Interface (TILE) Q4 2025 earnings summary

Executive summary

• Achieved record results in 2025 with net sales of $1.39 billion, all-time highs in adjusted operating income and EBITDA, and strong execution across global teams and product categories, driven by the One Interface strategy and commercial productivity.

• Outpaced industry growth with a 5% CAGR in net sales from FY23 to FY25, supported by operational efficiency, automation, and product innovation.

• Maintained industry-leading adjusted gross profit margins, reaching 39.0% in FY25.

• Strong performance in healthcare and education segments, with global billings up 21% and 8% respectively.

• Diversified end market presence with sales in over 100 countries and a strong balance sheet.

Financial highlights

• FY25 net sales were $1,386.9 million, up 5.4% year-over-year; Q4 net sales were $349.4 million, up 4.3%.

• Adjusted gross profit margin was 39.0%, up 187 basis points, including a 50 bps non-recurring inventory reserve benefit.

• Adjusted operating income was $173.8 million, up 22.9%; adjusted EBITDA was $217.9 million, up 15.3%.

• Adjusted EPS was $1.94, a 33% increase year-over-year; adjusted net income was $114.8 million, up 33.2%.

• Generated $168 million in operating cash flow in FY25; cash on hand at year-end was $71.3 million.

Outlook and guidance

• 2026 net sales expected between $1.42 billion and $1.46 billion, with adjusted gross profit margin of 38.5%-39%.

• Q1 2026 net sales guidance of $315 million-$325 million; adjusted gross margin of ~38%.

• Capital expenditures for 2026 projected at $55 million, focused on automation and productivity.

• Healthy backlog up 7% year-to-date entering 2026.

• Continued investment in automation, robotics, and commercial productivity to drive profitable growth.