Overview

* Interface Q2 net sales rise 8% yr/yr, beating analyst expectations

* Adjusted EPS for Q2 beats consensus, rising 50% yr/yr

* Co raises full-year guidance amid strong performance and market share gains

Outlook

* Interface raises full-year 2025 net sales guidance to $1.370 bln-$1.390 bln

* Company anticipates Q3 2025 net sales between $350 mln and $360 mln

* Interface expects adjusted gross profit margin of 37.7% for full-year 2025

* Company sees adjusted gross profit margin of 38.0% for Q3 2025

Result Drivers

* ONE INTERFACE STRATEGY - Co attributes strong sales growth and profitability expansion to its One Interface strategy, driving market share gains, especially in the Americas

* SEGMENT GROWTH - Significant increases in global billings in Healthcare (28%), Education (11%), and Corporate Office (3%) segments contributed to overall performance

* GROSS MARGIN EXPANSION - Gross profit margin improved by 403 basis points due to higher pricing, favorable product mix, and manufacturing cost benefits

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Sales Beat $375.50 $360.60

mln mln (3

Analysts

)

Q2 Beat $0.6 $0.47 (3

Adjusted Analysts

EPS )

Q2 EPS $0.55

Q2 Net $32.60

Income mln

Q2 $52 mln

Operatin

g Income

Analyst Coverage

* The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the construction supplies & fixtures peer group is "buy."

* Wall Street's median 12-month price target for Interface Inc ( TILE ) is $30.00, about 31.3% above its July 31 closing price of $20.62

* The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 12 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)