Interface Reports Fourth Quarter and Full Year 2025 Results
MWN-AI** Summary
Interface, Inc. (Nasdaq: TILE) reported robust financial results for the fourth quarter and full fiscal year 2025, highlighting significant growth under its "One Interface" strategy. For Q4, the company posted net sales of $349 million, marking a 4.3% increase year-over-year, with GAAP earnings per share reaching $0.41, and adjusted earnings per share at $0.49. Cash from operations totaled $49 million, enabling the repayment of $128 million in debt and a $13 million stock repurchase.
For the full year, Interface achieved net sales of $1.387 billion, up 5.4% compared to 2024. The gross profit margin stood at 38.7%, with adjusted gross profit margin at 39.0%. GAAP earnings per diluted share surged by 32.4% to $1.96, with adjusted earnings showing a similar increase to $1.94.
CEO Laurel Hurd attributed the success to effective execution in a challenging macro environment, driven by growth across all product categories and regions. Notably, the Healthcare and Education sectors saw billings rise by 21% and 8%, respectively, while the Corporate Office segment continued to expand its market share.
Looking ahead, Interface is optimistic about 2026 despite macro uncertainties, projecting Q1 net sales between $315 million to $325 million and full-year sales of $1.420 billion to $1.460 billion. CFO Bruce Hausmann stressed the importance of operational discipline and cash generation, which has allowed the company to reduce debt significantly and reinforce its capital return strategy through dividends and share repurchases.
As Interface prepares for fiscal year 2026, it remains focused on enhancing its market reach through innovation and sustainable practices while aiming for long-term shareholder value enhancement.
MWN-AI** Analysis
Interface, Inc. (NASDAQ: TILE) reported robust fourth quarter and full-year results for 2025, showcasing a commendable growth trajectory under its "One Interface" strategy. Fourth quarter net sales reached $349 million, marking a 4.3% increase year-over-year, while full-year sales totaled $1.387 billion, reflecting a year-over-year growth of 5.4%.
A key highlight of the quarter was the adjusted gross profit margin, which expanded to 39.0%, attributable to improved pricing strategies and operational efficiencies. With adjusted earnings per share up 44.1% from the previous year, this growth indicates sustainable profitability amidst a challenging macroeconomic landscape.
Looking ahead, Interface's guidance for 2026 suggests continued growth, projecting net sales between $1.420 billion and $1.460 billion, bolstered by a healthy order backlog and a focus on enhancing commercial productivity. The firm’s strategic investment in sectors like Healthcare and Education, which saw billings rise significantly during 2025, positions it well for further market penetration.
However, potential investors should consider several risks, including ongoing macroeconomic uncertainties and competitive pressures in the flooring industry. Costs associated with raw materials and labor could impact margins, particularly with elevated SG&A expenses seen in 2025.
Given the solid performance metrics and positive outlook, Interface appears to be a favorable investment opportunity, especially for those focused on sustainability-driven firms. Investors should monitor quarterly updates and market conditions closely as 2026 progresses, particularly regarding inflationary pressures or any shifts in consumer demand that may impact overall financial performance.
In summary, maintaining a keen eye on operational strategies and evolving market dynamics can provide valuable insights into Interface's growth trajectory and potential for sustained shareholder value enhancement moving forward.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
Delivered record 2025 sales and profitability as One Interface strategy accelerates growth
Interface, Inc. (Nasdaq: TILE), the global flooring and sustainability leader, today announced results for the fourth quarter and full fiscal year ended December 28, 2025.
Fourth quarter highlights (all comparisons are year-over-year):
- Net sales totaled $349 million, up 4.3% and 1.6% on a currency-neutral basis.
- GAAP earnings per diluted share of $0.41; Adjusted earnings per diluted share of $0.49.
- Generated $49 million of cash from operations, repaid $128 million of debt and repurchased $13 million of common stock.
Fiscal Year highlights (all comparisons are year-over-year):
- Net sales totaled $1,387 million, up 5.4% and 4.3% on a currency-neutral basis.
- Gross profit margin of 38.7%; Adjusted gross profit margin of 39.0%.
- GAAP earnings per diluted share of $1.96; Adjusted earnings per diluted share of $1.94.
“We delivered record results in 2025 as our team executed well in a dynamic macro environment. Currency-neutral net sales increased 4% year over year, driven by growth across all regions, all product categories, and key market segments. Adjusted gross profit margin expanded to 39%, reflecting favorable pricing and mix, as well as manufacturing efficiencies,” commented Laurel Hurd, CEO of Interface.
“Our One Interface strategy continues to fuel growth as we strengthen global capabilities, improve commercial productivity, and simplify and optimize our operations. Performance was particularly strong in Healthcare and Education, with global billings up 21% and 8% respectively for the year, while we continued to gain share in Corporate Office,” continued Hurd.
“We are proud of the progress our teams made throughout 2025. While macro conditions remain uncertain, we enter 2026 with confidence as we execute our One Interface strategy. We remain focused on expanding our addressable market through new designs and innovation, while allocating capital in a disciplined manner to drive enhanced shareholder value that reinforces our leadership in design, performance and sustainability,” concluded Hurd.
“Our 2025 performance delivered strong earnings growth. Adjusted earnings per diluted share increased 33% year over year, underscoring the benefits of our ongoing operational discipline, consistent execution, and the high quality of our earnings. Strong cash generation further strengthened our balance sheet, enabling us to repay debt, extend remaining debt maturities to 2030, increase our quarterly dividend, and repurchase shares while we continued to invest in the business,” added Bruce Hausmann, CFO of Interface.
Consolidated Results Summary (Unaudited) | Three Months Ended | Twelve Months Ended | |||||||||||||||
(in millions, except percentages and per share data) | 12/28/2025 | 12/29/2024 | Change | 12/28/2025 | 12/29/2024 | Change | |||||||||||
GAAP | |||||||||||||||||
Net Sales | $ | 349.4 | $ | 335.0 | 4.3 | % | $ | 1,386.9 | $ | 1,315.7 | 5.4 | % | |||||
Gross Profit Margin % of Net Sales | 38.6 | % | 36.5 | % | 208 bps | 38.7 | % | 36.7 | % | 204 bps | |||||||
SG&A Expenses | $ | 99.4 | $ | 92.7 | 7.3 | % | $ | 373.4 | $ | 348.5 | 7.1 | % | |||||
SG&A Expenses % of Net Sales | 28.5 | % | 27.7 | % | 80 bps | 26.9 | % | 26.5 | % | 43 bps | |||||||
Operating Income | $ | 35.4 | $ | 29.6 | 19.3 | % | $ | 164.0 | $ | 134.4 | 22.0 | % | |||||
Net Income | $ | 24.4 | $ | 21.8 | 12.1 | % | $ | 116.1 | $ | 86.9 | 33.5 | % | |||||
Earnings per Diluted Share | $ | 0.41 | $ | 0.37 | 10.8 | % | $ | 1.96 | $ | 1.48 | 32.4 | % | |||||
Non-GAAP | |||||||||||||||||
Currency-Neutral Net Sales | $ | 340.4 | $ | 335.0 | 1.6 | % | $ | 1,371.9 | $ | 1,315.7 | 4.3 | % | |||||
Adjusted Gross Profit Margin % of Net Sales | 38.6 | % | 36.9 | % | 169 bps | 39.0 | % | 37.1 | % | 187 bps | |||||||
Adjusted SG&A Expenses | $ | 96.6 | $ | 90.8 | 6.3 | % | $ | 366.7 | $ | 346.7 | 5.8 | % | |||||
Adjusted SG&A Expenses % of Net Sales | 27.6 | % | 27.1 | % | 53 bps | 26.4 | % | 26.4 | % | 9 bps | |||||||
Adjusted Operating Income | $ | 38.2 | $ | 32.8 | 16.7 | % | $ | 173.8 | $ | 141.4 | 22.9 | % | |||||
Adjusted Net Income | $ | 28.9 | $ | 20.1 | 44.0 | % | $ | 114.8 | $ | 86.2 | 33.2 | % | |||||
Adjusted Earnings per Diluted Share | $ | 0.49 | $ | 0.34 | 44.1 | % | $ | 1.94 | $ | 1.46 | 32.9 | % | |||||
Adjusted EBITDA | $ | 49.8 | $ | 46.0 | 8.2 | % | $ | 217.9 | $ | 189.0 | 15.3 | % | |||||
Currency-Neutral Orders Increase Year-Over-Year | 1.9 | % | |||||||||||||||
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Additional Metrics | 12/28/2025 | 12/29/2024 | Change | ||||||||||||||
Cash | $ | 71.3 | $ | 99.2 | (28.1 | )% | |||||||||||
Total Debt | $ | 181.6 | $ | 302.8 | (40.0 | )% | |||||||||||
Total Debt Minus Cash ("Net Debt") | $ | 110.3 | $ | 203.5 | (45.8 | )% | |||||||||||
Fiscal Year 2025 Adjusted EBITDA | $ | 217.9 | |||||||||||||||
Total Debt divided by Fiscal Year 2025 Net Income | 1.6x | ||||||||||||||||
Net Debt divided by Fiscal Year 2025 Adj. EBITDA ("Net Leverage Ratio") | 0.5x |
Segment Results Summary (Unaudited) | Three Months Ended | Twelve Months Ended | |||||||||||||||
(in millions, except percentages) | 12/28/2025 | 12/29/2024 | Change | 12/28/2025 | 12/29/2024 | Change | |||||||||||
AMS | |||||||||||||||||
Net Sales | $ | 205.9 | $ | 205.7 | 0.1 | % | $ | 843.9 | $ | 800.8 | 5.4 | % | |||||
Currency-Neutral Net Sales | $ | 205.8 | $ | 205.7 | — | % | $ | 844.9 | $ | 800.8 | 5.5 | % | |||||
Operating Income | $ | 27.3 | $ | 28.5 | (4.0 | )% | $ | 135.7 | $ | 105.3 | 28.9 | % | |||||
Adjusted Operating Income | $ | 28.1 | $ | 29.4 | (4.3 | )% | $ | 137.3 | $ | 106.6 | 28.8 | % | |||||
Currency-Neutral Orders Increase Year-Over-Year | 3.2 | % | |||||||||||||||
EAAA | |||||||||||||||||
Net Sales | $ | 143.5 | $ | 129.3 | 11.0 | % | $ | 543.0 | $ | 514.8 | 5.5 | % | |||||
Currency-Neutral Net Sales | $ | 134.6 | $ | 129.3 | 4.1 | % | $ | 527.1 | $ | 514.8 | 2.4 | % | |||||
Operating Income | $ | 8.0 | $ | 1.2 | 587.7 | % | $ | 28.3 | $ | 29.1 | (2.8 | )% | |||||
Adjusted Operating Income | $ | 10.1 | $ | 3.4 | 197.9 | % | $ | 36.5 | $ | 34.8 | 4.8 | % | |||||
Currency-Neutral Orders Increase Year-Over-Year | 0.1 | % |
Outlook
Interface entered fiscal year 2026 with solid orders and a healthy backlog, while remaining mindful of ongoing macro uncertainty and a competitive industry environment. In addition, the Company's fiscal year 2026 includes 53 weeks with an extra week in the first quarter, which is reflected in the guidance below. With that backdrop in mind, the Company anticipates the following:
Q1 Fiscal Year 2026 Outlook | ||
Net sales | $315 million to $325 million | |
Adjusted gross profit margin | 38.0% of net sales | |
Adjusted SG&A expenses | $94 million | |
Adjusted interest & other expenses | $4 million | |
Adjusted effective income tax rate | 18.0% | |
Fully diluted weighted average share count | 59.1 million shares | |
Note: All figures are approximate | ||
Full Fiscal Year 2026 Outlook | ||
Net sales | $1.420 billion to $1.460 billion | |
Adjusted gross profit margin | 38.5% to 39.0% of net sales | |
Adjusted SG&A expenses | 26.2% to 26.4% of net sales | |
Adjusted interest & other expenses | $16 million | |
Adjusted effective income tax rate | 25.0% to 26.0% | |
Capital expenditures | $55 million | |
Note: All figures are approximate |
Webcast and Conference Call Information
Interface will host a conference call on February 24, 2026, at 8:00 a.m. Eastern Time, to discuss its fourth quarter and fiscal year 2025 results. The conference call will be simultaneously broadcast live over the Internet.
Listeners may access the conference call live over the Internet at:
https://events.q4inc.com/attendee/621335748 , or through the Company's website at: https://investors.interface.com .
The archived version of the webcast will be available at these sites for one year beginning approximately one hour after the call ends.
Non-GAAP Financial Measures
Interface provides adjusted earnings per share, adjusted net income, adjusted operating income ("AOI"), adjusted gross profit, adjusted gross profit margin, adjusted SG&A expenses, currency- neutral sales and currency-neutral sales growth, net debt, and adjusted EBITDA as additional information regarding its operating results in this press release. These non-GAAP measures are not in accordance with – or alternatives to – GAAP measures, and may be different from non-GAAP measures used by other companies. Adjusted EPS, adjusted net income, and AOI exclude nora purchase accounting amortization, the cyber event impact, and restructuring, asset impairment, severance, and other, net. Adjusted EPS and adjusted net income also exclude the loss on debt extinguishment, a warehouse fire recovery, property casualty loss impact, the loss on foreign subsidiary liquidation, the UK pension surplus tax rate change, and deferred taxes - rate changes and other. Adjusted gross profit and adjusted gross profit margin exclude the nora purchase accounting amortization. Adjusted SG&A expenses exclude restructuring, asset impairment, severance, and other, net and the cyber event impact. Currency-neutral sales and currency-neutral sales growth exclude the impact of foreign currency fluctuations.
Net debt is total debt less cash on hand. Adjusted EBITDA is GAAP net income excluding interest expense, income tax expense, depreciation and amortization, share-based compensation expense, cyber event impact, property casualty loss impact, restructuring, asset impairment, severance, and other, net, nora purchase accounting amortization, a warehouse fire recovery, and the loss on foreign subsidiary liquidation. This news release should be read in conjunction with the Company's Current Report on Form 8-K furnished today to the U.S. Securities & Exchange Commission, which explains why Interface believes presentation of these non-GAAP measures provides useful information to investors, as well as any additional material purposes for which Interface uses these non-GAAP measures.
About Interface
Interface is a global flooring and sustainability leader dedicated to rethinking how spaces work for people and the planet. Our portfolio includes Interface® carpet tile and LVT, nora® rubber flooring, and FLOR® premium area rugs. Across every brand, we innovate in a way that combines design, performance, and sustainability—without compromise.
Trusted by architects, designers, and building professionals worldwide, we help bring bold visions to life with solutions that deliver real, measurable impact. Building on more than 30 years of sustainability progress and industry?first innovation, we remain ‘all in’ on our goal of becoming carbon negative by 2040, without the use of offsets.
Learn more about Interface (NASDAQ: TILE) and our brands at interface.com and FLOR.com . Join us on Facebook , Instagram , LinkedIn , and Pinterest .
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 :
Except for historical information contained herein, the other matters set forth in this news release are forward-looking statements. Forward-looking statements may be identified by words such as “may,” “expect,” “forecast,” “anticipate,” “intend,” “plan,” “believe,” “could,” “should,” “goal,” “aim," “objective,” “seek,” “project,” “estimate,” “target,” “will” and similar expressions. Forward-looking statements in this press release include, without limitation, any projections we make regarding the Company’s first quarter and full year 2026 under “Outlook” above. The forward-looking statements set forth above involve a number of risks and uncertainties that could cause actual results to differ materially from any such statement, including but not limited to the risks under the following subheadings in “Risk Factors” in the Company's Annual Report on Form 10-K for the fiscal year ended December 29, 2024, and Quarterly Report on Form 10-Q for the fiscal quarter ended March 30, 2025: "We compete with a large number of manufacturers in the highly competitive floorcovering products market, and some of these competitors have greater financial resources than we do. We may face challenges competing on price, making investments in our business, or competing on product design or sustainability", "Our earnings could be adversely affected by non-cash adjustments to goodwill, when a test of goodwill assets indicates a material impairment of those assets", "Our success depends significantly upon the efforts, abilities and continued service of our senior management executives, our principal design consultant and other key personnel (including experienced sales and manufacturing personnel), and our loss of any of them could affect us adversely", "Large increases in the cost of our raw materials, shipping costs, duties or tariffs could adversely affect us if we are unable to pass these cost increases through to our customers", "Unanticipated termination or interruption of any of our arrangements with our primary third-party suppliers of synthetic fiber or our primary third-party supplier for luxury vinyl tile (“LVT”) or other key raw materials could have a material adverse effect on us", "Changes to our facilities, manufacturing processes, product construction, and product composition could disrupt our operations, increase our manufacturing costs, increase customer complaints, increase warranty claims, negatively affect our reputation, and have a material adverse effect on our financial condition and results of operations", "Our business operations could suffer significant losses from natural disasters, acts of war, terrorism, catastrophes, fire, adverse weather conditions, pandemics, endemics, unstable geopolitical situations or other unexpected events", "The market price of our common stock has been volatile and the value of your investment may decline", "Sales of our principal products have been and may continue to be affected by adverse economic cycles, and effects in the new construction market and renovation market", "Disruptions to or failures of information technology systems we use could adversely affect our business", "The impact of potential changes to environmental laws and regulations and industry standards regarding climate change and other sustainability matters could lead to unforeseen disruptions to our business operations", "Health crisis events, such as epidemics or pandemics, have adversely impacted, and may continue to impact, the economy and disrupt our operations and supply chains, which may have an adverse effect on our results of operations", Our substantial international operations are subject to various political, economic and other uncertainties that could adversely affect our business results, including foreign currency fluctuations, restrictive taxation, custom duties, tariffs, border closings or other adverse government regulations", "The conflicts between Russia and Ukraine and in the Middle East could adversely affect our business, results of operations and financial position", "Fluctuations in foreign currency exchange rates have had, and could continue to have, an adverse impact on our financial condition and results of operations", "The uncertainty surrounding the ongoing implementation and effect of the U.K.’s exit from the European Union, and related negative developments in the European Union, could adversely affect our business, results of operations or financial condition", "We have a substantial amount of debt, which could adversely affect our business, financial condition and results of operations and our ability to meet our payment obligations under our debt", "Servicing our debt requires a significant amount of cash, and we may not have sufficient cash flow from our operations to pay our indebtedness", "We may incur substantial additional indebtedness, which could further exacerbate the risks associated with our substantial indebtedness", "We face risks associated with litigation and claims", and “Changes in foreign trade policies and tariffs may adversely impact our business, financial condition, and results of operations”.
You should consider any additional or updated information we include under the heading “Risk Factors” in our subsequent quarterly and annual reports.
Any forward-looking statements are made pursuant to the Private Securities Litigation Reform Act of 1995 and, as such, speak only as of the date made. The Company assumes no responsibility to update or revise forward-looking statements made in this press release and cautions readers not to place undue reliance on any such forward-looking statements.
Consolidated Statements of Operations (Unaudited) | Three Months Ended | Twelve Months Ended | |||||||||||||
(In thousands, except per share data) | 12/28/2025 | 12/29/2024 | 12/28/2025 | 12/29/2024 | |||||||||||
Net Sales | $ | 349,393 | $ | 335,010 | $ | 1,386,854 | $ | 1,315,658 | |||||||
Cost of Sales | 214,585 | 212,705 | 849,474 | 832,710 | |||||||||||
Gross Profit | 134,808 | 122,305 | 537,380 | 482,948 | |||||||||||
Selling, General & Administrative Expenses | 99,447 | 92,671 | 373,385 | 348,542 | |||||||||||
Operating Income | 35,361 | 29,634 | 163,995 | 134,406 | |||||||||||
Interest Expense | 6,477 | 4,888 | 19,546 | 23,205 | |||||||||||
Other Expense (Income), net | 1,825 | (2,590 | ) | 7,598 | (2,353 | ) | |||||||||
Income Before Income Tax Expense | 27,059 | 27,336 | 136,851 | 113,554 | |||||||||||
Income Tax Expense | 2,670 | 5,570 | 20,753 | 26,608 | |||||||||||
Net Income | $ | 24,389 | $ | 21,766 | $ | 116,098 | $ | 86,946 | |||||||
Earnings Per Share – Basic | $ | 0.42 | $ | 0.37 | $ | 1.99 | $ | 1.49 | |||||||
Earnings Per Share – Diluted | $ | 0.41 | $ | 0.37 | $ | 1.96 | $ | 1.48 | |||||||
Common Shares Outstanding – Basic | 58,142 | 58,304 | 58,375 | 58,282 | |||||||||||
Common Shares Outstanding – Diluted | 59,262 | 59,209 | 59,162 | 58,871 |
| Consolidated Balance Sheets (Unaudited) | |||||||
(In thousands) | 12/28/2025 | 12/29/2024 | |||||
Assets | |||||||
Cash and Cash Equivalents | $ | 71,323 | $ | 99,226 | |||
Accounts Receivable, net | 174,457 | 171,135 | |||||
Inventories, net | 275,014 | 260,581 | |||||
Other Current Assets | 34,048 | 33,355 | |||||
Total Current Assets | 554,842 | 564,297 | |||||
Property, Plant and Equipment, net | 309,449 | 282,374 | |||||
Operating Lease Right-of-Use Assets | 78,191 | 76,815 | |||||
Goodwill | 112,127 | 99,887 | |||||
Other Intangibles, net | 50,885 | 48,273 | |||||
Other Assets | 101,028 | 99,170 | |||||
Total Assets | $ | 1,206,522 | $ | 1,170,816 | |||
Liabilities | |||||||
Accounts Payable | $ | 64,768 | $ | 68,943 | |||
Accrued Expenses | 147,770 | 134,996 | |||||
Current Portion of Operating Lease Liabilities | 15,748 | 12,296 | |||||
Current Portion of Long-Term Debt | 8,778 | 482 | |||||
Total Current Liabilities | 237,064 | 216,717 | |||||
Long-Term Debt | 172,801 | 302,275 | |||||
Operating Lease Liabilities | 67,205 | 68,092 | |||||
Other Long-Term Liabilities | 88,778 | 94,584 | |||||
Total Liabilities | 565,848 | 681,668 | |||||
Shareholders’ Equity | 640,674 | 489,148 | |||||
Total Liabilities and Shareholders’ Equity | $ | 1,206,522 | $ | 1,170,816 |
Consolidated Statements of Cash Flows (Unaudited) | Twelve Months Ended | |||||||
(In thousands) | 12/28/2025 | 12/29/2024 | ||||||
OPERATING ACTIVITIES | ||||||||
Net Income | $ | 116,098 | $ | 86,946 | ||||
Adjustments to Reconcile Net Income to Cash Provided by Operating Activities: | ||||||||
Depreciation and Amortization | 38,916 | 39,333 | ||||||
Share-Based Compensation Expense | 14,385 | 12,907 | ||||||
Loss on Disposal of Property, Plant and Equipment, net | — | 264 | ||||||
Loss on Foreign Subsidiary Liquidation | — | 2,152 | ||||||
Bad Debt Expense | 1,441 | 1,476 | ||||||
Loss on Debt Extinguishment | 2,440 | — | ||||||
Amortization of Acquired Intangible Assets | 3,073 | 5,172 | ||||||
Deferred Taxes | (12,958 | ) | (3,034 | ) | ||||
Other | (4,715 | ) | (8,480 | ) | ||||
Change in Working Capital | ||||||||
Accounts Receivable | 4,620 | (13,872 | ) | |||||
Inventories | 2,102 | 10,467 | ||||||
Prepaid Expenses and Other Current Assets | 590 | (3,079 | ) | |||||
Accounts Payable and Accrued Expenses | 1,914 | 18,178 | ||||||
Cash Provided by Operating Activities | 167,906 | 148,430 | ||||||
INVESTING ACTIVITIES | ||||||||
Capital Expenditures | (46,192 | ) | (33,788 | ) | ||||
Proceeds from Sale of Property, Plant and Equipment | — | 1,040 | ||||||
Insurance Proceeds from Property Casualty Loss | — | 2,374 | ||||||
Cash Used in Investing Activities | (46,192 | ) | (30,374 | ) | ||||
FINANCING ACTIVITIES | ||||||||
Revolving Loan Borrowing | 41,701 | 34,243 | ||||||
Revolving Loan Repayments | (35,515 | ) | (34,243 | ) | ||||
Term Loan Borrowings | 170,000 | — | ||||||
Term Loan Repayments | (390 | ) | (115,213 | ) | ||||
Senior Notes Repayment | (300,000 | ) | — | |||||
Repurchase of Common Stock | (18,175 | ) | — | |||||
Tax Withholding Payments for Share-Based Compensation | (8,372 | ) | (4,770 | ) | ||||
Debt Issuance Costs | (1,303 | ) | — | |||||
Payments for Debt Extinguishment Costs | (620 | ) | — | |||||
Dividends Paid | (3,559 | ) | (2,338 | ) | ||||
Finance Lease Payments | (3,059 | ) | (2,913 | ) | ||||
Cash Used in Financing Activities | (159,292 | ) | (125,234 | ) | ||||
Net Cash Used in Operating, Investing and Financing Activities | (37,578 | ) | (7,178 | ) | ||||
Effect of Exchange Rate Changes on Cash | 9,675 | (4,094 | ) | |||||
CASH AND CASH EQUIVALENTS | ||||||||
Net Change During the Period | (27,903 | ) | (11,272 | ) | ||||
Balance at Beginning of Period | 99,226 | 110,498 | ||||||
Balance at End of Period | $ | 71,323 | $ | 99,226 |
Net Sales by Region (Unaudited) | ||
Twelve Months Ended | ||
% of Total | 12/28/2025 | |
Net Sales | ||
AMS | 61 | % |
EMEA | 29 | % |
APAC | 10 | % |
Consolidated Net Sales | 100 | % |
Gross Billings by Customer Vertical (Unaudited) | ||
Twelve Months Ended | ||
% of Total | 12/28/2025 | |
Gross Billings | ||
Corporate/Office | 44 | % |
Education | 20 | % |
Healthcare | 11 | % |
Other | 25 | % |
Consolidated Gross Billings * | 100 | % |
* Note: Sum of reconciling items may differ from total due to rounding of individual components |
Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures (Unaudited) (In millions, except per share amounts) | |||||||||||||||||||||||||||||||||||||||
Fourth Quarter 2025 | Fourth Quarter 2024 | ||||||||||||||||||||||||||||||||||||||
Adjustments | Adjustments | ||||||||||||||||||||||||||||||||||||||
Gross Profit | SG&A Expenses | Operating Income (Loss) | Pre-tax | Tax Effect | Net Income (Loss) | Diluted EPS | Gross Profit | SG&A Expenses | Operating Income (Loss) | Pre-tax | Tax Effect | Net Income (Loss) | Diluted EPS | ||||||||||||||||||||||||||
GAAP As Reported | $ | 134.8 | $ | 99.4 | $ | 35.4 | $ | 24.4 | $ | 0.41 | $ | 122.3 | $ | 92.7 | $ | 29.6 | $ | 21.8 | $ | 0.37 | |||||||||||||||||||
Non-GAAP Adjustments: | |||||||||||||||||||||||||||||||||||||||
Purchase Accounting Amortization | — | — | — | — | — | — | — | 1.3 | — | 1.3 | 1.3 | (0.4 | ) | 0.9 | 0.02 | ||||||||||||||||||||||||
Restructuring, Asset Impairment, Severance, and Other, net | — | (2.9 | ) | 2.9 | 2.9 | (0.7 | ) | 2.2 | 0.04 | — | (2.2 | ) | 2.2 | 2.2 | (0.5 | ) | 1.7 | 0.03 | |||||||||||||||||||||
Cyber Event Impact | — | — | — | — | — | — | — | — | 0.3 | (0.3 | ) | (5.1 | ) | 1.2 | (3.9 | ) | (0.07 | ) | |||||||||||||||||||||
Loss on Debt Extinguishment | 3.1 | (0.7 | ) | 2.3 | 0.04 | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Loss on Foreign Subsidiary Liquidation (1) | — | — | — | — | — | — | — | — | — | — | 2.2 | — | 2.2 | 0.04 | |||||||||||||||||||||||||
UK Pension Surplus Tax Rate Change | — | — | — | — | — | — | — | — | — | — | — | (2.5 | ) | (2.5 | ) | (0.04 | ) | ||||||||||||||||||||||
Adjustments Subtotal * | — | (2.9 | ) | 2.9 | 6.0 | (1.4 | ) | 4.5 | 0.08 | 1.3 | (1.9 | ) | 3.1 | 0.5 | (2.2 | ) | (1.7 | ) | (0.03 | ) | |||||||||||||||||||
Adjusted (non-GAAP) * | $ | 134.8 | $ | 96.6 | $ | 38.2 | $ | 28.9 | $ | 0.49 | $ | 123.6 | $ | 90.8 | $ | 32.8 | $ | 20.1 | $ | 0.34 | |||||||||||||||||||
(1) In 2024, our Thailand subsidiary was substantially liquidated. The related cumulative translation adjustment recognized in other expense. | |||||||||||||||||||||||||||||||||||||||
* Note: Sum of reconciling items may differ from total due to rounding of individual components |
Fiscal Year 2025 | Fiscal Year 2024 | ||||||||||||||||||||||||||||||||||||||
Adjustments | Adjustments | ||||||||||||||||||||||||||||||||||||||
Gross Profit | SG&A Expenses | Operating Income | Pre-tax | Tax Effect | Net Income/(Loss) | Diluted EPS | Gross Profit | SG&A Expenses | Operating Income | Pre-tax | Tax Effect | Net Income/(Loss) | Diluted EPS | ||||||||||||||||||||||||||
GAAP As Reported | $ | 537.4 | $ | 373.4 | $ | 164.0 | $ | 116.1 | $ | 1.96 | $ | 482.9 | $ | 348.5 | $ | 134.4 | $ | 86.9 | $ | 1.48 | |||||||||||||||||||
Non-GAAP Adjustments: | |||||||||||||||||||||||||||||||||||||||
Purchase Accounting Amortization | 3.1 | — | 3.1 | 3.1 | (0.9 | ) | 2.2 | 0.04 | 5.2 | — | 5.2 | 5.2 | (1.5 | ) | 3.7 | 0.06 | |||||||||||||||||||||||
Restructuring, Asset Impairment, Severance, and Other, net | — | (6.7 | ) | 6.7 | 6.7 | (1.7 | ) | 5.0 | 0.08 | — | (2.5 | ) | 2.5 | 2.5 | (0.6 | ) | 1.9 | 0.03 | |||||||||||||||||||||
Warehouse Fire Recovery (1) | — | — | — | (0.6 | ) | 0.1 | (0.4 | ) | (0.01 | ) | — | — | — | — | — | — | — | ||||||||||||||||||||||
Deferred Taxes - Rate Changes and Other (2) | — | — | — | — | (10.4 | ) | (10.4 | ) | (0.18 | ) | — | — | — | — | — | — | — | ||||||||||||||||||||||
Cyber Event Impact | — | — | — | — | — | — | — | — | 0.7 | (0.7 | ) | (5.5 | ) | 1.3 | (4.2 | ) | (0.07 | ) | |||||||||||||||||||||
Loss on Debt Extinguishment | — | — | — | 3.1 | (0.7 | ) | 2.3 | 0.04 | |||||||||||||||||||||||||||||||
Property Casualty Loss (3) | — | — | — | — | — | — | — | — | — | — | (2.3 | ) | 0.6 | (1.8 | ) | (0.03 | ) | ||||||||||||||||||||||
Loss on Foreign Subsidiary Liquidation (4) | — | — | — | — | — | — | — | — | — | — | 2.2 | — | 2.2 | 0.04 | |||||||||||||||||||||||||
UK Pension Surplus Tax Rate Change | — | — | — | — | — | — | — | — | — | — | — | (2.5 | ) | (2.5 | ) | (0.04 | ) | ||||||||||||||||||||||
Adjustments Subtotal * | 3.1 | (6.7 | ) | 9.8 | 12.3 | (13.6 | ) | (1.3 | ) | (0.02 | ) | 5.2 | (1.8 | ) | 7.0 | 2.0 | (2.7 | ) | (0.7 | ) | (0.01 | ) | |||||||||||||||||
Adjusted (non-GAAP) * | $ | 540.5 | $ | 366.7 | $ | 173.8 | $ | 114.8 | $ | 1.94 | $ | 488.1 | $ | 346.7 | $ | 141.4 | $ | 86.2 | $ | 1.46 | |||||||||||||||||||
(1) Represents insurance recovery of loss recognized in the second quarter of 2020. | |||||||||||||||||||||||||||||||||||||||
(2) In July 2025, Germany enacted tax legislation to reduce the German corporate income tax rate by 1% annually from 2028 to 2032. This resulted in a review and remeasurement of the Company's German deferred tax assets and liabilities and a non-cash credit to income tax expense in the third quarter of 2025. | |||||||||||||||||||||||||||||||||||||||
(3) Represents insurance recovery of loss recognized in the first quarter of 2023. | |||||||||||||||||||||||||||||||||||||||
(4) In 2024, our Thailand subsidiary was substantially liquidated and the related cumulative translation adjustment was recognized in other expense. | |||||||||||||||||||||||||||||||||||||||
* Note: Sum of reconciling items may differ from total due to rounding of individual components |
Reconciliation of Segment GAAP Financial Measures to Non-GAAP Financial Measures ("Currency-Neutral Net Sales", "Adjusted Gross Profit" and "AOI") (In millions) | |||||||||||||||||||
Fourth Quarter 2025 | Fourth Quarter 2024 | ||||||||||||||||||
AMS Segment | EAAA Segment | Consolidated * | AMS Segment | EAAA Segment | Consolidated * | ||||||||||||||
Net Sales as Reported (GAAP) | $ | 205.9 | $ | 143.5 | $ | 349.4 | $ | 205.7 | $ | 129.3 | $ | 335.0 | |||||||
Impact of Changes in Currency | (0.1 | ) | (8.9 | ) | (9.0 | ) | — | — | — | ||||||||||
Currency-Neutral Net Sales * | $ | 205.8 | $ | 134.6 | $ | 340.4 | $ | 205.7 | $ | 129.3 | $ | 335.0 | |||||||
* Note: Sum of reconciling items may differ from total due to rounding of individual components |
Fiscal Year 2025 | Fiscal Year 2024 | ||||||||||||||||||
AMS Segment | EAAA Segment | Consolidated * | AMS Segment | EAAA Segment | Consolidated * | ||||||||||||||
Net Sales as Reported (GAAP) | $ | 843.9 | $ | 543.0 | $ | 1,386.9 | $ | 800.8 | $ | 514.8 | $ | 1,315.7 | |||||||
Impact of Changes in Currency | 1.0 | (15.9 | ) | (14.9 | ) | — | — | — | |||||||||||
Currency-Neutral Net Sales * | $ | 844.9 | $ | 527.1 | $ | 1,371.9 | $ | 800.8 | $ | 514.8 | $ | 1,315.7 | |||||||
* Note: Sum of reconciling items may differ from total due to rounding of individual components |
Fourth Quarter 2025 | Fourth Quarter 2024 | ||||||||||||||||||
AMS Segment | EAAA Segment | Consolidated * | AMS Segment | EAAA Segment | Consolidated * | ||||||||||||||
GAAP Operating Income (Loss) | $ | 27.3 | $ | 8.0 | $ | 35.4 | $ | 28.5 | $ | 1.2 | $ | 29.6 | |||||||
Non-GAAP Adjustments: | |||||||||||||||||||
Purchase Accounting Amortization | — | — | — | — | 1.3 | 1.3 | |||||||||||||
Cyber Event Impact | — | — | — | (0.1 | ) | (0.2 | ) | (0.3 | ) | ||||||||||
Restructuring, Asset Impairment, Severance, and Other, net | 0.8 | 2.1 | 2.9 | 1.0 | 1.2 | 2.2 | |||||||||||||
Adjustments Subtotal * | 0.8 | 2.1 | 2.9 | 0.9 | 2.2 | 3.1 | |||||||||||||
AOI * | $ | 28.1 | $ | 10.1 | $ | 38.2 | $ | 29.4 | $ | 3.4 | $ | 32.8 | |||||||
* Note: Sum of reconciling items may differ from total due to rounding of individual components |
Fiscal Year 2025 | Fiscal Year 2024 | ||||||||||||||||||
AMS Segment | EAAA Segment | Consolidated * | AMS Segment | EAAA Segment | Consolidated * | ||||||||||||||
GAAP Operating Income (Loss) | $ | 135.7 | $ | 28.3 | $ | 164.0 | $ | 105.3 | $ | 29.1 | $ | 134.4 | |||||||
Non-GAAP Adjustments: | |||||||||||||||||||
Purchase Accounting Amortization | — | 3.1 | 3.1 | — | 5.2 | 5.2 | |||||||||||||
Cyber Event Impact | — | — | — | (0.4 | ) | (0.4 | ) | (0.7 | ) | ||||||||||
Restructuring, Asset Impairment, Severance, and Other, net | 1.6 | 5.1 | 6.7 | 1.6 | 0.9 | 2.5 | |||||||||||||
Adjustments Subtotal * | 1.6 | 8.2 | 9.8 | 1.3 | 5.7 | 7.0 | |||||||||||||
AOI * | $ | 137.3 | $ | 36.5 | $ | 173.8 | $ | 106.6 | $ | 34.8 | $ | 141.4 | |||||||
* Note: Sum of reconciling items may differ from total due to rounding of individual components |
(in millions) | Fourth Quarter 2025 | Fourth Quarter 2024 | Fiscal Year 2025 | Fiscal Year 2024 | |||||||||||
Net Income as Reported (GAAP) | $ | 24.4 | $ | 21.8 | $ | 116.1 | $ | 86.9 | |||||||
Income Tax Expense | 2.7 | 5.6 | 20.8 | 26.6 | |||||||||||
Interest Expense (including debt issuance cost amortization) | 6.5 | 4.9 | 19.5 | 23.2 | |||||||||||
Depreciation and Amortization (excluding debt issuance cost amortization) | 9.5 | 9.6 | 37.9 | 37.3 | |||||||||||
Share-based Compensation Expense | 3.8 | 3.7 | 14.4 | 12.9 | |||||||||||
Purchase Accounting Amortization | — | 1.3 | 3.1 | 5.2 | |||||||||||
Restructuring, Asset Impairment, Severance, and Other, net | 2.9 | 2.2 | 6.7 | 2.5 | |||||||||||
Cyber Event Impact | — | (5.1 | ) | — | (5.5 | ) | |||||||||
Property Casualty Loss (1) | — | — | — | (2.3 | ) | ||||||||||
Warehouse Fire Recovery (2) | — | — | (0.6 | ) | — | ||||||||||
Loss on Foreign Subsidiary Liquidation (3) | — | 2.2 | — | 2.2 | |||||||||||
Adjusted Earnings before Interest, Taxes, Depreciation and Amortization (AEBITDA)* | $ | 49.8 | $ | 46.0 | $ | 217.9 | $ | 189.0 | |||||||
(1) Represents insurance recovery of loss recognized in the first quarter of 2023. | |||||||||||||||
(2) Represents insurance recovery of loss recognized in the second quarter 2020. | |||||||||||||||
(3) In 2024, our Thailand subsidiary was substantially liquidated and the related cumulative translation adjustment was recognized in other expense. | |||||||||||||||
Note: Sum of reconciling items may differ from total due to rounding of individual components | |||||||||||||||
As of 12/28/25 | |||||||||||||||
Total Debt, net | $ | 181.6 | |||||||||||||
Total Cash on Hand | (71.3 | ) | |||||||||||||
Total Debt, Net of Cash on Hand (Net Debt) | $ | 110.3 | |||||||||||||
The impacts of changes in foreign currency presented in the tables are calculated based on applying the prior year period's average foreign currency exchange rates to the current year period. The Company believes that the above non-GAAP performance measures, which management uses in managing and evaluating the Company’s business, may provide users of the Company’s financial information with additional meaningful basis for comparing the Company’s current results and results in a prior period, as these measures reflect factors that are unique to one period relative to the comparable period. However, these non?GAAP performance measures should be viewed in addition to, and not as an alternative for, the Company’s reported results under accounting principles generally accepted in the United States. Tax effects identified above (when applicable) are calculated using the statutory tax rate for the jurisdictions in which the charge or income occurred. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20260224280163/en/
Media Contact:
Christine Needles
Global Corporate Communications
[email protected]
+1 404-491-4660
Investor Contact:
Bruce Hausmann
Chief Financial Officer
[email protected]
+1 770-437-6802
FAQ**
How does Interface Inc. TILE plan to further enhance its cash generation strategy, considering its current operational cash flow trends?
What initiatives is Interface Inc. TILE pursuing within its "One Interface" strategy to ensure sustainable growth amid ongoing macroeconomic uncertainties?
How is Interface Inc. TILE addressing the competitive landscape to maintain its market share, particularly in the Healthcare and Education sectors?
Can Interface Inc. TILE provide insights into how it plans to navigate potential increases in input costs while maintaining profitability in future quarters?
**MWN-AI FAQ is based on asking OpenAI questions about Interface Inc. (NASDAQ: TILE).
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