AWI

A month has gone by since the last earnings report for Masco (MAS). Shares have added about 0.9% in that time frame, underperforming the S&P 500. But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Masco due for a pullback? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent drivers for Masco Corporation before we dive into how investors and analysts have reacted as of late. Masco reported mixed second-quarter 2026 results, with adjusted earnings surpassing the Zacks Consensus Estimate and increasing year over year. However, net sales missed the consensus mark and declined from the prior-year quarter.Earnings benefited from tariff refunds, pricing actions, cost savings and share repurchases, while lower North American volumes weighed on revenues. The company also raised its 2026 adjusted earnings outlook, primarily reflecting an anticipated benefit from tariff refunds. Second-quarter 2026 earnings of $1.64 per share increased 26.2% from $1.30 a year ago. The figure topped the Zacks Consensus Estimate of $1.30 by 26.2%.Net sales declined 2.9% year over year to $1.99 billion and missed the consensus mark of $2.09 billion by 4.6%. Currency translation had a minimal impact on quarterly revenues. In local currency, North American sales fell 5%, while international sales increased 4%. On an adjusted basis, gross profit rose to $872 million from $774 million. Adjusted gross margin improved 610 basis points to 43.8%, supported by lower tariff costs, including refunds, cost-saving initiatives and higher selling prices. These benefits were partly offset by lower sales volume, increased commodity costs, unfavorable product mix and other expenses.Adjusted operating profit increased 16.7% to $482 million. Adjusted operating margin expanded 410 basis points to 24.2%. The quarter included an approximately $95 million net benefit from refunds of tariffs imposed under the International Emergency Economic Powers Act.Selling, general and administrative expenses increased 10% to $397 million. Higher employee-related expenses and increased legal and professional fees contributed to the rise. Plumbing Products segment sales decreased 2.6% year over year to $1.337 billion (up from our model’s projection of $1.22 billion). Adjusted operating profit increased to $361 million from $286 million. The adjusted operating margin expanded 620 basis points to 27%. The improvement reflected the tariff refund benefit, pricing and cost savings, partly offset by lower volume and higher tariff, commodity and employee-related costs. Decorative Architectural Products segment sales decreased 3.5% year over year to $655 million (down from our model’s projection of $609.3 million). Professional paint sales increased in the mid-single digits, but do-it-yourself paint sales declined in the high-single digits. The DIY decline was affected by the customer transition of Masco’s primer and applicator business. Adjusted operating profit edged up to $148 million from $147 million. Adjusted operating margin increased 100 basis points to 22.6%, as cost-saving initiatives and higher prices offset lower volume and increased commodity costs. Masco returned $454 million to its shareholders through dividends and share repurchases during the quarter. In the first six months of 2026, the company spent $592 million on common-stock repurchases and paid $129 million in cash dividends.Cash and cash investments totaled $548 million at quarter-end. Total liquidity was $1.548 billion, including $1 billion of available revolving credit. Gross debt to EBITDA was 2.1X, while working capital represented 19.8% of trailing sales. Net cash from operating activities increased to $417 million in the first half from $148 million a year earlier. Capital expenditures rose to $77 million from $68 million. Masco raised its adjusted earnings forecast for 2026 to $4.40-$4.60 per share from $4.10-$4.30. The revision reflects an anticipated full-year net benefit of approximately $85 million from tariff refunds, while management indicated that underlying business performance remained largely aligned with its previous outlook.The company expects total sales to increase in the low-single digits. Plumbing Products sales are projected to rise in the low-single digits, while Decorative Architectural Products revenues are expected to remain in line with 2025. Masco forecasts adjusted operating margins of about 20% for Plumbing Products, 19% for Decorative Architectural Products and 18% companywide. It turns out, estimates revision have trended downward during the past month. Currently, Masco has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. Charting a somewhat similar path, the stock was allocated a score of B on the value side, putting it in the second quintile for value investors. Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Masco has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Masco belongs to the Zacks Building Products - Miscellaneous industry. Another stock from the same industry, Armstrong World Industries (AWI), has gained 0.7% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026. Armstrong World Industries reported revenues of $472 million in the last reported quarter, representing a year-over-year change of +11.2%. EPS of $2.36 for the same period compares with $2.09 a year ago. Armstrong World Industries is expected to post earnings of $2.35 per share for the current quarter, representing a year-over-year change of +14.6%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.1%. Armstrong World Industries has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Masco Corporation (MAS) : Free Stock Analysis Report Armstrong World Industries, Inc. (AWI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

A month has gone by since the last earnings report for Armstrong World Industries (AWI). Shares have added about 1.9% in that time frame, underperforming the S&P 500. But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Armstrong World Industries due for a pullback? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent drivers for Armstrong World Industries, Inc. before we dive into how investors and analysts have reacted as of late. Armstrong World reported second-quarter 2026 adjusted earnings of $2.36 per share, up 12.9% year over year. The figure topped the Zacks Consensus Estimate of $2.33 by 1.3%.Net sales rose 11.2% to $472 million year over year and surpassed the consensus mark of $458 million by 3.1%. Favorable average unit value, higher volumes and broad-based demand in Architectural Specialties supported growth. Mineral Fiber volume advanced 2%, its strongest quarterly growth rate since early 2023. Mineral Fiber sales increased 7.9% to $288.2 million. Favorable AUV contributed $16 million, reflecting like-for-like pricing and richer mix as demand remained firm for higher-end products, including smooth white acoustical tiles. Higher volume added another $5 million.Segment operating income rose 7% to $105.3 million, while adjusted EBITDA grew 6.8% to $129 million. Adjusted EBITDA margin slipped 50 basis points to 44.7% as freight and raw-material inflation and growth investments offset AUV gains, productivity and stronger WAVE contributions. Architectural Specialties revenues climbed 16.6% to $183.8 million. Organic sales added $15 million, while acquisitions contributed $11 million. Organic growth was 9%, with strength across most specialty product categories.Segment operating income advanced 14.8% to $29.4 million, and adjusted EBITDA increased 10.4% to $37 million. The adjusted EBITDA margin fell 110 basis points to 20.4%, though the organic margin reached 21.4%. Strong order intake continued at a double-digit rate, led by transportation and education projects. Operating income increased 8.6% year over year to $133.8 million. The upside reflected a $13 million benefit from sales volume growth, a $12 million benefit from favorable AUV and a $2 million increase in WAVE equity earnings.These gains were partly offset by a $9 million rise in selling, general and administrative expenses and a $6 million increase in manufacturing costs. Operating margin contracted 70 basis points to 28.3%, while adjusted EBITDA margin declined 110 basis points to 35.2%. Second-quarter adjusted free cash flow rose 14% to $100 million. For the first six months, net cash provided by operating activities increased to $125.9 million from $122.6 million, while capital expenditures totaled $41.7 million.AWI repurchased 0.5 million shares for $75 million during the quarter at an average price of $163.20. The board added $800 million to the repurchase authorization and extended it through December 2029. Cash and cash equivalents were $78.6 million at June 30, 2026, compared with $112.7 million at year-end 2025. For 2026, management now expects net sales of $1.77-$1.80 billion, implying growth of 9-11%. Adjusted EBITDA is projected at $605-$620 million, adjusted earnings at $8.30-$8.50 per share and adjusted free cash flow at $380-$395 million. The outlook assumes roughly 1% Mineral Fiber volume growth, about 6% AUV growth and mid-single-digit growth in WAVE equity earnings. Organic Architectural Specialties sales are expected to rise at a high-single-digit rate, with an adjusted EBITDA margin of about 20%. It turns out, fresh estimates flatlined during the past month. At this time, Armstrong World Industries has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Following the exact same course, the stock has a grade of C on the value side, putting it in the middle 20% for value investors. Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in. Armstrong World Industries has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Armstrong World Industries belongs to the Zacks Building Products - Miscellaneous industry. Another stock from the same industry, United Rentals (URI), has gained 0.2% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026. United Rentals reported revenues of $4.41 billion in the last reported quarter, representing a year-over-year change of +11.8%. EPS of $12.76 for the same period compares with $10.47 a year ago. United Rentals is expected to post earnings of $13.67 per share for the current quarter, representing a year-over-year change of +16.8%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.8%. United Rentals has a Zacks Rank #2 (Buy) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Armstrong World Industries, Inc. (AWI) : Free Stock Analysis Report United Rentals, Inc. (URI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

United Rentals, Inc. URI reported solid second-quarter 2026 results, with both adjusted earnings and revenues exceeding the Zacks Consensus Estimate by 9.3% and 4.1%, respectively. The company also delivered strong year-over-year growth across key metrics. Record rental revenues, higher fleet productivity and strong specialty demand supported the performance. Shares of United Rentals have gained 10.4% since the earnings release, reflecting positive investor sentiment toward its strong rental demand and raised 2026 guidance. Adjusted earnings per share stood at $12.76, up 21.9% from the prior-year quarter, while revenues of $4.41 billion increased 11.8%. This growth was driven by record rental revenues, higher fleet productivity and strong specialty demand. Operating margin in the quarter was supported by higher revenue growth and fleet productivity, while adjusted EBITDA increased 13.6% year over year to a quarterly record of $2.06 billion.Furthermore, United Rentals raised its 2026 revenue and adjusted EBITDA guidance, backed by strong large-project activity, customer backlogs and higher fleet utilization. (read more: United Rentals Q2 Earnings Beat on Rental Growth, '26 Guidance Raised) Image Source: Zacks Investment Research Shares of this Connecticut-based equipment rental company have surged 22.3% in the past three months, outperforming the Zacks Building Products - Miscellaneous industry, the broader Zacks Construction sector and the S&P 500 Index. Let us take a closer look at the factors shaping United Rentals stock’s prospects. United Rentals is benefiting from stronger-than-expected customer demand, particularly across large projects. In the second quarter of 2026, total revenues increased 12% year over year to $4.4 billion, while rental revenues rose nearly 13% to a record $3.8 billion. Fleet productivity increased 3.4%, contributing to 9% growth in OER. Strong project activity during the first half also led the company to raise its 2026 revenue guidance to $17.5-$17.8 billion, up $500 million from the previous range.The demand environment remains supported by large projects, which are expected to drive activity through the second half of 2026. The company is also seeing growth across construction and industrial markets, providing a broader base for rental demand. Higher project activity, combined with strong fleet utilization, should support revenue generation as the company enters the second half of the year. United Rentals is gaining traction across its Specialty business, creating additional avenues for rental revenue growth. In the second quarter of 2026, Specialty rental revenues increased 25% year over year, with growth across all lines of business and 11 cold starts. Power posted double-digit growth, while metals and minerals also delivered healthy gains during the quarter.The broad performance across Specialty strengthens United Rentals’ exposure to customers requiring more specialized equipment and services. Demand across power, infrastructure and other project-driven markets should provide opportunities to expand the business as customers undertake increasingly complex projects. United Rentals is benefiting from activity across a wide range of end markets rather than relying on a single source of demand. During the second quarter, projects began across hospitals, airports and LNG terminals, while data centers remained a source of growth. Construction activity was led by nonresidential and infrastructure projects, while power also delivered double-digit growth within the industrial business.This diversified exposure provides a broader foundation for rental demand as project activity expands across different parts of the economy. Large infrastructure and industrial projects can also support demand for both general rental equipment and specialized products, allowing United Rentals to participate across multiple stages of project development. United Rentals is increasing fleet investment to meet customer requirements as equipment utilization remains elevated. The company spent $2.9 billion on gross rental CapEx through the first half of 2026, more than $650 million above the prior-year period. Full-year gross CapEx guidance was raised $450 million to $4.85-$5.25 billion.The higher investment should expand equipment availability as United Rentals responds to stronger project demand. The company expects historically high utilization levels to support the need for additional fleet, while continued investment should help it serve customers without relying solely on existing equipment capacity. United Rentals is generating significant cash while maintaining a disciplined approach to capital allocation. Free cash flow totaled roughly $1.15 billion year to date, while net leverage remained at 1.8x and total liquidity stood at almost $3 billion at the end of June. The company also returned $998 million to its shareholders through the first half, including $750 million in share repurchases and $248 million in dividends.Financial flexibility gives United Rentals capacity to fund fleet expansion while maintaining shareholder returns. The company expects 2026 free cash flow of $2.15-$2.45 billion and plans to return roughly $2 billion to its shareholders through repurchases and dividends, supporting capital allocation while preserving flexibility for growth opportunities. URI’s earnings estimates for 2026 and 2027 have moved upward over the past 30 days to $48.55 and $55.71 per share, respectively. The revised estimates for 2026 and 2027 imply year-over-year improvements of 15.4% and 14.7%, respectively. Image Source: Zacks Investment Research URI stock is currently trading at a premium compared with the industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 21.6, as the trend lines suggest below. Image Source: Zacks Investment Research United Rentals operates across a broad industrial and infrastructure market alongside Armstrong World Industries, Inc. AWI, Masco Corporation MAS and Argan, Inc. AGX, which have exposure to construction, building products and infrastructure spending.Armstrong World Industries provides ceiling, architectural specialty and interior solutions for commercial buildings. Its broad product portfolio, product differentiation and expansion into structural and containment solutions provide an advantage as demand grows across transportation and data center projects. However, the company faces inflationary pressure from freight, energy and raw material costs, which could affect profitability.Meanwhile, Masco operates across plumbing and decorative architectural products, with brands spanning kitchen, bath and premium water products. Masco’s strong brands, product innovation, e-commerce capabilities and customer service support its competitive position across multiple channels. However, softer international demand in markets such as China and pressure from strategic investments could weigh on near-term sales performance.Conversely, Argan provides engineering, procurement and construction services across power, industrial and Teledata markets. Argan’s experience with complex power projects, strong execution record and ability to handle large fixed-price contracts provide an advantage in an environment of rising power infrastructure demand. However, project timing can cause fluctuations in backlog and revenues, with gaps possible between the completion of projects and the award of new contracts.United Rentals’ one-stop-shop model, broad specialty offerings, technology and distributed footprint provide a competitive advantage in terms of customer service, fleet utilization and ability to serve large projects. However, competition could increase as industry utilization improves and smaller rental players use available capacity, while supply constraints may limit how quickly additional equipment can be added. United Rentals’ strong second-quarter performance, healthy rental demand and raised 2026 guidance support its growth prospects. Record rental revenues, higher fleet productivity and 25% growth in Specialty rental revenues highlight solid customer activity, while elevated utilization is driving additional fleet investment. Strong cash generation and a solid balance sheet also provide flexibility to support growth and shareholder returns.Although URI trades at a premium valuation relative to the industry, upward earnings estimate revisions and expectations for more than 10% revenue growth at the midpoint of 2026 guidance support the higher multiple. With a Zacks Rank #2 (Buy) at present, United Rentals remains an attractive choice for investors seeking exposure to equipment rental and infrastructure-related activity. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report United Rentals, Inc. (URI) : Free Stock Analysis Report Masco Corporation (MAS) : Free Stock Analysis Report Armstrong World Industries, Inc. (AWI) : Free Stock Analysis Report Argan, Inc. (AGX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Find winning stocks in any market cycle. Join 7 million investors using Simply Wall St's investing ideas for FREE. Armstrong World Industries (AWI) is back in focus after second quarter results topped analyst expectations, prompting the company to lift its full year guidance and expand its long running share repurchase program. See our latest analysis for Armstrong World Industries. The strong second quarter update has flipped sentiment around Armstrong World Industries, with an 8.13% 1 day share price return and a 17.98% 7 day share price return. However, the year to date share price return is still down 9.25% and the 1 year total shareholder return is down 2.53%, compared with a very large 3 year total shareholder return of 138.20%. If you are weighing what else could benefit from similar themes in building and infrastructure spending, it may be a good time to scan 34 power grid technology and infrastructure stocks Armstrong World Industries has just rewarded holders with a sharp rebound and richer guidance, backed by a larger buyback. The next step is clear: Do the current valuation and risk still tilt in favour of new buyers? The most followed narrative currently places Armstrong World Industries' fair value at $204.10 compared with the last close of $178.65, which frames the recent rally in a different light. Read the complete narrative. Want to see what sits underneath that M&A driven story? The fair value case leans heavily on compounding revenue, rising margins, and a richer earnings base. The full narrative breaks down how those pieces are expected to stack up over time. Result: Fair Value of $204.10 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, Armstrong World Industries still faces pressure from softer commercial construction activity and rising input costs, which could challenge the revenue and margin assumptions behind that 13% undervaluation story. Find out about the key risks to this Armstrong World Industries narrative. With sentiment clearly mixed around Armstrong World Industries after this rebound, it makes sense to move quickly and test the numbers yourself before opinions harden. To see what investors are currently optimistic about, take a closer look at the company's 3 key rewards If Armstrong World Industries has sharpened your focus on quality, do not stop here. Broaden your watchlist now so you are not late to another opportunity. Target potential undervalued opportunities early by scanning companies that look mispriced on fundamentals through the 49 high quality undervalued stocks Strengthen the defensive side of your portfolio by reviewing companies in the 83 resilient stocks with low risk scores Hunt for underfollowed opportunities by searching the screener containing 20 high quality undiscovered gems This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include AWI. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

For the quarter ended June 2026, Armstrong World Industries (AWI) reported revenue of $472 million, up 11.2% over the same period last year. EPS came in at $2.36, compared to $2.09 in the year-ago quarter. The reported revenue represents a surprise of +2.97% over the Zacks Consensus Estimate of $458.4 million. With the consensus EPS estimate being $2.33, the EPS surprise was +1.29%. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Here is how Armstrong World Industries performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Revenue- Architectural Specialties: $183.8 million versus the two-analyst average estimate of $176.31 million. The reported number represents a year-over-year change of +16.6%. Revenue- Mineral Fiber: $288.2 million compared to the $282.1 million average estimate based on two analysts. The reported number represents a change of +7.9% year over year. Operating Income- Mineral Fiber: $105.3 million compared to the $105.59 million average estimate based on two analysts. Operating Income- Architectural Specialties: $29.4 million versus the two-analyst average estimate of $29.39 million. Adjusted Operating Income- Architectural Specialties: $29 million versus $29.39 million estimated by two analysts on average. Adjusted Operating Income- Mineral Fiber: $107 million versus $105.59 million estimated by two analysts on average. Operating income- Unallocated Corporate: $-0.9 million versus the two-analyst average estimate of $-0.46 million. View all Key Company Metrics for Armstrong World Industries here>>> Shares of Armstrong World Industries have returned +3.6% over the past month versus the Zacks S&P 500 composite's +1.7% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Armstrong World Industries, Inc. (AWI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Armstrong World Industries (AWI) came out with quarterly earnings of $2.36 per share, beating the Zacks Consensus Estimate of $2.33 per share. This compares to earnings of $2.09 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +1.29%. A quarter ago, it was expected that this ceiling and wall systems manufacturer would post earnings of $1.82 per share when it actually produced earnings of $1.69, delivering a surprise of -7.14%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Armstrong World Industries, which belongs to the Zacks Building Products - Miscellaneous industry, posted revenues of $472 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 2.97%. This compares to year-ago revenues of $424.6 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Armstrong World Industries shares have lost about 13.5% since the beginning of the year versus the S&P 500's gain of 8.3%. While Armstrong World Industries has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Armstrong World Industries was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $2.34 on $464.8 million in revenues for the coming quarter and $8.31 on $1.76 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Building Products - Miscellaneous is currently in the top 38% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Knife River (KNF), is yet to report results for the quarter ended June 2026. The results are expected to be released on August 4. This construction materials company is expected to post quarterly earnings of $1.11 per share in its upcoming report, which represents a year-over-year change of +24.7%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Knife River's revenues are expected to be $923.71 million, up 10.8% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Armstrong World Industries, Inc. (AWI) : Free Stock Analysis Report Knife River Corporation (KNF) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Net Sales Growth: Increased 11% year-over-year. Adjusted EBITDA Growth: Increased 8% year-over-year. Adjusted Diluted Earnings Per Share: Increased 13% year-over-year. Mineral Fiber Net Sales: Increased 8%, driven by 6% AUV growth and 2% volume growth. Mineral Fiber Adjusted EBITDA Margin: 44.7%. Architectural Specialties Net Sales Growth: Increased 17%, with 9% organic growth. Architectural Specialties Adjusted EBITDA Margin: 20.4%. Adjusted Free Cash Flow Growth: Increased 9% year-to-date. Share Repurchases: $135 million year-to-date. Full-Year Net Sales Growth Guidance: Raised to 9% to 11%. Full-Year Adjusted EBITDA Growth Guidance: Raised to 9% to 12%. Full-Year Adjusted Diluted EPS Growth Guidance: Raised to 12% to 15%. Full-Year Adjusted Free Cash Flow Growth Guidance: Raised to 10% to 14%. Warning! GuruFocus has detected 10 Warning Signs with CMS. Is AWI fairly valued? Test your thesis with our free DCF calculator. Release Date: July 28, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Armstrong World Industries Inc (NYSE:AWI) reported record net sales and adjusted EBITDA for the second quarter of 2026, with net sales increasing by 11% and adjusted EBITDA by 8% compared to the previous year. The Mineral Fiber segment saw an 8% increase in net sales, driven by a 6% growth in average unit value (AUV) and a 2% increase in volume, highlighting strong demand for high-end products. The Architectural Specialties segment posted a 17% increase in net sales, supported by 9% organic growth and contributions from recent acquisitions, with an adjusted EBITDA margin exceeding 20%. Digital initiatives like the Kanopi online selling platform and PROJECTWORKS design service are gaining traction, contributing to sales volume and AUV growth. Armstrong World Industries Inc (NYSE:AWI) raised its full-year guidance midpoints across all key metrics, reflecting confidence in continued profitable growth and market execution. Despite strong financial performance, Armstrong World Industries Inc (NYSE:AWI) continues to face input cost inflation, particularly in freight and raw materials, which could pressure margins. The market conditions remain muted with ongoing macroeconomic uncertainty, which could impact future growth prospects. The company is experiencing increased SG&A expenses due to investments in growth initiatives, which could affect profitability if not managed effectively. Recent acquisitions, while contributing to growth, are expected to be dilutive to the Architectural Specialties segment's adjusted EBITDA margin for the full year. The competitive landscape in the data center market is fragmented, posing challenges for Armstrong World Industries Inc (NYSE:AWI) to establish a strong foothold and differentiate its offerings. Q: Can you provide more details on the strength in order rates and how it affects the second half of the year and beyond? A: The strength in order rates is particularly evident in our Architectural Specialties (AS) segment, with double-digit intake for the fourth consecutive quarter. This supports our pipeline and outlook for the second half of the year and gives us visibility into 2027. The pipeline is broad-based, covering new construction and renovation projects across various verticals, including transportation, office, healthcare, and education. This broad-based intake supports our outlook for the back half of the year. - Mark Hershey, CEO Q: How did the Armstrong-branded showroom at NeoCon contribute to your business and growth initiatives? A: The Armstrong-branded showroom at NeoCon showcased the breadth and diversity of our offerings, impressing attendees with our capabilities in materials, performance, and aesthetics. This event highlighted our strategy of integrating Architectural Specialties with Mineral Fiber to win more projects. The feedback was positive, reinforcing our position as a leader in interior architectural solutions. - Mark Hershey, CEO Q: What are your expectations for Mineral Fiber volume growth in the second half of the year? A: We expect consistent volume growth in the second half, similar to the first half. Our commercial distribution channel is showing strong traction, particularly with high-end products like our SWAT portfolio. We aim to maintain consistent volume growth as a priority. - Mark Hershey, CEO Q: Can you discuss the strategic benefits of recent acquisitions like Eventscape and their integration into the AWI platform? A: Acquisitions like Eventscape and Zahner provide early access to projects and design stages, allowing us to introduce our broader portfolio to designers. This early access helps us pull through additional solution sets, increasing our market share. We monitor performance against robust business case financials to ensure successful integration. - Mark Hershey, CEO and Christopher Calzaretta, CFO Q: How are your new product initiatives affecting your indexing to new construction versus renovation and repair (R&R)? A: Our new product initiatives are not over-indexing to either new construction or R&R. We continue to innovate across both areas, maintaining consistent product quality and durability. Our innovations are designed to serve both new and renovation applications, supporting long-term growth. - Mark Hershey, CEO For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in Armstrong World Industries, Inc.? Here are five stocks we like better. Armstrong World Industries delivered record second-quarter results, with net sales up 11%, adjusted EBITDA up 8% and adjusted diluted EPS up 13%, despite largely flat commercial-market conditions. Growth was broad-based: Mineral Fiber sales rose 8% on pricing, mix and volume, while Architectural Specialties sales increased 17%, supported by organic growth and recent acquisitions. Data-center solutions, energy-efficient products and strong order intake remain key growth drivers. The company raised its 2026 outlook for sales growth to 9%-11% and adjusted EBITDA growth to 9%-12%. Armstrong also authorized an additional $800 million in share repurchases, extending the program through 2029. Armstrong World Industries (NYSE:AWI) reported record second-quarter net sales and adjusted EBITDA, as growth in its Mineral Fiber and Architectural Specialties segments helped offset what management described as muted market conditions. Total company net sales increased 11% from a year earlier, while adjusted EBITDA rose 8% and adjusted diluted earnings per share increased 13%, CEO Mark Hershey said on the company’s second-quarter 2026 earnings call. Hershey said the results came in modestly above the company’s expectations despite commercial-market conditions that remained largely flat from the first quarter. → Volatility Is Back and These 3 Market Tollbooths Are Best Positioned to Profit Mineral Fiber net sales increased 8%, supported by 6% average unit value, or AUV, growth and 2% volume growth. Hershey said both pricing and product mix contributed to AUV gains, with continued demand for higher-end smooth white acoustical tile products. The quarter marked the fourth time in the past five quarters that the segment generated volume growth, according to Hershey. He attributed the performance to commercial execution, customer relationships and growth initiatives, including the company’s digital sales and design-service platforms. → This Tiny AI Supplier Could Be More Important Than the Chipmakers Mineral Fiber adjusted EBITDA increased 7%, and the segment’s adjusted EBITDA margin was 44.7%. CFO Chris Calzaretta said higher AUV, higher sales volume and a positive contribution from the Worthington Armstrong Venture, or WAVE, joint venture were partly offset by freight and raw-material inflation and increased selling, general and administrative expenses. Management continues to expect a Mineral Fiber adjusted EBITDA margin of approximately 44% for the full year. Hershey said this would represent a record result for the segment and its fourth consecutive year of margin expansion. → 2 Stocks Built to Thrive If Inflation Refuses to Fade The company said its Kanopi online selling platform and ProjectWorks automated design service continued to gain traction. Hershey said Kanopi is serving small businesses as well as companies with multiple locations that want a standardized purchasing path for approved ceiling materials. ProjectWorks, meanwhile, has contributed to higher quoted values and fulfilled projects, supporting both AUV and sales volume. Armstrong highlighted energy-efficient products and data-center solutions as key areas of investment. Hershey said the company’s TEMPLOK energy-saving ceiling tile initiative has generated a project-opportunity pipeline that more than doubled from the end of the first quarter. In data centers, Armstrong has expanded beyond traditional ceiling tile and acoustical grid products used in office areas. Its offerings now include structural grid and containment solutions through the WAVE joint venture. Hershey said 2026 data-center project wins through the second quarter increased more than 50% from the prior year. Management said it is investing in commercial resources and research and development to broaden awareness of its data-center capabilities among hyperscalers, co-location providers and other owners. Hershey said the data-center market has a more diverse and fragmented competitive environment, particularly for structural and containment products used in computing areas. Architectural Specialties net sales rose 17%, including 9% organic growth and contributions from the February acquisition of Eventscape and the 2025 acquisitions of Parallel and Geometrik. The segment’s adjusted EBITDA increased 10%, and its adjusted EBITDA margin reached 20.4%. Calzaretta said the segment benefited from $5 million of higher organic sales and $4 million related to recent acquisitions. Those gains were partly offset by a $4 million increase in SG&A expenses and a $2 million increase in manufacturing costs. The manufacturing-cost figure included a $2 million benefit from IEEPA tariff refunds. On an organic basis, Architectural Specialties posted a 21.4% adjusted EBITDA margin, roughly flat from a year earlier and meaningfully improved from the first quarter. Management maintained its expectation for a full-year adjusted EBITDA margin of about 19% for the total segment and increased its organic margin outlook to about 20%. Second-quarter order intake in Architectural Specialties continued at a double-digit rate, providing support for the company’s second-half expectations and early visibility into its 2027 backlog. Hershey said demand was broad-based across product categories and project types, with transportation, education, office and healthcare among the active verticals. The company cited additional project activity at JFK, San Francisco International and Los Angeles International airports, along with new wins at San Antonio International Airport and with the Ohio Department of Transportation. Following first-half performance, Armstrong raised the midpoints of its full-year guidance ranges. The company now expects total net sales growth of 9% to 11%, compared with prior guidance of 8% to 10%, and adjusted EBITDA growth of 9% to 12%, compared with 8% to 12% previously. Mineral Fiber sales growth is expected to be approximately 7%, including about 1 percentage point of volume growth and approximately 6% AUV growth. Architectural Specialties sales growth is expected to be 15% to 17%. Adjusted diluted earnings-per-share growth is expected to be 12% to 15%. Adjusted free-cash-flow growth is expected to be 10% to 14%. Calzaretta said the revenue-guidance increase at the midpoint amounted to about $20 million, with roughly two-thirds attributable to Architectural Specialties and one-third to Mineral Fiber. Management said the revised outlook was primarily driven by better-than-expected second-quarter results, while its outlook for market conditions in the second half remained broadly consistent with the first half. The company returned capital to shareholders through $15 million in second-quarter dividends and $75 million in share repurchases. Year-to-date dividends totaled $30 million and share repurchases totaled $135 million. Armstrong’s board also added $800 million to its repurchase authorization and extended the program through 2029. Management said it expects continued inflation in freight, raw materials and energy costs, with freight inflation projected in the mid-teens for the full year. However, the company said it remains focused on commercial execution, investments in growth initiatives and disciplined capital allocation amid ongoing macroeconomic uncertainty. Armstrong World Industries, Inc is a leading global manufacturer of commercial ceiling and wall solutions. The company offers a diverse portfolio of acoustical, decorative and specialty ceiling systems designed to enhance interior environments in offices, healthcare facilities, schools, retail outlets and other non-residential settings. Through its focus on performance, aesthetics and sustainability, Armstrong World Industries addresses both functional and design requirements for architects, contractors and building owners. Armstrong's product range includes mineral fiber, fiberglass, wood wool, metal and stone wool ceiling panels, as well as suspension and grid systems. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Armstrong World Industries Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

United Rentals, Inc. URI has given investors plenty to weigh after a 39.4% year-to-date share gain. The rally has followed stronger earnings, improving estimate trends and a higher 2026 outlook.The question is whether the stock still offers enough upside after that move. URI’s operating momentum is clear, but its valuation now stands above several relevant benchmarks. URI trades at 22.08 times forward 12-month earnings. That compares with 18.15 times for its Zacks sub-industry, 20.66 times for the broader Zacks sector and 20.11 times for the S&P 500 index. United Rentals, Inc. price-consensus-chart | United Rentals, Inc. Quote The premium also looks notable against the company’s own history. URI’s current multiple is above its five-year median of 14.19 times, which makes valuation discipline more important after the earnings-fueled rally.Masco Corporation MAS, a branded home improvement and building products company, offers one comparison point for investors looking across construction-related exposure. Armstrong World Industries, Inc. AWI, known for ceiling and wall system solutions, provides another peer context within the broader building products group. United Rentals backed up the stock move with a strong second-quarter 2026 report. Adjusted earnings came in at $12.76 per share, up 21.9% from the prior-year quarter and 9.3% above the Zacks Consensus Estimate.Revenues also topped expectations, with total revenues of $4.41 billion beating the consensus mark by 4.1%. Adjusted EBITDA rose 13.6% to a quarterly record of $2.06 billion, showing that the company converted higher demand into improved profit dollars.Rental activity was the core driver. Rental revenues increased 12.7% to $3.85 billion, supported by growth across General Rentals and Specialty. Estimate revisions add support to the bullish argument. The fiscal 2026 earnings per share estimate increased 3.4% over the past four weeks, while projected earnings per share growth for the current fiscal year stands at 15.9%.Those revisions matter because they point to improving expectations rather than only backward-looking results. URI also raised its 2026 revenue outlook to $17.5-$17.8 billion and adjusted EBITDA guidance to $7.98-$8.13 billion.The balance sheet adds another positive. Net leverage improved to 1.8X at the end of the second quarter from 1.9X at the end of 2025, staying within management’s 1.5X-2.5X target range. The investment case is not without risk. United Rentals remains exposed to construction and industrial cycles, where a slowdown can pressure rental volumes, utilization and pricing.Capital spending is another area to watch. Management raised gross rental capital expenditure guidance to $4.85-$5.25 billion because demand and time utilization remain high.That fleet investment can support growth if large projects continue. It could weigh on returns if activity slows or added equipment is not absorbed efficiently.Competition also remains a concern. The equipment rental industry includes national rivals, regional operators, independent rental companies, dealers and equipment vendors, which can pressure pricing or utilization. The bottom line is that URI still has a credible earnings-driven case, but the stock no longer looks inexpensive. Its earnings beats, higher guidance and upward estimate revisions support the rally, while the premium multiple raises the bar for execution.URI currently carries a Zacks Rank #1 (Strong Buy). That rank reflects a favorable short-term earnings estimate revision profile over a one- to three-month horizon. You can see the complete list of today’s Zacks #1 Rank stocks here.The stock also has a Growth Score of B, Momentum Score of B and VGM Score of B. These scores point to favorable growth and price-trend characteristics when viewed alongside the Zacks Rank.The Value Score of C is the caution flag. It aligns with URI’s premium forward earnings multiple and supports a positive, but valuation-aware, stance on the stock. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report United Rentals, Inc. (URI) : Free Stock Analysis Report Masco Corporation (MAS) : Free Stock Analysis Report Armstrong World Industries, Inc. (AWI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Performance was driven by strong execution in a 'flattish' market environment, utilizing Mineral Fiber AUV growth and Architectural Specialties (AS) portfolio expansion as primary value creation blocks. Mineral Fiber AUV growth of 6% was fueled by a 'flight to quality' trend, with the 13th consecutive quarter of high-end smooth white acoustical tiles (SWAT) outperforming the broader portfolio. Management attributes volume growth to consistent commercial execution and incremental benefits from digital initiatives like Kanopi and PROJECTWORKS, which address underserved market segments and design complexity. The Architectural Specialties segment achieved 9% organic growth through broad-based demand across categories, particularly in transportation and education verticals. Operational productivity and manufacturing efficiency in Mineral Fiber plants supported a segment EBITDA margin of nearly 45%, despite headwinds from input cost inflation. Strategic positioning at NeoCon showcased the 'power of the portfolio,' integrating Mineral Fiber and AS solutions to capture more specifications per project. Full-year 2026 guidance was raised across all metrics based on Q2 outperformance, while assuming market conditions remain muted and consistent with the first half. Mineral Fiber volume is expected to grow approximately 1% for the full year, supported by commercial distribution traction and growth initiatives like energy-efficient solutions. The data center vertical is identified as a significant growth driver, with project wins up over 50% year-to-date as the company expands into structural grid and containment offerings. AS segment margins are projected to reach approximately 19% for the full year, accounting for the dilutive impact of recent acquisitions as they are scaled onto the Armstrong platform. Management expects a step-up in WAVE equity earnings in the second half as price actions in August are intended to offset rising steel costs. Input cost inflation is expected in the mid-single-digit range for the full year, with freight inflation specifically trending higher into the mid-teens due to carrier rate pressure. The Board authorized an additional $800 million for share repurchases through 2029, reflecting confidence in the strategic plan and long-term cash flow generation. Recent acquisitions like Eventscape and Zahner are being used as 'transfer functions' to gain early design-stage access to projects, which management believes will pull through the broader product portfolio. SG&A expenses increased due to intentional investments in selling resources for energy savings and data center initiatives, though total company SG&A is targeted to remain below 20% of sales. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management confirmed this was the fourth consecutive quarter of double-digit intake, providing visibility into the second half of 2026 and early 2027. The pipeline is broad-based across transportation, office, healthcare, and education, rather than being concentrated in a single category. The sales motion for data centers differs from traditional construction, requiring direct engagement with hyperscalers and colocators who act as primary influencers. Armstrong is leveraging its national accounts program to bundle traditional ceiling solutions with new structural and containment products for 'back-of-house' compute spaces. The project pipeline for TEMPLOK has more than doubled since the end of the first quarter, driven by rising electricity costs and tax incentive eligibility. Management is expanding energy modeling capabilities to help building owners quantify thermal comfort and energy savings.