Delivered record 2025 sales and profitability as One Interface strategy accelerates growth
Interface, Inc. (Nasdaq: TILE), the global flooring and sustainability leader, today announced results for the fourth quarter and full fiscal year ended December 28, 2025.
Fourth quarter highlights (all comparisons are year-over-year):
- Net sales totaled $349 million, up 4.3% and 1.6% on a currency-neutral basis.
- GAAP earnings per diluted share of $0.41; Adjusted earnings per diluted share of $0.49.
- Generated $49 million of cash from operations, repaid $128 million of debt and repurchased $13 million of common stock.
Fiscal Year highlights (all comparisons are year-over-year):
- Net sales totaled $1,387 million, up 5.4% and 4.3% on a currency-neutral basis.
- Gross profit margin of 38.7%; Adjusted gross profit margin of 39.0%.
- GAAP earnings per diluted share of $1.96; Adjusted earnings per diluted share of $1.94.
“We delivered record results in 2025 as our team executed well in a dynamic macro environment. Currency-neutral net sales increased 4% year over year, driven by growth across all regions, all product categories, and key market segments. Adjusted gross profit margin expanded to 39%, reflecting favorable pricing and mix, as well as manufacturing efficiencies,” commented Laurel Hurd, CEO of Interface.
“Our One Interface strategy continues to fuel growth as we strengthen global capabilities, improve commercial productivity, and simplify and optimize our operations. Performance was particularly strong in Healthcare and Education, with global billings up 21% and 8% respectively for the year, while we continued to gain share in Corporate Office,” continued Hurd.
“We are proud of the progress our teams made throughout 2025. While macro conditions remain uncertain, we enter 2026 with confidence as we execute our One Interface strategy. We remain focused on expanding our addressable market through new designs and innovation, while allocating capital in a disciplined manner to drive enhanced shareholder value that reinforces our leadership in design, performance and sustainability,” concluded Hurd.
“Our 2025 performance delivered strong earnings growth. Adjusted earnings per diluted share increased 33% year over year, underscoring the benefits of our ongoing operational discipline, consistent execution, and the high quality of our earnings. Strong cash generation further strengthened our balance sheet, enabling us to repay debt, extend remaining debt maturities to 2030, increase our quarterly dividend, and repurchase shares while we continued to invest in the business,” added Bruce Hausmann, CFO of Interface.
Fourth quarter 2025 adjusted gross profit margin increased 169 basis points year-over-year due to favorable pricing, favorable product mix, and a nonrecurring inventory reserve adjustment; partially offset by higher input costs.
Fourth quarter 2025 adjusted SG&A expenses increased year-over-year due to foreign exchange translation, merit and inflation driven increases, and higher variable compensation on increased sales and profits.
Outlook
Interface entered fiscal year 2026 with solid orders and a healthy backlog, while remaining mindful of ongoing macro uncertainty and a competitive industry environment. In addition, the Company’s fiscal year 2026 includes 53 weeks with an extra week in the first quarter, which is reflected in the guidance below. With that backdrop in mind, the Company anticipates the following:
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Q1 Fiscal Year 2026 Outlook |
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Net sales |
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$315 million to $325 million |
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Adjusted gross profit margin |
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38.0% of net sales |
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Adjusted SG&A expenses |
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$94 million |
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Adjusted interest & other expenses |
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$4 million |
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Adjusted effective income tax rate |
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18.0% |
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Fully diluted weighted average share count |
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59.1 million shares |
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Note: All figures are approximate |
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Full Fiscal Year 2026 Outlook |
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Net sales |
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$1.420 billion to $1.460 billion |
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Adjusted gross profit margin |
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38.5% to 39.0% of net sales |
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Adjusted SG&A expenses |
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26.2% to 26.4% of net sales |
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Adjusted interest & other expenses |
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$16 million |
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Adjusted effective income tax rate |
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25.0% to 26.0% |
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Capital expenditures |
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$55 million |
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Note: All figures are approximate |
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The full text of Interface’s 4Q25 earnings release, including all tables, and a replay of the company’s Feb. 24 conference call may be accessed at https://investors.interface.com.
About Interface
Interface is a global flooring and sustainability leader dedicated to rethinking how spaces work for people and the planet. Our portfolio includes Interface® carpet tile and LVT, nora® rubber flooring, and FLOR® premium area rugs. Across every brand, we innovate in a way that combines design, performance, and sustainability—without compromise.
Trusted by architects, designers, and building professionals worldwide, we help bring bold visions to life with solutions that deliver real, measurable impact. Building on more than 30 years of sustainability progress and industry‑first innovation, we remain ‘all in’ on our goal of becoming carbon negative by 2040, without the use of offsets.
Learn more about Interface (NASDAQ: TILE) and our brands at interface.com and FLOR.com. Join us on Facebook, Instagram, LinkedIn, and Pinterest.