Interface Reports Second Quarter 2025 Results

One Interface strategy drives strong sales growth and profitability expansion; Company raises full year guidance

Interface, Inc. (Nasdaq: TILE), a worldwide commercial flooring company and global leader in sustainability, today announced results for the second quarter ended June 29, 2025.

Second quarter highlights (all comparisons are year-over-year):
-Net sales totaled $376 million, up 8% and up 7% currency neutral.
-GAAP earnings per diluted share of $0.55, a 45% increase; Adjusted earnings per diluted share of $0.60, a 50% increase.
-One Interface strategy continues to drive shareholder value.

“We delivered strong second quarter results ahead of our expectations with currency-neutral net sales growth of 7% and significantly expanded profitability. We continued to see strong momentum and market share gains in the Americas with currency-neutral net sales growth of 11% driven by our combined selling teams and expanded product offerings,” commented Laurel Hurd, CEO of Interface.

“Our One Interface strategy continues to yield measurable results, fueling growth across all product categories and key market segments. Second quarter global billings increased 28% in Healthcare, 11% in Education, and 3% in Corporate Office. Our performance reflects the strength of our strategy and market position, and our team’s disciplined execution, despite market uncertainty,” continued Hurd.

“Gross profit margin expanded 403 basis points driven by higher pricing, favorable product mix, and higher sales volumes that generated manufacturing cost benefits in the second quarter. We are operating from a position of strength, with a solid balance sheet that gives us flexibility and optionality as we remain focused on long-term value creation for shareholders,” added Bruce Hausmann, CFO of Interface.

Second quarter 2025 adjusted gross profit margin increased 402 basis points year-over-year, due to higher pricing, favorable product mix, and lower manufacturing costs per unit on higher volume; partially offset by higher raw material costs.

Second quarter 2025 adjusted SG&A expenses increased $9.1 million year-over-year due to higher sales commissions and variable compensation on increased sales and profits, higher healthcare costs, inflation, and foreign currency exchange variances.

Outlook

Based on strong Q2 2025 results, Interface is raising its full fiscal year guidance, while acknowledging a dynamic and uncertain global macro environment. With that backdrop in mind, Interface anticipates the following:

Q3 Fiscal Year 2025 Outlook
Net sales – $350 million to $360 million
Adjusted gross profit margin – 38.0% of net sales
Adjusted SG&A expenses – $92 million
Adjusted interest & other expenses – $6 million
Adjusted effective income tax rate – 27.0%
Fully diluted weighted average share count – 59.1 million shares
Note: All figures are approximate

Full Fiscal Year 2025 Outlook (Previous Full Fiscal Year 2025 Outlook)
Net sales – $1.370 billion to $1.390 billion ($1.340 billion to $1.365 billion)
Adjusted gross profit margin – 37.7% of net sales (37.2% to 37.4% of net sales)
Adjusted SG&A expenses – $362 million (26% of net sales)
Adjusted interest & other expenses – $25 million ($24 million)
Adjusted effective income tax rate – 26.0% (27.0%)
Capital expenditures – $45 million ($45 million)
Note: All figures are approximate

The full text of Interface’s 2Q25 earnings release, including all tables, may be accessed at https://investors.interface.com/news. A replay of the company’s Aug. 1 conference call webcast may be accessed at https://investors.interface.com/events.

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 the company’s sustainability journey at interface.com/sustainability.

Follow us on Facebook, Instagram, LinkedIn, X, and Pinterest.