INTERFACE INC Q1 FY2025 earnings call

• One Interface strategy is working, with appointment of first VP of Global Product Category Management to accelerate product innovation pipeline. • Launched two carpet tile collections in Q1, with upcoming showcases at Clerkenwell Design Week and NeoCon. • Continues sustainability efforts, including strategic investment to incorporate captured carbon into manufacturing processes. • Diversification strategy driving growth: education up 13%, health care up 16%, corporate office billings down 7% but timing expected to turn around.

Interface delivered 4% year-over-year currency neutral growth in net sales. In the Americas, net sales grew 6% and currency neutral orders were up 10%. Global education billings were up 13% due to design leadership and sustainable solutions. Global health care billings were up 16% year-over-year. Corporate office billings were down 7% year-over-year in the quarter, but viewed as timing with expectation of growth for the full year.

• Anticipates net sales of $355 million to $365 million for Q2 2025. • For full fiscal 2025, net sales expected to be $1.340 billion to $1.365 billion. • Adjusted gross profit margin, SG&A expenses, and other financial metrics provided for Q2 and full year.

• Dynamic macro environment uncertainty. • Tariff impact with approximately 15% of global product costs affected. • Potential timing mismatches in offsetting tariff costs.

Q: Q1 results slightly better than expected, expand on how One Interface strategy contributed.

A: Americas business grew due to combined selling teams, all product categories grew globally, and success in healthcare and education growing double-digits.

Q: Geographic growth, particularly APAC and China.

A: Asia-PAC was strong, with Asia up double digits, while Europe and Australia were softer.

Q: Tariffs, timing concern on expense and pricing offset.

A: Pricing hits quickly with commission-based selling team, and inventory in house not impacted by tariffs.

Q: Return to office dynamic across verticals.

A: Still early innings on office, with churn and flight to quality providing opportunities for growth.