Flooring maker Interface beats Q3 profit estimates on margin expansion, raises guidance

Reuters
2025/10/31
Flooring maker Interface beats Q3 profit estimates on margin expansion, raises guidance

Overview

  • Interface Q3 net sales rose 5.9% yr/yr, beating analyst expectations

  • Adjusted EPS for Q3 beats estimates, reflecting One Interface strategy effectiveness

  • Company raises full-year guidance, citing strong year-to-date results

Outlook

  • Interface raises full-year 2025 net sales guidance to $1.375 bln-$1.390 bln

  • Company expects full-year adjusted gross profit margin to be 38.5%

  • Adjusted SG&A expenses for 2025 expected to remain at $362 mln

Result Drivers

  • ONE INTERFACE STRATEGY - Strategy drove growth by enhancing global functions, empowering local teams, and streamlining operations

  • REGIONAL SALES GAINS - Increased sales in Americas and EAAA regions contributed to growth

  • MARGIN EXPANSION - Gross profit margin improved due to favorable pricing, product mix, and manufacturing efficiencies

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Sales

Beat

$364.50 mln

$358.18 mln (3 Analysts)

Q3 Adjusted EPS

Beat

$0.61

$0.48 (3 Analysts)

Q3 EPS

$0.78

Q3 Net Income

$46.10 mln

Q3 Operating Income

$53,400,000

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 $32.00, about 16.7% above its October 30 closing price of $26.67

  • The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 12 three months ago

Press Release: ID:nBw7Rr2PQa

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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