Interface, Inc. Q1 FY2026 earnings call

One Interface strategy is working. EMEA commercial organization aligned under a single leader, robotics solutions launched in Europe and Australia. Launched NoraVant rubber flooring innovation, two new carpet tile collections. Sustainability core, launched Good Design Never Ends campaign, over 50% of materials in products are recycled or bio-based. First quarter net sales growth, adjusted profit improvement.

Interface delivered 7% year-over-year currency-neutral growth in net sales in the first quarter. Americas currency-neutral net sales increased 8% year-over-year, EAAA currency-neutral net sales increased 4% in the first quarter. Corporate office global billings were up 16%, healthcare global billings were up 11%, education billings were up 1% in the first quarter. Carpet tile billings were up double digits in the quarter, Nora rubber billings were up 15%.

Raised full year guidance. Second quarter of fiscal 2026 net sales of 385 to 395 million, adjusted gross profit margin approx 39.9% of net sales, etc. Full fiscal year 2026 net sales of 1.45 to 1.48 billion, adjusted gross profit margin approx 38.8% to 39% of net sales, etc.

Closely monitoring Middle East developments, potential impact on people and business. Middle East represents approx 1% of net sales, expected to drive low single digit increase in input costs across global business, plans in place to offset through incremental pricing and productivity actions.

Q: Brian Byros on One Interface strategy, carpet tile growth, CapEx; A: Talked about One Interface strategy progress, carpet tile growth reasons, capital allocation for product innovation and efficiency.

Q: Alex Paris on 53-week year impact, education billings, tariffs; A: Discussed 53-week year impact on comps, education billings timing, tariff dynamics.

Q: David MacGregor on business cadence, product mix, sustainability, manufacturing efficiencies, balance sheet and M&A; A: Talked about business cadence stability, product mix dynamics, sustainability advantage, manufacturing efficiencies potential, M&A strategy.

Q: Ruben Gardner on Noravant reception, Nora application areas,毛利率 levers, pricing strategy; A: Discussed Noravant market reception, Nora application in various areas,毛利率 levers and pricing strategy