Interface (TILE) Q2 2025 earnings summary

Executive summary

• Q2 2025 net sales rose 8.3% year-over-year to $375.5M–$376M, with 7% currency-neutral growth and strong performance in the Americas, especially in Healthcare (+28%), Education (+11%), and Corporate Office (+3%).

• Adjusted EPS increased 50% to $0.60; GAAP EPS rose 45% to $0.55, both ahead of expectations.

• Margin expansion and operational efficiency were driven by pricing, favorable mix, and manufacturing improvements.

• Broad-based growth across all product categories and key market segments, with significant market share gains in carpet tile and rubber.

• Strong sustainability progress, with reductions in carbon footprint and increased use of recycled materials.

Financial highlights

• Q2 2025 net sales totaled $375.5M–$376M, up 8.3% year-over-year; FX-neutral net sales up 7.1%.

• Adjusted gross profit margin was 39.8%, up 402–403 bps year-over-year; gross margin at 39.4%.

• Adjusted operating income was $55.9M, up 41% year-over-year; operating income was $52.0M.

• Adjusted EBITDA reached $64.8M, up 28% year-over-year.

• Net income for Q2 was $32.6M, up 44% year-over-year; net leverage ratio at 0.9x.

Outlook and guidance

• Full-year 2025 net sales guidance raised to $1.370–$1.390B, with adjusted gross margin expected at 37.7%.

• Q3 2025 net sales projected at $350–$360M, adjusted gross margin ~38%, SG&A ~$92M.

• Capital expenditures for full year expected at $45M.

• Liquidity expected to be sufficient for the next 12 months.