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]

Core Insights - Interface reported quarterly earnings of $0.6 per share, exceeding the Zacks Consensus Estimate of $0.47 per share, and showing an increase from $0.4 per share a year ago, resulting in an earnings surprise of +27.66% [1] - The company achieved revenues of $375.52 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 4.31%, compared to $346.64 million in the same quarter last year [2] - Interface has consistently surpassed consensus EPS estimates over the last four quarters, achieving this four times [2] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.48 on revenues of $352 million, and for the current fiscal year, it is $1.58 on revenues of $1.35 billion [7] - The estimate revisions trend for Interface was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Textile - Home Furnishing industry, to which Interface belongs, is currently in the top 40% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Core Viewpoint - Mohawk Industries reported quarterly earnings of $2.77 per share, exceeding the Zacks Consensus Estimate of $2.62 per share, but down from $3 per share a year ago, indicating a +5.73% earnings surprise [1][2] Financial Performance - The company achieved revenues of $2.8 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 0.37%, consistent with year-ago revenues [2] - Over the last four quarters, Mohawk Industries has surpassed consensus EPS estimates four times and topped consensus revenue estimates three times [2] Stock Performance - Mohawk Industries shares have declined approximately 2.1% since the beginning of the year, contrasting with the S&P 500's gain of 8.1% [3] - The current Zacks Rank for Mohawk Industries is 3 (Hold), indicating expected performance in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $2.74 on revenues of $2.73 billion, and for the current fiscal year, it is $9.13 on revenues of $10.77 billion [7] - The trend of estimate revisions for Mohawk Industries was mixed ahead of the earnings release, which may change following the recent report [6] Industry Context - The Textile - Home Furnishing industry, to which Mohawk Industries belongs, is currently in the top 39% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

分组1 - Interface reported quarterly earnings of $0.25 per share, exceeding the Zacks Consensus Estimate of $0.20 per share, and showing a slight increase from $0.24 per share a year ago, resulting in an earnings surprise of 25% [1] - The company achieved revenues of $297.41 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 0.82%, and an increase from $289.74 million year-over-year [2] - Interface has consistently surpassed consensus EPS estimates over the last four quarters, achieving this four times [2] 分组2 - The stock has underperformed, losing approximately 22.6% since the beginning of the year, compared to a decline of 4.7% for the S&P 500 [3] - The current consensus EPS estimate for the upcoming quarter is $0.45 on revenues of $350 million, and for the current fiscal year, it is $1.54 on revenues of $1.34 billion [7] - The Textile - Home Furnishing industry, to which Interface belongs, is currently ranked in the top 5% of over 250 Zacks industries, indicating a favorable outlook for the sector [8]

Core Viewpoint - Mohawk Industries reported quarterly earnings of $1.52 per share, exceeding the Zacks Consensus Estimate of $1.41 per share, but down from $1.86 per share a year ago, indicating a 7.80% earnings surprise [1][2] Financial Performance - The company posted revenues of $2.53 billion for the quarter, missing the Zacks Consensus Estimate by 1.84% and down from $2.68 billion year-over-year [2] - Over the last four quarters, Mohawk Industries has surpassed consensus EPS estimates four times and topped revenue estimates twice [2] Stock Performance - Mohawk Industries shares have declined approximately 10.7% since the beginning of the year, compared to a 5.3% decline in the S&P 500 [3] - The current Zacks Rank for Mohawk Industries is 4 (Sell), indicating expected underperformance in the near future [6] Earnings Outlook - The consensus EPS estimate for the upcoming quarter is $2.83 on revenues of $2.78 billion, and for the current fiscal year, it is $9.45 on revenues of $10.8 billion [7] - The trend of estimate revisions for Mohawk Industries has been unfavorable leading up to the earnings release [6] Industry Context - The Textile - Home Furnishing industry, to which Mohawk Industries belongs, is currently ranked in the top 11% of over 250 Zacks industries, suggesting a favorable industry outlook [8]