Interface’s second quarter results were met with a highly positive market reaction, as the company delivered significant year-over-year growth in both revenue and profitability. Management attributed the outperformance to broad-based sales momentum, particularly in the Americas, and highlighted the success of the One Interface Strategy in consolidating sales teams across product categories. CEO Laurel Hurd pointed to nearly 40% growth in nora rubber sales in the Americas and strong results in education and healthcare market segments, noting, “We have positioned the Americas business to win across several dimensions, including our combined selling teams.”

Is now the time to buy TILE? Find out in our full research report (it’s free).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From Interface’s Q2 Earnings Call

• Alexander Peter Paris (Barrington Research) asked about the pacing of Q2 order momentum and July trends. CEO Laurel Hurd noted order growth was strong early in the quarter, softened in May and early June, then rebounded, with July orders remaining robust across markets.
• Paris (Barrington Research) inquired about growth in government and retail segments. Hurd responded that nearly all markets, including government and retail, contributed to broad-based growth, with particular strength in core education and healthcare segments.
• Brian Biros (Thompson Research Group) questioned the sustainability and scale of the One Interface Strategy. Hurd said the strategy remains in early stages, especially for nora rubber, and expects further investments in automation and sales reach.
• Biros (Thompson Research Group) asked about the drivers of margin expansion. CFO Bruce Hausmann attributed roughly 80% of margin gains to productivity improvements and 20% to price and mix, emphasizing operational execution.
• David Sutherland MacGregor (Longbow Research) sought clarity on whether sales were pulled forward. Hausmann stated there was no evidence of pull-forward, and most of the increased backlog is expected to ship this year, with only some longer-term contracts extending beyond 2025.

Catalysts in Upcoming Quarters

Looking ahead, the StockStory team will monitor (1) the rollout and impact of automation in Australia and Europe, (2) continued market share gains and product traction in the mid-market segment, and (3) Interface’s ability to manage tariff headwinds through pricing and productivity. Execution on new product launches and backlog conversion will also be important markers for sustained momentum.

Interface currently trades at $26.07, up from $20.63 just before the earnings. Is there an opportunity in the stock?The answer lies in our full research report (it’s free).

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