Overview
Interface Q2 net sales rise 8% yr/yr, beating analyst expectations
Adjusted EPS for Q2 beats consensus, rising 50% yr/yr
Co raises full-year guidance amid strong performance and market share gains
Outlook
Interface raises full-year 2025 net sales guidance to $1.370 bln-$1.390 bln
Company anticipates Q3 2025 net sales between $350 mln and $360 mln
Interface expects adjusted gross profit margin of 37.7% for full-year 2025
Company sees adjusted gross profit margin of 38.0% for Q3 2025
Result Drivers
ONE INTERFACE STRATEGY - Co attributes strong sales growth and profitability expansion to its One Interface strategy, driving market share gains, especially in the Americas
SEGMENT GROWTH - Significant increases in global billings in Healthcare (28%), Education (11%), and Corporate Office (3%) segments contributed to overall performance
GROSS MARGIN EXPANSION - Gross profit margin improved by 403 basis points due to higher pricing, favorable product mix, and manufacturing cost benefits
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Sales | Beat | $375.50 mln | $360.60 mln (3 Analysts) |
Q2 Adjusted EPS | Beat | $0.6 | $0.47 (3 Analysts) |
Q2 EPS |
| $0.55 |
|
Q2 Net Income |
| $32.60 mln |
|
Q2 Operating Income |
| $52 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the construction supplies & fixtures peer group is "buy."
Wall Street's median 12-month price target for Interface Inc is $30.00, about 31.3% above its July 31 closing price of $20.62
The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 12 three months ago
Press Release: ID:nBw93Mh3Ta