Q3 2025 Interface Inc Earnings Call Transcript

Oct 31, 2025 / 12:00 PM GMT
Release Date Price: MXN165

Key Points

Positve
  • Interface Inc (TILE) reported a 4% increase in currency neutral net sales, exceeding expectations.
  • The company achieved a significant 208 basis point expansion in adjusted gross profit margin due to favorable mix and manufacturing efficiencies.
  • Nora Rubber sales grew by 20% in the third quarter, with a 19% increase year-to-date, driven by a unified selling team.
  • Investments in automation and robotics have led to meaningful productivity gains and margin improvements.
  • Interface Inc (TILE) was recognized with multiple awards for design, service, quality, and sustainability, highlighting its industry leadership.
Negative
  • Education billings declined slightly by 2.5% in the third quarter, attributed to timing issues.
  • The company faces challenges in Europe due to more difficult macroeconomic conditions.
  • Tariffs have diluted the adjusted gross profit percentage by approximately 30 basis points in the third quarter.
  • Higher raw material and tariff-related costs partially offset the gains from favorable pricing and product mix.
  • Adjusted SG&A expenses increased to $90 million, primarily due to higher sales commissions, variable compensation, inflation, and foreign currency exchange variances.


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E D I T E D V E R S I O N

TILE.OQ - Interface Inc
Q3 2025 Interface Inc Earnings Call
Oct 31, 2025 / 12:00PM GMT

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Presentation
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Unidentified_1 [1]
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Thank you for standing by and welcome to the Interface 3rd quarter 2025 earnings conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question-and-answer session. If you would like to ask a question during this time, simply press star, followed by the number one on your telephone keypad. If you'd like to withdraw your question, again, press the 1.

Thank you. I'd now like to turn the call over to Christine Needle, Global Communications. You may begin.

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Unidentified_2 [2]
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