Net sales increased by 5% compared to first quarter of 2023.
Adjusted EBITDA growth of 16%, with 300 basis points of adjusted EBITDA margin expansion.
Adjusted diluted earnings per share increased 23% from the prior year.
Adjusted free cash flow rose 46% from the prior year.
Mineral Fiber segment saw first-quarter sales increase by 5% year-over-year, driven by strong AUV performance.
Architectural Specialties segment experienced a 6% net sales increase and a 4% EBITDA growth.
Future Guidance
Total company net sales growth now expected to be in the 8% to 11% range for 2024, up from prior guidance of 3% to 6%.
Total company adjusted EBITDA growth anticipated to be in the 8% to 13% range, an increase from previously expected 5% to 9% growth.
Adjusted diluted EPS and adjusted free cash flow are expected to grow at a rate similar to adjusted EBITDA.
The guidance adjustment reflects improved mineral fiber profitability and the contribution from the acquisition of 3form.
Despite uncertain market conditions expected in the latter half of 2024, the company plans for continued investment to drive growth and performance.
Trends, Market Conditions, Sentiment
The market appears to be stable but with an expectation of modest softening in demand towards the latter half of the year.
There are pockets of strength in transportation, education, healthcare, and data centers, with retail and office markets appearing more stable.
There’s a level of economic uncertainty that may impact discretionary renovation activities.
Continuous innovation, especially in products addressing energy efficiency and carbon reduction, remains a focal point for growth and differentiation.
The acquisition of 3form is seen as a significant move to bolster the Architectural Specialties segment and is indicative of the company’s strategy to pursue growth through acquisitions alongside organic initiatives.
Notable Quotes
”We’re pleased to report record-setting first quarter financial results, a continuation of the momentum from last year into 2024."
"We’re excited to share more of the recently announced acquisition of 3form within our Architectural Specialties segment as well as the continued traction from our key growth initiatives."
"Despite lingering macroeconomic uncertainty in the back half of the year, our focus remains on solid execution and EBITDA margin expansion in 2024."
"Our business model provides resilience…allowing us to deliver profitable growth and create value despite soft market conditions."
"Innovation…provides new attributes and a unique value proposition to our customers and ultimately positioning us to consistently grow AUV year after year.”
