Interface, Inc. Reports 8.3% Revenue Growth in Q2 2025, Raises Full-Year Outlook

Interface, Inc. reported a solid financial performance for the second quarter and first half of 2025, with consolidated net sales reaching $375.5 million, an increase of 8.3% from $346.6 million in the same period last year. For the first six months, net sales totaled $672.9 million, up 5.7% from $636.4 million in the prior year. The growth was primarily driven by increased customer demand in the education, healthcare, and corporate office market segments, along with higher average sales prices. The company’s operating income for the second quarter was $52.0 million, compared to $38.2 million in the previous year, while net income rose to $32.6 million, or $0.55 per diluted share, from $22.6 million, or $0.38 per diluted share.

In terms of operational metrics, Interface saw a notable increase in gross profit margins, which improved to 39.4% in the second quarter of 2025 from 35.4% in the same quarter of 2024. This improvement was attributed to lower manufacturing costs due to favorable fixed cost absorption and production efficiencies. The company’s selling, general, and administrative expenses also increased, totaling $95.9 million for the second quarter, reflecting higher employee benefits and labor costs, as well as increased variable compensation linked to improved sales performance.

Interface's balance sheet showed significant growth, with total assets rising to $1.28 billion as of June 29, 2025, compared to $1.17 billion at the end of 2024. Cash and cash equivalents increased to $121.7 million, up from $99.2 million, while accounts receivable and inventories also saw increases, reflecting higher sales and anticipated customer demand. The company’s long-term debt remained stable at approximately $303.9 million, with a slight increase in the current portion of long-term debt.

Strategically, Interface has continued to focus on enhancing its product offerings and operational efficiencies. The company has been investing in manufacturing automation and robotics, which contributed to a $14.8 million cash outflow in investing activities during the first half of 2025. Additionally, Interface has been actively repurchasing shares, having bought back 217,500 shares at an average price of $20.44 per share as part of its ongoing share repurchase program.

Looking ahead, Interface has raised its outlook for the full fiscal year of 2025, anticipating continued net sales growth in the third quarter compared to the same period last year. However, the company acknowledged potential challenges from global economic conditions, including tariff costs and supply chain disruptions. The consolidated backlog of unshipped orders stood at approximately $263.2 million as of July 20, 2025, indicating a strong demand pipeline despite ongoing market uncertainties.