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Dec 28, 2025
Interface Q4 2025 Earnings Report
Interface reported Q4 2025 results with sales growth and significant debt reduction.
Key Takeaways
Interface delivered a strong fourth quarter to close a record-breaking fiscal year 2025. The company saw net sales grow 4.3% in Q4, driven by strength in Healthcare and Education segments. Significant operational efficiencies and a disciplined capital allocation strategy allowed for a 40% reduction in total debt year-over-year while increasing adjusted earnings per share by 44%.
Q4 net sales increased 4.3% year-over-year to $349.4 million, with a 1.6% increase on a currency-neutral basis.
Adjusted EPS grew 44.1% to $0.49 compared to $0.34 in the prior year quarter.
Total debt was slashed by 40% year-over-year, ending the period at $181.6 million.
Gross profit margin expanded 208 basis points to 38.6%, benefiting from favorable pricing and mix.
Revenue by Geographic Location
Forward Guidance
Interface provides a positive outlook for FY 2026, including the impact of a 53rd week in the fiscal year.
Positive Outlook
- Full year net sales projected between $1.420 billion and $1.460 billion.
- Expected adjusted gross profit margin of 38.5% to 39.0%.
- Adjusted SG&A expenses expected to improve to 26.2% - 26.4% of net sales.
- Solid entry into 2026 with a healthy backlog.
- Strategic focus on expanding addressable markets through new innovation.
Challenges Ahead
- Macro conditions remain dynamic and uncertain.
- Competitive industry environment persists.
- Q1 2026 net sales guidance of $315M-$325M reflects typical seasonality.
- Anticipated adjusted interest & other expenses of $16 million for the full year.
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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