Interface, Inc.

question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, again, press the star one. Thank you. I'd now like to turn the call over to Christine Needles, Global Communications. You may begin.

Good morning and welcome to Interface's conference call regarding third quarter 2025 results, hosted by Laurel Hurd, CEO, and Bruce Hausman, CFO. During today's conference call, any management comments regarding Interface's business which are not historical information are forward-looking statements within the meaning of federal securities laws. Forward-looking statements include statements regarding the intent, belief, or current expectations of our management team, as well as the assumptions on which such statements are based. Any forward-looking statements are not guarantees of future performance and involve a number of risks and uncertainties that could cause actual results to differ materially from any such statements, including risks and uncertainties described in our most recent annual report on Form 10-K filed with the SEC as supplemented in our first Quarter 10-Q. The company assumes no responsibility to update forward-looking statements. Management's remarks during this call also refer to certain non-GAAP measures Reconciliations of the non-GAAP measures to the most comparable GAAP measures and explanations for their use are contained in the company's earnings release and form 8K furnished with the SEC today. Lastly, this call is being recorded and broadcasted for Interface. It contains copyrighted material and may not be rerecorded or rebroadcasted without Interface's express permission. Your participation on the call confirms your consent to the company's taping and broadcasting of it. After our prepared remarks, we will open up the call for questions. Now, I will turn the call over to Laurel Hurd, CEO. Thank you, Christine, and good morning, everyone.

Interface delivered another strong quarter, exceeding our expectations with currency-neutral net sales growth of 4% and significant profitability gains. We saw continued strength in the Americas and increased momentum in EAAA with broad-based growth across all regions all product categories, and the majority of our market segments. We are pleased with the quality of our earnings. Net sales increased through a balanced mix of price and volume, and adjusted gross profit margin expanded by 208 basis points, driven by favorable mix and manufacturing efficiencies. This consistent execution underscores the power of our diversified portfolio, the strength of our brand, and ongoing share gains in key markets. I'm proud of the interface team and their unwavering commitment to serving our customers. Our one interface strategy is driving these results. As we've discussed before, this multi-year plan is focused on building strong global functions to support our world-class local selling team, accelerating growth through enhanced commercial productivity, expanding margins through global supply chain management and simplifying operations, and leading in design, performance, and sustainability. Since launching our one interface sales team structure in the US in January, 2024, we've been delivering a single cohesive customer experience across Carpetile, LVT and NoraRubber. This unified approach has exceeded our expectations and continues to drive consistent quarterly growth. Driven by our combined selling team, NoraRubber grew 20% in the third quarter and is up 19% year to date. To build on this momentum, we will accelerate investments in automation, productivity, and innovation to further strengthen the Nora product portfolio and drive long-term growth. We're preparing for the launch of a new rubber flooring innovation in early 2026 that we believe will accelerate growth in the healthcare segment, among others. We look forward to sharing more about this on our next call. Additionally, our investments in carpet tile automation and robotics are delivering meaningful productivity gains and margin improvement. These investments are exceeding expectations, improving efficiency, reducing waste, and enhancing service levels. We are now extending these robotic systems to our facilities in Europe and Australia, and we continue to explore and identify new opportunities for automation across the company. From a product standpoint, we continue to expand our addressable market, delivering high design at compelling price points to create new opportunities for growth. During the quarter, we introduced our Stellar Horizons carpet tile collection, which stands a range of price points and supports segment versatility. The collection offers exceptional durability, acoustics, and cleanability while balancing design and functional performance. We also introduced three new resilient products that expand color, design, and aesthetic options across the category. This includes two new LVT styles, in the mix and raw materials. and a refresh of our Norament XP rubber offering. These new and updated styles give customers more ways to specify interface products across a range of spaces and budgets. We continue to differentiate our portfolio through exceptional design, superior performance, and an unwavering commitment to sustainability. Now let's turn to our third quarter results. We delivered a 4% increase in currency neutral net sales, reflecting strong execution and continued share gains. In the Americas, currency-neutral net sales increased 4% as our combined selling teams drove growth across key market segments. In EAAA, currency-neutral net sales were also up 4% through broad-based growth in all our regions. Turning to market segments, our diversification strategy continues to fuel our growth. Global healthcare billings were up 29% with double-digit gains across both the Americas and EAAA. Our broad and differentiated product portfolio continues to capture opportunities as the global healthcare sector evolves, driven by aging populations, technological innovation, and a growing focus on preventative care. In the U.S., our combined interface and NORA selling teams are working together seamlessly, enabling us to compete more effectively and win new opportunities as we meet the complex and changing needs of modern healthcare environments. Corporate office billings were up 5% in the third quarter, and they are also up year-to-date as expected. We continue to see share gains in this segment as companies move to Class A space, where our brand strength, design leadership, and broad product portfolio position us to win. Our solutions are well aligned with workplace trends as companies invest in refreshes and adapt environments to meeting the evolving needs of a hybrid workforce. And by expanding our product offerings across a wider range of price points, we are capturing new opportunities and broadening our reach. Education billings declined slightly in the third quarter, but remain up high single digits year-to-date. We've used a slight quarterly decline as timing-related, as we are well-positioned in both K-12 and higher education, underpinned by our design leadership and low-carbon, high-performing products. Strong macro drivers, modernization initiatives, and regional migration continue to create meaningful growth opportunities in this segment. Turning to orders, consolidated currency neutral orders increased 2.4% year over year. America's was up 1.7% on top of prior year order growth of 17.1%. EAAA was up 3.5%, driven by strength in EMEA and Australia. We ended the third quarter with our backlog up 17% year-to-date, reflecting solid underlying demand. Our strong results this quarter reflect how well our teams are delivering for our customers. That's evident in the recognition we received from the design community. Interface earned multiple number one rankings in the Floor Focus Top 250 Design Survey, where designers named us an industry leader in service, quality, design, and performance. On the sustainability front, we were named Manufacturer of the Year in ED's Net Zero Awards and recognized by Metropolis in their Planet Positive Awards for our all-in strategy. These awards acknowledge the bold steps we are taking to be carbon negative by 2040 without offsets, and they are a testament to the hard work and dedication of our entire team. Looking ahead, we remain confident in our strategy and disciplined execution. Continued investments in innovation, automation, and commercial excellence are strengthening our foundation for sustainable growth. With a talented global team, a powerful brand, and a proven strategy, Interface is well-positioned to deliver differentiated design, strong financial performance, and long-term value for our shareholders. With that, I'll turn it over to Bruce.