Armstrong World Industries, Inc.
AWI Industrials Building Products & Equipment
Armstrong World Industries, Inc.’s revenue for fiscal 2025 (year ended December 2025) was $1.6 billion, up 12.1% from fiscal 2024. In the quarter to June 2026, revenue grew 11.2%, EPS grew 12.4%, free cash flow grew 13.1% and total debt rose 1.08%, each against the same quarter a year earlier. Dividend growth for five consecutive years, revenue growth for five, operating cash flow growth for three; insiders bought in the last twelve months.
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Armstrong World Industries, Inc. (AWI) Altman Z-score
Armstrong World Industries, Inc.'s Altman Z-score for fiscal 2025 is 7.83, in the safe zone (above 2.99).
Altman Z-score, annual
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Annual newest first
| Period | Altman Z-score | Change (points) |
|---|---|---|
| FY2025 | 7.83 | 1.71 |
| FY2024 | 6.12 | 1.05 |
| FY2023 | 5.07 | 1.04 |
| FY2022 | 4.02 | (0.82) |
| FY2021 | 4.84 | 1.31 |
| FY2020 | 3.53 | (1.32) |
| FY2019 | 4.85 | 2.02 |
| FY2018 | 2.83 | (0.12) |
| FY2017 | 2.95 | 0.68 |
| FY2016 | 2.27 | 0.60 |
How fiscal 2025’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Working capital / total assets | 0.06 | — | 0.08 | |
| Retained earnings / total assets | 0.94 | — | 1.32 | |
| EBIT / total assets | 0.22 | — | 0.74 | |
| Market value of equity / total liabilities | 8.08 | — | 4.85 | |
| Sales / total assets | 0.84 | — | 0.84 | |
| Altman Z-score | Safe zone | 7.83 | ||
| Z″ Variant for non-manufacturing and asset-light companies (drops the sales/assets term, uses book equity) | Safe zone | 5.92 | ||
How the Altman Z-score works
Z = 1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets (Altman, 1968). The market value of equity is the close on the last trading day of the fiscal year times weighted basic shares.
Z″ = 6.56 × working capital ÷ total assets + 3.26 × retained earnings ÷ total assets + 6.72 × EBIT ÷ total assets + 1.05 × book equity ÷ total liabilities (Altman, Hartzell and Peck, 1995), the variant for non-manufacturing and asset-light companies.
| Zone | Z | Z″ |
|---|---|---|
| Safe zone | above 2.99 | above 2.60 |
| Grey zone | 1.81–2.99 | 1.10–2.60 |
| Distress zone | below 1.81 | below 1.10 |
Not worked out for banks, insurers and REITs, whose balance sheets the model does not describe, nor when a figure is missing or there is no share price in the week to the fiscal year end.
Altman Z-score against peers
| Company | Altman Z-score |
|---|---|
| TREX Trex Company, Inc. compare | 8.5× |
| AWI Armstrong World Industries, Inc. | 7.8× |
| AAON AAON, Inc. compare | 6.9× |
| LPX Louisiana-Pacific Corporation compare | 6.2× |
| SPXC SPX Technologies, Inc. compare | 5.6× |
| WMS Advanced Drainage Systems, Inc. compare | 4.3× |
| BLDR Builders FirstSource, Inc. compare | 2.7× |
| FBIN Fortune Brands Innovations, Inc. compare | 2.7× |
| OC Owens Corning Inc compare | 2.0× |
What Altman Z-score is
The Altman Z-Score weighs working capital, retained earnings, operating profit, market value and sales against assets and debts to gauge the risk of distress.
1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets