Interface's Q4 profit exceeded expectations, and the stock price rose slightly

Atlanta - Interface Inc. (NASDAQ:TILE) announced on Tuesday that its fourth-quarter adjusted earnings per share were $0.49, beating analysts’ expectations of $0.40, with revenue of $349.4 million, slightly below the market consensus of $349.64 million.

The company’s stock rose 1.90% in after-hours trading.

This global flooring company’s fourth-quarter revenue increased 4.3% year-over-year, and 1.6% at constant currency.

Adjusted gross margin expanded 169 basis points year-over-year to 38.6%, driven by favorable pricing, product mix, and one-time inventory reserve adjustments, partially offset by higher input costs.

For the full fiscal year 2025, Interface achieved a record net sales of $1.39 billion, up 5.4% year-over-year, with adjusted earnings per share of $1.94, up 32.9% from $1.46 last year.

CEO Laurel Hurd stated, “We achieved record results in 2025, and our team performed exceptionally well in a dynamic macro environment. At constant currency, net sales increased 4% year-over-year, with growth across all regions, product categories, and key market segments.”

For the first quarter of fiscal 2026, Interface provided revenue guidance of $315 million to $325 million. The midpoint of $320 million exceeds the analyst consensus of $315 million. The company noted that its 2026 fiscal year includes 53 weeks, with one extra week in the first quarter.

For the full fiscal year 2026, Interface expects net sales of $1.42 billion to $1.46 billion, with adjusted gross margin of 38.5% to 39.0%. The company anticipates adjusted selling and administrative expenses to be 26.2% to 26.4% of net sales, with capital expenditures of approximately $55 million.

In the fourth quarter, Interface generated $49 million in cash from operations, repaid $128 million of debt, and repurchased $13 million of common stock.

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