Interface: A differentiated global flooring leader Purpose-driven growth with disciplined execution 50+ year history INVESTOR UPDATE | FEBRUARY 2026 FORWARD LOOKING STATEMENTS AND NON-GAAP MEASURES This presentation contains forward-looking statements, including, in particular, statements about Interface's plans, strategies and prospects. These are based on the Company's current assumptions, expectations and projections about future events. Although Interface believes that the expectations reflected in thes ...

Core Insights - Interface's third quarter results demonstrate effective execution of its One Interface strategy, with strong momentum in the health care segment and broad regional growth as key drivers [1] - CEO Laurel Hurd highlighted a 29% growth in global health care billings and improvements in manufacturing productivity [1] - The company reported benefits from product mix, automation, and a steady pace of orders, indicating resilience in a challenging macro environment [1] Financial Performance - Revenue reached $364.5 million, exceeding analyst estimates of $357.3 million, reflecting a 5.9% year-on-year growth and a 2% beat [6] - Adjusted EPS was $0.61, surpassing analyst estimates of $0.48, marking a 27.1% beat [6] - Adjusted EBITDA stood at $66.2 million, beating analyst estimates of $55.22 million, with an 18.2% margin [6] - The company slightly raised its full-year revenue guidance to $1.38 billion at the midpoint [6] - Operating margin improved to 14.6%, up from 12.3% in the same quarter last year [6] - Market capitalization is reported at $1.51 billion [6] Analyst Insights - Analyst Brian Biros inquired about the factors driving sales outperformance, to which CEO Hurd attributed strength in the health care segment and productive collaboration between Interface and Nora teams [6] - Biros also questioned the upcoming Nora Rubber investments, with Hurd explaining that these investments focus on capacity support, productivity, and innovation [6] - CFO Bruce Hausman discussed the balance between margin improvement and volume growth, indicating a focus on finding an optimal equilibrium [6] - Alexander Paris sought clarification on the education segment's softness, with Hurd noting a decline of less than 3% due to timing, while Hausman linked margin gains to manufacturing efficiencies and favorable product mix [6] - David S. MacGregor probed into the incremental margin potential from automation initiatives, with Hausman emphasizing ongoing efforts to drive efficiencies and expand product lines [6]

Financial Data and Key Metrics Changes - Interface reported currency neutral net sales growth of 7% and adjusted earnings per share of $0.60, both exceeding expectations [6][22] - Second quarter net sales totaled $375.5 million, an increase of 8.3% year-over-year, with FX neutral net sales up 7.1% [22] - Adjusted gross profit margin improved to 39.8%, a 402 basis points increase from the prior year, driven by higher pricing and favorable product mix [22][23] - Adjusted operating income rose 41% to $55.9 million compared to $39.6 million in the previous year [23] - Adjusted EBITDA increased to $64.8 million from $50.5 million year-over-year [23] Business Line Data and Key Metrics Changes - The Americas team achieved 11% sales growth, with significant market share gains in carpet tile and rubber [7][8] - Nora Rubber experienced nearly 40% growth in The Americas, indicating strong demand [8] - Global education billings increased by 11% year-over-year, with Nora becoming a growth engine in this segment [16][18] - Health care segment billings surged 28% year-over-year, driven by broad-based growth geographically [18] Market Data and Key Metrics Changes - Currency neutral consolidated orders were up 3% year-over-year, with a 2% increase in The Americas and a 4% increase in EAAA [20] - The backlog increased by 24% year-to-date, positioning the company for strong sales growth in 2025 [20][66] Company Strategy and Development Direction - The "One Interface" strategy focuses on building strong global functions to support local selling teams and enhance productivity [6][9] - The company is committed to strategic investments in automation and robotics to improve margins and operational efficiency [10][11] - Interface aims to be carbon negative by 2040, with significant reductions in carbon footprint across its product lines [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's position despite a dynamic macro environment, highlighting strong balance sheet and disciplined execution [27] - The company raised its full-year guidance based on strong Q2 results, anticipating net sales of $1.37 billion to $1.39 billion for the fiscal year [26] Other Important Information - Interface repurchased $4.3 million of common stock in the quarter, reflecting a balanced capital allocation strategy [24][41] - The company is focused on expanding its addressable market through more accessible price points in product offerings [9] Q&A Session Summary Question: What was the shape of Q2 performance on a similar basis? - Management noted that order growth momentum was strong in April, saw a slight dip in May and June, but picked back up, with July also showing strong orders [32][33] Question: Can you provide color on government and retail performance in Q2? - Management indicated that almost every market saw growth, including government and retail, with corporate office billings returning to growth at 3% [34][36] Question: What are the business conditions in Australia and Asia? - Management reported strong business conditions in Australia and Asia, with no significant macro impacts affecting operations [37] Question: What are the plans for capital allocation regarding share repurchases? - Management confirmed that the last share repurchase occurred in 2022, and while the focus remains on investing in the business, they will continue to return capital to shareholders [39][41] Question: Is the "One Interface" strategy at full run rate? - Management believes there is still room for growth, citing strong performance in the Nora Rubber business and plans for further investments in automation [45][48] Question: Was there any timing benefit or pull forward in sales? - Management stated there was no awareness of any sales being pulled forward, although some larger orders in health care may have contributed to the strong performance [59][60] Question: How sustainable are the market share gains? - Management expressed confidence in the sustainability of market share gains, attributing it to product focus and expanding addressable markets [63][64] Question: What is the timeline for the backlog? - Most of the backlog is expected to ship within the year, with some longer-term contracts included [66] Question: What are the expected returns on investment in international manufacturing assets? - Management indicated that benefits from automation in The Americas will be rolled out to Europe and Australia, with expected returns starting next year [69] Question: How does the company view the buy versus build decision? - Management emphasized a focus on internal growth and innovation, while remaining open to acquisitions if they align with strategic goals [73][74]

Financial Data and Key Metrics Changes - Interface reported currency neutral net sales growth of 7% and adjusted earnings per share of $0.60, both exceeding expectations [5][14] - Second quarter net sales totaled $375.5 million, an increase of 8.3% year-over-year, with adjusted gross profit margin at 39.8%, up 402 basis points from the previous year [21][22] - Adjusted operating income rose to $55.9 million, a 41% increase compared to the previous year, while adjusted EBITDA was $64.8 million [22][24] Business Line Data and Key Metrics Changes - The Americas team achieved 11% sales growth, with significant market share gains in carpet tile and rubber, particularly a near 40% growth in Nora Rubber [6][14] - Global education billings increased by 11% year-over-year, while health care billings surged by 28% [15][16] - Corporate office billings returned to growth, up 3% year-over-year, reflecting ongoing investments in workplace refreshes [18] Market Data and Key Metrics Changes - Currency neutral consolidated orders were up 3% year-over-year, with a 2% increase in The Americas and a 4% increase in EAAA [19] - The backlog increased by 24% year-to-date, positioning the company strongly for future sales growth [19][67] Company Strategy and Development Direction - The "One Interface" strategy focuses on building strong global functions to support local selling teams, enhancing productivity, and expanding margins through global supply chain management [5][6] - The company is committed to strategic investments in automation and robotics to improve operational efficiency and support sustainable growth [9][10] - Interface aims to be carbon negative by 2040, having already reduced its carbon footprint significantly across various product lines [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's position despite a dynamic macro environment, highlighting strong performance in The Americas and encouraging order growth in EAAA [14][31] - The company raised its full-year guidance based on strong Q2 results, anticipating net sales of $1.37 billion to $1.39 billion for the fiscal year [24][25] - Management emphasized the importance of maintaining a balanced capital allocation strategy while investing in growth and margin expansion [23][40] Other Important Information - Interface repurchased $4.3 million of common stock in the quarter, marking the first repurchase since 2022 [23][39] - The company is focused on expanding its addressable market through product offerings at more approachable price points [7][8] Q&A Session Summary Question: What was the shape of Q2 performance on a similar basis? - Management noted that order growth momentum was strong in April, saw a slight dip in May and June, but picked back up, with July also showing strong order growth [30][31] Question: Can you provide color on government and retail performance in Q2? - Management indicated that almost every market saw growth, including government and retail, with corporate, education, and health care being the primary markets [32][34] Question: What are the business conditions in Australia and Asia? - Management reported strong business conditions in Australia and Asia, with local teams and manufacturing mitigating macro impacts [36][37] Question: What are the plans for capital allocation regarding share repurchases? - Management confirmed that while the primary focus is on investing in the business, they will also return capital to shareholders through share repurchases and dividends [38][40] Question: Is the "One Interface" strategy at full run rate? - Management believes the strategy is still in the early stages, with significant growth potential remaining, particularly in the Nora Rubber business [44][47] Question: What drove the margin performance in the quarter? - Management attributed margin expansion to a combination of pricing, product mix, and manufacturing productivity, with a significant portion driven by operational excellence [48][50] Question: Was there any pull forward of sales in Q2? - Management stated there was no awareness of any sales being pulled forward, although some larger orders in health care may have contributed to lumpiness [59][60] Question: How sustainable are the market share gains? - Management expressed confidence in the sustainability of market share gains, supported by strong product offerings and a focus on expanding into mid-market price points [63][64] Question: What is the timeline for the backlog? - Most of the backlog is expected to ship within the year, with some longer-term contracts included [67] Question: What are the expected returns on investment in international manufacturing assets? - Management indicated that benefits from automation in The Americas will start to be seen in Europe and Australia next year [71] Question: What is the impact of tariffs on gross margins? - The impact of tariffs was largely neutral in the quarter, with some expenses offset by incremental pricing [72] Question: How does the company view the buy versus build decision for growth? - Management emphasized a focus on internal growth and innovation, while remaining open to acquisitions if they align with strategic goals [76]