Armstrong World Industries Inc

If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, press star one again. Thank you. It is now my pleasure to turn the call over to Theresa Womble, Vice President of Investor Relations and Corporate Communications. You may begin.

Thank you, Tina, and welcome everyone to our call this morning. Today we have Vic Grizzle, our CEO, and Chris Calzaretta, our CFO, to discuss Armstrong World Industries second quarter results and rest of your outlook. We have provided a presentation to accompany these results that is available on the investors section of the Armstrong World Industries website. Our discussion of operating and financial performance will include non-GAAP financial measures within the meaning of SEC Regulation G. A reconciliation of these measures with the most directly comparable GAAP measures is included in the earnings press release and in the appendix of the presentation issued this morning. Both of these are available on the website. During this call, we will be making forward-looking statements that represent the view we have of our financial and operational performance as of today's date, July 29, 2025. These statements involve risks and uncertainties that may differ materially from those expected or implied. We provide a detailed discussion of the risks and uncertainties in our SEC filings, including the 10Q filed earlier this morning. We undertake no obligation to update any forward-looking statements beyond what is required by applicable securities law. Now, I'll turn the call over to Vic.

Thank you, Theresa, and good morning. And thank you for joining our call today to discuss our second quarter 2025 results and our expectations for the remainder of the year. We delivered another quarter of record sales and earnings as we continue to execute at a high level and to demonstrate the resilience of our business model in these unique and uncertain market conditions. In the second quarter, on a consolidated basis, we increased net sales by 16% and adjusted EBITDA by 23%. And with efficient execution, we expanded adjusted EBITDA margin by 200 basis points over the prior year to 36%. Adjusted diluted earnings per share rose 29% year-over-year, marking the company's highest quarterly EPS growth rate since separating from the foreign business in 2016. Similarly, we generated strong adjusted free cash flow both in the quarter and on a year-to-date basis, allowing for the continuation of funding of all of our capital allocation priorities despite uncertain market conditions. In these times of market uncertainty, it is even more critical to employ an even higher level of focus within an organization. And that's what our organization did in the second quarter. Our team stayed focused on what we can control, our costs, our initiatives, and our service to customers. And I'm pleased with how we have focused and executed in each of these areas. Our plant teams continue to exemplify our safety culture with improvement on all of our safety metrics. and delivered strong productivity results in the quarter. And our commercial teams worked even closer with our customers to deliver industry-leading service and support. I want to take this opportunity to thank our teams for their outstanding work and their dedication to consistent execution and delivery of results for our customers and our shareholders. Turning now to highlight our segment performance, In our mineral fiber segment, our second quarter net sales grew 7% with strong AUV growth of 5% and a modest contribution from volume, both of which were supported by our innovation efforts and our digital initiatives that continues to propel growth at the high end of our product portfolio. Adjusted EBITDA on the mineral fiber segment grew 16% and adjusted EBITDA margin expanded by 350 basis points. Driven by contributions from WAVE, along with good SG&A cost control and manufacturing productivity gains. This margin level was the best second quarter result since our separation from flooring in 2016. Turning next to our architectural specialty segment, where our net sales grew 37% in the quarter. Both organic and inorganic sales grew double digits. Both our new acquisitions, 3Form and Zaner, exceeded expectations in the quarter. But especially impressive was the organic growth of 15%, well above market activity levels. Both organic and inorganic growth performance reflect strong penetration into the specialties market with our expanding portfolio of products and capabilities. As we have noted before, our expansion of architectural specialties and new materials and capabilities allows us to sell more products into more spaces of a building. With this expanded product portfolio, We can continue to penetrate further into the same commercial buildings where we sell mineral fiber today. These additional spaces include solutions beyond the core ceiling plane, extending into specialty walls, other interior finishes like column covers, grills, and partitions, and now exterior facades and rain screens. And with our confidence in our cash flow growth, we continue to build our pipeline for future bolt-on acquisitions to further expand our portfolio. This collective organic and inorganic growth has been a successful strategy for the company, delivering nearly a 20% TAGR since our separation from flooring. This breadth of the portfolio coupled with our digital initiatives is best illustrated with a recent project win of a four-story health center building in Virginia. Project Works was used for each of the seven phases of the project, providing significant productivity and speed for the customer. In total, 32 unique Armstrong solutions were specified and used on the project, including a range of products and services that no other single manufacturer could provide. This breadth of portfolio, along with the automated design services provided by Project Works, are a unique competitive advantage for Armstrong. In addition to our impressive sales growth in architectural specialties, I'm particularly pleased with the profitability performance in this segment. We continue to make strides in improving our operational efficiency and gaining operating leverage, which drove adjusted EBITDA growth of 61% and an adjusted EBITDA margin of approximately 22% in a quarter. This was the highest quarterly adjusted EBITDA margin of any quarter since 3Q of 2020. We expect that 2025 will mark the third consecutive year of improved organic adjusted EBITDA margin growth, And we remain confident in our ability to deliver greater than 20% EBITDA margins in the architectural specialty segment. Overall, in the second quarter, we increased our efforts to improve efficiency throughout the business in anticipation of softer economic conditions ahead. The early results of these efforts contributed to the margin expansion we delivered in the quarter. In the sales organization, we saw strong performance with our commercial initiatives which are improving our coverage and penetration in our core markets. Earlier this year, we implemented a sales and marketing optimization program to better position the commercial team with our customers, driving greater efficiency and selling capacity to better serve both our A&D customers and our distribution partners. These changes together with our innovation and our various growth initiatives are making a difference in delivering above market level performance. So again, very pleased with the level of focus and execution demonstrated by our teams and the results so far this year. Let me pause here and turn it over to Chris for more details on the financials. Chris?