Interface 2025 Q2 Earnings Strong Performance as Net Income Surges 44.3%

Interface (TILE) reported its fiscal 2025 Q2 earnings on August 5, 2025, delivering results that beat expectations with robust revenue and net income growth. The company raised its full-year 2025 guidance, reflecting confidence in ongoing operational improvements and market share gains.

Revenue
Interface’s total revenue for Q2 2025 rose 8.3% year-over-year to $375.52 million, driven by growth across product categories and key market segments.

Earnings/Net Income
The company’s earnings per share (EPS) increased 43.6% to $0.56 in Q2 2025, compared to $0.39 in the same period the previous year. Net income also surged 44.3% to $32.56 million, underscoring Interface’s strong profitability and disciplined execution in a challenging macroeconomic environment.

Price Action
Interface’s stock price gained 0.83% in the latest trading day, 20.55% in the most recent full trading week, and 15.05% month-to-date, reflecting investor optimism following the earnings report.

Post-Earnings Price Action Review
Interface’s strong Q2 results and raised guidance have contributed to a positive stock price reaction, with investors responding favorably to the company’s ability to grow revenue and expand profitability amid market uncertainty.

CEO Commentary
Laurel Hurd, CEO of Interface, highlighted the company’s 7% currency-neutral net sales growth and expanded profitability, crediting the “One Interface” strategy for driving performance across all product categories. She emphasized the 11% currency-neutral sales growth in the Americas, fueled by combined selling teams and expanded product offerings. Hurd expressed confidence in the company’s market position and momentum, while remaining mindful of macroeconomic headwinds in Europe and Australia.

Guidance
Interface raised its full-year 2025 net sales guidance to a range of $1.37 billion to $1.39 billion, up from prior expectations. For Q3 2025, the company expects net sales between $350 million and $360 million, with adjusted gross profit margin projected at 38.0% of net sales. Adjusted SG&A expenses are forecasted at $92 million, and adjusted interest & other expenses at $6 million. Interface anticipates a 27.0% adjusted effective income tax rate and a fully diluted weighted average share count of 59.1 million shares.

Additional News
On August 2, 2025, Interface announced an upward revision of its 2025 full-year net sales guidance to a range of $1.37 billion to $1.39 billion, reflecting greater confidence in its operational improvements and ability to grow revenue through new initiatives. This followed a previous guidance raise in May 2025, underscoring the company’s consistent momentum. Investors are advised to remain cautious, however, as soft demand in international markets and foreign exchange volatility could still pose risks. Interface’s long-term narrative projects $1.5 billion in revenue and $123.6 million in earnings by 2028, based on 4.3% annual revenue growth and a $37.6 million earnings increase. This trajectory supports a projected fair value of $31.33, representing a 27% upside to the current share price. Simply Wall St Community members have submitted five fair value estimates for Interface, ranging from $12.21 to $55.15 per share, emphasizing the importance of considering multiple perspectives before forming an investment view.