Interface Q2 sales up 8% YoY, raises FY23 guidance.

• Interface reports Q2 net sales of $376mln, up 8% YoY. • Net sales up 7% currency neutral. • GAAP earnings per diluted share of $0.55, a 45% increase. • Company raises full year guidance. • Strong sales growth and profitability expansion due to One Interface strategy. • Interface is a commercial flooring company and global leader in sustainability.

Interface, Inc. (Nasdaq: TILE), a global leader in commercial flooring and sustainability, has announced its second-quarter (Q2) 2025 financial results, showcasing robust sales growth and profitability expansion driven by its One Interface strategy. The company reported net sales of $376 million, representing an 8% year-over-year (YoY) increase, and a 7% currency-neutral growth [1].

GAAP earnings per diluted share improved by 45% to $0.55, while adjusted earnings per diluted share surged by 50% to $0.60. These strong results were achieved despite a dynamic and uncertain global macro environment. Laurel Hurd, CEO of Interface, commented, "We delivered strong second quarter results ahead of our expectations with currency-neutral net sales growth of 7% and significantly expanded profitability" [1].

The One Interface strategy has continued to yield measurable results, fueling growth across all product categories and key market segments. The company saw strong momentum and market share gains in the Americas, with currency-neutral net sales growth of 11% driven by combined selling teams and expanded product offerings. Global billings increased by 28% in Healthcare, 11% in Education, and 3% in Corporate Office [1].

Interface's gross profit margin expanded by 403 basis points to 39.4%, driven by higher pricing, favorable product mix, and higher sales volumes that generated manufacturing cost benefits. The company's solid balance sheet, with a net debt to cash ratio of 1.5x and a net debt to adjusted EBITDA ratio of 0.9x, provides flexibility and optionality for long-term value creation [1].

Bruce Hausmann, CFO of Interface, added, "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" [1].

Based on the strong Q2 2025 results, Interface is raising its full fiscal year guidance, acknowledging a dynamic and uncertain global macro environment. The company anticipates continued growth and profitability expansion in the coming quarters [1].

References:

[1] https://sg.finance.yahoo.com/news/interface-reports-second-quarter-2025-093000857.html