70 added · 70 removed between the two most recent 10-Ks. The risks a company starts — or stops — disclosing are often the story.
Newly disclosed
Several factors and trends within our markets affected our business performance during 2025 compared to 2024, most notably a $94 million increase in net sales within Architectural Specialties due to our December 2024 acquisition of Zahner and April 2024 acquisition of 3form (collectively, the “2024 Acquisitions”).
The increase in net sales attributable to the December 2025 acquisition of Parallel and the September 2025 acquisition of Geometrik (collectively, the “2025 Acquisitions”) was not material to consolidated net 24 sales.
In addition, in February 2026 we paid $64.1 million associated with the acquisition of Eventscape, Inc. and Eventscape U.S.
We conduct impairment tests for tangible assets and definite-lived intangible assets when indicators of impairment exist for the asset group, such as operating losses and/or negative cash flows. 31 The principal assumptions used in our impairment tests for definite-lived intangible assets is operating profit adjusted for depreciation and amortization and, if required to estimate the fair value, the discount rate.
Borrowings were significantly higher in the prior year primarily due to the 2024 acquisition of 3form.
The Company continues to monitor the impacts of tariffs and other governmental trade policies and geopolitical events, neither of which had a material direct impact on our financial condition, liquidity or results of operations during 2025 or 2024.
While the shutdown contributed to certain short‑term indirect headwinds that impacted our results for the fourth quarter of 2025, these disruptions were temporary in nature and did not have a material impact on our financial condition, liquidity or results of operations for the full year ended December 31, 2025.
The following table presents the impact of the 2024 Acquisitions and the 2025 Acquisitions on our net sales (dollar amounts in millions): 2025 2024 2024 Acquisitions $ 163.1 $ 69.6 2025 Acquisitions 1.1 - Total $ 164.2 $ 69.6 Also contributing to the increase in net sales was a $36 million increase in organic Architectural Specialties net sales, partially offset by a $14 million impact from lower sales volumes in our Mineral Fiber segment.
CONSOLIDATED RESULTS FROM OPERATIONS (dollar amounts in millions) 2025 2024 Change is Favorable Total consolidated net sales $ 1,620.8 $ 1,445.7 12.1 % Operating income $ 430.9 $ 374.3 15.1 % Consolidated net sales for 2025 increased 12.1% versus the prior year due to higher volumes of $117 million and favorable AUV of $58 million.
The year-over-year increase in SG&A expenses compared to the prior year was primarily driven by a $27 million increase related to the 2024 Acquisitions, a $4 million increase in incentive compensation and a $3 million increase in Architectural Specialties selling and advertising expenses, driven primarily by higher net sales as well as additional investments in selling capabilities.
The effective tax rate for 2025 was lower compared to 2024 primarily due to a greater benefit recognized in the current year from statute closures as well as the benefit from an investment tax credit generated in the current year, offset partially by unfavorable adjustments related to our valuation allowance for capital loss carryforwards compared to 2024.
Architectural Specialties (dollar amounts in millions) 2025 2024 Change is Favorable Total segment net sales $ 590.1 $ 459.7 28.4 % Operating income $ 72.2 $ 55.3 30.6 % Architectural Specialties net sales increased $130 million, primarily due to a $94 million increase from the 2024 Acquisitions, in addition to a $36 million increase in organic net sales driven by strong growth across most of our specialty product categories.
No longer disclosed
During 2024, increased sales volumes contributed $89 million to the increase in net sales versus the prior year, due primarily to our December 2024 acquisition of 3form, Zahner and BOK, which collectively contributed $84 million and $11 million of net sales in 2024 and 2023, respectively.
The year-over-year decrease in cost of goods sold as a percent of net sales was driven primarily by favorable AUV margin benefit, improvements related to the acquisition of 3form, improved manufacturing productivity and lower input costs.
The principal assumptions used in our impairment tests for definite-lived intangible assets is operating profit adjusted for depreciation and amortization and, if required to estimate the fair value, the discount rate.
The Company continues to monitor the impacts of tariffs and geopolitical events, including but not limited to, conflicts in Ukraine and the Middle East; none of which had a material direct impact on our financial condition, liquidity or results of operations during 2024 or 2023.
CONSOLIDATED RESULTS FROM CONTINUING OPERATIONS (dollar amounts in millions) 2024 2023 Change is Favorable Total consolidated net sales $ 1,445.7 $ 1,295.2 11.6 % Operating income $ 374.3 $ 323.7 15.6 % Consolidated net sales for 2024 increased 11.6% due to higher sales volumes of $89 million and favorable AUV of $62 million. 25 Mineral Fiber net sales increased $54 million, while Architectural Specialties net sales increased $97 million.
The decrease in volumes for 2024 was 26 driven primarily within our home center customer channel, most notably due to prior-year first quarter inventory level increases that did not repeat in the current-year period, partially offset by two additional shipping days in 2024 and the positive contribution from our growth initiatives compared to the prior-year period.
Architectural Specialties (dollar amounts in millions) 2024 2023 Change is Favorable Total segment net sales $ 459.7 $ 362.8 26.7 % Operating income $ 55.3 $ 40.9 35.2 % Architectural Specialties net sales increased $97 million, driven primarily by a $73 million increase from the acquisitions of Zahner, 3form and BOK, in addition to increased custom project net sales.
The unfavorable change in cash used in investing activities in 2024 compared to 2023 was primarily due to $124.0 million of cash paid for the 3form and Zahner acquisitions, partially offset by proceeds received from the sales of our idled St.
Helens manufacturing plant and undeveloped land adjacent to our corporate headquarters in 2024 and an increase in proceeds received from company-owned life insurance policies. 27 Net cash used for financing activities was $177.6 million in 2024, compared to $258.6 million in 2023.
Total net actuarial losses related to our U.S. pension benefit plans decreased by $3.7 million in 2024 primarily due to changes in actuarial assumptions, including a 67-basis point increase in the discount rate, partially offset by the impact of demographic changes.
We estimate we will need to generate future U.S. taxable income of approximately $168.8 million for state income tax purposes during the respective realization periods (ranging from 2025 to 2043) to be able to fully realize the gross state NOL carryforwards offset by related valuation allowances. 30 Our ability to utilize deferred tax assets may be impacted by certain future events, such as changes in tax legislation and insufficient future taxable income prior to expiration of certain deferred tax assets.
Schedule II for the Years Ended December 31, 2024, 2023 and 2022. 34 Armstrong World Industries, Inc., and Subsidiaries Quarterly Financial Information (unaudited) (dollar amounts in millions, except for per share data) Fourth Quarter 2024 Compared to Fourth Quarter 2023 Consolidated fourth-quarter 2024 net sales of $367.7 million increased $55.4 million, or 17.7%, compared to the prior-year quarter.