Armstrong World Industries (AWI) Exceeded Expectations in Q3

The London Company, an investment management company, released “The London Company Small Cap Strategy” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. US equities continued their rally in the third quarter, driven by the Fed rate cut, solid corporate earnings, and enthusiasm around AI. The small-cap portfolio appreciated 1.9% (2.4% net) in the third quarter, compared to the Russell 2000 Index’s 12.4% gain. Please review the fund’s top 5 holdings to gain insight into their key selections for 2025.

In its third-quarter 2025 investor letter, The London Company Small Cap Strategy highlighted stocks such as Armstrong World Industries, Inc. (NYSE:AWI). Headquartered in Lancaster, Pennsylvania, Armstrong World Industries, Inc. (NYSE:AWI) designs, manufactures, and sells ceiling and wall solutions. The one-month return of Armstrong World Industries, Inc. (NYSE:AWI) was -2.27%, and its shares gained 30.09% of their value over the last 52 weeks. On November 3, 2025, Armstrong World Industries, Inc. (NYSE:AWI) stock closed at $192.58 per share, with a market capitalization of $8.306 billion.

The London Company Small Cap Strategy stated the following regarding Armstrong World Industries, Inc. (NYSE:AWI) in its third quarter 2025 investor letter:

"Armstrong World Industries, Inc. (NYSE:AWI) – AWI shares outperformed in the quarter due to beating expectations, driven by better than expected volumes, favorable positioning in key verticals, and strong operating leverage. We continue to like AWI for its consistent execution, strong financials, leading market share and persistent moats through its exclusivity agreements and warranties."

Armstrong World Industries, Inc. (NYSE:AWI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 38 hedge fund portfolios held Armstrong World Industries, Inc. (NYSE:AWI) at the end of the second quarter, compared to 41 in the previous quarter.  While we acknowledge the potential of Armstrong World Industries, Inc. (NYSE:AWI) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

Armstrong World Industries, Inc. (NYSE:AWI) contributed to The London Company's performance in the previous quarter as well. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.