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Jun 29, 2025
Interface Q2 2025 Earnings Report
Interface reported strong second quarter 2025 results, exceeding expectations with significant sales growth and expanded profitability, driven by its 'One Interface' strategy.
Key Takeaways
Interface delivered strong second quarter 2025 results, with net sales totaling $376 million, an 8% increase year-over-year. The company saw significant profitability expansion, with GAAP EPS increasing by 45% to $0.55 and Adjusted EPS rising by 50% to $0.60. This performance was attributed to the 'One Interface' strategy, which fueled growth across all product categories and key market segments, particularly in the Americas.
Net sales reached $376 million, an 8% increase year-over-year, and 7% currency neutral.
GAAP earnings per diluted share increased by 45% to $0.55, while Adjusted earnings per diluted share rose by 50% to $0.60.
Gross profit margin expanded by 403 basis points to 39.4%, driven by higher pricing, favorable product mix, and increased sales volumes.
The 'One Interface' strategy continued to drive strong momentum and market share gains, especially in the Americas with 11% currency-neutral net sales growth.
Revenue by Geographic Location
Forward Guidance
Interface is raising its full fiscal year 2025 guidance based on strong Q2 2025 results, while acknowledging a dynamic and uncertain global macro environment.
Positive Outlook
- Full fiscal year 2025 net sales guidance raised to $1.370 billion to $1.390 billion (previously $1.340 billion to $1.365 billion).
- Adjusted gross profit margin for full fiscal year 2025 raised to 37.7% of net sales (previously 37.2% to 37.4%).
- Anticipates Q3 Fiscal Year 2025 net sales between $350 million to $360 million.
- Adjusted effective income tax rate for full fiscal year 2025 lowered to 26.0% (previously 27.0%).
- Capital expenditures for full fiscal year 2025 remain consistent at $45 million.
Challenges Ahead
- Adjusted SG&A expenses for full fiscal year 2025 increased to $362 million (previously 26% of net sales).
- Adjusted interest & other expenses for full fiscal year 2025 increased to $25 million (previously $24 million).
- Acknowledges a dynamic and uncertain global macro environment.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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