Interface, Inc.

Hello everyone. Thank you for joining us and welcome to Interface Inc's first quarter 2026 earnings conference call. After today's prepared remarks, we will host a question and answer session. If you'd like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. I will now hand the conference over to Christine Needles, Corporate Communications. Christine, please go ahead.

Good morning, and welcome to Interface's conference call regarding first quarter 2026 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. 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 re-recorded 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 a strong start to 2026 with 7% year-over-year currency-neutral growth in net sales and 64% growth in adjusted earnings per diluted share in the quarter. ahead of our expectations. Growth was broad-based across all product categories and key market segments, reflecting consistent execution and continued momentum across the business. Our One Interface strategy is working, and it continues to drive strong results. As we've discussed before, One Interface is a multi-year strategy focused on building strong global functions to support our world-class local selling teams, accelerating growth through enhanced commercial productivity, expanding margins through global supply chain management and simplifying operations, and leading in design, performance, and sustainability. As part of the next phase of our strategy, we recently aligned our EMEA commercial organization under a single leader. This will drive greater consistency across Europe and build on the best thinking and results we've seen with our one interface selling teams in the US. We also went live with our robotics solutions in Europe and Australia, which will further strengthen our manufacturing and supply chain operations. These automation investments improve efficiency, reduce waste, and enhance customer service levels while positioning us for growth. From a product standpoint, we continue to invest in design and innovation that expands our reach across segments and price points. In late February, we launched NoraVant, a groundbreaking rubber flooring innovation that opens new design possibilities in the resilient category. NoraVant complements our existing NoraRubber portfolio and represents an incremental growth opportunity. We expect it to meaningfully expand our addressable market over time, particularly in healthcare, where our initial product, NoraVant Timber, is an excellent solution for patient rooms. Customer response has been very positive, and we expect it to begin contributing to growth in the fourth quarter of 2026 and build over time. During the first quarter, we also introduced two new carpet tile collections, which are both aimed at driving incremental growth in the middle of the market. Crafted connections launched globally and bring sophisticated texture and pattern to more accessible price points. Open forms builds on our successful open-air platform, extending the color palette to warmer tones that are in demand from our customers. Our carpet tile billings were up double digits in the quarter, reflecting strong progress in the category. And in Nora, we expanded NoraMent Kivo, enhancing its color range to include both vibrant accents and classic tones. K through 12 education continues to be one of our fastest growing segments for Nora. And this expanded color range to fit the budgets of our education customers will continue to maximize our potential. We remain confident in our ability to drive both the premium end of the market with design leadership and expand our addressable market with new offerings at more accessible price points and in our ability to expand margins while gaining market share and giving our customers what they're looking for. We also look forward to Clerkenwell Design Week in May and Neocon in June, where we will showcase Noravant along with our latest global carpet tile and LVT collections and other new products. These events provide excellent opportunities to connect with our customers and industry partners and to demonstrate our design, performance, and sustainability leadership. Turning to sustainability, sustainability remains core to who we are at Interface. In conjunction with Earth Day, we launched Good Design Never Ends, a new campaign that makes circularity actionable for our customers. By specifying our products, customers can make informed choices that support a circular model. We design our flooring for high performance and easy maintenance to extend its useful life. We also use innovative low carbon inputs. Globally, more than 50% of the materials in our products are recycled or bio-based, which is the highest in commercial flooring. This lowers the carbon footprint from the start and means less virgin raw material inputs over time. Circularity is critical to carbon reduction and its important pathway to achieve our science-based targets by 2030 and our carbon negative ambition by 2040. Now let me turn to our first quarter results. We delivered 7% year-over-year currency neutral net sales growth in the first quarter, ahead of our expectations. In the Americas, currency neutral net sales increased 8% year-over-year, driven by our one interface combined selling teams, and strength across our key market segments. In EAAA, currency neutral net sales increased 4% in the first quarter, despite a continued challenging macro environment. We are encouraged by the progress in the region, including improved commercial alignment and significant profitability improvement. Turning to our market segments, our diversification strategy continues to drive growth and strengthen the business. Corporate office had a strong start to 2026, where we continue to take share. Global billings were up 16% with broad-based growth globally. We're continuing to see return to office and renovation activity and flight to quality in Class A space, where our brand, design leadership, and product portfolio are well positioned. In addition, our expanded product offering across a broader range of price points is helping us capture new opportunities and further strengthen our market position. In healthcare, global billings were up 11%, driven by our one interface combined selling teams and favorable long-term demand trends. Our broad differentiated product portfolio continues to position us well to capture an increasing share of market opportunities as demonstrated by our Nora rubber billings, which were up 15%. We also believe the launch of Noravant will meaningfully expand our opportunity in healthcare over time. where design, durability, and performance requirements align well with the product's value proposition. Education billings were up 1% in the first quarter. We view this more modest growth rate as a matter of timing, as we remain well-positioned across both K-12 and higher education going into the education buying season, supported by our design leadership and low-carbon, high-performing products. This market segment continues to benefit from supportive macro drivers, including renovation work, modernization initiatives, and new build opportunities in some geographies. And our broad range of price points helps Interface win projects across all budgets. Turning to orders, consolidated currency neutral orders increased 8% year over year in the first quarter of 2026. Orders in the Americas grew 6%, while EAAA increased 11%, driven by strength across all regions. Backlog was strong at the end of the quarter, up 18% year-to-date, reinforcing our confidence that our strategy is working and positioning us well for the quarters ahead. Before I turn the call over to Bruce, I want to briefly address the situation in the Middle East. We are closely monitoring developments and assessing the potential impacts on our people and our business. The safety and wellbeing of our employees and their families remain our top priority and we continue to support them as needed. The Middle East represents approximately 1% of our net sales. At this time, we expect these events to drive a low single digit increase in input costs across our global business. Importantly, we have plans in place to offset this impact through incremental pricing and productivity actions, and this is reflected in our guidance. This remains a dynamic environment, and we will continue to monitor the situation and respond as needed to manage costs, support growth, and serve our customers. With that, I'll turn it over to Bruce.