Armstrong World (AWI) Introduces Five-Year Growth Strategy

Armstrong World Industries, Inc. AWI announced five-year compounded annual growth targets.

Vic Grizzle, AWI’s president and chief executive officer, stated, “We are excited to increase our growth outlook as a result of the success we are achieving with our key growth initiatives. Through our innovation, Healthy Spaces and digital efforts, we expect to deliver accelerated value creation as the market recovery continues and secular trends toward sustainable, healthy built spaces provide tailwinds for growth.”

Five-year Growth Targets

Armstrong World expects revenue growth of 10-13%. Adjusted EBITDA is anticipated to rise 12-15%. Adjusted earnings por share EPS is projected in the range of 15-20%. Adjusted free cash flow is likely to be in the 15-20% range.

AWI has been benefiting from investment in new products as well as inorganic moves. Also, the company is focused on its digitization initiative. The company launched 35 products in 2020, reflecting a 50% increase from its normal pace of activity. The company stated that there are other innovative products in the pipeline that are likely to be added to the 24/7 Defend family in the future.

Armstrong World remains focused on digitalization initiatives and new technology enhancement. The company is continuously investing in Healthy Spaces and digital initiatives and is optimistic about its contribution to growth. During third-quarter 2021, the company continued with additional digital investments of $2 million, with several initiatives focusing on speed and cost benefits for customers. Investments in digital design and pre-construction services are one such initiative.

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Armstrong World’s shares have gained 4.5% in a year against the Zacks Building Products - Miscellaneous industry’s 6.9% fall.

Zacks Rank

Currently, Armstrong World carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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