Interface, Inc. Reports 2.6% Net Sales Increase to $297.4 Million in Q1 2025

Interface, Inc. reported a consolidated net sales increase of 2.6% for the first quarter of 2025, reaching $297.4 million compared to $289.7 million in the same period last year. The growth was primarily driven by higher sales volumes in the education, healthcare, and retail market segments, although currency fluctuations negatively impacted sales by approximately $4.3 million. Operating income for the quarter was $23.2 million, down from $24.4 million a year earlier, attributed to increased manufacturing and freight costs, which outweighed the benefits of higher pricing. Net income decreased to $13.0 million, or $0.22 per diluted share, from $14.2 million, or $0.24 per diluted share, in the prior year.

The company's financial position showed a slight increase in total assets, which rose to $1.19 billion from $1.17 billion at the end of the previous fiscal year. Current assets increased to $579.4 million, driven by a rise in inventories, which reached $281.7 million, up from $260.6 million. However, accounts receivable decreased to $162.8 million, reflecting effective customer collections. Total liabilities decreased slightly to $678.7 million, with long-term debt remaining stable at approximately $302.4 million.

In terms of operational developments, Interface reported a significant increase in its backlog of unshipped orders, which stood at approximately $255.4 million as of April 20, 2025, compared to $223.4 million in early February. The company continues to face challenges from global economic conditions, including inflation, supply chain disruptions, and geopolitical tensions, which may impact future performance. The company is actively evaluating its cost structure and global manufacturing footprint to identify opportunities for cost reduction.

Looking ahead, Interface anticipates revenue growth in the second quarter of 2025 compared to the first quarter, despite ongoing macroeconomic uncertainties. The company expects to mitigate potential impacts from tariffs through pricing and productivity initiatives. Cash flows from operations and available liquidity are projected to be sufficient to meet foreseeable cash requirements, although fluctuations in raw material availability and demand for products could affect cash flows. The company remains committed to navigating the challenges posed by the current economic landscape while focusing on strategic growth opportunities.