Interface Inc. reported record fourth‑quarter 2025 earnings on February 24 2026, delivering adjusted earnings per share of $0.49—$0.09, or 22.5%, above the consensus estimate of $0.40. Revenue came in at $349.4 million, slightly below the $349.64 million consensus, marking a 4.3% year‑over‑year increase.
Revenue growth was driven by a 21% year‑over‑year rise in the healthcare segment, the company’s strongest performer, and a 7% increase in backlog entering 2026. The education and corporate segments also contributed to the top‑line, while the rubber flooring segment, which includes the newly launched Noravant product, began to show early traction.
Adjusted gross profit margin expanded to 38.6% in Q4, up 169 basis points from the 36.7% margin reported in Q4 2024. The improvement was largely attributable to favorable pricing and a shift toward higher‑margin product mix, partially offset by higher input costs. A non‑recurring inventory reserve adjustment added roughly 80 basis points to the quarter’s margin, a benefit not expected to recur.
Full‑year 2025 results also reflected strong performance, with net sales of $1.39 billion—5.4% higher than the $1.32 billion reported in 2024—and adjusted EPS of $1.94, up 33% from $1.46. The company’s operating cash flow reached $167.9 million, underscoring its robust cash generation.
Management guided for fiscal year 2026 net sales of $1.42 billion to $1.46 billion, a range that exceeds consensus estimates and signals confidence in continued demand. CFO Bruce Hausmann noted, "Fourth quarter net sales were $349.4 million, up 4.3% as reported and 1.6% on a currency‑neutral basis…" CEO Laurel Hurd added, "We delivered record results in 2025 as our team executed well in a dynamic macro environment…" The guidance reflects expectations of sustained pricing power and operational efficiencies.
Investors reacted positively to the earnings release, with the EPS beat and margin expansion cited as key drivers. Analysts highlighted the company’s ability to maintain profitability amid rising input costs and noted the strategic importance of the Noravant launch as a multi‑year growth platform.
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