Interface’s first quarter results were met with a positive market reaction, as the company delivered sales growth in line with Wall Street expectations and outperformed on non-GAAP earnings. Management pointed to broad-based volume gains across carpet tile, luxury vinyl tile (LVT), and rubber flooring, with the Americas region showing particular strength. CEO Laurel Hurd highlighted the company’s One Interface strategy and the benefits of a diversified customer base, noting especially strong momentum in education and healthcare segments. Hurd also cited continued operational discipline and the successful expansion of Interface’s product mix as key drivers behind the quarter’s performance.
Is now the time to buy TILE? Find out in our full research report (it’s free).
Interface (TILE) Q1 CY2025 Highlights:
- Revenue: $297.4 million vs analyst estimates of $296.5 million (2.6% year-on-year growth, in line)
- Adjusted EPS: $0.25 vs analyst estimates of $0.21 (19% beat)
- Adjusted EBITDA: $37 million vs analyst estimates of $34.95 million (12.4% margin, 5.9% beat)
- The company slightly lifted its revenue guidance for the full year to $1.35 billion at the midpoint from $1.34 billion
- Operating Margin: 7.8%, in line with the same quarter last year
- Market Capitalization: $1.2 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions Interface’s Q1 Earnings Call
- Brian Biros (Thompson Research Group) asked how the One Interface strategy contributed to margin improvement. CEO Laurel Hurd explained that volume gains across product categories and strong performance in healthcare and education were key, with most growth driven by volume rather than price.
- Alex Paris (Barrington Research) inquired about regional performance, particularly Asia-Pacific and Europe. CFO Bruce Hausmann noted double-digit growth in Asia-Pacific on a currency-neutral basis, while Europe and Australia experienced softer demand.
- Alex Paris (Barrington Research) also asked about the impact of tariffs and whether mitigation strategies were included in guidance. Hausmann confirmed that exposure is limited to specific imports and that mitigation plans are already reflected in current guidance.
- David MacGregor (Longbow Research) probed for potential timing mismatches between new tariff costs and offsetting price increases. Hurd said their commission-based sales model and existing inventory should ensure price changes flow quickly, minimizing timing issues.
- David MacGregor (Longbow Research) further queried the expected impact of the new VP of Global Product Category Management. Hurd clarified that the role aims for long-term innovation and growth acceleration, with incremental benefits expected over several quarters.
Catalysts in Upcoming Quarters
Our analyst team will be closely monitoring (1) the pace and effectiveness of tariff mitigation through pricing and productivity, (2) sustained strength and expansion in education and healthcare segments, and (3) the rollout and initial impact of the new global product management function. Additionally, we will track any signs of margin resilience amid macroeconomic uncertainty and the company’s progress on sustainability targets.
Interface currently trades at $20.92, up from $18.82 just before the earnings. Is the company at an inflection point that warrants a buy or sell? Find out in our full research report (it’s free).
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