Q4 2025 Interface Inc Earnings Call Transcript
Key Points
- Interface Inc (TILE) achieved record net sales, adjusted operating income, and adjusted EBITDA in 2025, driven by the One Interface strategy.
- The company reported a 4% year-over-year increase in currency-neutral net sales, with growth across all regions and product categories.
- The US selling team model has been successful, particularly in cross-selling and expanding the nora Rubber business, which saw a 17% increase in global billings.
- Interface Inc (TILE) has made significant investments in automation and robotics, leading to productivity gains and margin expansion.
- The launch of innovative products like nora vanta is expected to expand the company's addressable market, particularly in healthcare and education sectors.
- Despite overall growth, the corporate office segment saw only slight increases, indicating potential challenges in this market.
- The company faces ongoing macroeconomic uncertainties and a competitive industry environment, which could impact future performance.
- Higher input costs partially offset the favorable pricing and product mix, affecting the adjusted gross profit margin.
- Tariff-related costs are expected to have a dilutive impact on gross profit percentage in 2026.
- The retail business experienced softness in the fourth quarter, which negatively impacted overall growth.
Good morning, ladies and gentlemen, and thank you for standing by. My name is Kelvin and I will be your conference operator today. At this time, I would like to welcome everyone to Interface Inc.'s fourth-quarter and full-year 2025 earnings conference call. (Operator Instructions)
I would now like to turn the call over to Christine Needles, Corporate Communications. Please go ahead.
Good morning, and welcome to Interface's conference call regarding fourth-quarter and full-year 2025 results, hosted by Laurel Hurd, CEO; and Bruce Hausmann, CFO.
During today's conference call, any management comments regarding Interface's business, which are not historical information, are forward-looking statements within the meaning of federal securities laws. Forward-looking statements include statements regarding the intent, belief or current expectations of our management team as well as the assumptions on which such statements are based.
Any forward-looking statements are not
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