U.S. architectural products maker Armstrong World Industries posted third-quarter adjusted EBITDA of $164 million, up 11% from a year earlier, as higher volumes and favorable average unit value lifted sales. Net sales reached a record $475.8 million, up 11.9%, while operating income rose 11.9% to $131.2 million, the company said.

Consolidated sales increased by $35 million from higher volumes and $16 million from favorable average unit value. Diluted net earnings rose 6.5% to $91.9 million, while diluted net earnings per share increased 9.6% to $2.17.

Architectural Specialties sales climbed 21.5% to $183.7 million, including a $25 million increase in organic sales and an $8 million inorganic contribution. Mineral Fiber sales rose 6.6% to $292.1 million, including $16 million from favorable average unit value and $2 million from higher volumes.

The company said end-market conditions were relatively stable. Mineral Fiber volume growth came mainly from timing-related demand from Canadian customers and partly from growth initiatives. Manufacturing costs increased by $10 million across the company, predominantly driven by higher freight and raw material costs, while input-cost inflation, tariffs and Mineral Fiber mix pressured operating and adjusted EBITDA margins.

Armstrong updated its 2026 guidance to net sales of $1.79 billion to $1.80 billion, representing growth of 10% to 11% from 2025. Adjusted EBITDA is expected at $602 million to $612 million, up 8% to 10%. Adjusted diluted net earnings per share is forecast at $8.30 to $8.40, up 12% to 13%, while adjusted free cash flow is projected at $380 million to $390 million, up 10% to 13%.

The company said the updated outlook reflects higher organic Architectural Specialties sales, accelerating costs in both segments after mitigation efforts, Mineral Fiber mix headwinds and softer contributions from recent acquisitions. The company expects strong full-year growth across all key metrics. “Our updated outlook for 2026 reflects an increase in organic Architectural Specialties net sales, the impact of accelerating costs for both segments, net of mitigation efforts, as well as mix headwinds in Mineral Fiber and softer contributions from recent acquisitions,” said Chris Calzaretta, AWI Senior Vice President and CFO, in a statement.

Mineral Fiber operating income rose 7.4% to $106.0 million, supported by favorable average unit value, a $4 million increase in WAVE equity earnings and lower selling, general and administrative expenses. Architectural Specialties operating income increased 33.7% to $25.8 million, reflecting a $9 million benefit from higher organic sales, partly offset by a $2 million inorganic impact, primarily from selling, general and administrative expenses.