-
-
264.9
Other comprehensive (loss)
-
-
-
-
-
-
(5.5)
(5.5)
Acquisition of treasury stock
(462,079)
-
-
-
462,079
(55.6)
-
(55.6)
December 31, 2024
43,561,649
$
0.6
$
604.0
$
1,560.7
19,614,358
$ (1,298.0)
$
(110.2)
$
757.1
Stock issuance, net
124,011
-
-
-
-
-
-
-
Cash dividends - $1.263 per common share
-
-
-
(55.3)
-
-
-
(55.3)
Share-based employee compensation
-
-
13.2
-
-
-
-
13.2
Net earnings
-
-
-
308.7
-
-
-
308.7
Other comprehensive income
-
-
-
-
-
-
7.1
7.1
Acquisition of treasury stock
(769,067)
-
-
-
769,067
(130.1)
-
(130.1)
December 31, 2025
42,916,593
$
0.6
$
617.2
$
1,814.1
20,383,425
$ (1,428.1)
$
(103.1)
$
900.7
See accompanying Notes to Consolidated Financial Statements beginning on page 44.

43
Armstrong World Industries, Inc., and Subsidiaries
Consolidated Statements of Cash Flows
(amounts in millions)
Years Ended December 31,
2025
2024
2023
Cash flows from operating activities:
Net earnings
$
308.7
$
264.9
$
223.8
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization
120.4
103.2
89.2
Deferred income taxes
24.1
0.2
(0.8)
Share-based compensation
21.9
18.3
18.8
Equity earnings from unconsolidated affiliates, net
(112.3)
(103.4)
(89.3)
Loss related to change in fair value of contingent consideration
1.4
1.6
0.1
(Gain) loss on sales of fixed assets, net
(0.8)
0.6
-
Payments of contingent consideration in excess of acquisition-date fair value
(0.7)
-
(5.0)
Write-off of debt refinancing fees
0.2
-
-
Other non-cash adjustments, net
1.5
(0.1)
(0.5)
Changes in operating assets and liabilities:
Receivables
(7.5)
(24.6)
(1.6)
Inventories
(12.8)
1.9
6.1
Accounts payable and accrued expenses
28.4
27.3
8.0
Income taxes receivable and payable, net
(1.8)
(5.4)
3.2
Other assets and liabilities
(15.2)
(17.7)
(18.5)
Net cash provided by operating activities
355.5
266.8
233.5
Cash flows from investing activities:
Purchases of property, plant and equipment
(109.4)
(82.8)
(83.8)
Return of investment from joint venture
113.0
97.8
96.9
Acquisitions, net of cash acquired
(13.9)
(123.5)
(26.5)
Investment in unconsolidated affiliate
-
(5.5)
-
Proceeds from the sales of fixed assets
1.0
24.3
-
Proceeds from company-owned life insurance, net
5.7
10.4
3.0
Net cash (used for) investing activities
(3.6)
(79.3)
(10.4)
Cash flows from financing activities:
Proceeds from revolving credit facility
10.0
138.0
55.0
Payments of revolving credit facility
(110.0)
(178.0)
(120.0)
Proceeds from long-term debt
410.6
-
-
Payments of long-term debt
(427.5)
(22.5)
-
Financing costs
(2.6)
-
-
Payments for finance leases
(5.8)
(3.3)
(2.7)
Dividends paid
(55.2)
(50.6)
(46.9)
Payments of tax withholdings for share-based compensation plans, net of issuances
(8.7)
(4.9)
(1.8)
Payments of acquisition-related contingent consideration
(0.8)
-
(10.2)
Payments for treasury stock acquired, including excise taxes
(128.9)
(56.3)
(132.0)
Other financing activities
(0.4)
-
-
Net cash (used for) financing activities
(319.3)
(177.6)
(258.6)
Effect of exchange rate changes on cash and cash equivalents
0.8
(1.4)
0.3
Net increase (decrease) in cash and cash equivalents
33.4
8.5
(35.2)
Cash and cash equivalents at beginning of year
79.3
70.8
106.0
Cash and cash equivalents at end of year
$
112.7
$
79.3
$
70.8
Supplemental cash flow disclosures:
Interest paid
$
29.7
$
37.4
$
33.9
Income tax payments, net
69.3
87.6
72.1
Amounts in accounts payable for capital expenditures
6.7
4.9
2.4
Purchases of property, plant and equipment through vendor financing
3.1
1.1
-
See accompanying Notes to Consolidated Financial Statements beginning on page 44.

Armstrong World Industries, Inc., and Subsidiaries
Notes to Consolidated Financial Statements
(dollar amounts in millions, except per share data)
44
NOTE 1. BUSINESS
Armstrong World Industries, Inc. (“AWI”) is a Pennsylvania corporation incorporated in 1891. When we refer to “AWI,” the
“Company,” “we,” “our” and “us” in these notes, we are referring to AWI and its subsidiaries.
Acquisitions and Investments in Unconsolidated Affiliates
In December 2025, we acquired all of the issued and outstanding stock of FGM-Parallel LLC (“Parallel”), based in Englewood,
Colorado. Parallel is a designer and manufacturer of extruded aluminum products primarily used in exterior architectural applications.
The operations, assets and liabilities of Parallel are included in our Architectural Specialties segment.
In September 2025, we acquired all of the issued and outstanding stock of Geometrik Manufacturing, Inc. (“Geometrik”), based in
Kelowna, British Columbia, Canada. Geometrik is a designer and manufacturer of wood acoustical ceiling and wall systems. The
operations, assets and liabilities of Geometrik are included in our Architectural Specialties segment.
In December 2024, we acquired all of the issued and outstanding stock of A. Zahner Company (“Zahner”), based in Kansas City,
Missouri. Zahner is a designer and manufacturer of exterior metal architectural solutions. The operations, assets and liabilities of
Zahner are included in our Architectural Specialties segment.
In April 2024, we acquired all of the issued and outstanding membership interests in 3form, LLC (“3form”), based in Salt Lake City,
Utah, from Hunter Douglas, Inc. 3form is a designer and manufacturer of architectural resin and glass products used for specialty
walls, partitions and ceilings. The operations, assets and liabilities of 3form are included in our Architectural Specialties segment.
In January 2024, we entered into a strategic partnership and equity investment in Overcast Innovations LLC (“Overcast”) with
McKinstry Essention, LLC whereby we contributed $5.5 million in exchange for an initial 19.5% ownership interest in Overcast
(currently 19.2%). Overcast is a solutions company offering prefabricated ceiling cloud systems, modular grid platforms and
engineering design services to reduce waste and inefficiencies in the built environment. Our investment and equity earnings and losses
in Overcast are included in our Unallocated Corporate segment.
In October 2023, we acquired a portion of the business and certain assets of Insolcorp, LLC (“Insolcorp”), based in Albemarle, North
Carolina. Insolcorp develops, tests and manufactures energy saving products deployed in building and roofing installations. The
acquired operations, assets and liabilities of Insolcorp are included in our Mineral Fiber segment.
In July 2023, we acquired all of the issued and outstanding stock of BOK Modern, LLC (“BOK”), based in San Rafael, California.
BOK is a designer of exterior metal architectural solutions. The operations, assets and liabilities of BOK are included in our
Architectural Specialties segment.
See Note 5 for additional details.
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Consolidation Policy. The Consolidated Financial Statements and accompanying data in this report include the accounts of AWI and
its majority-owned subsidiaries. All significant intercompany transactions have been eliminated from the Consolidated Financial
Statements.
Use of Estimates. We prepare our financial statements in conformity with U.S. Generally Accepted Accounting Principles (“U.S.
GAAP”), which requires management to make estimates and assumptions. These estimates and assumptions affect the reported
amounts of assets, liabilities, revenues and expenses. When preparing an estimate, management determines the amount based upon the
consideration of relevant internal and external information. Actual results may differ from these estimates.
Reclassifications. Certain amounts in the prior year’s Consolidated Financial Statements and Notes have been recast to conform to the
2025 presentation, most notably revised income tax disclosures. See the subheading, “Recently Adopted Accounting Standards” below
and Note 15 for additional information.
Revenue Recognition. We recognize revenue upon transfer of control of our products to the customer, which typically occurs upon
shipment. Our main performance obligation to our customers is the delivery of products in accordance with purchase orders. Each
purchase order confirms the transaction price for the products purchased under the arrangement. Direct sales to building materials
distributors, home centers, direct customers and retailers represent the majority of our sales. Our standard sales terms are Free On

Armstrong World Industries, Inc., and Subsidiaries
Notes to Consolidated Financial Statements
(dollar amounts in millions, except per share data)
45
Board (“FOB”) shipping point, with a minor portion of sales terms that are FOB destination. At the point of shipment, the customer is
required to pay under normal sales terms. In most cases our normal payment terms are 45 days or less and our sales arrangements do
not have any material financing components. Within our Architectural Specialties segment, the majority of revenues are customer
project driven, which includes a portion of revenues derived from the sale of customer specified customized products that have no
alternative use to us. Revenue for such product sales are recognized over time. Custom project customer arrangements have the
potential to produce contract assets or liabilities. Contract liabilities exist when we have received contractual billings but our
obligation to transfer the goods or services to a customer remains, and thus revenue is not yet recognized. These liabilities are
typically less than one year, as they align with our project completion timing. The manufacturing cycle for most custom products is
typically short.
Incremental costs to fulfill our customer arrangements are expensed as incurred, as the amortization period is less than one year.
Our products are sold with normal and customary return provisions. We provide limited warranties for defects in materials or factory
workmanship and certain manufacturing defects. Warranties are generally not sold separately to customers. Our product warranties
place certain requirements on the purchaser, including installation and maintenance in accordance with our written instructions. In
addition to our warranty program, under certain limited circumstances, we will occasionally, at our sole discretion, provide a customer
accommodation repair or replacement. Warranty repairs and replacements are most commonly made by professional installers
employed by or affiliated with our independent distributors. Reimbursement for costs associated with warranty repairs are provided to
our independent distributors through a credit against accounts receivable from the distributor to us. Sales returns and warranty claims
have historically not been material and do not constitute separate performance obligations. We often offer incentive programs to our
customers, primarily volume rebates and promotions. The majority of our rebates are designated as a percentage of annual customer
purchases. We estimate the amount of rebates based on actual sales for the period and accrue for the projected incentive programs’
costs. We record the costs of rebate accruals as a reduction to the transaction price.
See Note 4 to the Consolidated Financial Statements for additional information related to our revenues.
Shipping and Handling Costs. We account for product shipping and handling costs as fulfillment activities and present the associated
costs in cost of goods sold in the period in which we sell our product.
Advertising Costs. We recognize advertising expenses as they are incurred. See Note 24 to the Consolidated Financial Statements for
additional details.
Research and Development Costs. We expense research and development costs, or product innovation costs, as they are incurred. See
Note 24 to the Consolidated Financial Statements for additional details.
Business Combinations. We account for acquisitions under the acquisition method and the results of acquired operations are included
in the Consolidated Financial Statements from the acquisition date. Acquisition-related costs are expensed as incurred. We allocate
total consideration to the assets acquired and liabilities assumed based on their estimated fair values, with the remaining unallocated
amount recorded as goodwill. Goodwill recorded upon acquisition relates to many factors, including the technical competencies and
capabilities of the acquired workforce and our strategic intent to integrate and leverage those competencies and capabilities to advance
and expand our portfolio of solutions and offerings. Our definite-lived intangible assets are amortized over each respective asset's
estimated useful life on a straight-line basis and recorded within our selling, general and administrative (“SG&A”) expenses on our
Consolidated Statements of Earnings and Comprehensive Income. The fair value of acquired intangible assets is estimated by applying
discounted cash flow models based on significant inputs not observable in the market. Key assumptions are developed based on each
acquirees’ historical experience, future projections and comparable market data including future cash flows, long-term growth rates,
implied royalty rates, attrition rates and discount rates.
Acquisition-related contingent consideration that is classified as a liability is measured at fair value at the acquisition date. Changes in
the fair value of contingent consideration liabilities in reporting periods after the acquisition date are recorded within SG&A expenses
on our Consolidated Statements of Earnings and Comprehensive Income. Acquisition-related contingent consideration paid is
classified as cash flows from financing activities on our Consolidated Statements of Cash Flows, up to the acquisition date fair value.
The portions of additional cash consideration paid in excess of the acquisition date fair value are classified as cash flows from
operating activities on our Consolidated Statements of Cash Flows.
Pension and Postretirement Benefits. We have benefit plans that provide for pension, medical and life insurance benefits to certain
eligible employees when they retire from active service. See Note 17 to the Consolidated Financial Statements for additional details.

Armstrong World Industries, Inc., and Subsidiaries
Notes to Consolidated Financial Statements
(dollar amounts in millions, except per share data)
46
Taxes. The provision for income taxes has been determined using the asset and liability approach of accounting for income taxes to
reflect the expected future tax consequences of events recognized in the financial statements. Deferred income tax assets and liabilities
are recognized by applying enacted tax rates to temporary differences that exist as of the balance sheet date, which result from
differences in the timing of reported taxable income between tax and financial reporting.
We reduce the carrying amounts of deferred tax assets by a valuation allowance if, based on the available evidence, it is more likely
than not that such assets will not be realized. The need to establish valuation allowances for deferred tax assets is assessed quarterly.
In assessing the requirement for, and amount of, a valuation allowance in accordance with the more likely than not standard, we give
appropriate consideration to all positive and negative evidence related to the realization of the deferred tax assets. This assessment
considers, among other matters, the nature, frequency and severity of current and cumulative losses and forecasts of future
profitability, the duration of statutory carryforward periods, and our experience with operating loss and tax credit carryforward
expirations. A history of cumulative losses is a significant piece of negative evidence used in our assessment. If a history of
cumulative losses is incurred for a tax jurisdiction, forecasts of future profitability are generally not used as positive evidence related
to the realization of the deferred tax assets in the assessment.
We recognize the tax benefits of an uncertain tax position if those benefits are more likely than not to be sustained based on existing
tax law. Additionally, we establish a reserve for tax positions that are more likely than not to be sustained based on existing tax law,
but uncertain in the ultimate benefit to be sustained upon examination by the relevant taxing authorities. Unrecognized tax benefits are
subsequently recognized at the time the more likely than not recognition threshold is met, the tax matter is effectively settled or the
statute of limitations for the relevant taxing authority to examine and challenge the tax position has expired, whichever is earliest.
Taxes collected from customers and remitted to governmental authorities are reported on a net basis.
See Note 15 to the Consolidated Financial Statements for additional details.
Earnings per Share. Basic earnings per share is computed by dividing the earnings attributable to common shares by the weighted
average number of shares of common stock outstanding during the period. Diluted earnings per share reflects the potential dilution of
securities that could share in the earnings and is calculated using the treasury stock method.
Cash and Cash Equivalents. Cash and cash equivalents include cash on hand and short-term investments that have maturities of three
months or less when purchased.
Concentration of Credit. We principally sell products to customers in building products industries. We monitor the creditworthiness of
our customers and generally do not require collateral.
In September 2025, GMS, Inc., one of our largest distributor customers, was acquired by The Home Depot, Inc. In addition, in
October 2025, Foundation Building Materials, Inc., another one of our largest distributor customers, was acquired by Lowe's
Companies, Inc.
Gross sales to Lowe's Companies, Inc. (including sales to Foundation Building Materials, Inc.) and The Home Depot, Inc. (including
sales to GMS, Inc.) totaled $937.8 million and each individually exceeded 10% of our revenues in 2025. Gross sales to Foundation
Building Materials, Inc. and GMS, Inc. individually exceeded 10% of our revenues in 2024 and 2023, and totaled $735.6 million and
$631.9 million in 2024 and 2023, respectively. Gross sales to these customers were included within our Mineral Fiber and
Architectural Specialties segments.
Receivables. We sell our products to select, pre-approved customers using customary trade terms that allow for payment in the future.
Customer trade and miscellaneous receivables (which include supply related rebates and other), net of allowances for credit losses,
customer credits and warranties, are reported in accounts and notes receivable, net. Cash flows from the collection of receivables are
classified as operating cash flows on the Consolidated Statements of Cash Flows.
We establish creditworthiness prior to extending credit. We estimate the recoverability of receivables each period. This estimate is
based upon new information in the period, which can include the review of any available financial statements and forecasts, as well as
discussions with legal counsel and the management of the debtor company. When events occur that impact the collectability of the
receivable, all or a portion of the receivable is reserved. Account balances are charged off against the allowance when the potential for
recovery is considered remote. We do not have any off-balance sheet credit exposure related to our customers.

Armstrong World Industries, Inc., and Subsidiaries
Notes to Consolidated Financial Statements
(dollar amounts in millions, except per share data)
47
Inventories. Inventories are valued at the lower of cost and net realizable value. See Note 7 to the Consolidated Financial Statements
for additional details.
Property Plant and Equipment. Property plant and equipment is recorded at cost reduced by accumulated depreciation and
amortization. Depreciation and amortization expense is recognized on a straight-line basis over the assets’ estimated useful lives.
Machinery and equipment includes manufacturing equipment (depreciated over 2 to 15 years), computer equipment (depreciated over
4 to 5 years) and office furniture and equipment (depreciated over 5 to 7 years). Within manufacturing equipment, assets that are
subject to accelerated obsolescence or wear out quickly, such as dryer components, are generally depreciated over shorter periods
while heavy production equipment, such as conveyors and production presses, are generally depreciated over longer periods.
Buildings are depreciated over 15 to 30 years, depending on factors such as type of construction and use. Computer software is
amortized over 3 to 7 years.
Property, plant and equipment is tested for impairment by asset group when indicators of impairment are present, such as operating
losses and/or negative cash flows for each identified asset group. If an indication of impairment exists, we compare the carrying
amount of the asset group to the estimated undiscounted future cash flows expected to be generated by the asset group. If the carrying
value exceeds the undiscounted future cash flows, we determine the fair value of the asset group based on discounted future cash
flows expected to be generated by the asset group, or based on management’s estimated exit price assuming the assets could be sold in
an orderly transaction between market participants, or estimated salvage value if no sale is assumed. If the fair value is less than the
carrying value of the asset group, we record an impairment charge equal to the difference between the fair value and carrying value of
the asset group. Impairments of assets related to our manufacturing operations are recorded in cost of goods sold. We did not test
tangible assets for impairment in 2025, 2024 or 2023 as no indicators of impairment existed.
When assets are disposed of or retired, their costs and related depreciation or amortization are removed from the financial statements,
and any resulting gains or losses are normally reflected in cost of goods sold or SG&A expenses depending on the nature of the asset.
See Note 9 to the Consolidated Financial Statements for additional details.
Leases. We enter into operating and finance leases for certain manufacturing plants, warehouses, equipment and automobiles. Our
leases have remaining lease terms of up to 12 years. Several leases include options for us to purchase leased items at fair value or
renew for up to 10 years, or multiple 10-year renewal periods. Some of our leases include early termination options. We consider all
of these options in determining the lease term used to establish our right-of-use (“ROU”) assets and lease liabilities when it is
reasonably certain that we will exercise that option. Our lease agreements do not contain any residual value guarantees or material
restrictive covenants.
We have lease agreements with lease and non-lease components, which we have elected to combine to determine the ROU assets and
lease liabilities. Short-term leases with an initial term of 12 months or less are not recorded on the balance sheet. We recognize lease
expense for these leases on a straight-line basis over the lease term.
As most of our leases do not provide an implicit rate, we use our Incremental Borrowing Rate (“IBR”) based on information that is
available at the lease commencement date to compute the present value of lease payments. Relevant information used in determining
the IBR includes the transactional currency of the lease and the lease term.
See Note 11 to the Consolidated Financial Statements for additional details.
Asset Retirement Obligations. We recognize the fair value of obligations associated with the retirement of tangible long-lived assets in
the period in which they are incurred. Upon initial recognition of a liability, the discounted cost is capitalized as part of the related
long-lived asset and depreciated over the corresponding asset’s useful life. Over time, accretion of the liability is recognized as an
operating expense to reflect the change in the liability’s present value.
Investments in Unconsolidated Affiliates. We account for investments in entities over which we have significant influence but do not
control using the equity method of accounting. Under the equity method, our initial investment is recorded at cost and subsequently
adjusted to recognize our share of the investee’s earnings or losses, which are included as a component of our net earnings. The
carrying amount of the investment is also adjusted for dividends received from the investee, which are recorded as a reduction in the
carrying amount of the investment, as well as contributions made, which are recorded as an increase in the carrying amount of the
investment.

Armstrong World Industries, Inc., and Subsidiaries
Notes to Consolidated Financial Statements
(dollar amounts in millions, except per share data)
48
Investments in unconsolidated affiliates as of December 31, 2025 reflected the equity interest in our 50% investment in our WAVE
joint venture and our 19.2% equity interest in Overcast. Both the WAVE joint venture and Overcast investment are reflected within
our Consolidated Financial Statements using the equity method of accounting. WAVE is reflected as a component of our Mineral
Fiber segment while Overcast is included as a component of our Unallocated Corporate segment.
We use the cumulative earnings approach to determine the appropriate classification of distributions from WAVE on our Consolidated
Statements of Cash Flows. For all years presented, cumulative distributions received in prior periods, less distributions that were
returns of investment, exceeded our cumulative equity earnings from WAVE as adjusted for the amortization of basis differences.
Accordingly, the distributions were reflected as returns of investment within cash flows from investing activities on our Consolidated
Statements of Cash Flows for all years presented. Management regularly evaluates its investment in unconsolidated affiliates for
impairment. Based on those evaluations, management concluded that its investments were not impaired in 2025, 2024 or 2023. See
Note 10 to the Consolidated Financial Statements for additional details.
Goodwill and Intangible Assets. Our definite-lived intangible assets consist primarily of customer relationships (amortized over 3 to
20 years), developed technology (amortized over 10 to 20 years), trademarks and brand names (amortized over 3 to 20 years),
acquired internally-developed software (amortized over 5 to 7 years) and non-compete agreements (amortized over 3 to 5 years). We
review definite-lived intangible assets for impairment by asset group when indicators of impairment are present, such as operating
losses and/or negative cash flows for the respective asset group. If an indication of impairment exists, we compare the carrying
amount of the asset group to the estimated undiscounted future cash flows expected to be generated by the asset group. If the carrying
value exceeds the undiscounted future cash flows, we determine the fair value of the asset group based on discounted future cash
flows expected to be generated by the asset group or based on management’s estimated exit price assuming the assets could be sold in
an orderly transaction between market participants. If the fair value is less than the carrying value of the asset group, we record an
impairment charge equal to the difference between the fair value and carrying value of the asset group. We did not test definite-lived
intangible assets for impairment in 2025, 2024 or 2023 as no indicators of impairment existed.
Our indefinite-lived assets include goodwill, trademarks and brand names, with Armstrong representing our primary trademark.
Trademarks and brand names are integral to our corporate identity and are expected to contribute indefinitely to our cash flows.
Accordingly, they have been assigned an indefinite life. We conduct our annual impairment tests on these indefinite-lived intangible
assets and goodwill during the fourth quarter. These assets undergo more frequent tests if an indication of possible impairment exists.
When performing an impairment test for indefinite-lived intangible assets and goodwill, we compare the carrying amount of the asset
(when testing indefinite-lived intangible assets) and reporting unit (when testing goodwill) to the estimated fair value. For indefinite-
lived intangible assets, the estimated fair value is based on discounted future cash flows using the relief from royalty method. For
goodwill, the estimated fair value is based on discounted future cash flows expected to be generated by the reporting unit. If the fair
value is less than the carrying value of the asset/reporting unit, we record an impairment charge equal to the difference between the
fair value and carrying value of the asset/reporting unit. We did not test indefinite-lived intangible assets for impairment during any
interim periods during 2025, as no indicators of impairment existed. We completed our annual impairment test in the fourth quarter of
2025. No impairment charges were recorded in 2025, 2024 or 2023.
See Note 12 to the Consolidated Financial Statements for additional details.
Foreign Currency. Assets and liabilities of our foreign subsidiaries whose functional currency is not the U.S. dollar are translated to
U.S. dollars using the period-end exchange rate. Revenues and expenses are translated at average exchange rates effective during each
month. Foreign currency translation gains or losses are included as a component of accumulated other comprehensive (loss)
(“AOCL”) within shareholders' equity. Gains or losses on foreign currency transactions are recognized through earnings.
Derivatives. We use derivatives to offset the effect of interest rate variability. Derivatives are recognized on the balance sheet at fair
value. For derivatives that meet the criteria as designated cash flow hedges, the changes in the fair value of the derivative are
recognized in other comprehensive income (loss) until the hedged item is recognized in operations. See Notes 18 and 19 to the
Consolidated Financial Statements for further discussion.
Share-based Employee Compensation. We generally recognize share-based compensation expense on a straight-line basis over the
vesting period for the entire award. Compensation expense for performance-based awards with non-market-based conditions are also
recognized over the vesting period for the entire award, however, compensation expense may vary based on the expectations for actual
performance relative to defined performance measures. We estimate forfeitures based on actual historical forfeitures. See Note 21 to
the Consolidated Financial Statements for additional information.

Armstrong World Industries, Inc., and Subsidiaries
Notes to Consolidated Financial Statements
(dollar amounts in millions, except per share data)
49
Treasury Stock. Common shares repurchased by AWI are recorded on the settlement date at cost as treasury shares and result in a
reduction of equity. We may reissue these treasury shares. When treasury shares are reissued, we determine the cost using the First-in,
first-out cost method (“FIFO”). The difference between the cost of the treasury shares and reissuance price is included in additional
paid-in capital or retained earnings.
Recently Adopted Accounted Standards
In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-09,
“Improvements to Income Tax Disclosures,” which enhances the transparency of income tax disclosures, including expanded
statutory-to-effective tax rate reconciliations and disaggregation of income taxes by jurisdiction. Effective December 31, 2025, we
retrospectively adopted this guidance, resulting in an impact to our income tax disclosures. See Note 15 to the Consolidated Financial
Statements for additional details.
Recently Issued Accounting Standards
In November 2024, the FASB issued ASU 2024-03, “Income Statement - Reporting Comprehensive Income - Expense Disaggregation
Disclosures,” which expands disclosure of significant costs and expenses. This ASU requires expanded disclosures of significant costs
and expenditures within cost of goods sold and SG&A expenses, including amounts of inventory purchased, employee compensation,
depreciation, amortization and selling expenses. This ASU also requires expanded qualitative disclosures, including a description of
selling expenses and a description of non-disaggregated expenses. This guidance is effective for annual periods beginning after
December 15, 2026 and interim periods within fiscal years beginning after December 15, 2027. Early adoption is permitted. We
expect this ASU to only impact our disclosures with no impact to our results of operations, cash flows and financial condition.
In July 2025, the FASB issued ASU 2025-05, “Financial Instruments - Credit Losses,” which simplifies the application of the current
expected credit loss model by providing a practical expedient and accounting policy election permitting entities to assume that
conditions as of the balance sheet date remain unchanged over the life of the asset when measuring credit losses on current accounts
receivable and current contract assets. If elected, entities are required to apply the guidance on a prospective basis. The update is
effective for interim and annual reporting periods beginning after December 15, 2025. Early adoption is permitted. We are evaluating
the impact the adoption of this ASU will have to our results of operations, cash flows and financial condition.
In September 2025, the FASB issued ASU 2025-06, “Intangibles - Goodwill and Other - Internal-Use Software,” which modernizes
and clarifies the threshold entities apply to begin capitalizing development costs for internal-use software. This guidance is effective
for interim and annual periods beginning after December 15, 2027. Early adoption is permitted. We are evaluating the impact the
adoption of this ASU will have to our results of operations, cash flows and financial condition.
NOTE 3. NATURE OF OPERATIONS
Our operating segments are as follows: Mineral Fiber, Architectural Specialties and Unallocated Corporate.
Mineral Fiber – produces suspended mineral fiber and fiberglass ceiling systems. Our mineral fiber products offer various
performance attributes such as acoustical control, rated fire protection, and energy efficiency, along with other health and
sustainability features and aesthetic appeal. Ceiling products are primarily sold to resale distributors, ceiling systems contractors and
wholesalers, and retailers (including large home centers). The Mineral Fiber segment also includes the results of WAVE, which
manufactures and sells suspension system (grid) products and ceiling component products that are invoiced by both AWI and WAVE.
Segment results relating to WAVE consist primarily of equity earnings and reflect our 50% equity interest in the joint venture. Ceiling
component products consist of ceiling perimeters and trim, in addition to grid products that support drywall ceiling systems, structural
and walkable grid systems. For some customers, WAVE sells its suspension system products to AWI for resale to customers. Mineral
Fiber segment results reflect those sales transactions. The Mineral Fiber segment also includes all assets and liabilities not specifically
allocated to our Architectural Specialties or Unallocated Corporate segment, including all property and related depreciation associated
with our Lancaster, Pennsylvania headquarters. Operating results for the Mineral Fiber segment include a significant majority of
allocated Corporate administrative expenses that represent a reasonable allocation of general services to support its operations.
Architectural Specialties – designs, produces and sources specialty ceilings, walls, and other interior and exterior architectural
applications primarily for use in commercial settings. Products are available in numerous materials, such as metal, felt, architectural
resin and glass, wood, wood fiber and glass-reinforced-gypsum in various colors, shapes and designs. These products offer a range of
design options and performance attributes such as acoustical control, rated fire protection, light, aesthetic appeal, energy conservation
and building performance. We sell standard, premium and customized products, a portion of which are sourced from third-party
producers. Architectural Specialties products are sold primarily to direct customers, primarily ceiling systems contractors, and resale

Armstrong World Industries, Inc., and Subsidiaries
Notes to Consolidated Financial Statements
(dollar amounts in millions, except per share data)
50
distributors. This segment’s revenues are primarily project driven, which can lead to more variability in sales patterns. Operating
results for the Architectural Specialties segment include a portion of allocated Corporate administrative expenses that represent a
reasonable allocation of general services to support its operations.
Unallocated Corporate – includes certain assets, liabilities, income and expenses that have not been allocated to our other business
segments and consists of: cash and cash equivalents, our Overcast investment and related equity earnings and losses, the net funded
status of our U.S. Retirement Income Plan (“RIP”), the estimated fair value of interest rate swap contracts, outstanding borrowings
under our senior secured credit facility and income tax balances.
Our Mineral Fiber and Architectural Specialties segment net sales represent the product-based group offerings we sell to external
customers.
Our Chief Operating Decision Maker (“CODM”) is our President and Chief Executive Officer. Segment operating income (loss) is the
measure of segment profit or loss reviewed by the CODM. The following tables are presented at the level of disaggregation regularly
reviewed by the CODM to evaluate operating performance and allocate resources to segments:
As of and for the year ended 2025
Mineral Fiber
Architectural
Specialties
Unallocated
Corporate
Total
Net sales to external customers
$
1,030.7
$
590.1
$
-
$
1,620.8
Cost of goods sold
603.3
357.4
1.4
962.1
Gross profit (loss)
427.4
232.7
(1.4)
658.7
SG&A expenses
178.9
159.6
1.0
339.5
Loss related to change in fair value of contingent consideration
0.6
0.8
-
1.4
(Gain) loss on sales of fixed assets, net
(0.9)
0.1
-
(0.8)
Equity (earnings) loss from unconsolidated affiliates, net
(113.2)
-
0.9
(112.3)
Segment operating income (loss)
$
362.0
$
72.2
$
(3.3)
$
430.9
Segment assets
$
1,095.6
$
612.7
$
216.4
$
1,924.7
Investment in unconsolidated affiliates
22.9
-
3.7
26.6
Depreciation and amortization
86.7
33.7
-
120.4
Purchases of property, plant and equipment
86.9
22.5
-
109.4
As of and for the year ended 2024
Mineral Fiber
Architectural
Specialties
Unallocated
Corporate
Total
Net sales to external customers
$
986.0
$
459.7
$
-
$
1,445.7
Cost of goods sold
586.2
276.3
1.6
864.1
Gross profit (loss)
399.8
183.4
(1.6)
581.6
SG&A expenses
180.8
126.7
1.0
308.5
Loss related to change in fair value of contingent consideration
0.2
1.4
-
1.6
Loss on sales of fixed assets, net
0.6
-
-
0.6
Equity (earnings) loss from unconsolidated affiliates, net
(104.3)
-
0.9
(103.4)
Segment operating income (loss)
$
322.5
$
55.3
$
(3.5)
$
374.3
Segment assets
$
1,063.8
$
602.2
$
176.7
$
1,842.7
Investment in unconsolidated affiliates
22.6
-
4.6
27.2
Depreciation and amortization
80.2
23.0
-
103.2
Purchases of property, plant and equipment
64.3
18.5
-
82.8

Armstrong World Industries, Inc., and Subsidiaries
Notes to Consolidated Financial Statements
(dollar amounts in millions, except per share data)
51
As of and for the year ended 2023
Mineral Fiber
Architectural
Specialties
Unallocated
Corporate
Total
Net sales to external customers
$
932.4
$
362.8
$
-
$
1,295.2
Cost of goods sold
574.1
222.4
1.7
798.2
Gross profit (loss)
358.3
140.4
(1.7)
497.0
SG&A expenses
161.9
99.4
1.2
262.5
Loss related to change in fair value of contingent consideration
-
0.1
-
0.1
Equity (earnings) from unconsolidated affiliates, net
(89.3)
-
-
(89.3)
Segment operating income (loss)
$
285.7
$
40.9
$
(2.9)
$
323.7
Segment assets
$
1,091.9
$
421.1
$
159.4
$
1,672.4
Investment in unconsolidated affiliates
17.4
-
-
17.4
Depreciation and amortization
75.3
13.9
-
89.2
Purchases of property, plant and equipment
67.2
16.6
-
83.8
In 2025, we sold a parcel of land at a Mineral Fiber plant for total proceeds of $1.0 million, with a $0.9 million gain recorded upon
sale. In 2024, we sold an idled Mineral Fiber plant in St. Helens, Oregon for total proceeds of $9.4 million, with a $4.6 million gain
recorded upon sale. Also in 2024, we sold a parcel of undeveloped land adjacent to our corporate campus in Lancaster, Pennsylvania
within our Mineral Fiber segment for total proceeds of $12.8 million. Upon classification to held for sale during the third quarter of
2024, we recognized an impairment loss of $4.9 million and during the fourth quarter of 2024 we recognized a $0.3 million loss upon
sale. Finally, in 2024 we sold a building and related land of an Architectural Specialties design center in Chicago, Illinois for total
proceeds of $2.1 million, with no gain or loss recorded upon sale. The impact of these transactions is recorded within (gain) loss on
sales of fixed assets, net on our Consolidated Statements of Earnings and Comprehensive Income.
The sum of the segments’ operating income (loss) equals the total consolidated operating income as reported on our Consolidated
Statements of Earnings and Comprehensive Income. The following table reconciles our total consolidated operating income to
earnings before income taxes. These items are only measured and managed on a consolidated basis:
2025
2024
2023
Total consolidated operating income
$
430.9
$
374.3
$
323.7
Interest expense
33.0
39.8
35.3
Other non-operating (income), net
(2.4)
(12.6)
(9.9)
Earnings before income taxes
$
400.3
$
347.1
$
298.3
Accounting policies of the segments are the same as those described in the summary of significant accounting policies.
The following table presents net sales allocated to geographic areas based on the shipping location of our selling entities:
2025
2024
2023
Mineral Fiber:
United States
$
954.0
$
909.5
$
854.2
Canada
76.7
76.5
78.2
Total Mineral Fiber
1,030.7
986.0
932.4
Architectural Specialties:
United States
577.6
448.8
349.3
Canada
12.5
10.9
13.5
Total Architectural Specialties
590.1
459.7
362.8
Total net sales
$
1,620.8
$
1,445.7
$
1,295.2

Armstrong World Industries, Inc., and Subsidiaries
Notes to Consolidated Financial Statements
(dollar amounts in millions, except per share data)
52
The following table presents the geographical location of property, plant and equipment, net, by segment:
December 31, 2025
December 31, 2024
Mineral Fiber:
United States
$
503.7
$
477.9
Total Mineral Fiber
503.7
477.9
Architectural Specialties:
United States
121.0
116.6
Canada
6.0
4.3
Total Architectural Specialties
127.0
120.9
Total property, plant and equipment, net
$
630.7
$
598.8
NOTE 4. REVENUE
Disaggregation of Revenues
Our Mineral Fiber and Architectural Specialties operating segments both manufacture and sell interior and exterior architectural
applications including ceilings, specialty walls and exterior metal solutions (primarily mineral fiber, fiberglass, metal, felt,
architectural resin and glass, wood, wood fiber and glass-reinforced-gypsum) throughout the Americas. We disaggregate revenue
based on our product-based segments and major customer channels, as they represent the most appropriate depiction of how the
nature, amount and timing of revenues and cash flows are affected by economic factors. Net sales by major customer channel are as
follows:
Distributors – represents net sales to commercial building materials distributors who re-sell our products to contractors,
subcontractors’ alliances, large architect and design firms, and major facility owners. Geographically, this category includes sales
throughout the U.S., Canada, and Latin America.
Home centers – represents net sales to home center customers who re-sell our products through retail outlets. This category includes
sales primarily to U.S. customers.
Direct customers – represents net sales to contractors, subcontractors, and large architect and design firms. This category includes
sales primarily to U.S. customers.
Other – represents net sales to independent retailers and certain national account customers, including wholesalers who re-sell our
products to dealers who service builders, group purchasing organizations and maintenance, repair and operating supply (“MRO”)
companies. This category also includes sales to online customers and original product manufacturers. Geographically, this category
includes sales throughout the U.S., Canada, and Latin America.
The following tables present net sales by major customer channel within the Mineral Fiber and Architectural Specialties segments for
the years ended December 31, 2025, 2024 and 2023:
Mineral Fiber
2025
2024
2023
Distributors
$
768.2
$
716.9
$
682.3
Home centers
105.8
107.0
103.5
Direct customers
60.3
60.5
57.1
Other
96.4
101.6
89.5
Total
$
1,030.7
$
986.0
$
932.4
Architectural Specialties
2025
2024
2023
Direct customers
$
309.9
$
214.6
$
159.7
Distributors
254.2
224.9
192.7
Other
26.0
20.2
10.4
Total
$
590.1
$
459.7
$
362.8

Armstrong World Industries, Inc., and Subsidiaries
Notes to Consolidated Financial Statements
(dollar amounts in millions, except per share data)
53
NOTE 5. ACQUISITIONS
2025 ACQUISITIONS
Parallel
In December 2025, we acquired all of the issued and outstanding stock of Parallel for $7.2 million, net of $0.6 million of cash
acquired, subject to customary post-closing adjustments for working capital. The total fair value of cash and other tangible assets
acquired, less liabilities assumed, was $3.7 million, resulting in $4.1 million of goodwill. Included in net tangible assets acquired were
operating ROU assets and lease liabilities with a fair value of $1.1 million.
All of the acquired goodwill is deductible for tax purposes. Valuations for assets acquired and liabilities assumed are based on
preliminary estimates that are subject to revisions and may result in adjustments to preliminary amounts as valuations are finalized.
Geometrik
In September 2025, we acquired the issued and outstanding shares of Geometrik for $7.5 million, plus additional contingent
consideration payable upon the achievement of certain future performance obligations in 2027 and 2028 not to exceed $1.5 million.
The purchase price is subject to customary post-closing adjustments for working capital. We, with the assistance of an independent,
third-party valuation specialist, utilized a Monte Carlo simulation and determined the estimated fair value of the contingent
consideration was $0.3 million as of the acquisition date. The total fair value of cash and other tangible assets acquired, less liabilities
assumed, was $1.1 million. The fair value of significant classes of non-cash tangible assets acquired and liabilities assumed included
accounts receivable of $0.5 million, inventory of $0.5 million, property, plant and equipment of $1.6 million, operating ROU assets
and lease liabilities of $3.8 million and accounts payable and accrued liabilities of $1.3 million. The total fair value of identifiable
intangible assets acquired was $1.3 million, resulting in $5.1 million of goodwill. Identified intangible assets consist primarily of
amortizable trademarks of $0.9 million and backlog of $0.3 million, which are being amortized over a weighted-average life of 15
years and 1 year, respectively.
Valuations for assets acquired and liabilities assumed are based on preliminary estimates that are subject to revisions and may result in
adjustments to preliminary amounts as valuations are finalized.
2024 ACQUISITIONS
Zahner
In December 2024, we acquired the issued and outstanding shares of Zahner for $30.0 million, net of $16.0 million of cash acquired.
During the second quarter of 2025, the purchase price for Zahner was reduced by $0.8 million based on customary net working capital
adjustments. The total fair value of cash and other tangible assets acquired, less liabilities assumed, was $17.9 million. The fair value
of significant classes of non-cash tangible assets acquired and liabilities assumed included accounts receivable of $10.9 million,
property, plant and equipment of $10.4 million, operating ROU assets and lease liabilities of $2.9 million, finance ROU assets and
lease liabilities of $8.9 million and accounts payable and accrued liabilities of $19.7 million. The total fair value of identifiable
intangible assets acquired was $16.1 million, resulting in $11.2 million of goodwill. All of the acquired goodwill is deductible for tax
purposes. The following table summarizes the fair values of identifiable intangible assets acquired, and their estimated useful lives:
Fair Value at
Acquisition Date
Estimated Useful Life
Trademarks and brand names
$
5.8
15 years
Customer relationships
4.4
5 years
Backlog
4.3
2 years
Non-compete agreements
1.6
3 years
Total identifiable intangible assets
$
16.1

Armstrong World Industries, Inc., and Subsidiaries
Notes to Consolidated Financial Statements
(dollar amounts in millions, except per share data)
54
3form
In April 2024, we acquired the issued and outstanding membership interests in 3form for $93.5 million, net of $0.5 million of cash
acquired. The total fair value of cash and other tangible assets acquired, less liabilities assumed, was $34.5 million. The fair value of
significant classes of non-cash tangible assets acquired and liabilities assumed included accounts receivable of $6.6 million, inventory
of $7.9 million, property, plant and equipment of $35.0 million, operating ROU assets of $10.1 million, operating lease liabilities of
$10.0 million and accounts payable and accrued liabilities of $16.3 million. The total fair value of identifiable intangible assets
acquired was $37.6 million, resulting in $21.9 million of goodwill. All of the acquired goodwill is deductible for tax purposes. The
following table summarizes the fair values of identifiable intangible assets acquired, and their estimated useful lives:
Fair Value at
Acquisition Date
Estimated Useful Life
Trademarks and brand names
$
11.6
15 years
Customer relationships
10.2
5 years
Developed technology
6.2
10 - 16 years
Non-compete agreements
5.1
5 years
Software
4.1
5 years
Backlog
0.4
1 year
Total identifiable intangible assets
$
37.6
2024 AND 2025 ACQUISITIONS
Consolidated Financial Information
The following table summarizes the Parallel, Geometrik, Zahner and 3form results included on our Consolidated Statements of
Earnings and Comprehensive Income for the years ended December 31, 2025 and 2024:
2025
2024
Net sales
$
164.2
$
69.6
Operating income (1)
11.7
3.0
(1)
For the years ended December 31, 2025 and 2024, operating income included depreciation and amortization of $16.2 million and $6.5 million, respectively.
Pro forma Financial Information
The following table summarizes aggregate unaudited as reported and pro forma information assuming the acquisitions of Parallel,
Geometrik, Zahner and 3form had occurred on January 1, 2023. The unaudited pro forma results include the depreciation and
amortization associated with the acquired assets. The unaudited pro forma results do not include any expected benefits from the
Parallel, Geometrik, Zahner and 3form acquisitions. Accordingly, the unaudited pro forma results are not necessarily indicative of
either future results of operations or results that might have been achieved had the acquisitions been consummated as of January 1,
2023.
2025
2024
2023
Net sales, pro forma
$
1,628.5
$
1,522.8
$
1,431.2
Net sales, as reported
1,620.8
1,445.7
1,295.2
Earnings before income taxes, pro forma
400.8
344.7
297.8
Earnings before income taxes, as reported
400.3
347.1
298.3

Armstrong World Industries, Inc., and Subsidiaries
Notes to Consolidated Financial Statements
(dollar amounts in millions, except per share data)
55
2023 ACQUISITIONS
Insolcorp
In October 2023, we acquired a portion of the business of Insolcorp for $1.7 million of cash and additional contingent consideration
payable upon the achievement of certain future performance obligations from 2024 through 2031. We, with the assistance of an
independent, third-party valuation specialist, determined the estimated fair value of the contingent consideration of $0.7 million as of
the acquisition date. The total fair value of tangible assets acquired less liabilities assumed was $0.1 million. The total fair value of
identifiable intangible assets acquired was $2.1 million, resulting in $0.2 million of goodwill. Acquired intangible assets were
comprised of in-process research and development of $1.7 million and amortizable trademarks of $0.4 million. All acquired intangible
assets are being amortized on a straight-line basis over a life of 20 years. All of the acquired goodwill is deductible for tax
purposes. See Note 18 to the Consolidated Financial Statements for further information regarding the acquisition-related contingent
consideration liability for Insolcorp.
BOK
In July 2023, we acquired all of the issued and outstanding stock of BOK for $13.8 million and additional contingent consideration
payable upon the achievement of certain future performance obligations in 2024 and 2025 not to exceed $3.3 million. We, with the
assistance of an independent, third-party valuation specialist, utilized a Monte Carlo simulation to determine the estimated fair value
of the contingent consideration of $0.8 million as of the acquisition date. The total fair value of tangible assets acquired less liabilities
assumed was $1.4 million. The total fair value of identifiable intangible assets acquired was $5.4 million, resulting in $7.8 million of
goodwill. Acquired intangible assets were comprised of amortizable patents of $1.9 million, amortizable trademarks of $1.8 million,
amortizable customer relationships of $1.4 million, and non-compete agreements of $0.3 million, that are being amortized on a
straight-line basis over a weighted-average life of 18, 15, 2 and 3 years, respectively. All of the acquired goodwill is deductible for tax
purposes. See Note 18 to the Consolidated Financial Statements for further information regarding the acquisition-related contingent
consideration liability for BOK.
Software-Related Intellectual Property
In May 2023, we acquired a co-ownership interest in certain software-related intellectual property for $11.0 million, of which $10.0
million was paid in the second quarter of 2023 and an additional $1.0 million was paid in the fourth quarter of 2023. As a result of this
transaction, the total fair value of identifiable intangible assets acquired was $6.5 million of software and $4.5 million of developed
technology, which are being amortized over a weighted-average life of 5 and 17 years, respectively.
NOTE 6. ACCOUNTS AND NOTES RECEIVABLE
December 31, 2025
December 31, 2024
Customer receivables
$
130.6
$
133.0
Miscellaneous receivables
3.6
4.9
Less allowance for warranties, discounts and credit losses
(3.9)
(3.5)
Accounts and notes receivable, net
$
130.3
$
134.4
We sell our products to select, pre-approved customers whose businesses are affected by changes in economic and market conditions.
We consider these factors and the financial condition of each customer when establishing our allowance for credit losses.
NOTE 7. INVENTORIES
December 31, 2025
December 31, 2024
Finished goods
$
66.8
$
60.4
Goods in process
11.5
7.4
Raw materials and supplies
72.8
68.5
Less LIFO reserves
(26.5)
(26.5)
Total inventories, net
$
124.6
$
109.8
Approximately 62% and 60% of our total inventory in 2025 and 2024, respectively, were valued on a Last-in, first-out (“LIFO”) basis.

Armstrong World Industries, Inc., and Subsidiaries
Notes to Consolidated Financial Statements
(dollar amounts in millions, except per share data)
56
The distinction between the use of different methods of inventory valuation is primarily based on type of inventory, legal entities
and/or geographical locations. The following table summarizes the amount of inventory that is not accounted for under the LIFO
method.
December 31, 2025
December 31, 2024
U.S. locations
$
43.9
$
41.8
Canada locations
3.5
2.6
Total
$
47.4
$
44.4
The U.S. locations that do not value inventory under the LIFO method generally use the weighted average cost method of inventory
valuation. These amounts primarily represent certain finished goods sourced from third party suppliers and inventory from recently
acquired entities within our Architectural Specialties segment, for which this method is appropriate based on the type of inventory.
Our Canadian locations use the FIFO method of inventory valuation, or other methods which closely approximate the FIFO method,
primarily because the LIFO method is not permitted for local tax reporting purposes. In these situations, a conversion to LIFO would
be highly complex and involve excessive cost and effort to achieve under local tax reporting requirements.
NOTE 8. OTHER CURRENT ASSETS
December 31, 2025
December 31, 2024
Prepaid expenses
$
22.5
$
19.8
Fair value of derivative assets
-
0.3
Other
1.4
1.4
Total other current assets
$
23.9
$
21.5
NOTE 9. PROPERTY, PLANT AND EQUIPMENT
December 31, 2025
December 31, 2024
Land
$
21.1
$
21.2
Buildings
303.2
294.7
Machinery and equipment
871.3
805.6
Computer software
98.4
86.7
Construction in progress
72.6
50.0
Less accumulated depreciation and amortization
(735.9)
(659.4)
Net property, plant and equipment
$
630.7
$
598.8
NOTE 10. INVESTMENTS IN UNCONSOLIDATED AFFILIATES
The following table presents equity (earnings) losses from our unconsolidated affiliates for the years ended December 31, 2025, 2024
and 2023:
2025
2024
2023
WAVE
$
(113.2)
$
(104.3)
$
(89.3)
Overcast
0.9
0.9
-
Equity (earnings) from unconsolidated affiliates, net
$
(112.3)
$
(103.4)
$
(89.3)
As of December 31, 2025 and 2024, our investment in our WAVE joint venture was $22.9 million and $22.6 million, respectively. As
of December 31, 2025 and 2024 our investment in Overcast was $3.7 million and $4.6 million, respectively.

Armstrong World Industries, Inc., and Subsidiaries
Notes to Consolidated Financial Statements
(dollar amounts in millions, except per share data)
57
The following table presents combined condensed financial data for our unconsolidated affiliates:
December 31, 2025
December 31, 2024
Current assets
$
110.6
$
111.5
Non-current assets
88.9
98.9
Current liabilities
33.8
33.6
Non-current liabilities
360.3
376.6
The following table presents combined financial statement data for our unconsolidated affiliates for the years ended December 31,
2025, 2024 and 2023:
2025
2024
2023 (1)
Net sales
$
513.5
$
492.7
$
449.0
Gross profit
312.9
296.9
263.2
Net earnings
230.0
211.1
187.2
(1)
Excludes financial information for Overcast.
Distributions from WAVE in 2025, 2024 and 2023, were $113.0 million, $97.8 million, and $96.9 million, respectively. We did not
receive any distributions from Overcast in 2025 or 2024.
In certain markets, we sell WAVE products directly to customers pursuant to specific terms of sale. In those circumstances, we record
the sales and associated costs within our Consolidated Financial Statements. The total sales associated with these transactions were
$48.8 million, $49.1 million and $47.2 million for the years ended 2025, 2024 and 2023, respectively.
Our recorded investment in WAVE was higher than our 50% share of the carrying values reported in WAVE’s consolidated financial
statements by $119.3 million as of December 31, 2025 and $123.6 million as of December 31, 2024. These differences arose from our
adoption of fresh-start reporting upon our emergence from Chapter 11 of the U.S. Bankruptcy Code in October 2006, while WAVE’s
consolidated financial statements do not reflect fresh-start reporting. The differences are composed of the following fair value
adjustments to assets:
December 31, 2025
December 31, 2024
Property, plant and equipment
$
0.4
$
0.4
Other intangibles
88.5
92.8
Goodwill
30.4
30.4
Total
$
119.3
$
123.6
Other intangibles include customer relationships and trademarks. Customer relationships are amortized over 20 years and trademarks
have an indefinite life.
See Note 25 to the Consolidated Financial Statements for additional information.
NOTE 11. LEASES
The following table presents our lease costs for the years ended December 31, 2025, 2024 and 2023:
2025
2024
2023
Operating lease cost
$
12.2
$
10.0
$
8.5
Finance lease cost:
Amortization of leased assets
$
6.3
$
4.2
$
3.1
Interest on lease liabilities
2.0
1.4
0.9
Total finance lease cost
$
8.3
$
5.6
$
4.0
Short-term lease expense and variable lease cost were not material for the years ended December 31, 2025, 2024 and 2023 and are
excluded from the table above. As of December 31, 2025, we did not have any material leases that have not yet commenced.

Armstrong World Industries, Inc., and Subsidiaries
Notes to Consolidated Financial Statements
(dollar amounts in millions, except per share data)
58
The following table presents supplemental cash flow information related to our leases for the years ended December 31, 2025, 2024
and 2023:
2025
2024
2023
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases
$
12.1
$
9.6
$
8.0
Operating cash flows from finance leases
1.8
1.3
0.8
Financing cash flows from finance leases
5.8
3.3
2.7
ROU assets obtained in exchange for lease liabilities
Operating leases (1)
$
18.5
$
19.0
$
15.8
Finance leases (2)
7.7
13.6
12.3
(1)
During 2025, increases in ROU assets included $4.9 million recognized from the acquisitions of Parallel and Geometrik and a $1.2 million increase from
modifications that did not involve obtaining a new ROU asset. During 2024, increases in ROU assets included $13.0 million from the acquisitions of 3form and
Zahner and a $4.7 million increase from modifications that did not involve obtaining a new ROU asset. During 2023, increases in ROU assets included a
decrease of $1.0 million due to a change in lease classification upon modification and an increase of $0.6 million resulting from modifications that did not
involve obtaining a new ROU asset.
(2)
During 2025, there were no modifications or acquired finance leases that involved obtaining a new ROU asset. During 2024, increases in ROU assets included
$8.9 million from the acquisition of Zahner and a $1.1 million decrease from modifications that did not involve obtaining a new ROU asset. During 2023,
increases in ROU assets included $8.6 million due to a change in lease classification upon modification for an existing manufacturing facility within our
Architectural Specialties segment that had a modified expected lease term of 13 years, in addition to an increase of $3.7 million for a lease modification that did
not involve obtaining a new ROU asset.
The following table presents the weighted average assumptions used to compute our ROU assets and lease liabilities:
December 31, 2025
December 31, 2024
Weighted average remaining lease term (in years)
Operating leases
5.8
5.7
Finance leases
10.3
11.4
Weighted average discount rate
Operating leases
5.4%
5.6%
Finance leases
5.2%
5.1%
Undiscounted future minimum lease payments as of December 31, 2025, by year and in the aggregate, having non-cancelable lease
terms in excess of one year are as follows:
Operating Leases
Finance Leases
Maturity of lease liabilities
2026
$
13.1
$
8.2
2027
11.9
7.3
2028
10.1
3.9
2029
5.1
3.1
2030
4.2
3.2
Thereafter
15.3
26.5
Total lease payments
59.7
52.2
Less interest
(11.3)
(13.4)
Present value of lease liabilities
$
48.4
$
38.8

Armstrong World Industries, Inc., and Subsidiaries
Notes to Consolidated Financial Statements
(dollar amounts in millions, except per share data)
59
NOTE 12. GOODWILL AND INTANGIBLE ASSETS
The following table details amounts related to our goodwill and intangible assets:
December 31, 2025
December 31, 2024
Estimated
Useful Life
Gross
Carrying
Amount
Accumulated
Amortization
Gross
Carrying
Amount
Accumulated
Amortization
Amortizing intangible assets
Customer relationships
3-20 years
$
191.6
$
170.7
$
194.7
$
163.9
Developed technology
10-20 years
110.3
87.9
114.8
85.9
Trademarks and brand names
3-20 years
24.4
5.8
23.6
4.3
Software
5-7 years
19.7
11.2
19.7
7.8
Non-compete agreements
3-5 years
7.1
2.6
15.9
5.6
Other
Various
7.4
2.9
9.0
0.5
Total
$
360.5
$
281.1
$
377.7
$
268.0
Non-amortizing intangible assets
Trademarks and brand names
Indefinite
345.8
345.3
Total intangible assets
$
706.3
$
723.0
Goodwill
Indefinite
$
217.8
$
203.2
As of December 31, 2025 and 2024, goodwill totaled $217.6 million and $203.0 million, respectively, within our Architectural
Specialties segment, and $0.2 million within our Mineral Fiber segment for the same periods. The increase in goodwill as of
December 31, 2025 compared to December 31, 2024 was due to changes in the purchase price allocation for Zahner, and the 2025
acquisitions of Parallel and Geometrik, net of foreign exchange movements.
The following table presents the amortization expense related to our intangible assets for the years ended December 31, 2025, 2024
and 2023:
2025
2024
2023
Amortization expense
$
25.4
$
19.9
$
15.3
The expected annual amortization expense for the years 2026 through 2030 are as follows:
2026
$
20.6
2027
11.1
2028
9.8
2029
5.6
2030
4.1
NOTE 13. OTHER NON-CURRENT ASSETS
December 31, 2025
December 31, 2024
Cash surrender value of company-owned life insurance policies
$
36.1
$
37.6
Investment in employee deferred compensation plans
14.5
11.0
Other
0.3
1.5
Total other non-current assets
$
50.9
$
50.1

Armstrong World Industries, Inc., and Subsidiaries
Notes to Consolidated Financial Statements
(dollar amounts in millions, except per share data)
60
NOTE 14. ACCOUNTS PAYABLE AND ACCRUED EXPENSES
December 31, 2025
December 31, 2024
Payables, trade and other
$
123.6
$
105.8
Employment costs
40.8
42.4
Deferred revenue
37.2
26.6
Current portion of pension and postretirement liabilities
6.3
7.2
Acquisition-related contingent consideration
1.5
1.5
Other
27.7
31.8
Total accounts payable and accrued expenses
$
237.1
$
215.3
NOTE 15. INCOME TAXES
On July 4, 2025, the U.S. federal government enacted the “One Big Beautiful Bill Act” (“OBBBA”), resulting in significant changes
to the federal tax code, most notably the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act of 2017 and
the restoration of favorable tax treatment for certain business provisions. Our federal income tax expense for the year ended
December 31, 2025 reflects the impact of the OBBBA, which resulted in an immaterial impact to our effective tax rate and a reduction
in our federal cash taxes paid.
The tax effects of principal temporary differences between the carrying amounts of assets and liabilities and their tax basis are
summarized below. Management believes it is more likely than not that the results of future operations will generate sufficient taxable
income in the appropriate jurisdiction to realize deferred tax assets, net of valuation allowances. In arriving at this conclusion, we
considered the profit before tax generated for the years 2023 through 2025, future reversals of existing taxable temporary differences,
and projections of future profit before tax.
We reduce the carrying amounts of deferred tax assets by a valuation allowance if, based on the available evidence, it is more likely
than not that such assets will not be realized. The need to establish valuation allowances for deferred tax assets is assessed quarterly.
In assessing the requirement for, and amount of, a valuation allowance in accordance with the more likely than not standard for all
periods, we consider all positive and negative evidence related to the realization of the deferred tax assets. This assessment considers,
among other matters, the nature, frequency and severity of current and cumulative losses and forecasts of future profitability, the
duration of statutory carryforward periods, and our experience with operating loss and tax credit carryforward expirations. A history of
cumulative losses is a significant piece of negative evidence used in our assessment. If a history of cumulative losses is incurred for a
tax jurisdiction, forecasts of future profitability are not used as positive evidence related to the realization of the deferred tax assets in
the assessment.
As of December 31, 2025 and 2024, we had $337.2 million and $622.9 million, respectively, of gross state net operating loss (“NOL”)
carryforwards expiring between 2026 and 2044. As of December 31, 2025 and 2024, we had capital loss carryforwards of $0.3 million
and $5.6 million, respectively, that expire between 2026 and 2036.
As of December 31, 2025 and 2024, we had valuation allowances of $16.6 million and $36.3 million, respectively. As of
December 31, 2025, our valuation allowance consisted of $13.3 million for state deferred tax assets related to net operating loss
carryforwards, $3.0 million for state deferred tax assets related to state tax credits and $0.3 million for federal and state deferred tax
assets related to capital loss carryforwards.
We estimate we will need to generate future taxable income of approximately $106.5 million for state income tax purposes during the
respective realization periods (ranging from 2026 to 2044) to be able to fully realize the net deferred income tax assets discussed
above. We estimate we will need to generate capital gain income of $0.4 million to fully realize our federal capital loss carryforwards
before they expire in 2026. We estimate we will need to generate capital gain income of $157.9 million to fully realize our state
capital loss carryforwards before they expire between 2026 and 2036. Our ability to utilize deferred tax assets may be impacted by
certain future events, such as changes in tax legislation or insufficient future taxable income prior to expiration of certain deferred tax
assets.

Armstrong World Industries, Inc., and Subsidiaries
Notes to Consolidated Financial Statements
(dollar amounts in millions, except per share data)
61
The following table presents the components of deferred tax assets and liabilities:
December 31, 2025
December 31, 2024
Deferred income tax assets (liabilities)
Net operating losses
$
14.7
$
30.0
Postretirement benefits
10.2
11.0
Pension benefit liabilities
7.0
7.3
Deferred compensation
4.3
4.5
State tax credit carryforwards
3.3
3.7
Capital loss carryforwards
0.3
5.6
Capitalized research expenses
2.3
20.5
Lease liabilities
17.0
14.3
Other
10.4
9.9
Total deferred income tax assets
69.5
106.8
Valuation allowances
(16.6)
(36.3)
Net deferred income tax assets
52.9
70.5
Intangibles
(83.9)
(83.9)
Partnerships and investments
(21.9)
(23.7)
Accumulated depreciation
(93.7)
(87.1)
Prepaid pension costs
(25.1)
(22.5)
Inventories
(2.9)
(3.6)
Lease assets
(16.0)
(15.1)
Other
(2.2)
(1.7)
Total deferred income tax liabilities
(245.7)
(237.6)
Net deferred income tax liabilities
$
(192.8)
$
(167.1)
The following table presents the components of earnings before income taxes and income tax expense for the years ended
December 31, 2025, 2024 and 2023:
2025
2024
2023
Earnings before income taxes:
Domestic
$
392.7
$
342.0
$
291.9
Foreign
7.6
5.1
6.4
Total
$
400.3
$
347.1
$
298.3
Income tax expense (benefit):
Current tax expense
U.S. federal
$
48.3
$
64.0
$
59.8
U.S. state and local
16.5
16.3
13.9
Foreign
2.8
1.2
1.7
Total current tax expense
67.6
81.5
75.4
Deferred tax expense (benefit):
U.S. federal
21.8
(0.9)
(3.2)
U.S. state and local
2.9
1.7
2.5
Foreign
(0.7)
(0.1)
(0.2)
Total deferred tax expense (benefit)
24.0
0.7
(0.9)
Total income tax expense:
U.S. federal
70.1
63.1
56.6
U.S. state and local
19.4
18.0
16.4
Foreign
2.1
1.1
1.5
Total income tax expense
$
91.6
$
82.2
$
74.5

Armstrong World Industries, Inc., and Subsidiaries
Notes to Consolidated Financial Statements
(dollar amounts in millions, except per share data)
62
The following table presents net income tax payments for the years ended December 31, 2025, 2024 and 2023:
2025
2024
2023
U.S. federal
$
51.9
$
68.3
$
58.2
U.S. state and local
15.6
17.8
12.1
Foreign
1.8
1.5
1.8
Total income tax payments, net
$
69.3
$
87.6
$
72.1
The unremitted earnings of our foreign subsidiaries are not permanently reinvested. Accordingly, as of December 31, 2025 and 2024,
we have recorded deferred income taxes for foreign withholding taxes of $1.2 million and $0.9 million on approximately $23.6
million and $18.2 million of net undistributed earnings of foreign subsidiaries, respectively.
The following table presents a U.S. federal statutory-to-effective tax rate reconciliation for the years ended December 31, 2025, 2024
and 2023:
2025
2024
2023
Amount
Percentage
Amount
Percentage
Amount
Percentage
U.S. federal statutory tax
$
84.1
21.0% $
72.9
21.0% $
62.6
21.0%
State and local income taxes, net of federal benefit (1)
15.9
4.0
14.5
4.2
13.4
4.5
Foreign tax effects
0.8
0.2
0.6
0.2
0.2
0.1
Effect of cross-border tax laws
(1.1)
(0.3)
(1.3)
(0.4)
(1.1)
(0.4)
Tax credits
(4.6)
(1.1)
(2.0)
(0.6)
(1.9)
(0.6)
Changes in valuation allowances
(4.7)
(1.2)
(8.5)
(2.4)
0.4
0.1
Expiration of deferred income tax assets
5.7
1.4
5.8
1.7
-
-
Non-deductible or non-taxable items
3.2
0.8
3.0
0.9
0.3
0.1
Changes in unrecognized tax benefits:
Releases due to statute expirations
(6.1)
(1.5)
(1.9)
(0.6)
-
-
Other
0.1
-
0.6
0.2
0.6
0.2
Excess tax benefits recognized on share-based
compensation
(1.3)
(0.3)
(1.0)
(0.3)
(0.1)
-
Other
(0.4)
(0.1)
(0.5)
(0.2)
0.1
-
Effective taxes
$
91.6
22.9% $
82.2
23.7% $
74.5
25.0%
(1)
State taxes in California, Florida, Illinois, New Jersey, New York and Pennsylvania and local taxes in New York City made up the majority (greater than 50
percent) of the tax effect in this category.
We recognize the tax benefits of an uncertain tax position only if those benefits are more likely than not to be sustained based on
existing tax law. Additionally, we establish a reserve for tax positions that are more likely than not to be sustained based on existing
tax law, but for which we are uncertain in the ultimate benefit to be sustained upon examination by the relevant taxing authorities.
Unrecognized tax benefits are subsequently recognized at the time the more likely than not recognition threshold is met, the tax matter
is effectively settled, or the statute of limitations for the relevant taxing authority to examine and challenge the tax position has
expired, whichever is earlier.
We had $12.8 million of Unrecognized Tax Benefits (“UTB”) as of December 31, 2025; $5.7 million ($4.9 million, net of federal
benefit) of this amount, if recognized in future periods, would impact the reported effective tax rate.
It is reasonably possible that certain UTB’s may increase or decrease within the next twelve months due to tax examination changes,
settlement activities, expirations of statute of limitations, or the impact on recognition and measurement considerations related to the
results of published tax cases or other similar activities. Over the next twelve months we estimate that UTB’s may decrease by $0.9
million related to state statutes expiring.
We account for all interest and penalties on uncertain income tax positions as income tax expense. We have $0.5 million and $2.8
million of interest and penalties accrued in non-current income tax payable on the Consolidated Balance Sheets as of December 31,
2025 and 2024, respectively.

Armstrong World Industries, Inc., and Subsidiaries
Notes to Consolidated Financial Statements
(dollar amounts in millions, except per share data)
63
We had the following activity for UTB’s for the years ended December 31, 2025, 2024 and 2023:
2025
2024
2023
Unrecognized tax benefits balance as of January 1,
$
24.5
$
26.9
$
27.3
Gross change for current-year positions
(0.5)
0.5
0.4
Increase for prior period positions
-
0.2
0.2
Decrease for prior period positions
(0.2)
(0.2)
(0.5)
Decrease due to statute expirations
(11.0)
(2.9)
(0.5)
Unrecognized tax benefits balance as of December 31,
$
12.8
$
24.5
$
26.9
We file income tax returns in the U.S. and various states and international jurisdictions. In the normal course of business, we are
subject to examination by taxing authorities in Canada and the U.S. Generally, we have open tax years subject to tax audit on average
of between three years and six years. The statute of limitations is no longer open for U.S. federal returns before 2022. With few
exceptions, the statute of limitations is no longer open for state or non-U.S. income tax examinations for years before 2021. We have
not significantly extended any open statutes of limitation for any major jurisdiction and have reviewed and accrued for, where
necessary, tax liabilities for open periods.
The following table presents details of non-income tax expenses for the years ended December 31, 2025, 2024 and 2023:
2025
2024
2023
Payroll taxes
$
28.2
$
23.9
$
20.8
Property, franchise and capital stock taxes
5.2
4.8
5.4
NOTE 16. DEBT
December 31, 2025
December 31, 2024
Maturity
Amount
Maturity
Amount
Revolving credit facility outstanding
December 2030
$
-
December 2027
$
100.0
Term Loan A outstanding
December 2030
410.6
December 2027
427.5
Principal debt outstanding
410.6
527.5
Unamortized debt financing costs
(3.9)
(2.4)
Total long-term debt
406.7
525.1
Less current installments of long-term debt
10.3
22.5
Long-term debt, less current installments
$
396.4
$
502.6
On December 10, 2025, we amended our second amended and restated $950.0 million variable rate senior secured credit facility. The
amendment to our senior secured credit facility decreased our principal balance to $910.6 million and is comprised of a $500.0 million
revolving credit facility (with a $150.0 million sublimit for letters of credit) and a $410.6 million Term Loan A. The terms of our
amended senior secured credit facility resulted in a lower interest rate spread for both the revolving credit facility and Term Loan A
(upon refinance, from 1.375% over the Secured Overnight Financing Rate (“SOFR”), plus a 10-basis point SOFR adjustment, to
1.25% over SOFR, with no incremental SOFR basis point adjustment). The interest rate can fluctuate based upon our election of the
floating rate, with the applicable margin subject to adjustment based on our consolidated net leverage ratio. We also extended the
maturity of both the revolving credit facility and Term Loan A from December 2027 to December 2030. In connection with the
refinancing, we incurred $2.7 million of bank, legal and other fees, of which $2.6 million were capitalized. These fees are reflected as
a component of long-term debt and amortized into interest expense over the lives of the underlying debt. Additionally, during the
fourth quarter of 2025, we wrote off $0.2 million of unamortized debt financing costs, included as a component of interest expense,
related to our previous credit facility. We also have a $25.0 million bi-lateral letter of credit facility separate from the senior secured
credit facility.
The amended senior secured credit facility includes two financial covenants that require the ratio of consolidated earnings before
interest, taxes, depreciation and amortization (“EBITDA”) to consolidated cash interest expense minus cash consolidated interest
income to be greater than or equal to 3.0 to 1.0 and requires the ratio of consolidated funded indebtedness, minus AWI and domestic
subsidiary unrestricted cash and cash equivalents up to $100 million, to consolidated EBITDA to be less than or equal to 3.75 to 1.0
(subject to certain exceptions for certain acquisitions). As of December 31, 2025, we were in compliance with all covenants of the
senior secured credit facility.

Armstrong World Industries, Inc., and Subsidiaries
Notes to Consolidated Financial Statements
(dollar amounts in millions, except per share data)
64
Our debt agreements include other restrictions, including restrictions pertaining to the incurrence of additional debt, the redemption,
repurchase or retirement of our capital stock, payment of dividends, and certain financial transactions as it relates to specified assets.
We currently believe that default under these covenants is unlikely.
The scheduled payments of long-term debt are as follows:
2026
$
10.3
2027
10.3
2028
20.5
2029
20.5
2030
349.0
We use lines of credit and other commercial commitments in order to ensure that adequate funds are available to meet operating
requirements. Letters of credit are currently arranged through our revolving credit facility and our bi-lateral facility. Letters of credit
may be issued to third party suppliers, insurance companies and financial institutions and typically can only be drawn upon in the
event of AWI’s failure to pay its obligations to the beneficiary. The following table presents details related to our letters of credit
facilities:
December 31, 2025
Financing Arrangements
Limit
Used
Available
Bi-lateral facility
$
25.0
$
7.7
$
17.3
Revolving credit facility
150.0
-
150.0
Total
$
175.0
$
7.7
$
167.3
Other Commitments
In the ordinary course of business, and primarily due to our December 2024 acquisition of Zahner, we provide corporate guarantees
and obtain surety bonds to support certain contractual commitments to our customers. As of December 31, 2025 and December 31,
2024, we had $31.4 million and $21.9 million, respectively, of outstanding surety bonds associated with custom manufacturing
projects that were issued by reputable third-party surety providers. In the event of our non-performance, we may be required to
reimburse surety providers to cover qualifying financial loss up to the bond amounts. Based on our evaluation of the underlying
contractual obligations, we do not believe that a material loss is probable, and accordingly, no liability associated with such
commitments has been recorded on our Consolidated Balance Sheets.
NOTE 17. PENSION AND OTHER BENEFIT PROGRAMS
DEFINED CONTRIBUTION BENEFIT PLANS
We sponsor several defined contribution plans, which cover substantially all U.S. and non-U.S. employees. Eligible employees may
defer a portion of their pre-tax covered compensation on an annual basis. We match employee contributions up to pre-defined
percentages. Employee contributions are 100% vested. Employer contributions are vested based on pre-defined requirements. Costs
for defined contribution benefit plans were $14.9 million in 2025, $12.7 million in 2024 and $10.4 million in 2023.
DEFINED BENEFIT PENSION PLANS
Benefits from defined benefit pension plans are based primarily on an employee's compensation and years of service. We fund our
pension plans when appropriate.
Our U.S. defined benefit pension plans include a qualified, funded RIP and a Retirement Benefit Equity Plan (“RBEP”), which is a
nonqualified, unfunded plan designed to provide pension benefits in excess of the limits defined under Sections 415 and 401(a)(17) of
the Internal Revenue Code.
We have a defined benefit pension plan in Germany which remains from previously discontinued entities. This plan uses assumptions
which are consistent with, but not identical to, those of the U.S. plans. The accumulated benefit obligation for the non-U.S. defined
benefit pension plan was $2.0 million and $2.1 million as of December 31, 2025 and 2024, respectively.
As a result of our acquisition of Zahner, we are required to make regular contributions to a multi-employer defined benefit pension
plan (“Multi-Employer Plan”) under the terms of collective bargaining agreements that cover union-represented employees and that

Armstrong World Industries, Inc., and Subsidiaries
Notes to Consolidated Financial Statements
(dollar amounts in millions, except per share data)
65
will expire in 2028. Assets contributed to the Multi-Employer Plan may be used to provide benefits to employees of other
participating employers. If a participating employer stops contributing to the Multi-Employer Plan, the unfunded obligations of the
plan may be borne by the remaining participating employers. In the event we choose to stop participating in the Multi-Employer Plan,
we may be required to pay a withdrawal liability based on the underfunded status of the plan. Because we believe the Multi-Employer
Plan is adequately funded at this time, and we have no current intention of withdrawing from the Multi-Employer Plan, we have not
recorded a liability associated with this plan on our Consolidated Balance Sheets. Our contributions to the Multi-Employer Plan for
the years ended December 31, 2025 and 2024 were $2.4 million and $0.2 million, respectively, and included as a component of cost of
goods sold on our Consolidated Statements of Earnings and Comprehensive Income.
The following tables summarize the balance sheet impact of our U.S. defined benefit pension plans, as well as the related benefit
obligations, assets, funded status and rate assumptions. We use a December 31 measurement date for all our defined benefit pension
plans.
2025
2024
Change in benefit obligations:
Benefit obligations as of beginning of period
$
319.2
$
356.5
Service cost
2.3
2.5
Interest cost
16.6
16.9
Actuarial loss (gain)
2.8
(25.1)
Benefits paid
(16.9)
(31.6)
Benefit obligations as of end of period
$
324.0
$
319.2
2025
2024
Change in plan assets:
Fair value of plan assets as of beginning of period
$
381.9
$
413.4
Actual return on plan assets
30.6
(2.4)
Employer contributions
3.0
2.5
Benefits paid
(16.9)
(31.6)
Fair value of plan assets as of end of period
$
398.6
$
381.9
Funded status
$
74.6
$
62.7
2025
2024
Weighted-average assumptions used to determine benefit obligations at end of period:
Discount rate
5.47%
5.68%
Rate of compensation increase
3.33%
3.33%
Weighted-average assumptions used to determine net periodic benefit cost for the period:
Discount rate
5.67%
5.01%
Expected return on plan assets
6.00%
6.00%
Rate of compensation increase
3.33%
3.33%
Basis of Rate-of-Return Assumption
Long-term asset class return assumptions for the RIP are determined based on input from investment professionals on the expected
performance of the asset classes over 10 to 20 years. The forecasts were averaged to derive consensus passive return forecasts for each
asset class. Incremental components were added for the expected return from active management and asset class rebalancing based on
historical information obtained from investment consultants. These forecasted gross returns were reduced by estimated management
fees and expenses, yielding a long-term return forecast of 6.00% for the years ended December 31, 2025 and 2024, respectively.
The accumulated benefit obligation for the U.S. defined benefit pension plans was $322.8 million and $318.1 million as of
December 31, 2025 and 2024, respectively. In 2025, the largest contributor to the net actuarial loss affecting the benefit obligations for
the defined benefit pension plans was a decrease in discount rate, partially offset by changes in retirement rate and other assumptions.
In 2024, the largest contributor to the net actuarial gain affecting the benefit obligations for the defined benefit pension plans was an
increase in discount rate, partially offset by changes in census data.
2025
2024
U.S. pension plans with benefit obligations in excess of assets
RBEP Projected benefit obligation, December 31
$
25.1
$
25.6
RBEP Accumulated benefit obligation, December 31
25.1
25.6

Armstrong World Industries, Inc., and Subsidiaries
Notes to Consolidated Financial Statements
(dollar amounts in millions, except per share data)
66
The following table presents the components of the pension cost (credit) for the U.S. defined benefit pension plans for the years ended
December 31, 2025, 2024 and 2023:
2025
2024
2023
Service cost of benefits earned during the period
$
2.3
$
2.5
$
2.6
Interest cost on projected benefit obligation
16.6
16.9
16.9
Expected return on plan assets
(22.4)
(24.3)
(25.0)
Amortization of net actuarial loss
5.4
5.2
5.4
Net periodic pension cost (credit)
$
1.9
$
0.3
$
(0.1)
For 2025, 2024 and 2023, actuarial gains and losses were amortized over the remaining life expectancy of plan participants, which
was approximately 23 years for 2025, 24 years for 2024 and 26 years for 2023 for our U.S. defined benefit pension plans.
Investment Policies
U.S. Pension Plans
The RIP’s primary investment objective is to maintain the funded status of the plan such that the likelihood we will be required to
make significant contributions to the plan is limited. This objective is expected to be achieved by (a) investing a substantial portion of
the plan assets in high quality corporate bonds whose duration is at least equal to that of the plan’s liabilities, (b) investing in publicly
traded equities in order to increase the ratio of plan assets to liabilities over time, (c) limiting investment return volatility by
diversifying among additional asset classes with differing expected rates of return and return correlations, and/or (d) using derivatives
to either implement investment positions efficiently or to hedge risk but not to create investment leverage.
Each asset class utilized by the RIP has defined asset allocation targets and allowable ranges. The table below shows the asset
allocation targets and the December 31, 2025 and 2024 positions for each asset class:
Target
Position as of December 31,
Asset Class
Weight
2025
2024
Long duration bonds
90.0%
90.0%
90.0%
Equities, real estate and private equity
10.0%
9.0%
10.0%
Cash equivalents, other short-term investments, receivables and payables, net
-
1.0%
-
Pension plan assets are required to be reported and disclosed at fair value. Fair value is defined as the exchange price that would be
received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability
in an orderly transaction between market participants on the measurement date. Three levels of inputs may be used to measure fair
value:
•
Level 1 - Quoted prices in active markets for identical assets or liabilities;
•
Level 2 - Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and
liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or
other inputs that are observable or can be corroborated by observable market data; or
•
Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of
the assets or liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques
that use significant unobservable inputs.
The asset’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to
the fair value measurement.

Armstrong World Industries, Inc., and Subsidiaries
Notes to Consolidated Financial Statements
(dollar amounts in millions, except per share data)
67
The following table sets forth by level within the fair value hierarchy a summary of the RIP plan assets measured at fair value on a
recurring basis:
Fair Value as of December 31, 2025
Description
Level 1
Level 2
Total
Collective trust funds - bonds
$
-
$
357.6
$
357.6
Collective trust funds - equities
-
33.2
33.2
Cash equivalents, other short-term investments, receivables and payables, net
(0.5)
5.1
4.6
Net assets measured at fair value
$
(0.5) $
395.9
$
395.4
Investments measured at net asset value per share as a practical expedient
3.2
Net assets
$
398.6
Fair Value as of December 31, 2024
Description
Level 1
Level 2
Total
Collective trust funds - bonds
$
-
$
342.3
$
342.3
Collective trust funds - equities
-
32.0
32.0
Cash equivalents, other short-term investments, receivables and payables, net
(0.5)
4.7
4.2
Net assets measured at fair value
$
(0.5) $
379.0
$
378.5
Investments measured at net asset value per share as a practical expedient
3.4
Net assets
$
381.9
The RIP has investments in alternative investment funds as of December 31, 2025 and 2024 which are reported at fair value. These
investments that are measured at fair value using the net asset value (“NAV”) per share (or its equivalent) practical expedient have not
been categorized in the fair value hierarchy. The fair value amounts presented in the tables above are intended to permit reconciliation
of the fair value hierarchy to the total fair value of plan assets. We have concluded that the NAV reported by the underlying fund
approximates the fair value of the investment. These investments are redeemable at NAV under agreements with the underlying funds.
However, it is possible that these redemption rights may be restricted or eliminated by the funds in the future in accordance with the
underlying fund agreements. Due to the nature of the investments held by the funds, changes in market conditions and the economic
environment may significantly impact the NAV of the funds and, consequently, the fair value of the U.S. defined benefit pension plan
asset’s interest in the funds. Furthermore, changes to the liquidity provisions of the funds may significantly impact the fair value of the
U.S. defined benefit pension plan asset’s interest in the funds. As of December 31, 2025, there were no restrictions on redemption of
these investments.
The following table sets forth a summary of the RIP’s investments measured at NAV:
Fair Value as of December 31, 2025
Description
Fair Value
Unfunded
Commitments
Redemption
Frequency
Redemption
Notice
Period
Real estate
$
3.2
$
2.2
Quarterly
60 days
Fair Value as of December 31, 2024
Description
Fair Value
Unfunded
Commitments
Redemption
Frequency
Redemption
Notice
Period
Real estate
$
3.4
$
2.2
Quarterly
60 days
Following is a description of the valuation methodologies used for assets measured at fair value and at NAV.
Collective trust funds – bonds: Consists primarily of collective trust funds and registered investment funds, both of which invest in
fixed income securities tailored to institutional investors. There are no readily available market quotations for collective trust funds.
The fair value of collective trust funds and registered investment funds have been classified as Level 2 assets above based on the
determination that the funds have quoted prices in non-active markets. The funds are priced on a daily basis by their trustee and
therefore have a readily determinable fair value; however, the number of trades occurring is not sufficient for the market to be
considered active. Investments in pooled funds traded in a non-active market were valued at bid price and classified as Level 2 assets
above.

Armstrong World Industries, Inc., and Subsidiaries
Notes to Consolidated Financial Statements
(dollar amounts in millions, except per share data)
68
Collective trust funds – equities: Represents collective trust funds holding equity investments, fixed income securities, commodity
futures contracts, and other short-term securities. The fair value of collective trust funds have been classified as Level 2 assets above
based on the determination that the funds have quoted prices in non-active markets. The funds are priced on a daily basis by their
trustee and therefore have a readily determinable fair value; however, the number of trades occurring is not sufficient for the market to
be considered active.
Cash equivalents, other short-term investments, receivables and payables, net: Consists primarily of cash and cash equivalents, and
plan receivables/payables. The carrying amounts of cash and cash equivalents and receivables/payables approximate fair value due to
the short-term nature of these instruments and have been classified as Level 1 assets above. Receivables and payables consist
primarily of receivables related to liquidated investment positions for which proceeds had not been received as of December 31 and
accrued fees.
Real estate: Consists of both open-end and closed-end real estate funds. There are no readily available market quotations for these real
estate funds. These investments were measured at fair value using the NAV practical expedient.
DEFINED BENEFIT RETIREE HEALTH AND LIFE INSURANCE PLANS
We fund postretirement benefits on a pay-as-you-go basis, with the retiree paying a portion of the cost for health care benefits by
means of deductibles and contributions.
The following tables summarize the balance sheet impact of our postretirement benefit pension plans, as well as the related benefit
obligations, funded status and rate assumptions. We use a December 31 measurement date for all our defined benefit postretirement
benefit plans.
2025
2024
Change in benefit obligations:
Benefit obligation as of beginning of period
$
39.4
$
47.6
Interest cost
2.0
2.2
Plan participant contributions
1.4
1.5
Actuarial gain
(0.3)
(5.0)
Benefits paid
(6.3)
(6.9)
Benefit obligations as of end of period
$
36.2
$
39.4
2025
2024
Change in plan assets:
Fair value of plan assets as of beginning of period
$
-
$
-
Employer contributions
4.9
5.4
Plan participant contributions
1.4
1.5
Benefits paid
(6.3)
(6.9)
Fair value of plan assets as of end of period
$
-
$
-
Funded status
$
(36.2)
$
(39.4)
2025
2024
Weighted-average discount rate used to determine benefit obligations at end of period
5.35%
5.59%
Weighted-average discount rate used to determine net periodic benefit cost for the period
5.59%
4.96%
In 2025, the largest contributor to the actuarial gain affecting the benefit obligation for the postretirement plans was an update to the
per capita claims assumption and retirement rates, partially offset by updated healthcare cost trend rates and a decrease in the discount
rate. In 2024, the largest contributor to the actuarial gains affecting the benefit obligation for the postretirement plans was an update to
the per capita claims assumption and an increase in the discount rate, partially offset by updated healthcare cost trend rates.

Armstrong World Industries, Inc., and Subsidiaries
Notes to Consolidated Financial Statements
(dollar amounts in millions, except per share data)
69
The following table presents the components of postretirement benefit cost (credit) for the years ended December 31, 2025, 2024 and
2023:
2025
2024
2023
Interest cost on accumulated postretirement benefit obligation
$
2.0
$
2.2
$
2.9
Amortization of prior service credit
(0.1)
(0.2)
(0.3)
Amortization of net actuarial gain
(1.7)
(8.6)
(5.9)
Net periodic postretirement benefit cost (credit)
$
0.2
$
(6.6)
$
(3.3)
The change in amortization of net actuarial gain for 2025 in comparison to 2024 was due to an increase in amortization period. For
2025, the amortization period was updated to equal the expected remaining life expectancy of plan participants. In 2024 and 2023,
actuarial gains were amortized over the expected remaining service period of plan participants. For measurement purposes, an average
rate of annual increase in the per capita cost of covered health care benefits of 8.6% for pre-65 retirees and 18.4% for post-65 retirees
was assumed for 2025, decreasing ratably to an ultimate rate of 4.5% in 2036.
Amounts recognized in assets (liabilities) on the Consolidated Balance Sheets at year end consist of:
U.S. Pension Plans
Non-U.S. Pension Plan
Retiree Health and Life
Insurance Benefits
2025
2024
2025
2024
2025
2024
Prepaid pension costs
$
99.7
$
88.3
$
-
$
-
$
-
$
-
Accounts payable and accrued expenses
(2.7)
(2.9)
(0.1)
(0.2)
(3.5)
(4.1)
Postretirement benefit liabilities
-
-
-
-
(32.7)
(35.3)
Pension benefit liabilities
(22.4)
(22.7)
(1.9)
(1.9)
-
-
Net amount recognized
$
74.6
$
62.7
$
(2.0) $
(2.1) $
(36.2) $
(39.4)
Pre-tax amounts recognized in accumulated other comprehensive (loss) income at year end consist of:
U.S. Pension Plans
Retiree Health and Life
Insurance Benefits
2025
2024
2025
2024
Net actuarial (loss) gain
$
(158.0) $
(168.7) $
24.0
$
25.4
Prior service credit
-
-
0.6
0.7
Accumulated other comprehensive (loss) income
$
(158.0) $
(168.7) $
24.6
$
26.1
The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid over the next ten years:
U.S. Pension
Benefits (1)
Retiree Health
and Life
Insurance
Benefits, Net
2026
$
21.2
$
3.5
2027
21.8
3.4
2028
22.8
3.3
2029
23.2
3.0
2030
23.8
3.1
2031 - 2035
122.4
12.5
(1)
We were not required and did not make contributions to the RIP during 2025, 2024 or 2023 as, based on guidelines established by the Pension Benefit Guaranty
Corporation, the RIP had sufficient assets to fund its distribution obligations. Benefit payments to RIP participants have been made directly from the RIP while
benefit payments under the RBEP are funded by the Company.

Armstrong World Industries, Inc., and Subsidiaries
Notes to Consolidated Financial Statements
(dollar amounts in millions, except per share data)
70
NOTE 18. FINANCIAL INSTRUMENTS AND CONTINGENT CONSIDERATION
We do not hold or issue financial instruments for trading purposes. The estimated fair values of our financial instruments and
contingent consideration are as follows:
December 31, 2025
December 31, 2024
Carrying
amount
Estimated
fair value
Carrying
amount
Estimated
fair value
Liabilities, net
Total long-term debt, including current portion
$
(406.7)
$
(406.7)
$
(525.1)
$
(525.1)
Interest rate swap contracts
(3.4)
(3.4)
(1.5)
(1.5)
Acquisition-related contingent consideration
(3.4)
(3.4)
(3.2)
(3.2)
The carrying amounts of cash and cash equivalents, receivables and accounts payable approximate fair value because of the short-term
maturity of these instruments. The fair value estimates of long-term debt were based on data for our Term Loan A debt provided by a
major financial institution. The fair value estimates for interest rate swap contracts were estimated with the assistance of an
independent, third-party valuation expert and verified by obtaining quotes from major financial institutions. The fair value estimates
for acquisition-related contingent consideration liabilities that are payable based on future performance were measured primarily
through the use of a Monte Carlo simulation by an independent, third-party valuation specialist.
As of December 31, 2025, acquisition-related contingent consideration liabilities represented additional cash consideration payable
related to the September 2025 acquisition of Geometrik, the October 2023 acquisition of Insolcorp and the July 2023 acquisition of
BOK that will be paid upon the final achievement of certain financial and performance milestones. As of December 31, 2024,
acquisition-related contingent consideration liabilities represented additional cash consideration payable related to the acquisition of
Insolcorp and the acquisition of BOK based upon the final achievement of certain financial and performance milestones.
The classification of acquisition-related contingent consideration liabilities on our Consolidated Balance Sheets is summarized below:
Balance Sheet Location
December 31, 2025
December 31, 2024
Accounts payable and accrued expenses (1)
$
1.5
$
1.5
Other long-term liabilities (2)
1.9
1.7
(1)
Acquisition-related contingent consideration related to financial and performance milestones for the BOK acquisition.
(2)
Acquisition-related contingent consideration related to future financial and performance milestones for the Geometrik and Insolcorp acquisitions as of
December 31, 2025, and future financial and performance milestones for the BOK and Insolcorp acquisitions as of December 31, 2024.
The fair value measurement of assets and liabilities measured at fair value on a recurring basis and reported on the Consolidated
Balance Sheets is summarized below:
December 31, 2025
December 31, 2024
Fair value based on
Fair value based on
Other
observable
inputs
Other
unobservable
inputs
Other
observable
inputs
Other
unobservable
inputs
Level 2
Level 3
Level 2
Level 3
Liabilities, net:
Interest rate swap contracts
$
(3.4) $
-
$
(1.5) $
-
Acquisition-related contingent consideration
-
(1.9)
-
(1.7)
Acquisition-related contingent consideration of $1.9 million and $1.7 million as of December 31, 2025 and 2024, respectively, was
measured with the use of significant unobservable inputs, which included financial projections over the earn-out period, the volatility
of the underlying financial metrics and estimated discount rates. Acquisition-related contingent consideration liabilities of $1.5 million
related to the BOK acquisition as of December 31, 2025 and 2024 have been excluded from the table above as these liabilities were
not measured based on Level 3 inputs as performance milestone achievements were known.

Armstrong World Industries, Inc., and Subsidiaries
Notes to Consolidated Financial Statements
(dollar amounts in millions, except per share data)
71
The following table summarizes the weighted average of the significant unobservable inputs as of December 31, 2025:
Geometrik
Insolcorp
Unobservable input
Volatility
23.4%
25.9%
Discount rates
3.6%
3.6%
The changes in fair value of the acquisition-related contingent consideration liabilities for the years ended December 31, 2025, 2024
and 2023 were as follows:
Fair Value of Contingent
Consideration
Balance as of December 31, 2022
$
15.2
Cash consideration paid
(15.2)
Acquisition date fair value of BOK contingent consideration
0.8
Acquisition date fair value of Insolcorp contingent consideration
0.7
Loss related to change in fair value of contingent consideration
0.1
Balance as of December 31, 2023
$
1.6
Loss related to change in fair value of contingent consideration
1.6
Balance as of December 31, 2024
$
3.2
Cash consideration paid
(1.5)
Acquisition date fair value of Geometrik contingent consideration
0.3
Loss related to change in fair value of contingent consideration
1.4
Balance as of December 31, 2025
$
3.4
During 2025, 2024 and 2023, the changes in fair value were primarily due to changes in financial projections over each entity’s earn-
out periods and changes in valuation inputs.
During 2025, we paid $1.5 million of additional cash consideration, which represented the achievement of certain financial and
performance milestones through December 31, 2024 for the BOK acquisition. During 2023, we paid $15.2 million of additional cash
consideration for the acquisition of Turf Design, Inc., which represented the final achievement of certain financial and performance
milestones through December 31, 2022.
NOTE 19. DERIVATIVE FINANCIAL INSTRUMENTS
We are exposed to market risk from changes in foreign exchange rates, interest rates and commodity prices that could impact our
results of operations, cash flows and financial condition. We use interest rate derivatives to manage our exposure to interest rates. At
inception, interest rate swap derivatives that we designate as hedging instruments are formally documented as a hedge of a forecasted
transaction or cash flow hedge. We also formally assess, both at inception and at least quarterly thereafter, whether the derivatives that
are used in hedging transactions are highly effective in offsetting changes in the cash flows of the hedged item. If it is determined that
a derivative ceases to be a highly effective hedge, or if the anticipated transaction is no longer probable of occurring, we discontinue
hedge accounting, and any future mark-to-market adjustments are recognized in earnings. We use derivative financial instruments as
risk management tools and not for speculative trading purposes.
Counterparty Risk
We enter into derivative transactions only with established financial institution counterparties having an investment-grade credit
rating. We monitor counterparty credit ratings on a regular basis. All of our derivative transactions with counterparties are governed
by master International Swap and Derivatives Association agreements (“ISDAs”) with netting arrangements. These agreements can
limit our exposure in situations where we have gain and loss positions outstanding with a single counterparty. We do not post nor do
we receive cash collateral with any counterparty for our derivative transactions. These ISDAs do not have any credit-contingent
features; however, a default under our bank credit facility would trigger a default under these agreements. Exposure to individual
counterparties is controlled and we consider the risk of counterparty default to be negligible.

Armstrong World Industries, Inc., and Subsidiaries
Notes to Consolidated Financial Statements
(dollar amounts in millions, except per share data)
72
Interest Rate Risk
We use interest rate swaps to minimize the fluctuations in earnings caused by interest rate volatility. In March 2023, we amended our
interest rate swaps outstanding in accordance with ASU 2020-04, “Facilitation of the Effects of Reference Rate Reform on Financial
Reporting,” changing our hedged interest rate from the discontinued London Interbank Offered Rate, or LIBOR, to SOFR.
These swaps are designated as cash flow hedges against changes in the SOFR for a portion of our variable rate debt. The following
table summarizes our interest rate swaps as of December 31, 2025:
Coverage Period
Notional
Amount
Risk Coverage
Trade Date
March 2025 to March 2026
$
50.0
USD-SOFR
March 27, 2025
March 2024 to June 2026
$
50.0
USD-SOFR
March 25, 2024
March 2025 to September 2026
$
25.0
USD-SOFR
March 27, 2025
November 2023 to December 2026
$
50.0
USD-SOFR
October 10, 2023
March 2024 to June 2027
$
50.0
USD-SOFR
March 27, 2024
November 2023 to November 2027
$
50.0
USD-SOFR
September 29, 2023
June 2024 to June 2028
$
50.0
USD-SOFR
June 26, 2024
Under the terms of the interest rate swaps above, we pay a fixed rate monthly and receive a floating rate based on SOFR.
Financial Statement Impacts
The following tables detail amounts related to our derivatives as of December 31, 2025 and 2024. We did not have any derivative
assets or liabilities not designated as hedging instruments as of December 31, 2025 or 2024. The derivative asset and liability amounts
below are shown gross and have not been netted.
Derivative Assets
Derivative Liabilities
Fair Value
Fair Value
Balance Sheet
Location
December 31,
2025
December 31,
2024
Balance Sheet
Location
December 31,
2025
December 31,
2024
Interest rate swap contracts
Other current
assets
$
-
$
0.3
Accounts payable
and accrued
expenses
$
0.8
$
0.3
Other long-term
liabilities
2.6
1.5
Amount of (Loss) Gain
Recognized in AOCL
Location of Gain
Reclassified from
AOCL into Net Earnings
Gain Reclassified
from AOCL into Net Earnings
2025
2024
2023
2025
2024
2023
Derivatives in cash flow hedging relationships
Interest rate swap contracts
$ (1.6) $
3.3
$
(0.6)
Interest expense
$
0.2
$
5.5
$
11.5
As of December 31, 2025, the amount of existing losses in AOCL expected to be recognized in net earnings over the next twelve
months was $2.0 million.
NOTE 20. OTHER LONG-TERM LIABILITIES
December 31, 2025
December 31, 2024
Long-term deferred compensation arrangements
$
14.7
$
12.9
Long-term environmental liabilities
4.1
4.2
Fair value of derivative liabilities
2.6
1.5
Acquisition-related contingent consideration
1.9
1.7
Other
10.6
8.1
Total other long-term liabilities
$
33.9
$
28.4

Armstrong World Industries, Inc., and Subsidiaries
Notes to Consolidated Financial Statements
(dollar amounts in millions, except per share data)
73
NOTE 21. SHARE-BASED COMPENSATION PLANS
The 2022 Equity and Cash Incentive Plan (“2022 ECIP”) authorizes us to issue stock options, stock appreciation rights, restricted
stock awards, performance-based awards and cash awards to officers and key employees. The 2022 ECIP authorizes us to issue up to
2,651,472 shares of common stock, and expires on June 15, 2032, after which time no further awards may be made. As of
December 31, 2025, 2,365,959 shares were available for future grants under the 2022 ECIP, which includes anticipated future
adjustments to shares for performance-based awards that have been previously granted.
The 2016 Directors Stock Unit Plan (“2016 Director’s Plan”) authorizes us to issue stock units to non-employee directors and expires
on July 8, 2026. The 2016 Director’s Plan authorizes us to issue up to 250,000 shares of common stock, which includes all shares that
have been issued under the 2016 Director’s Plan. As of December 31, 2025, 119,616 shares were available for future grants under the
2016 Director’s Plan.
The 2020 Inducement Award Plan (“2020 Inducement Plan”) authorizes us to issue stock options, stock appreciation rights, restricted
stock awards and stock units to key employees and expires on December 14, 2030, after which time no further awards may be made.
The 2020 Inducement Plan authorizes us to issue up to 19,000 shares of common stock. As of December 31, 2025, 8,903 shares were
available for future grants under the 2020 Inducement Plan. As of December 31, 2025 and 2024 there were no shares outstanding
under the 2020 Inducement Plan.
The following table presents information related to stock option exercises for 2024 and 2023. There were no stock options exercised
for 2025.
2024
2023
Total intrinsic value of stock options exercised
$
0.3
$
1.3
Cash proceeds received from stock options exercised
1.4
0.2
Tax deduction realized from stock options exercised
0.1
0.3
The fair value of option grants was estimated on the date of grant using the Black-Scholes option pricing model. There have been no
option grants since 2014 and there were no outstanding stock options as of December 31, 2025 and 2024.
In 2025 we also granted non-vested stock awards in the form of Restricted Stock Units (“RSUs”) and Performance Stock Units
(“PSUs”). A summary of the 2025 activity related to the RSUs and PSUs is as follows:
Non-Vested Stock Awards
RSUs
PSUs
Number of shares
(thousands)
Weighted-
average fair value
at grant date
Number of shares
(thousands)
Weighted-
average fair value
at grant date
December 31, 2024
231.8
$
88.46
261.0
$
108.09
Granted
47.8
157.15
56.2
161.61
Performance adjustments
-
-
29.7
83.75
Vested
(34.5)
(91.12)
(136.4)
(101.42)
Forfeited
(3.4)
(106.32)
(3.4)
(125.62)
December 31, 2025
241.7
$
101.37
207.1
$
128.22
RSUs entitle the recipient to a specified number of shares of AWI’s common stock provided the prescribed service period is fulfilled.
PSUs entitle the recipient to a specified number of shares of AWI’s common stock provided the prescribed service period is fulfilled
and the defined financial targets are achieved at the end of the performance period. Upon vesting, final adjustments based upon
financial achievements are reflected as performance adjustments in the table above. RSUs and PSUs generally have vesting periods of
three years at the grant date. RSUs and PSUs earn dividends during the vesting period that are subject to forfeiture if the awards do not
vest.
RSUs and PSUs with non-market based performance conditions are measured at fair value based on the closing price of our stock on
the date of grant. In 2025 and 2024, we granted 28,141 and 31,118 PSUs, respectively, with market-based performance conditions that

Armstrong World Industries, Inc., and Subsidiaries
Notes to Consolidated Financial Statements
(dollar amounts in millions, except per share data)
74
are valued through the use of a Monte Carlo simulation. The weighted average assumptions for PSUs measured at fair value through
the use of a Monte Carlo simulation are presented in the table below.
2025
2024
Weighted-average grant date fair value of market-based PSUs granted (dollars per award)
$
170.96
$
164.22
Assumptions
Risk-free rate of return
4.0%
4.4%
Expected volatility
26.3%
27.7%
Expected term (in years)
3.1
3.1
Expected dividend yield
0.0%
0.0%
The risk-free rate of return was determined based on the implied yield available on zero coupon U.S. Treasury bills at the time of grant
with a remaining term equal to the expected term of the PSUs. The expected volatility was based on historical volatility of our stock
price commensurate with the expected term of the PSUs. The expected term represented the performance period for the underlying
award. The expected dividend yield was assumed to be zero under the assumption that dividends distributed during the performance
period are reinvested in AWI’s common stock.
As of December 31, 2025 and 2024, there were 18,255 and 31,472 RSUs, respectively, outstanding under the 2016 Director’s Plan not
reflected in the non-vested stock awards table above. In 2025 and 2024, we granted 5,694 and 7,041 RSUs, respectively, to non-
employee directors. These awards generally have a vesting period of one year, and as of December 31, 2025 and 2024, 12,561 and
24,431 shares, respectively, were vested but not yet delivered. The awards are generally payable upon vesting or the director’s deferral
election. As of December 31, 2025 and 2024, all outstanding awards earn dividends during the vesting period that are subject to
forfeiture if the underlying award does not vest.
We recognize share-based compensation expense on a straight-line basis over the vesting period. Share-based compensation cost was
$21.9 million ($16.5 million net of tax benefit) in 2025, $18.3 million ($13.7 million net of tax benefit) in 2024, and $18.8 million
($14.1 million net of tax benefit) in 2023.
As of December 31, 2025, there was $22.0 million of total unrecognized compensation cost related to non-vested share-based
compensation arrangements which is expected to be recognized over a weighted-average period of 1.7 years.
NOTE 22. EMPLOYEE COSTS
2025
2024
2023
Wages, salaries and incentive compensation
$
373.7
$
320.2
$
282.1
Insurance and other benefit costs
44.7
37.0
32.5
Payroll taxes
28.2
23.9
20.8
Share-based compensation
21.9
18.3
18.8
Defined contribution and defined benefit pension plan expense, net
16.9
13.1
10.4
Total
$
485.4
$
412.5
$
364.6
NOTE 23. SHAREHOLDERS' EQUITY
Common Stock Repurchase Plan
On July 29, 2016, our Board of Directors approved a share repurchase program authorizing us to repurchase up to $150.0 million of
our outstanding shares of common stock (the “Program”). Since inception of the Program, this authorization has been increased to
permit repurchases of up to an aggregate of $1,700.0 million of our outstanding shares of common stock through December 31, 2026.
We had $532.8 million remaining under the Board’s repurchase authorization as of December 31, 2025.
Repurchases of our common stock under the Program may be made through open market, block and privately negotiated transactions,
including Rule 10b5-1 plans, at such times and in such amounts as management deems appropriate, subject to market and business
conditions, regulatory requirements and other factors. The Program does not obligate AWI to repurchase any particular amount of
common stock and may be suspended or discontinued at any time without notice.

Armstrong World Industries, Inc., and Subsidiaries
Notes to Consolidated Financial Statements
(dollar amounts in millions, except per share data)
75
During 2025, we repurchased 0.8 million shares under the Program for a total cost of $129.0 million, excluding commissions and
taxes, or an average price of $167.75 per share. Since inception, we have repurchased 15.4 million shares under the Program for a total
cost of $1,167.2 million, excluding commissions and taxes, or an average price of $75.72 per share.
Dividends
In February, April and July 2025, our Board of Directors declared $0.308 per share quarterly dividends, which were paid to
shareholders in March, May and August 2025. In October 2025, our Board of Directors declared a $0.339 per share quarterly
dividend, which was paid to shareholders in November 2025. On February 18, 2026, our Board of Directors declared a $0.339 per
share quarterly dividend to be paid in March 2026.
Accumulated Other Comprehensive (Loss)
The balance of each component of accumulated other comprehensive (loss), net of tax is presented in the table below:
December 31, 2025
December 31, 2024
Foreign currency translation adjustments
$
(0.5)
$
(2.2)
Derivative (loss), net
(2.6)
(1.1)
Pension and postretirement adjustments
(100.0)
(106.9)
Accumulated other comprehensive (loss)
$
(103.1)
$
(110.2)
The amounts and related tax effects allocated to each component of other comprehensive income (loss) for 2025, 2024, and 2023 are
presented in the tables below:
Pre-tax Amount
Tax (Expense)
Benefit
After-tax Amount
2025
Foreign currency translation adjustments
$
2.1
$
(0.4)
$
1.7
Derivative (loss), net
(1.8)
0.3
(1.5)
Pension and postretirement adjustments
9.4
(2.5)
6.9
Total other comprehensive income
$
9.7
$
(2.6)
$
7.1
Pre-tax Amount
Tax Benefit
After-tax Amount
2024
Foreign currency translation adjustments
$
(3.9)
$
0.7
$
(3.2)
Derivative (loss), net
(2.2)
0.6
(1.6)
Pension and postretirement adjustments
(0.7)
-
(0.7)
Total other comprehensive (loss)
$
(6.8)
$
1.3
$
(5.5)
Pre-tax Amount
Tax Benefit
(Expense)
After-tax Amount
2023
Foreign currency translation adjustments
$
0.5
$
-
$
0.5
Derivative (loss), net
(12.1)
3.1
(9.0)
Pension and postretirement adjustments
5.2
(1.3)
3.9
Total other comprehensive (loss)
$
(6.4)
$
1.8
$
(4.6)

Armstrong World Industries, Inc., and Subsidiaries
Notes to Consolidated Financial Statements
(dollar amounts in millions, except per share data)
76
The following table summarizes the activity, by component, related to the change in AOCL for December 31, 2025 and 2024:
Foreign
Currency
Translation
Adjustments (1)
Derivative
Gain (Loss) (1) (2)
Pension and
Postretirement
Adjustments (1)
Total
Accumulated
Other
Comprehensive
(Loss) (1)
Balance, December 31, 2023
$
1.0
$
0.5
$
(106.2)
$
(104.7)
Other comprehensive (loss) income before reclassifications,
net of tax benefit (expense) of $0.7, ($0.8), ($0.8) and ($0.9)
(3.2)
2.5
2.1
1.4
Amounts reclassified from accumulated other
comprehensive (loss)
-
(4.1)
(2.8)
(6.9)
Net current period other comprehensive (loss)
(3.2)
(1.6)
(0.7)
(5.5)
Balance, December 31, 2024
$
(2.2)
$
(1.1)
$
(106.9)
$
(110.2)
Other comprehensive income (loss) before reclassifications,
net of tax (expense) benefit of $(0.4), $0.3, $(1.5) and ($1.6)
1.7
(1.3)
4.3
4.7
Amounts reclassified from accumulated other
comprehensive (loss)
-
(0.2)
2.6
2.4
Net current period other comprehensive income
1.7
(1.5)
6.9
7.1
Balance, December 31, 2025
$
(0.5)
$
(2.6)
$
(100.0)
$
(103.1)
(1)
Amounts are net of tax.
(2)
Amounts include our 50% share of AOCL components from our WAVE joint venture.
The amounts reclassified from AOCL, and the affected line item of the Consolidated Statements of Earnings and Comprehensive
Income, are presented in the table below:
Amounts Reclassified from
Accumulated Other
Comprehensive (Loss)
Affected Line Item on the
Consolidated Statements of Earnings
and Comprehensive Income
2025
2024
Derivative Adjustments:
Interest rate swap contracts, before tax
$
(0.2) $
(5.5) Interest expense
Tax impact
-
1.4
Income tax expense
Total (income), net of tax
(0.2)
(4.1)
Pension and Postretirement Adjustments:
Amortization of prior service credit
(0.1)
(0.2) Other non-operating (income), net
Amortization of net actuarial loss (gain)
3.7
(3.4) Other non-operating (income), net
Total loss (income), before tax
3.6
(3.6)
Tax (benefit) expense
(1.0)
0.8
Income tax expense
Total loss (income), net of tax
2.6
(2.8)
Total reclassifications for the period
$
2.4
$
(6.9)
NOTE 24. SUPPLEMENTAL FINANCIAL INFORMATION
2025
2024
2023
Selected operating expense
Maintenance and repair costs
$
57.2
$
52.4
$
48.3
Product innovation costs
16.4
15.7
14.5
Advertising costs
10.8
9.1
8.9
Other non-operating (income), net
Interest income
$
(2.4)
$
(3.8)
$
(3.5)
Pension and postretirement (credits)
(0.2)
(8.7)
(5.9)
Other
0.2
(0.1)
(0.5)
Total
$
(2.4)
$
(12.6)
$
(9.9)

Armstrong World Industries, Inc., and Subsidiaries
Notes to Consolidated Financial Statements
(dollar amounts in millions, except per share data)
77
NOTE 25. RELATED PARTIES
For some customers, we purchase grid products from WAVE for resale to customers. The total amount of these purchases was $30.5
million in 2025, $34.4 million in 2024 and $32.6 million in 2023. We also provide certain selling, promotional and administrative
processing services to WAVE for which we receive reimbursement. Those services amounted to $26.7 million in 2025, $26.5 million
in 2024, and $27.8 million in 2023. The net amount due to WAVE from us for all of our relationships was $2.2 million as of
December 31, 2025 and $3.8 million as of December 31, 2024. See Note 10 to the Consolidated Financial Statements for additional
information.
NOTE 26. LITIGATION AND RELATED MATTERS
ENVIRONMENTAL MATTERS
Environmental Compliance
Our manufacturing and research facilities are affected by various federal, state and local requirements relating to the discharge of
materials and the protection of the environment. We make expenditures necessary for compliance with applicable environmental
requirements at each of our operating facilities. While these expenditures are not typically material, the applicable regulatory
requirements continually change and, as a result, we cannot predict with certainty the amount, nature or timing of future expenditures
associated with environmental compliance.
Environmental Sites
Summary
We are actively involved in the investigation and remediation of existing or potential environmental contamination under the
Comprehensive Environmental Response, Compensation and Liability Act (“CERCLA”) and state Superfund and similar
environmental laws at two domestically owned locations allegedly resulting from past industrial activity.
In each location, we are one of multiple potentially responsible parties and have agreed to jointly fund the required investigation and
remediation, while preserving our defenses to the liability. We may also have rights of contribution or reimbursement from other
parties or coverage under applicable insurance policies. We have pursued coverage and recoveries under those applicable insurance
policies with respect to certain of the sites, including the Macon, Georgia site and the Elizabeth City, North Carolina site, each of
which is summarized below. Other than disclosed below, we are unable to predict the outcome of these matters or the timing of any
future recoveries, whether through settlement or otherwise. We are also unable to predict the extent to which any recoveries might
cover our final share of investigation and remediation costs for these sites. Our final share of investigation and remediation costs may
exceed any such recoveries, and such amounts net of insurance recoveries may be material.
Between 2017 and 2021, we entered into settlement agreements totaling $53.0 million with certain legacy insurance carriers to resolve
ongoing litigation and recover fees and costs previously incurred by us in connection with certain environmental sites. These
settlements were recorded as reductions to cost of goods sold and SG&A expenses, reflecting the same income statement categories
where environmental expenditures were historically recorded. From 2020 through the third quarter of 2024, cumulative insurance
recoveries exceeded cumulative expenses to date related to the respective environmental sites and the excess was recorded within
long-term liabilities on our Consolidated Balance Sheets. These excess recoveries were released to offset additional reserves for
potential liabilities incurred on the respective environmental sites. We may enter into additional settlement agreements in the future,
which may or may not be material, with other legacy insurers to obtain reimbursement or contribution for environmental site
expenses.
Estimates of our future liability at the environmental sites are based on evaluations of currently available facts regarding each
individual site. We consider factors such as our activities associated with the site, existing technology, presently enacted laws and
regulations and prior company experience in remediating contaminated sites. Although current law imposes joint and several liability
on all parties at Superfund sites, our contribution to the remediation of these sites is expected to be limited by the number of other
companies potentially liable for site remediation. As a result, our estimated liability reflects only our expected share. In determining
the probability of contribution, we consider the solvency of other parties, the site activities of other parties, whether liability is being

Armstrong World Industries, Inc., and Subsidiaries
Notes to Consolidated Financial Statements
(dollar amounts in millions, except per share data)
78
disputed, the terms of any existing agreements and experience with similar matters, and the effect of our October 2006 Chapter 11
reorganization and separation with Armstrong Flooring, Inc. upon the validity of the claim, if any.
Specific Material Events
Macon, Georgia
The U.S. Environmental Protection Agency (the “EPA”) has listed two landfills located on a portion of our facility in Macon, Georgia,
along with the former Macon Naval Ordnance Plant landfill adjacent to our property, portions of Rocky Creek, and certain tributaries
leading to Rocky Creek (collectively, the “Macon Site”) as a Superfund site on the National Priorities List due to the presence of
contaminants, most notably polychlorinated biphenyls (“PCBs”).
In September 2010, we entered into an Administrative Order on Consent for a Removal Action (the “Removal Action”) with the EPA
to investigate PCB contamination in one of the landfills on our property, the Wastewater Treatment Plant Landfill (“Operable Unit
1”). After completing an investigation of Operable Unit 1 and submitting our final Engineering Evaluation/Cost Analysis, the EPA
issued an Action Memorandum in July 2013 selecting our recommended remedy for the Removal Action. The Operable Unit 1 final
report was submitted to the EPA in October 2016, the EPA approved the final report in November 2016, and a Post-Removal Control
Plan was submitted to the EPA in March 2017. AWI has been conducting operation and maintenance activities of the completed
remedy since 2017 consistent with the approved Post-Removal Control Plan.
In September 2015, AWI and other Potential Responsible Parties (“PRPs”) received a Special Notice Letter from the EPA under
CERCLA inviting AWI and the PRPs to enter into the negotiation of a Remedial Investigation and Feasibility Study (“RI/FS”) with
respect to the remainder of the Superfund site, which included the other landfill on our property, as well as areas on and adjacent to
our property and Rocky Creek (“Operable Unit 2”). In the second half of 2022, the EPA and the PRPs agreed to separate all non-
groundwater aspects of the site from the ongoing groundwater investigation.
Based on findings in a Remedial Investigation Report (“RIR”) which included relevant risk assessments previously conducted and that
was approved by the EPA in July 2023, the PRPs developed and submitted to the EPA a draft Feasibility Study (“FS”) to identify and
evaluate potential remedial alternatives for all non-groundwater elements of Operable Unit 2. Following review and comment by the
EPA and the State of Georgia and revisions to the FS to address those comments, the EPA conditionally approved the FS in April
2024 and issued a Proposed Remedial Action Plan (“Proposed Plan”) for the non-groundwater elements at the site in May 2024, which
included a total cost estimate for the non-groundwater elements at the site of approximately $8 million. In August 2024, the EPA
signed the Record of Decision, selecting the remedy outlined in the Proposed Plan. The portion of these remediation costs that AWI
will bear for all non-groundwater elements of Operable Unit 2 will not be known until the PRPs resolve the final allocation of costs.
In March 2025, AWI and the other PRPs proposed that the investigation of the groundwater elements of the areas constituting
Operable Unit 2 (now designated as “Operable Unit 3”), be completed in conjunction with the groundwater investigation at the
adjacent former Macon Naval Ordnance Plant landfill, however, the EPA rejected this request and required two separate remedial
investigation reports.
It is probable that we will incur field investigation, engineering and oversight costs associated with designing and implementing the
remedy for all non-groundwater elements of Operable Unit 2 and for completing an RI/FS of Operable Unit 3. We may also ultimately
incur costs in remediating contamination discovered during the RI/FS for Operable Unit 3, and we are unable to reasonably estimate
our final share of the total costs associated with the investigation work or any resulting remediation therefrom, although such amounts
may be material to any one quarter’s or year’s results of operations in the future. We do not expect the total future costs to have a
material adverse effect on our liquidity or financial condition as the cash payments may be made over many years.
Elizabeth City, North Carolina
This site is a former cabinet manufacturing facility that from 1977 until 1996 was operated by Triangle Pacific Corporation, which
became Armstrong Wood Products, Inc. (“AWP”), and is now known as AHF Products, LLC. The site was formerly owned by the
U.S. Navy (“Navy”) and Westinghouse, which was purchased by Paramount, a Skydance Corporation (“Paramount”) (then known as
CBS Corporation). We assumed ownership of the site when we acquired the stock of AWP in 1998. In connection with the separation
of Armstrong Flooring, Inc. in 2016, we agreed to retain any legacy environmental liabilities associated with the AWP site.
Prior to our acquisition of the site, the North Carolina Department of Environment and Natural Resources listed the site as a hazardous
waste site. In 1997, AWP entered into a cost sharing agreement with Westinghouse whereby the parties agreed to share equally the

Armstrong World Industries, Inc., and Subsidiaries
Notes to Consolidated Financial Statements
(dollar amounts in millions, except per share data)
79
costs associated with site investigation. In 2007, we and Paramount entered into an agreement with the Navy whereby the Navy agreed
to pay one third of defined past and future investigative costs up to a certain amount, which has now been exhausted. The EPA
approved an RI/FS work plan for the site in August 2011. In July 2018, the EPA published an Interim Record Of Decision (“IROD”)
selecting an interim cleanup approach. In June 2021, we entered into a negotiated Partial Consent Decree and Site Participation
Agreement with the EPA, Paramount and the U.S. on behalf of the Navy for the remedial design and remedial action for the interim
remedy. Because the U.S. does not conduct work as a PRP at Superfund sites, similar to the 2007 agreement, the U.S. agreed to pay its
share of the estimated costs of performing the work and, as part of the Consent Decree Financial Assurance, the Company and
Paramount also funded their estimated shares of the Interim Remedy. The Partial Consent Decree was entered by the U.S. District
Court for the Eastern District of North Carolina in January 2022. A Remedial Design Work Plan was approved by the EPA in
February 2023 and in December 2024, the EPA approved the Pre-Design Investigation Work Plan and related Quality Assurance
Project Plan, allowing the pre-design investigation work to start in March 2025.
The current estimate of future liability at this site includes only our estimated share of the costs of implementing the interim remedial
action under the IROD. We are unable to reasonably estimate our final share of the total costs associated with the interim or final
remediation at the site, although such amounts may be material to any one quarter's or one year’s results of operations in the future.
We do not expect the total future costs to have a material adverse effect on our liquidity or financial condition as the cash payments
may be made over many years.
Summary of Financial Position
Total liabilities of $4.1 million and $4.6 million as of December 31, 2025 and 2024, respectively, were recorded for environmental
matters that we consider probable and for which a reasonable estimate of the probable liability could be made. As of December 31,
2025 and 2024, $4.1 million and $4.2 million, respectively, of environmental liabilities were reflected within other long-term
liabilities on the Consolidated Balance Sheets. As of December 31, 2024, $0.4 million of environmental liabilities were reflected
within accounts payable and accrued expenses on the Consolidated Balance Sheets. During 2025, 2024 and 2023, we recorded $0.1
million, $4.5 million, and $0.5 million, respectively, of additional reserves for potential environmental liabilities. As noted above,
expenses associated with the additional reserves recorded in 2023 were offset through the release of a portion of the balance of
insurance recoveries in excess of cumulative expenses. During 2024, we recorded $4.5 million of additional reserves for potential
environmental liabilities, of which, $2.6 million was offset through a release of our remaining environmental insurance recoveries in
excess of cumulative expenses, and $1.9 million was recorded as a component of SG&A expenses on our Consolidated Statements of
Earnings and Comprehensive Income. Where existing data is sufficient to estimate the liability, that estimate has been used; where
only a range of probable liabilities is available and no amount within that range is more likely than any other, the lower end of the
range has been used. As assessments and remediation activities progress at each site, these liabilities are reviewed to reflect new
information as it becomes available and adjusted to reflect amounts actually incurred and paid. These liabilities are undiscounted.
The estimated environmental liabilities above do not take into account any claims for additional recoveries from insurance or third
parties. It is our policy to record insurance recoveries as assets on the Consolidated Balance Sheets when realizable. We incur costs to
pursue environmental insurance recoveries, which are expensed as incurred.
Actual costs to be incurred at identified sites may vary from our estimates. Based on our knowledge of the identified sites, it is not
possible to reasonably estimate future costs in excess of amounts already recognized.
OTHER CLAIMS
From time to time, we are involved in other various lawsuits, claims, investigations and other legal matters that arise in the ordinary
course of business, including matters involving our products, intellectual property, relationships with suppliers, relationships with
distributors, other customers or end users, relationships with competitors, employees and other matters. In connection with those
matters, we may have rights of indemnity, contribution or reimbursement from other parties or coverage under applicable insurance
policies. When applicable and appropriate, we will seek indemnity, contribution or reimbursement from other parties and pursue
coverage and recoveries under those policies, but we are unable to predict the outcome of those demands. While complete assurance
cannot be given to the outcome of any proceedings relating to these matters, we do not believe that any current claims, individually or
in the aggregate, will have a material adverse effect on our financial condition, liquidity or results of operations.

Armstrong World Industries, Inc., and Subsidiaries
Notes to Consolidated Financial Statements
(dollar amounts in millions, except per share data)
80
NOTE 27. EARNINGS PER SHARE
The following table is a reconciliation of earnings to earnings attributable to common shares used in our basic and diluted Earnings
Per Share (“EPS”) calculations for the years ended December 31, 2025, 2024 and 2023. EPS components may not add due to
rounding.
2025
2024
2023
Net earnings
$
308.7
$
264.9
$
223.8
(Earnings) allocated to participating vested share awards
-
-
(0.1)
Net earnings attributable to common shares
$
308.7
$
264.9
$
223.7
The following table is a reconciliation of basic shares outstanding to diluted shares outstanding for the years ended December 31,
2025, 2024 and 2023 (shares in millions):
2025
2024
2023
Basic shares outstanding
43.3
43.7
44.7
Dilutive effect of common stock equivalents
0.3
0.3
0.1
Diluted shares outstanding
43.6
44.0
44.8
Anti-dilutive stock awards excluded from the computation of dilutive EPS for 2025, 2024 and 2023 were 14,579, 9,052 and 46,846,
respectively.
NOTE 28. SUBSEQUENT EVENTS
In January 2026, we announced that Director, President and Chief Executive Officer (“CEO”), Victor Grizzle, will transition to
Executive Chair of our Board of Directors, and the current Senior Vice President and Chief Operating Officer, Mark Hershey, will
succeed Victor Grizzle as Director, President and CEO effective April 1, 2026.
In February 2026, we acquired all of the issued and outstanding stock of Eventscape, Inc. and Eventscape U.S. Holdings Inc.
(collectively, “Eventscape”) for $64.1 million, plus additional contingent consideration payable upon the achievement of certain future
performance objectives in 2030 not to exceed $7.5 million. Eventscape is a designer, manufacturer and installer of ceilings, walls and
facades made of a broad range of materials and is headquartered in Toronto, Ontario, Canada. The operations, assets and liabilities of
Eventscape will be included in our Architectural Specialties segment.

81
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL
DISCLOSURE
Not applicable.
ITEM 9A. CONTROLS AND PROCEDURES
Our management, with the participation of our chief executive officer and our chief financial officer, performed an evaluation of our
disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934 (“Exchange
Act”)) as of December 31, 2025. Our chief executive officer and our chief financial officer have concluded that our disclosure controls
and procedures were effective insofar as they are designed to provide reasonable assurance that information required to be disclosed
by us in the reports we file or submit under the Exchange Act is (i) recorded, processed, summarized and reported, within the time
periods specified in the Commission’s rules and forms, and (ii) accumulated and communicated to our management, including our
principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions
regarding required disclosure. We believe that a controls system, no matter how well designed and operated, cannot provide absolute
assurance that the objectives of the controls system are met, and no evaluation of controls can provide absolute assurance that all
control issues and instances of fraud, if any, within a company have been detected.
There have been no material changes in our internal control over financial reporting that occurred during the quarter ended December
31, 2025 that have materially affected or are reasonably likely to materially affect our internal control over financial reporting.
Management’s Report on Internal Control over Financial Reporting and the Report of Independent Registered Public Accounting Firm
are incorporated by reference to Item 8 to this Annual Report on Form 10-K.
ITEM 9B. OTHER INFORMATION
Trading Arrangements of Directors and Executive Officers
During the three months ended December 31, 2025, no director or officer of the Company adopted or terminated a “Rule 10b5-1
trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as each term is defined in item 408(a) of Regulation S-K.
ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS
Not applicable.

82
PART III
ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE
Information regarding individuals who serve as our executive officers required by Item 10 is incorporated by reference to the section
entitled “Executive Officers” in the Company’s proxy statement for its 2026 annual meeting of shareholders to be filed no later than
April 30, 2026.
Code of Ethics
We have adopted a Code of Business Conduct that applies to all employees, executives and directors, specifically including our Chief
Executive Officer, our Chief Financial Officer and our Controller. We have also adopted a Code of Ethics for Financial Professionals
(together with the Code of Business Conduct, the “Codes of Ethics”) that applies to all professionals in our finance and accounting
functions worldwide, including our Chief Financial Officer and our Controller.
The Codes of Ethics are intended to deter wrongdoing and to promote:
•
honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and
professional relationships;
•
full, fair, accurate, timely and understandable public disclosures;
•
compliance with applicable governmental laws, rules and regulations;
•
the prompt internal reporting of violations of the Codes of Ethics; and
•
accountability for compliance with the Codes of Ethics.
The Codes of Ethics are available at https://investors.armstrong.com/governance/governance-documents/default.aspx and in print free
of charge. Any waiver of the Company’s Code of Business Conduct, particularly its conflicts-of-interest provisions, which may be
proposed to apply to any director or executive officer, must be reviewed in advance by the Nominating, Governance and Social
Responsibility Committee of the Board of Directors, which would be responsible for making a recommendation to the Board of
Directors for approval or disapproval. The Board of Directors’ decision on any such matter would be disclosed publicly in compliance
with applicable legal standards and the rules of the New York Stock Exchange. We intend to satisfy these requirements by making
disclosures concerning such matters available on the “Investor Relations” page of our website. There were no waivers or exemptions
from the Code of Business Conduct in 2025 applicable to any director or executive officer.
Other information required by Item 10 is incorporated by reference to the sections entitled “Election of Directors,” “Corporate
Governance,” and “Security Ownership of Certain Beneficial Owners, Management and Directors” in the Company’s proxy statement
for its 2026 annual meeting of shareholders to be filed no later than April 30, 2026.
Insider Trading Policy
We have adopted an insider trading policy (the “Insider Trading Policy”) governing the purchase, sale, and/or other dispositions of
Company securities by our employees, officers, directors, consultants, agents, contractors, temporary workers, and the Company
itself. We believe the Insider Trading Policy is reasonably designed to promote compliance with relevant insider trading laws, rules
and regulations, and any listing standards applicable to us. A copy of the Insider Trading Policy is filed with this Annual Report on
Form 10-K as Exhibit 19.
ITEM 11. EXECUTIVE COMPENSATION
The information required by Item 11 is incorporated by reference to the sections entitled “Compensation Discussion and Analysis,”
“Compensation Committee Report,” “2025 Summary Compensation Table,” “Grants of Plan-Based Awards,” “Outstanding Equity
Awards at Fiscal Year-End,” “Options Exercised and Stock Vested,” “Nonqualified Deferred Compensation,” “Potential Payments
Upon Termination or Change in Control,” “Board’s Role in Risk Management Oversight,” “Compensation Committee Interlocks and
Insider Participation” and “Compensation of Directors” in the Company’s proxy statement for its 2026 annual meeting of shareholders
to be filed no later than April 30, 2026.

83
ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED
STOCKHOLDER MATTERS
The information required by Item 12 is incorporated by reference to the sections entitled “Security Ownership of Certain Beneficial
Owners, Management and Directors” and “Securities Authorized for Issuance Under Equity Compensation Plans” in the Company’s
proxy statement for its 2026 annual meeting of shareholders to be filed no later than April 30, 2026.
ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE
The information required by Item 13 is incorporated by reference to the sections entitled “Review of Related Person Transactions” and
“Director Independence” in the Company’s proxy statement for its 2026 annual meeting of shareholders to be filed no later than April
30, 2026.
ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES
The information required by Item 14 is incorporated by reference to the sections entitled “Fees Paid to Independent Registered Public
Accounting Firm” in the Company’s proxy statement for its 2026 annual meeting of shareholders to be filed no later than April 30,
2026.

84
PART IV
ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES
(a)
Listing of Documents
1.
The financial statements and schedule of Armstrong World Industries, Inc. filed as a part of this 2025 Annual Report on
Form 10-K is listed in the “Index to Financial Statements and Schedules” on Page 35.
2.
The financial statements required to be filed pursuant to Item 15 of Form 10-K are:
Worthington Armstrong Venture consolidated financial statements as of December 31, 2025 and 2024 and for the years
ended December 31, 2025, 2024, and 2023 (filed herewith as Exhibit 99.1).
3.
The following exhibits are filed as part of this 2025 Annual Report on Form 10-K:
Exhibit No.
Description
3.1
Amended and Restated Articles of Incorporation of Armstrong World Industries, Inc. are incorporated by reference from
the Quarterly Report on Form 10-Q filed on May 1, 2017, wherein it appeared as Exhibit 3.1.
3.2
Amended and Restated Bylaws of Armstrong World Industries, Inc., are incorporated by reference from the Current
Report on Form 8-K filed on July 30, 2024, wherein it appeared as Exhibit 3.1.
4.1
Description of Securities Registered under Section 12 of the Securities Exchange Act of 1934.†
10.1
Second Amended and Restated Credit Agreement, dated as of December 7, 2022, by and among Armstrong World
Industries, Inc., as Borrower, certain subsidiaries of Armstrong World Industries, Inc. identified therein, as the
Guarantors, Bank of America, N.A., as the administrative agent, the collateral agent, a letter of credit issuer and the swing
line lender, Citizens Bank, N.A., Manufacturers & Traders Trust Company, PNC Bank, National Association, TD Bank,
N.A. and Truist Bank, as co-syndication agents, JPMorgan Chase Bank, N.A., The Bank of Nova Scotia, and First
National Bank of Pennsylvania, as co-documentation agents, BofA Securities, Inc., Citizens Bank, N.A., Manufacturers
& Traders Trust Company, PNC Capital Markets, LLC, TD Bank, N.A., and Truist Securities, Inc., as joint lead
arrangers and joint bookrunners and the other lenders and letter of credit issuers party thereto is incorporated by reference
from the Current Report on Form 8-K filed on December 12, 2022, wherein it appeared as Exhibit 10.1.
10.2
First Amendment to Second Amended and Restated Credit Agreement, dated as of December 10, 2025, by and among
Armstrong World Industries, Inc., as Borrower, certain subsidiaries of Armstrong World Industries, Inc. identified
therein, as the Guarantors, Bank of America, N.A., as the administrative agent, the collateral agent, a letter of credit
issuer and the swing line lender, Citizens Bank, N.A., Manufacturers & Traders Trust Company, PNC Bank, National
Association, TD Bank, N.A. and Truist Bank, as co-syndication agents, JPMorgan Chase Bank, N.A. and First National
Bank of Pennsylvania, as co-documentation agents, BofA Securities, Inc., Citizens Bank, N.A., Manufacturers & Traders
Trust Company, PNC Capital Markets, LLC, TD Bank, N.A., and Truist Securities, Inc., as joint leader arrangers and
joint bookrunners and the other lenders party thereto is incorporated by reference from the Current Report on Form 8-K
filed on December 16, 2025, wherein it appeared as Exhibit 10.1.
10.3
Amended and Restated Joint Venture Agreement, dated February 22, 2016 between Armstrong Ventures, Inc. and
Worthington Ventures, Inc., is incorporated by reference from the Annual Report on Form 10-K filed on February 22,
2016, wherein it appeared as Exhibit 10.12.
10.4
Trademark License Agreement, dated as of April 1, 2016, by and between Armstrong World Industries, Inc., AWI
Licensing LLC and Armstrong Flooring, Inc. and subsequently partially transferred to Zhejiang GIMIG Tech Co., Ltd. in
China and to Braeside Mills Investments Pty Ltd in Australia/New Zealand, is incorporated by reference from the Current
Report on Form 8-K filed on April 4, 2016, wherein it appeared as Exhibit 10.4.
10.5
Share Purchase Agreement, dated November 17, 2017, by and between Armstrong World Industries, Inc. and Knauf
International GmbH is incorporated by reference from the Current Report on Form 8-K filed on November 20, 2017,
wherein it appeared as Exhibit 2.1.
10.6
Deed of Amendment to the Share Purchase Agreement dated as of July 18, 2018, by and between Armstrong World
Industries, Inc. and Knauf International GmbH is incorporated by reference from the Current Report on Form 8-K filed
on July 19, 2018, wherein it appeared as Exhibit 2.1.
10.7
Armstrong World Industries, Inc. 2016 Long-Term Incentive Plan, effective as of July 8, 2016 and amended and restated
effective February 20, 2019, is incorporated by reference from the Annual Report on Form 10-K filed on February 25,
2019, wherein it appeared as Exhibit 10.42.*

85
10.8
Form of Long-Term Performance-Based Restricted Stock Unit Grant for 2019 and later years under the 2016 Long-Term
Incentive Plan is incorporated by reference from the Annual Report on Form 10-K, filed on February 23, 2021, wherein it
appeared as Exhibit 10.25.*‡
10.9
Form of Long-Term Time-Based Restricted Stock Unit Grant for 2022 under the 2016 Long-Term Incentive Plan is
incorporated by reference from the Annual Report on Form 10-K, filed on February 22, 2022, wherein it appeared as
Exhibit 10.18.*
10.10
Armstrong World Industries, Inc. 2020 Inducement Award Plan, is incorporated by reference from the Registration
Statement on Form S-8 filed on December 15, 2020, wherein it appeared as Exhibit 4.4.*
10.11
Nonqualified Deferred Compensation Plan effective January 2005, as amended July 23, 2010 and January 1, 2014 is
incorporated by reference from the Annual Report on Form 10-K, filed on February 20, 2024, wherein it appeared as
Exhibit 10.13.*
10.12
Armstrong World Industries, Inc. Equity and Cash Incentive Plan effective as of June 16, 2022, in incorporated by
reference to Armstrong World Industries, Inc.’s Definitive Proxy Statement on Schedule 14A for the Armstrong World
Industries, Inc. 2022 Annual Meeting of Shareholders held on June 16, 2022 filed on April 27, 2022, wherein it appeared
as Annex B.*
10.13
Form of Long-Term Performance-Based Restricted Stock Unit Grant for 2022 under the 2022 Equity and Cash Incentive
Plan, is incorporated by reference from the Annual Report on Form 10-K filed on February 21, 2023, wherein it appeared
as Exhibit 10.17.*‡
10.14
Form of Long-Term Time-Based Restricted Stock Unit Grant for 2022 under the 2022 Equity and Cash Incentive Plan, is
incorporated by reference from the Annual Report on Form 10-K filed on February 21, 2023, wherein it appeared as
Exhibit 10.18.*
10.15
Form of Long-Term Performance-Based Restricted Stock Unit Grant for 2023 and 2024 under the 2022 Equity and Cash
Incentive Plan, is incorporated by reference from the Annual Report on Form 10-K filed on February 20, 2024 wherein it
appeared as Exhibit 10.17.*‡
10.16
Form of Long-Term Time-Based Restricted Stock Unit Grant for 2023 and 2024 under the 2022 Equity and Cash
Incentive Plan, is incorporated by reference from the Annual Report on Form 10-K filed on February 20, 2024 wherein it
appeared as Exhibit 10.18.*
10.17
Form of 2023 Long-Term Time-Based Restricted Stock Unit Grant—Tier 1 (CEO) under the Armstrong World
Industries, Inc. Equity and Cash Incentive Plan is incorporated by reference from the Current Report on Form 8-K filed
on May 2, 2023, wherein it appeared as Exhibit 10.1.*
10.18
Form of Long-Term Performance-Based Restricted Stock Unit Grant for 2025 under the 2022 Equity and Cash Incentive
Plan.*†‡
10.19
Form of Long-Term Time-Based Restricted Stock Unit Grant for 2025 under the 2022 Equity and Cash Incentive Plan.*†
10.20
Retirement Benefit Equity Plan, effective January 1, 2005, as amended October 29, 2007 and December 8, 2008, is
incorporated by reference from the Annual Report on Form 10-K, filed on February 26, 2009, wherein it appeared as
Exhibit 10.2.*
10.21
Armstrong World Industries, Inc. 2016 Directors Stock Unit Plan, is incorporated by reference from the Current Report
on Form 8-K filed on July 11, 2016, wherein it appeared as Exhibit 10.1.*
10.22
Form of Stock Unit Grant Agreement under the Armstrong World Industries, Inc. 2016 Directors Stock Unit Plan, is
incorporated by reference from the Current Report on Form 8-K filed on July 11, 2016, wherein it appeared as Exhibit
10.3.*
10.23
Offer Letter to Victor D. Grizzle dated March 28, 2016 as superseded by Offer Letter to Victor D. Grizzle dated January
13, 2026.*†
10.24
Offer Letter to Mark A. Hershey dated November 14, 2021 as superseded by Offer Letter to Mark A. Hershey dated
January 13, 2026.*†
10.25
Offer Letter to Austin K. So dated January 6, 2022 is incorporated by reference from the Annual Report on Form 10-K,
filed on February 22, 2022, wherein it appeared as Exhibit 10.29.*
10.26
Offer Letter to Christopher P. Calzaretta dated June 9, 2022, is incorporated by reference from the Annual Report on
Form 10-K filed on February 21, 2023, wherein it appeared as Exhibit 10.28.*

86
10.27
Form of Indemnification Agreement for Officers and Directors of Armstrong World Industries, Inc. is incorporated by
reference from the Report on Form 8-K filed on July 27, 2021, wherein it appeared as Exhibit 10.1.*
10.28
Form of Amended and Restated Severance Agreement with Certain Officers, approved for use on October 26, 2016 is
incorporated by reference from the Report on Form 8-K filed on October 31, 2016, wherein it appeared as Exhibit 10.1.*
10.29
Offer Letter to Jill A. Crager dated November 14, 2021 is incorporated by reference from the Annual Report on Form 10-
K, filed on February 25, 2025 wherein it appeared as Exhibit 10.33.*
10.30
Offer Letter to Jessica M. Cicali dated February 6, 2026.*†
14
The Armstrong Code of Business Conduct is incorporated by reference from the Annual Report on Form 10-K, filed on
February 25, 2025 wherein it appeared as Exhibit 14.
19
Trading in Company Securities By Employees, Officers and Directors is incorporated by reference from the Annual
Report on Form 10-K, filed on February 25, 2025 wherein it appeared as Exhibit 19.*
21
Armstrong World Industries, Inc.’s Subsidiaries.†
23.1
Consent of Independent Registered Public Accounting Firm.†
23.2
Consent of Independent Auditors.†
31.1
Certification of Chief Executive Officer required by Rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act.†
31.2
Certification of Chief Financial Officer required by Rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act.†
32.1
Certification of Chief Executive Officer required by Rule 13a and 18 U.S.C. Section 1350.††
32.2
Certification of Chief Financial Officer required by Rule 13a and 18 U.S.C. Section 1350.††
97
Armstrong World Industries, Inc. Incentive Compensation Recoupment Policy is incorporated by reference from the
Annual Report on Form 10-K, filed on February 20, 2024, wherein it appeared as Exhibit 97.*
99.1
Worthington Armstrong Venture consolidated financial statements as of December 31, 2025 and 2024 and for the years
ended December 31, 2025, 2024 and 2023.†
101
Inline Interactive Data Files.†
104
The cover page from the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 has been
formatted in Inline XBRL.
* Management Contract or Compensatory Plan.
† Filed herewith.
†† Furnished herewith.
‡ Portions of this exhibit have been omitted as permitted by applicable regulations.
ITEM 16. FORM 10-K SUMMARY
None.

87
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report
to be signed on its behalf by the undersigned, thereunto duly authorized.
ARMSTRONG WORLD INDUSTRIES, INC.
(Registrant)
By:
/s/ Victor D. Grizzle
Director, President and Chief Executive Officer
Date: February 24, 2026
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, this Report has been signed below by the following
persons on behalf of the registrant and in the capacities and on the dates indicated.
Signature
Title
Date
/s/ Victor D. Grizzle
Director, President and Chief Executive Officer
February 24, 2026
Victor D. Grizzle
(Principal Executive Officer)
/s/ Christopher P. Calzaretta
Senior Vice President and Chief Financial Officer
February 24, 2026
Christopher P. Calzaretta
(Principal Financial Officer)
/s/ James T. Burge
Vice President and Controller
February 24, 2026
James T. Burge
(Principal Accounting Officer)
/s/ Richard D. Holder
Director
February 24, 2026
Richard D. Holder
/s/ Kevin P. Holleran
Director
February 24, 2026
Kevin P. Holleran
/s/ Barbara L. Loughran
Director
February 24, 2026
Barbara L. Loughran
/s/ William H. Osborne
Director
February 24, 2026
William H. Osborne
/s/ Kathleen E. Pitre
Director
February 24, 2026
Kathleen E. Pitre
/s/ Wayne R. Shurts
Director
February 24, 2026
Wayne R. Shurts
/s/ Roy W. Templin
Director
February 24, 2026
Roy W. Templin

88
SCHEDULE II
Armstrong World Industries, Inc., and Subsidiaries
Valuation and Qualifying Reserves
(amounts in millions)
Balance at
beginning of year
Additions charged
to earnings
Deductions
Balance at
end of year
2023
Provision for credit losses
$
0.4
$
0.4
$
(0.4)
$
0.4
Provision for discounts
2.1
26.4
(26.4)
2.1
Provision for warranties
0.7
5.4
(5.7)
0.4
Provision for inventory obsolescence
0.3
-
(0.3)
-
2024
Provision for credit losses
$
0.4
$
1.8
$
(1.4)
$
0.8
Provision for discounts
2.1
28.7
(28.8)
2.0
Provision for warranties
0.4
5.8
(5.5)
0.7
Provision for inventory obsolescence
-
0.7
(0.4)
0.3
2025
Provision for credit losses
$
0.8
$
1.2
$
(1.0)
$
1.0
Provision for discounts
2.0
28.5
(28.2)
2.3
Provision for warranties
0.7
4.8
(4.9)
0.6
Provision for inventory obsolescence
0.3
-
(0.2)
0.1

 
[THIS PAGE INTENTIONALLY LEFT BLANK] 

 
[THIS PAGE INTENTIONALLY LEFT BLANK] 

 
[THIS PAGE INTENTIONALLY LEFT BLANK] 

Forward-Looking Statements
Certain information in this report and in our other public documents 
contains forward-looking statements within the meaning of the 
Private Securities Litigation Reform Act of 1995, including without 
limitation, those relating to future financial and operational results 
and market and broader economic conditions. Those statements 
provide our future expectations or forecasts and can be identified  
by our use of words such as “anticipate,” “estimate,” “expect,” 
“project,” “intend,” “plan,” “believe,” “outlook,” “target,” “predict,” 
“may,” “will,” “would,” “could,” “should,” “seek,” and other words 
or phrases of similar meaning in connection with any discussion 
of future operating or financial performance. Forward-looking 
statements, by their nature, address matters that are uncertain 
and involve risks because they relate to events and depend on 
circumstances that may or may not occur in the future. As a result, 
our actual results may differ materially from our expected results 
and from those expressed in our forward-looking statements. A 
more detailed discussion of the risks and uncertainties that could 
cause our actual results to differ materially from those projected, 
anticipated or implied is included in the “Risk Factors” and 
“Management’s Discussion and Analysis” sections of our recent 
reports on Form 10-K and Form 10-Q filed with the U.S. Securities  
and Exchange Commission, including our annual report for the  
year ended December 31, 2025. Forward-looking statements  
speak only as of the date they are made. We undertake no  
obligation to update any forward-looking statements beyond  
what is required under applicable securities law.
In addition, we have reported non-Generally Accepted Accounting 
Principles in the United States (GAAP) financial measures within 
the meaning of U.S. Securities and Exchange Commission's 
Regulation G. A reconciliation of the differences between these 
measures with the most directly comparable financial measures 
calculated in accordance with GAAP are included below and  
are available on the Investor Relations page of our website  
at armstrong.com. All dollar and shares outstanding  
figures below are in millions, except per share data.
Adjusted Diluted EPS Reconciliation
Year Ended December 31
2021
2022
2023
2024
2025
Net earnings
$183 $203 $224 $265 $309 
Less: Net (loss) earnings from discontinued 
operations  1
 (2)
 3 
–
–
–
Earnings from continuing operations
$185 $200 $224 $265 $309 
Add: Income tax expense
57 
58 
75 
82 
92 
Earnings from continuing operations  
before income taxes
$243 $258 $298 $347 $400 
(Less)/Add: RIP (credit) cost  2
–
 (1)
 (1)
 (1)
 1 
Add: Net environmental expenses
–
–
–
 2 
–
Add: Cost reduction initiatives and other
–
–
 3 
–
–
Add/(Less): Loss (gain) on sales of fixed assets, net  3
–
–
–
 1 
 (1)
Add: Acquisition-related impacts  4
 10 
 19 
 11 
 4 
 2 
Add: Acquisition-related amortization  5
 21 
 8 
 6 
 11 
 16 
Adjusted earnings from continuing operations  
before income taxes
$274 $283 $318 $364 $419 
(Less): Adjusted income tax expense  6
 (65)
 (63)
 (79)
 (86)
 (96)
Adjusted earnings from continuing operations
$209 $220 $238 $277 $323 
Diluted shares outstanding 
 47.9 
 46.4  44.8  44.0  43.6 
Tax Rate
24%
22%
25%
24%
23%
 Per Diluted Share from continuing operations
2021
2022
2023
2024
2025
As Reported
 $3.86  $4.30  $4.99  $6.02  $7.08 
Adjusted
 $4.36  $4.74  $5.32  $6.31  $7.41 
1 Relates to the sale of certain subsidiaries comprising our business and operations in Europe,  
The Middle East and Africa (including Russia) and the Pacific Rim.
2 U.S. Retirement Income Plan (“RIP”) (credit) cost represents the entire actuarial net periodic 
pension (credit) cost recorded as a component of earnings from continuing operations. For  
all periods presented, we were not required to and did not make cash contributions to our RIP.
3 In 2025, we recorded a gain on sale of a parcel of land at a Mineral Fiber plant. In 2024, 
we recorded a loss on sale of an undeveloped parcel of land adjacent to our corporate 
headquarters, which was partially offset by a gain on sale of our idled Mineral Fiber plant  
in St. Helens, Oregon.
4 Represents the impact of acquisition-related adjustments for the fair value of inventory  
and deferred revenue, contingent third-party professional fees, changes in fair value  
of contingent consideration, deferred compensation and restricted stock expenses.
5 Represents acquisition-related intangible amortization, including customer  
relationships, developed technology, software, trademarks and brand names,  
non-compete agreements and other intangibles.
6 Adjusted income tax expense is calculated using the tax rate multiplied by  
the adjusted earnings from continuing operations before income taxes.
Adjusted EBITDA Reconciliation
Year Ended December 31
2021
2022
2023
2024
2025
Net earnings
$183 $203 $224 $265 $309 
Less: Net (loss) earnings from discontinued 
operations  1
 (2)
 3 
 -   
 -   
 -   
Earnings from continuing operations
$185 $200 $224 $265 $309 
Add: Income tax expense
 57 
 58 
 75 
 82 
 92 
Earnings from continuing operations  
before income taxes
$243 $258 $298 $347 $400 
Add: Interest/other income and expense, net
 17 
 21 
 25 
 27 
 31 
Operating Income
$260 $279 $324 $374 $431 
Add: RIP expense  2
 5 
 4 
 3 
 2 
 2 
Add: Cost reduction initiatives and other
 -   
 -   
 3 
 -   
 -   
Add: Net environmental expenses
 -   
 -   
 -   
 2 
 -   
Add/(Less): Loss (gain) on sales of fixed assets, net  3
 -   
 -   
 -   
 1 
 (1)
Add: Acquisition-related impacts  4
 10 
 19 
 11 
 4 
 2 
Adjusted Operating Income
$275 $301 $340 $383 $435 
Add: Depreciation and amortization
 97 
 84 
 89 
 103 
 120 
Adjusted EBITDA
$372 $385 $430 $486 $555 
1 Relates to the sale of certain subsidiaries comprising our business and operations in Europe,  
The Middle East and Africa (including Russia) and the Pacific Rim.
2 RIP expense represents only the plan service cost that is recorded within Operating Income. For 
all periods presented, we were not required to and did not make cash contributions to our RIP.
3 In 2025, we recorded a gain on sale of a parcel of land at a Mineral Fiber plant. In 2024, 
we recorded a loss on sale of an undeveloped parcel of land adjacent to our corporate 
headquarters, which was partially offset by a gain on sale of our idled Mineral Fiber plant  
in St. Helens, Oregon.
4 Represents the impact of acquisition-related adjustments for the fair value of inventory  
and deferred revenue, contingent third-party professional fees, changes in fair value  
of contingent consideration, deferred compensation and restricted stock expenses.
Adjusted Free Cash Flow Reconciliation
Year Ended December 31
2021
2022
2023
2024
2025
Net cash provided by operating activities
$187 
$182 $234 $267 $356 
Net cash (used for) provided by investing activities
 ($14)
$28  ($10)  ($79)  ($4)
Net cash provided by operating and investing 
activities
$173 
$211 $223 $188 $352 
Add: Acquisitions, net of cash acquired and 
investment in unconsolidated affiliate
 1 
 3 
 27 
 129 
 15 
Add: Payments related to sale of international, net 
 12 
 -   
 -   
 -   
 -   
(Less)/Add: Net environmental (recoveries) expenses
 (1)
 1 
 1 
 -   
 -   
(Less): Proceeds from sales of facilities  1
 -   
 -   
 -   
 (24)
 (1)
Add: Arktura deferred compensation  2
 5 
 5 
 8 
 6 
 1 
Add: Contingent consideration in excess of  
acquisition-date fair value 3
 -   
 2 
 5 
 -   
 -   
(Less): Non-recurring cash tax benefit due to 2025 
federal tax reform 4
 -   
 -   
 -   
 -   
 (20)
Adjusted Free Cash Flow
$190 
$221 $263 $298 $346 
1 Proceeds related to the 2025 sale of a parcel of land at a Mineral Fiber plant and the  
2024 sales of an Architectural Specialties design center, our idled Mineral Fiber plant  
in St. Helens, Oregon and undeveloped land adjacent to our corporate headquarters.
2 Deferred compensation related to acquisitions that were recorded as components  
of net cash provided by operating activities.
3 Contingent compensation payments related to acquisitions that were recorded  
as components of net cash provided by operating activities.
4 Represents the cash tax benefit from retroactive application of domestic research  
and development expense deductions for prior years, realized in 2025 as a  
one-time reduction in cash taxes paid resulting from 2025 federal tax reform.

Period Ending
Company/Market/
Peer Group
12/31/20
12/31/21
12/31/22
12/31/23
12/31/24
12/31/25
Armstrong World 
Industries, Inc.
$100.00
$157.49
$93.91
$136.68
$197.71
$269.42
NYSE Composite Index
$100.00
$118.18
$104.51
$116.03
$131.36
$151.37
Peer Group Index
$100.00
$139.35
$94.54
$135.44
$146.09
$135.30
% of Total 
Market Cap
Allegion PLC
6.5%
A.O. Smith Corporation
5.4%
Apogee Enterprises, Inc.
0.5%
Acuity Brands, Inc.
2.7%
Fortune Brands Home & Security, Inc.
7.2%
James Hardie Industries
8.0%
Lennox International, Inc.
6.4%
Masco Corporation
8.7%
Mohawk Industries, Inc.
6.1%
Owens Corning
5.0%
Sherwin-Williams Company
40.6%
Simpson Manufacturing Co., Inc.
2.5%
Interface, Inc.
0.4%
100%
 Cumulative Total 
 Stock Return 
 Performance
The following graph shows the cumulative total shareholder 
return for shares of Armstrong World Industries, Inc. common 
stock (NYSE: AWI) during the period from December 31, 2020 
to December 31, 2025. The graph also shows the cumulative 
returns of the NYSE Composite Index and a building materials 
peer group composed of the companies listed below the chart. 
The performance shown in the chart assumes $ 100 invested 
on December 31, 2020, with dividends reinvested, and it 
should not be considered indicative of future performance.
Transfer Agent and Registrar
Equiniti Trust Company, LLC 
55 Challenger Road, Floor 2 
Ridgefield Park, NJ 07660 
www.equiniti.com
Annual Meeting of Shareholders
The 2026 Annual Meeting of Shareholders of  
Armstrong World Industries, Inc. will be held  
virtually on June 11, 2026, at 11:00 a.m. Eastern Time.
Certifications
The certifications of our Chief Executive Officer and  
Chief Financial Officer, as required by Section 302 of  
the Sarbanes-Oxley Act of 2002, have been filed with  
the Securities and Exchange Commission as exhibits  
to our 2025 Annual Report on Form 10-K. In addition,  
in 2025 our Chief Executive Officer provided the required  
annual certification to the New York Stock Exchange.
Corporate Information
The performance peer group is 
composed of the following companies:
(Market Cap is the base year)
Note: References to our website are textual references only, and neither the website nor 
any information contained on it are included in this report, or incorporated by reference.
Peer Group Index
NYSE Composite Index
Armstrong World Industries, Inc.
Comparison of Cumulative Total Return
$ 275
Assumes $ 100 invested on Dec 31, 2020
Assumes dividends reinvested
Fiscal year ending Dec. 31, 2025
$ 250
$ 225
$ 200
$ 175
$ 150
$ 125
$ 100
$ 75
2020
2021
2022
2023
2024
2025

Mark A. Hershey  
President & CEO,  
Member Of The Board
Jessica M. Cicali 
Senior Vice President,  
General Counsel,  
Chief Compliance Officer 
and Secretary
Michael C. Winters 
Senior Vice President,  
Architectural Specialties  
and Corporate Development
Michael A. Lorenz 
Vice President, Technology
Christopher P. Calzaretta 
Senior Vice President and  
Chief Financial Officer
Jill A. Crager 
Senior Vice President,  
Sales and Digital Marketing
M. Hunter Gross 
Vice President, Mineral Fiber
Brian Nabet 
Vice President and  
Chief Information Officer
James T. Burge 
Vice President and Controller
Victor D. Grizzle 
Executive Chair of the Board
Mark A. Hershey
Kevin P. Holleran
William H. Osborne
Wayne R. Shurts
Roy W. Templin 
Lead Independent Director
Richard D. Holder
Barbara L. Loughran
Kathleen E. Pitre
Executive 
Management
Board of 
Directors
Since 2016, Armstrong World Industries has focused 
on expanding its portfolio of innovative architectural 
products and brands to meet the ever-evolving 
design and functional needs of customers.
A Legacy  
Brand Always 
Moving Forward
TM

We are an Americas leader in the design and manufacturing of innovative interior  
and exterior architectural applications for commercial buildings including ceilings, 
specialty walls and exterior metal solutions. Mineral Fiber ceiling products are  
our core offering. We manufacture these products in four plants across the  
United States. Through our constant focus on innovation and product  
enhancement, we have continued to expand the specifiable attributes  
of our core products, most recently including the launch of our next  
generation of Templok® Energy Saving Ceilings.
We also offer a broad range of specialty architectural products that complement  
our core offerings and provide integrated design solutions to help architects and 
designers bring their most creative visions into reality. These products use a  
variety of materials including metal, felt, wood and translucent resins, as well  
as special coatings and manufacturing techniques. We provide both highly  
customized solutions and standard products with short lead times to meet  
the needs of a broad range of construction projects and customers.
Through our joint venture with Worthington Enterprises, called Worthington  
Armstrong Venture (WAVE), we manufacture ceiling suspension and structural  
grid systems that are sold through Armstrong sales and distribution channels.
Our 
Products

Additional information about Armstrong is available without charge 
to shareholders by directing a request to Investor Relations
Investor Relations
InvestorRelations@armstrong.com
Corporate Website 
armstrong.com
Armstrong World Industries, Inc.
2500 Columbia Avenue
Lancaster, PA 17603
All trademarks used herein are the property of AWI Licensing LLC and/or its affiliates © 2026 AWI Licensing LLC 
Cover photo: 
MetalWorks™ Immix® Linear 
Panelized Torsion Spring Ceiling Panels 
Pittsburgh International Airport, Pittsburgh, PA