Interface Reports Fourth Quarter and Full Year 2024 Results

Interface, Inc. (Nasdaq: TILE), a worldwide commercial flooring company and global leader in sustainability, today announced results for the fourth quarter and full fiscal year ended December 29, 2024.

Fourth quarter highlights:

• Net sales totaled $335 million, up 3.0% year-over-year, in the range of our expectations.
• GAAP earnings per diluted share of $0.37; Adjusted earnings per diluted share of $0.34.
• Generated $38 million of cash from operations, repaid $34 million of debt in the quarter.

Fiscal Year:

• Net sales totaled $1,316 million, up 4.3% year-over-year.
• GAAP earnings per diluted share of $1.48; Adjusted earnings per diluted share of $1.46.
• Generated $148 million of cash from operations, repaid $115 million of debt in the year.

“We delivered impressive results in 2024, reflecting the early achievements of our One Interface strategy. We saw growth across all product categories, largely driven by continued momentum in the Americas, where our combined selling strategy has exceeded our expectations. Our team has made tremendous progress in advancing strategic initiatives that reduce complexity, improve pricing and mix management, and realize synergies from our global functions. As a result, we significantly expanded gross profit margin and nearly doubled GAAP earnings per diluted share,” commented Laurel Hurd, CEO of Interface.

“We delivered over 4% global net sales growth in 2024 in a challenging macro environment. Global Education billings were up double digits year-over-year, we gained share in Corporate Office, and we positioned our Healthcare segment for future success. Retail billings, although small in total, also contributed to our growth,” continued Hurd.

“I am proud of the tangible progress our team accomplished in the initial stages of our strategy implementation. We continue to differentiate ourselves in the market with premium, high-quality products while remaining true to our core values rooted in sustainable innovation. Our results reinforce that we are on the right path, and we remain focused on continuing to drive growth and shareholder value in the years ahead.”

“In fiscal year 2024, strong cash generation and disciplined capital management enabled us to repay $115 million of debt, reducing net leverage to 1.1 times fiscal year 2024 Adjusted EBITDA. We made tremendous progress expanding gross profit margins which grew 174 basis points year-over-year driven by higher volumes and favorable mix, as well as lower input costs,” added Bruce Hausmann, CFO of Interface.

Outlook

Interface enters 2025 with a strong backlog, and expects customary seasonality in the year which typically means a lighter Q1 sequentially, followed by a stronger Q2 and Q3 sequentially. Separately, given current strength of the U.S. dollar compared to other foreign currencies, the Company is forecasting translation FX to negatively impact its year-over-year net sales growth rate by approximately 2% in Q1 2025 and approximately 1% to 2% for the full fiscal year 2025, which is included in the Company’s Q1 and full fiscal year 2025 guidance. With that backdrop in mind, the Company anticipates the following:

Q1 Fiscal Year 2025 Outlook

Net sales: $290 million to $300 million
Adjusted gross profit margin: 37.5% of net sales
Adjusted SG&A expenses: $88 million
Adjusted interest & other expenses: $6 million
Adjusted effective income tax rate: 28.0%
Fully diluted weighted average share count: 59.2 million shares

Note: All figures are approximate

Full Fiscal Year 2025 Outlook

Net sales: $1.315 billion to $1.365 billion
Adjusted gross profit margin: 37.2% to 37.4% of net sales
Adjusted SG&A expenses: 26% of net sales
Adjusted interest & other expenses: $24 million
Adjusted effective income tax rate: 28.0%
Capital expenditures: $45 million

Note: All figures are approximate

The full text of Interface’s 4Q24 earnings release, including all tables, and a replay of the company’s Feb. 25 conference call webcast may be accessed at https://investors.interface.com.

About Interface

Interface, Inc. (NASDAQ: TILE) is a global flooring solutions company and sustainability leader, offering an integrated portfolio of carpet tile and resilient flooring products that includes Interface® carpet tile and LVT, nora® rubber flooring, and FLOR® premium area rugs for commercial and residential spaces. Made with purpose and without compromise, Interface flooring brings more sophisticated design, more performance, more innovation, and more climate progress to interior spaces.

A decades-long pioneer in sustainability, Interface remains “all in” on becoming a restorative business. Today, the company is focusing on carbon reductions, not offsets, as it works toward achieving its verified science-based targets by 2030 and its goal to become a carbon negative enterprise by 2040.

Learn more about Interface at interface.com and blog.interface.com, nora by Interface at nora.com, FLOR at FLOR.com, and our sustainability journey at interface.com/sustainability.

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