Interface's Q1 2025: Key Contradictions in Inventory, Regional Performance, and Growth Strategies

Inventory buildup and tariffs, regional performance and market conditions, growth and market performance, product growth and market performance, and EMEA and APAC performance are the key contradictions discussed in Interface's latest 2025Q1 earnings call.



Revenue and Order Growth:
- Interface reported 4% year-over-year currency neutral growth in net sales and a 3% increase in consolidated currency-neutral orders in Q1 2025.
- This growth was driven by the success of the One Interface strategy, combined selling teams, and strong performance in healthcare and education segments.

Regional Performance:
- The Americas region experienced a 6% year-over-year currency neutral increase in net sales, with currency-neutral orders up 10%.
- Growth in the Americas was attributed to the combined selling teams and strong momentum in education and healthcare segments.

Product Segment Growth:
- All product categories, including carpet tile, LVT, and rubber, grew in volume and price in Q1 2025.
- This growth was supported by the diversification strategy and the success in various market segments, particularly in healthcare and education.

Sustainability Initiatives:
- Interface made progress towards its science-based targets and being carbon negative by 2040 with innovative products and processes.
- The company announced a strategic investment to incorporate captured carbon into its manufacturing processes, contributing to carbon reduction and storage.