Interface (TILE) Q4 2024 earnings summary

Executive summary

• Achieved 4.3% year-over-year net sales growth to $1.316B in 2024, nearly doubled GAAP EPS to $1.48, and led the market in commercial flooring with a strong Americas performance and sustainability focus.

• Integrated global supply chain and selling teams drove operational efficiencies, margin expansion, and accelerated order growth.

• Advanced ESG initiatives, including a 12% GHG reduction, new Board committees, and a carbon negative goal by 2040.

• Maintained premium brand positioning, industry-leading margins, and global share leadership in carpet tile and LVT.

• Operates six manufacturing locations across four continents, serving diverse customer verticals and geographies.

Financial highlights

• FY2024 net sales were $1.316B, up 4.3%; Q4 net sales were $335M, up 3% year-over-year.

• FY2024 adjusted EBITDA was $189M (14.4% of net sales), up 17%; adjusted operating income was $141.4M, up 21%.

• FY2024 adjusted EPS was $1.46, up 46%; GAAP EPS was $1.48, nearly doubled year-over-year.

• Gross profit margin improved 174 bps to 36.7% (GAAP) and 173 bps to 37.1% (adjusted).

• Net debt reduced to $203.5M; net leverage ratio improved to 1.1x adjusted EBITDA.

Outlook and guidance

• 2025 net sales expected between $1.315B–$1.365B; Q1 2025 net sales guidance is $290M–$300M.

• 2025 adjusted gross profit margin projected at 37.2%–37.4%; Q1 margin at ~37.5%.

• FX expected to negatively impact 2025 net sales growth by 1–2%.

• Capital expenditures for 2025 guided at $45M, with $10M for growth and $35M for maintenance.

• Strategic priorities include margin expansion, reinvestment, leverage management, and shareholder returns.