What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2025-08-05 compared with 2025-05-06 · 174 added, 127 removed, 414 unchanged (42% of the section changed)

4 unchanged sentences

(in thousands, except par values)

MARCH 30, 2025 DECEMBER 29, 2024

JUNE 29, 2025 DECEMBER 29, 2024

Current assets

6 unchanged sentences

Operating lease right-of-use assets 80,619 76,815

Deferred tax asset 25,033 24,624

Goodwill and intangible assets, net

Deferred tax assets

25,414 24,624

Goodwill and intangible assets, net 162,770 148,160

Other assets 74,494 74,546

16 unchanged sentences

5,000 shares authorized;

none issued or outstanding at March 30, 2025 and December 29, 2024

none issued or outstanding at June 29, 2025 and December 29, 2024

Common stock, par value $ 0.10 per share;

120,000 shares authorized;

58,610 and 58,304 shares issued and outstanding at March 30, 2025 and December 29, 2024, respectively

58,393 and 58,304 shares issued and outstanding at June 29, 2025 and December 29, 2024, respectively

Additional paid-in capital 255,758 261,028

9 unchanged sentences

(in thousands, except per share data)

THREE MONTHS ENDED

MARCH 30, 2025 MARCH 31, 2024

THREE MONTHS ENDED SIX MONTHS ENDED

JUNE 29, 2025 JUNE 30, 2024 JUNE 29, 2025 JUNE 30, 2024

Net sales $ 375,522 $ 346,635 $ 672,935 $ 636,378

5 unchanged sentences

Other expense (income), net 3,411 832 5,114 ( 144 )

1,703 ( 976 )

Income before income tax expense 44,193 31,146 61,302 50,145

17,109 18,999

Income tax expense 11,632 8,588 15,739 13,408

$ 13,002 $ 14,179

Net income $ 32,561 $ 22,558 $ 45,563 $ 36,737

Earnings per share – basic $ 0.56 $ 0.39 $ 0.78 $ 0.63

$ 0.22 $ 0.24

Earnings per share – diluted $ 0.55 $ 0.38 $ 0.77 $ 0.63

$ 0.22 $ 0.24

Common shares outstanding – basic 58,555 58,281 58,495 58,260

5 unchanged sentences

(in thousands)

THREE MONTHS ENDED

MARCH 30, 2025 MARCH 31, 2024

$ 13,002 $ 14,179

THREE MONTHS ENDED SIX MONTHS ENDED

JUNE 29, 2025 JUNE 30, 2024 JUNE 29, 2025 JUNE 30, 2024

Net income $ 32,561 $ 22,558 $ 45,563 $ 36,737

Other comprehensive income (loss), after tax:

9 unchanged sentences

(in thousands)

THREE MONTHS ENDED

MARCH 30, 2025 MARCH 31, 2024

SIX MONTHS ENDED

JUNE 29, 2025 JUNE 30, 2024

OPERATING ACTIVITIES:

$ 13,002 $ 14,179

Net income $ 45,563 $ 36,737

Adjustments to reconcile net income to cash provided by operating activities:

11 unchanged sentences

Cash provided by operating activities 41,867 34,158

11,739 12,619

INVESTING ACTIVITIES:

6 unchanged sentences

Borrowing of long-term debt 1,306 17,334

Repurchase of common stock

Tax withholding payments for share-based compensation ( 7,736 ) ( 4,754 )

2 unchanged sentences

Cash used in financing activities ( 13,740 ) ( 36,960 )

( 8,668 ) ( 29,776 )

Net cash used in operating, investing and financing activities

Net cash provided by / (used in) operating, investing and financing activities

13,306 ( 14,369 )

1 unchanged sentence

CASH AND CASH EQUIVALENTS:

Net increase / (decrease)

22,475 ( 16,311 )

11 unchanged sentences

Reference should be made to the Company’s year-end financial statements and notes thereto contained in its Annual Report on Form 10-K for the fiscal year ended December 29, 2024, as filed with the Commission.

The financial information included in this report has been prepared by the Company.

In the opinion of management, the financial information included in this report contains all adjustments necessary for a fair presentation of the results for the interim periods.

In the opinion of management, the unaudited financial information prepared by the Company and included in this report contains all adjustments necessary for a fair presentation of the results for the interim periods.

All such adjustments are of a normal recurring nature unless otherwise disclosed.

1 unchanged sentence

The December 29, 2024, consolidated condensed balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States (“GAAP”).

The three-month periods ended March 30, 2025 and March 31, 2024 both include 13 weeks.

The six-month periods ended June 29, 2025 and June 30, 2024 both include 26 weeks.

The three-month periods ended June 29, 2025 and June 30, 2024 both include 13 weeks.

Risks and Uncertainties

22 unchanged sentences

Early adoption is permitted.

The amendments in this ASU should be applied on a prospective basis, however retrospective application is permitted.

We are currently assessing the updated guidance;

2 unchanged sentences

The Company generates revenue from sales of modular carpet, resilient flooring, rubber flooring, and other flooring-related material, and from the installation of carpet and other flooring-related material.

A summary of these revenue streams, as a percentage of net sales, for the three months ended March 30, 2025 and March 31, 2024 is as follows:

Three Months Ended

March 30, 2025 March 31, 2024

Revenue from the sale of flooring material

Revenue from installation of flooring material

For the three and six months ended June 29, 2025 and June 30, 2024 revenue from sales of flooring material was 98 % of total revenue.

The remaining 2 % of revenue was generated from the installation of flooring material for both three month and six month periods ended June 29, 2025 and June 30, 2024.

Disaggregation of Revenue

For the three months ended March 30, 2025 and March 31, 2024, revenue from the Company’s customers is broken down by geography as follows:

Three Months Ended

Geography March 30, 2025 March 31, 2024

For the three and six months ended June 29, 2025 and June 30, 2024, revenue from the Company’s customers is broken down by geography as follows:

Three Months Ended Six Months Ended

Geography June 29, 2025 June 30, 2024 June 29, 2025 June 30, 2024

Americas 63.8 % 62.0 % 62.3 % 60.5 %

5 unchanged sentences

Inventories are summarized as follows:

March 30, 2025 December 29, 2024

June 29, 2025 December 29, 2024

(in thousands)

8 unchanged sentences

Unvested share-based awards of restricted stock are paid dividends equally with all other shares of common stock and are considered participating securities.

As a result, the Company includes all outstanding restricted stock awards in the calculation of basic and diluted EPS.

As a result, the Company includes all outstanding restricted stock awards during the period in the calculation of basic and diluted EPS.

Any unvested share-based awards considered non-participating securities (restricted share units and performance shares) are included in diluted EPS calculations when the inclusion of these shares would be dilutive.

The following table shows the computation of basic and diluted EPS:

Three Months Ended

March 30, 2025 March 31, 2024

Three Months Ended Six Months Ended

June 29, 2025 June 30, 2024 June 29, 2025 June 30, 2024

(in thousands, except per share data)

8 unchanged sentences

Diluted EPS $ 0.55 $ 0.38 $ 0.77 $ 0.63

(1) Including income attributable to participating securities, which was not material for the three months ended March 30, 2025 and was $ 0.2 million for the three months ended March 31, 2024.

For the three months ended March 30, 2025, there were no securities excluded from the computation of diluted EPS that would have been antidilutive.

For the three months ended March 31, 2024, 1,049,405 non-participating securities (restricted share units and performance shares) were excluded from the computation of diluted EPS as these securities would have been antidilutive for the period.

(1) Income attributable to participating securities for the three months ended June 29, 2025, was no t material.

Includes income attributable to participating securities of $ 0.1 million for the six months ended June 29, 2025 and $ 0.1 million and $ 0.3 million respectively, for the three and six months ended June 30, 2024.

For the three and six months ended June 29, 2025 and June 30, 2024, there were no securities excluded from the computation of diluted EPS that would have been antidilutive.

NOTE 5 – LONG-TERM DEBT

Long-term debt consisted of the following:

March 30, 2025 December 29, 2024

June 29, 2025 December 29, 2024

Outstanding Principal Interest Rate (1)

2 unchanged sentences

Syndicated Credit Facility:

Revolving loan borrowings

$ 1,306 5.06 % $ — — %

Term loan borrowings 5,590 5.02 % 5,564 5.62 %

Total borrowings under Syndicated Credit Facility

6,896 5.03 % 5,564 5.62 %

5.50% Senior Notes due 2028 300,000 5.50 % 300,000 5.50 %

5 unchanged sentences

(1) Represents the weighted average rate of interest for borrowings under the Syndicated Credit Facility and the stated rate of interest for the 5.50 % Senior Notes due 2028, without the effect of debt issuance costs.

(2) The Syndicated Credit Facility also includes a multicurrency revolving loan facility up to $ 300.0 million.

There were no revolving loan borrowings outstanding as of March 30, 2025 or December 29, 2024.

Syndicated Credit Facility

2 unchanged sentences

Interest on base rate loans is charged at varying rates computed by applying a margin depending on the Company’s consolidated net leverage ratio as of the most recently completed fiscal quarter.

Interest on secured overnight financing rate based (“SOFR”) and alternative currency loans is charged at varying rates computed by applying a margin over the applicable SOFR rate or alternative currency rate, depending on the Company’s consolidated net leverage ratio as of the most recently completed fiscal quarter.

Interest on secured overnight financing rate (“SOFR”) based and alternative currency loans is charged at varying rates computed by applying a margin over the applicable SOFR rate or alternative currency rate, depending on the Company’s consolidated net leverage ratio as of the most recently completed fiscal quarter.

In addition, the Company pays a commitment fee per annum (depending on the Company’s consolidated net leverage ratio as of the most recently completed fiscal quarter) on the unused portion of the Facility.

1 unchanged sentence

Fees for standby letters of credit are charged at varying rates computed by applying a margin of the amount available to be drawn under such standby letters of credit, depending on the Company’s consolidated net leverage ratio as of the most recently completed fiscal quarter.

As of March 30, 2025 and December 29, 2024, the Company had $ 0.5 million and $ 0.7 million, respectively, in letters of credit outstanding under the Facility.

As of both June 29, 2025 and December 29, 2024, the Company had $ 0.5 million and $ 0.7 million, respectively, in letters of credit outstanding under the Facility.

Under the Facility, the Company is required to make quarterly amortization payments of the term loan borrowings, which are due on the last day of the calendar quarter.

6 unchanged sentences

NOTE 6 – SHAREHOLDERS’ EQUITY

The following tables depict the activity in the accounts which make up shareholders’ equity for the three months ended March 30, 2025 and March 31, 2024:

The following tables depict the activity in the accounts which make up shareholders’ equity for the three and six months ended June 29, 2025 and June 30, 2024:

SHARES COMMON STOCK ADDITIONAL PAID-IN CAPITAL RETAINED

EARNINGS PENSION LIABILITY FOREIGN CURRENCY TRANSLATION ADJUSTMENT TOTAL

EARNINGS FOREIGN CURRENCY TRANSLATION ADJUSTMENT PENSION LIABILITY TOTAL

(in thousands, except per share data)

Balance, at December 29, 2024 58,304 $ 5,830 $ 261,028 $ 405,441 $ ( 143,317 ) $ ( 39,834 ) $ 489,148

— — — 13,002 — — 13,002

Net income — — — 13,002 — — 13,002

Issuances of stock related to restricted share units and performance shares 658 66 ( 66 ) — — — —

Cash dividends declared, $ 0.01 per common share

— — — ( 641 ) — — ( 641 )

Compensation expense related to share-based plans, net of forfeitures and shares received for tax withholdings ( 352 ) ( 35 ) ( 3,546 ) — — — ( 3,581 )

Foreign currency translation adjustment — — — — 15,834 — 15,834

Pension liability adjustment — — — — — ( 695 ) ( 695 )

Balance, at March 30, 2025 58,610 $ 5,861 $ 257,416 $ 417,802 $ ( 127,483 ) $ ( 40,529 ) $ 513,067

Net income — — — 32,561 — — 32,561

Issuances of stock related to restricted share units and performance shares 1 — — — — — —

Cash dividends declared, $ 0.01 per common share

1 unchanged sentence

Compensation expense related to share-based plans, net of forfeitures and shares received for tax withholdings — — 2,765 — — — 2,765

Share repurchases

( 218 ) ( 22 ) ( 4,423 ) — — — ( 4,445 )

Pension liability adjustment — — — — ( 695 ) — ( 695 )

Foreign currency translation adjustment — — — — 33,445 — 33,445

Balance, at March 30, 2025 58,610 $ 5,861 $ 257,416 $ 417,802 $ ( 40,529 ) $ ( 127,483 ) $ 513,067

Pension liability adjustment — — — — — ( 1,782 ) ( 1,782 )

Balance, at June 29, 2025 58,393 $ 5,839 $ 255,758 $ 449,777 $ ( 94,038 ) $ ( 42,311 ) $ 575,025

SHARES COMMON STOCK ADDITIONAL PAID-IN CAPITAL RETAINED

EARNINGS PENSION LIABILITY FOREIGN CURRENCY TRANSLATION ADJUSTMENT TOTAL

EARNINGS FOREIGN CURRENCY TRANSLATION ADJUSTMENT PENSION LIABILITY TOTAL

(in thousands, except per share data)

1 unchanged sentence

— — — 14,179 — — 14,179

Issuances of stock related to restricted share units and performance shares

472 47 ( 47 ) — — — —

Issuances of stock related to performance shares 472 47 ( 47 ) — — — —

Cash dividends declared, $ 0.01 per common share

1 unchanged sentence

Compensation expense related to share-based plans, net of forfeitures and shares received for tax withholdings ( 311 ) ( 31 ) ( 324 ) — — — ( 355 )

( 311 ) ( 31 ) ( 324 ) — — — ( 355 )

Pension liability adjustment — — — — 458 — 458

Foreign currency translation adjustment — — — — ( 11,092 ) — ( 11,092 )

Pension liability adjustment — — — — — 458 458

Balance, at March 31, 2024 58,273 $ 5,827 $ 252,538 $ 334,423 $ ( 130,682 ) $ ( 33,558 ) $ 428,548

Net income — — — 22,558 — — 22,558

Issuances of stock related to restricted share units and performance shares 4 — — — — — —

Restricted stock issuances 58 6 941 — — — 947

Unrecognized compensation expense related to restricted stock awards — — ( 946 ) — — — ( 946 )

Cash dividends declared, $ 0.01 per common share

— — — ( 584 ) — — ( 584 )

Compensation expense related to share-based plans, net of forfeitures and shares received for tax withholdings ( 32 ) ( 3 ) 2,133 — — — 2,130

Foreign currency translation adjustment — — — — ( 2,022 ) — ( 2,022 )

Pension liability adjustment — — — — — 534 534

Balance, at June 30, 2024 58,303 $ 5,830 $ 254,666 $ 356,397 $ ( 132,704 ) $ ( 33,024 ) $ 451,165

Repurchase of Common Stock

In May 2022, the Company adopted a share repurchase program in which the Company is authorized to repurchase up to $ 100 million of its outstanding shares of common stock.

The program has no specific expiration date.

During the six months ended June 29, 2025, the Company repurchased 217,500 shares of common stock at a weighted average price of $ 20.44 per share pursuant to this program.

Stock Incentive Plan

The Company has share-based employee compensation plans, which are described more fully in Note 14 to the consolidated financial statements included in Item 8 of the Annual Report on Form 10-K for the fiscal year ended December 29, 2024 .

Restricted Stock Awards

Compensation expense related to restricted stock grants was $ 0.3 million and $ 0.9 million for the three months ended March 30, 2025 and March 31, 2024, respectively.

Compensation expense related to restricted stock grants was $ 0.4 million and $ 1.4 million for the six months ended June 29, 2025 and June 30, 2024, respectively.

The Company has reduced its expense for any restricted stock forfeited during the period.

The following table summarizes restricted stock outstanding as of March 30, 2025, as well as activity during the three months then ended:

Restricted Stock

Weighted Average

Outstanding at December 29, 2024 242,300 $ 13.92

Vested ( 184,000 ) 13.19

Forfeited or canceled — —

Outstanding at March 30, 2025 58,300 $ 16.22

As of March 30, 2025, the unrecognized total compensation cost related to unvested restricted stock was $ 0.1 million.

That cost is expected to be recognized during the second quarter of 2025.

All restricted stock awards outstanding as of December 29, 2024 have fully vested and there is no unrecognized compensation expense as of June 29, 2025.

Restricted Share Unit Awards

Compensation expense related to the restricted share units was $ 1.8 million and $ 0.9 million for the three months ended March 30, 2025 and March 31, 2024, respectively.

Compensation expense related to the restricted share units was $ 3.1 million and $ 1.8 million for the six months ended June 29, 2025 and June 30, 2024, respectively.

The Company has reduced its expense for any restricted share units forfeited during the period.

The following table summarizes restricted share units outstanding as of March 30, 2025, as well as activity during the three months then ended:

The following table summarizes restricted share units outstanding as of June 29, 2025, as well as activity during the six months then ended:

Restricted Share Units Weighted Average

3 unchanged sentences

Forfeited or canceled ( 3,500 ) 11.96

Outstanding at March 30, 2025 786,500 $ 14.75

As of March 30, 2025, the unrecognized total compensation cost related to unvested restricted share units was $ 9.5 million.

Outstanding at June 29, 2025 836,600 $ 15.16

As of June 29, 2025, the unrecognized total compensation cost related to unvested restricted share units was $ 9.3 million.

That cost is expected to be recognized by the first quarter of 2028.

Performance Share Awards

The following table summarizes the performance shares outstanding as of March 30, 2025, as well as the activity during the three months then ended:

The following table summarizes the performance shares outstanding as of June 29, 2025, as well as the activity during the six months then ended:

Performance Shares Weighted Average

3 unchanged sentences

Forfeited or canceled ( 7,300 ) 12.00

Outstanding at March 30, 2025 1,094,900 $ 14.09

Compensation expense related to the performance shares was $ 2.0 million and $ 2.1 million for the three months ended March 30, 2025 and March 31, 2024, respectively.

Outstanding at June 29, 2025 1,089,600 $ 14.10

Compensation expense related to the performance shares was $ 3.4 million and $ 3.3 million for the six months ended June 29, 2025 and June 30, 2024, respectively.

The Company has reduced its expense for any performance shares forfeited during the period.

Unrecognized compensation expense related to these performance shares was approximately $ 11.2 million as of March 30, 2025.

Unrecognized compensation expense related to these performance shares was approximately $ 9.9 million as of June 29, 2025.

The amount and timing of future compensation expense will depend on the performance of the Company.

The compensation expense related to these outstanding performance shares is expected to be recognized by the first quarter of 2028.

The tax benefit recognized with respect to restricted stock, restricted share units and performance shares was approximately $ 0.4 million for the three months ended March 30, 2025.

The tax benefit recognized with respect to restricted stock, restricted share units and performance shares was approximately $ 0.7 million for the six months ended June 29, 2025.

NOTE 7 – LEASES

The table below represents a summary of the balances recorded in the consolidated condensed balance sheets related to the Company’s leases as of March 30, 2025 and December 29, 2024:

March 30, 2025 December 29, 2024

The table below represents a summary of the balances recorded in the consolidated condensed balance sheets related to the Company’s leases as of June 29, 2025 and December 29, 2024:

June 29, 2025 December 29, 2024

Balance Sheet Location Operating Leases Finance Leases Operating Leases Finance Leases

8 unchanged sentences

Total finance lease liabilities $ 8,448 $ 8,454

As of March 30, 2025, there were no significant leases that had not commenced.

Three Months Ended

March 30, 2025 March 31, 2024

As of June 29, 2025, there were no significant leases that had not commenced.

Three Months Ended Six Months Ended

June 29, 2025 June 30, 2024 June 29, 2025 June 30, 2024

(in thousands)

7 unchanged sentences

Other Supplemental Information

Three Months Ended

March 30, 2025 March 31, 2024

Three Months Ended Six Months Ended

June 29, 2025 June 30, 2024 June 29, 2025 June 30, 2024

(in thousands)

6 unchanged sentences

Lease Term and Discount Rate

The table below presents the weighted average remaining lease terms and discount rates for finance and operating leases as of March 30, 2025 and December 29, 2024:

March 30, 2025 December 29, 2024

The table below presents the weighted average remaining lease terms and discount rates for finance and operating leases as of June 29, 2025 and December 29, 2024:

June 29, 2025 December 29, 2024

Weighted-average remaining lease term – finance leases (in years) 3.47 3.61

6 unchanged sentences

(in thousands)

2025 (excluding the three months ended March 30, 2025)

2025 (excluding the six months ended June 29, 2025)

$ 9,288 $ 1,645

7 unchanged sentences

Total lease liabilities $ 85,112 $ 8,448

$ 81,878 $ 8,415

NOTE 8 – EMPLOYEE BENEFIT PLANS

The Company has defined benefit and multi-employer pension plans, which are described more fully in Note 19 to the consolidated financial statements included in Item 8 of the Annual Report on Form 10-K for the fiscal year ended December 29, 2024 .

During the three-month periods ended March 30, 2025 and March 31, 2024, the Company recorded multi-employer pension expense related to multi-employer contributions of $ 0.7 million for both periods, respectively.

The following tables provide the components of net periodic benefit cost for the three months ended March 30, 2025 and March 31, 2024:

Three Months Ended

During the three and six months ended June 29, 2025, the Company recorded multi-employer pension expense related to multi-employer contributions of $ 0.6 million and $ 1.3 million, respectively.

During the three and six months ended June 30, 2024, the Company recorded multi-employer pension expense related to multi-employer contributions of $ 0.6 million and $ 1.3 million, respectively.

The following tables provide the components of net periodic benefit cost for the three and six months ended June 29, 2025 and June 30, 2024:

Three Months Ended Six Months Ended

Defined Benefit Retirement Plans (Europe)

March 30, 2025 March 31, 2024

June 29, 2025 June 30, 2024 June 29, 2025 June 30, 2024

(in thousands)

4 unchanged sentences

Net periodic benefit cost $ 313 $ 58 $ 607 $ 116

Three Months Ended

Salary Continuation Plan March 30, 2025 March 31, 2024

Three Months Ended Six Months Ended

Salary Continuation Plan June 29, 2025 June 30, 2024 June 29, 2025 June 30, 2024

(in thousands)

2 unchanged sentences

Net periodic benefit cost $ 322 $ 326 $ 644 $ 652

Three Months Ended

Three Months Ended Six Months Ended

nora Defined Benefit Plan

March 30, 2025 March 31, 2024

June 29, 2025 June 30, 2024 June 29, 2025 June 30, 2024

(in thousands)

5 unchanged sentences

NOTE 9 – GOODWILL AND OTHER INTANGIBLE ASSETS

The ending balance and the change in the carrying amount of good will fo r the three months ended March 30, 2025 is as follows:

The ending balance and the change in the carrying amount of goodwill for the six months ended June 29, 2025 is as follows:

(in thousands)

1 unchanged sentence

Foreign currency translation (2)

Balance, at March 30, 2025 $ 103,543

Balance, at June 29, 2025 $ 111,636

(1) The goodwill balance is allocated entirely to the AMS reportable segment.

(2) A portion of the goodwill balance is comprised of goodwill denominated in foreign currency attributable to the nora acquisition.

The net carrying value of intangible assets other than goodwill was $ 48.7 million and $ 48.3 million at March 30, 2025 and December 29, 2024, respectively.

The net carrying value of intangible assets other than goodwill was $ 51.1 million and $ 48.3 million at June 29, 2025 and December 29, 2024, respectively.

NOTE 10 – SEGMENT INFORMATION

3 unchanged sentences

The AMS operating segment includes the United States, Canada and Latin America geographic areas.

Pursuant to the management approach discussed above, the Company’s CODM, our chief executive officer, evaluates performance at the AMS and EAAA operating segment levels and makes operating and resource allocation decisions based on segment operating income (“AOI”).

The CODM uses AOI to evaluate segment operating results compared to expectations.

3 unchanged sentences

restructuring, asset impairment, severance, and other, net, and the impact of a cyber event.

Intersegment revenues for the three months ended March 30, 2025 and March 31, 2024 were $ 28.0 million and $ 16.8 million, respectively.

Intersegment revenues for the three and six months ended June 29, 2025, were $ 35.8 million and $ 63.8 million, respectively, and intersegment revenues for the three and six months ended June 30, 2024, were $ 24.5 million and $ 41.3 million, respectively.

Intersegment revenues are eliminated from net sales presented below since these amounts are not included in the information provided to the CODM.

1 unchanged sentence

The following table outlines information by reportable segment including net sales, significant segment expenses, and AOI.

The table also includes a reconciliation to income before taxes for the three months ended March 30, 2025 and March 31, 2024.

The table also includes a reconciliation to income before taxes for the three and six months ended June 29, 2025 and June 30, 2024.

Three Months Ended

March 30, 2025 March 31, 2024

June 29, 2025 June 30, 2024

AMS EAAA TOTAL AMS EAAA TOTAL

9 unchanged sentences

Restructuring, severance, asset impairment and other, net 2,511 132

Purchasing accounting amortization 1,255 1,297

Purchase accounting amortization

Cyber event impact — 35

1 unchanged sentence

Other expense (income), net 3,411 832

1,703 ( 976 )

Income before taxes $ 44,193 $ 31,146

4 unchanged sentences

(3) Adjusted selling, general, and administrative expenses exclude restructuring, asset impairment, severance, and other, net, and the impact of a cyber event.

Segment depreciation and amortization for the three months ended March 30, 2025 and March 31, 2024 is presented as follows:

Three Months Ended

March 30, 2025 March 31, 2024

Six Months Ended

June 29, 2025 June 30, 2024

AMS EAAA TOTAL AMS EAAA TOTAL

(in thousands)

Net sales $ 419,380 $ 253,555 $ 672,935 $ 384,927 $ 251,451 $ 636,378

significant segment expenses (1)

Adjusted cost of sales (2)

243,568 167,821 241,031 159,745

Adjusted selling, general, & administrative expenses (3)

107,104 73,079 98,869 71,603

Segment AOI 68,708 12,655 81,363 45,027 20,103 65,130

Reconciliation of AOI to income before taxes

Restructuring, severance, asset impairment and other, net 3,483 330

Purchase accounting amortization

Cyber event impact — ( 381 )

Interest expense 8,858 12,596

Other expense (income), net 5,114 ( 144 )

Income before taxes $ 61,302 $ 50,145

(1) Significant segment expense categories and amounts align with segment level information that is regularly provided to the CODM, included in the measure of segment profit, and considered to be significant.

Amounts include allocation of corporate overhead and global support costs.

Intersegment expenses are excluded.

(2) Adjusted cost of sales excludes purchase accounting amortization.

(3) Adjusted selling, general, and administrative expenses exclude restructuring, asset impairment, severance, and other, net, and the impact of a cyber event.

Segment depreciation and amortization for the three and six months ended June 29, 2025 and June 30, 2024 is presented as follows:

Three Months Ended Six Months Ended

June 29, 2025 June 30, 2024 June 29, 2025 June 30, 2024

(in thousands) (in thousands)

Depreciation and amortization

2 unchanged sentences

Total depreciation and amortization $ 9,829 $ 9,728 $ 19,230 $ 19,344

A reconciliation of the Company’s total operating segment assets to the corresponding consolidated amounts follows:

March 30, 2025 December 29, 2024

A reconciliation of the Company’s total operating segment assets to the corresponding consolidated amounts is presented as follows:

June 29, 2025 December 29, 2024

(in thousands)

6 unchanged sentences

NOTE 11 – SUPPLEMENTAL CASH FLOW INFORMATION

Supplemental cash flow information for the three months ended March 30, 2025 and March 31, 2024 is presented in the following table:

Three Months Ended

March 30, 2025 March 31, 2024

Supplemental cash flow information for the six months ended June 29, 2025 and June 30, 2024 is presented in the following table:

Six Months Ended

June 29, 2025 June 30, 2024

(in thousands)

Cash paid for interest $ 8,935 $ 11,977

$ 169 $ 2,099

Cash paid for income taxes, net of refunds 18,803 16,014

See Note 7 entitled “Leases” for additional supplemental disclosures related to finance and operating leases.

Non-Cash Financing Activities

On March 11, 2025, the Company declared cash dividends on its common stock of $ 0.6 million, which were paid during the second quarter of 2025 to shareholders of record as of March 28, 2025.

At March 30, 2025, the dividends were recorded within accrued expenses in the consolidated condensed balance sheet.

NOTE 12 – INCOME TAXES

The Company determines its provision for income taxes for interim periods using an estimate of its annual effective tax rate (“AETR”) and records any changes affecting the estimated AETR in the interim period in which the change occurs, including discrete tax items.

During the three months ended March 30, 2025, the Company recorded a total income tax provision of $ 4.1 million on pre-tax income of $ 17.1 million resulting in an effective tax rate of 24.0 %, as compared to a total income tax provision of $ 4.8 million on pre-tax income of $ 19.0 million resulting in an effective tax rate of 25.4 % during the three months ended March 31, 2024.

The decrease in the effective tax rate for the three months ended March 30, 2025 as compared to the three months ended March 31, 2024, was primarily due to an increase in tax benefits related to share-based compensation.

This favorable change was partially offset by an unfavorable change related to the cash surrender value of Company-owned life insurance.

During the six months ended June 29, 2025, the Company recorded a total income tax provision of $ 15.7 million on pre-tax income of $ 61.3 million resulting in an effective tax rate of 25.6 %, as compared to a total income tax provision of $ 13.4 million on pre-tax income of $ 50.1 million resulting in an effective tax rate of 26.7 % during the six months ended June 30, 2024.

The decrease in the effective tax rate for the six months ended June 29, 2025 as compared to the six months ended June 30, 2024, was primarily due to favorable changes in the geographic mix of earnings and an increase in tax benefits related to share-based compensation.

On July 4, 2025 the U.S.

1, commonly referred to as the One Big Beautiful Bill Act (“OBBBA”).

The OBBBA includes significant provisions, such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, modifications to the international tax framework and the restoration of favorable tax treatment for certain business provisions.

We are currently assessing its impact on our consolidated financial statements.

We do not expect the OBBBA to have a material impact on our estimated annual effective tax rate in 2025.

On December 20, 2021, the Organization for Economic Co-operation and Development (“OECD”) published Pillar Two Model Rules defining the global minimum tax, which calls for the taxation of large corporations at a minimum rate of 15 %.

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Many non-U.S.

tax jurisdictions have either recently enacted legislation to adopt certain components of the Pillar Two Model Rules beginning in 2024 (including the European Union Member States) with the adoption of additional components in later years or announced their plans to enact legislation in future years.

tax jurisdictions have enacted legislation to adopt the Pillar Two Model Rules beginning in 2024 (including the European Union Member States) or announced plans to enact legislation in future years.

For fiscal year 2025, we expect to meet the Transitional Country-by-Country (CbCR) Safe Harbor rules for most if not all jurisdictions and do not expect these provisions to have a material impact on the Company’s financial statements.

We will continue to closely monitor ongoing developments and evaluate any potential impact on future periods.

In the first three months of 2025, the Company increased its liability for unrecognized tax benefits by $ 0.3 million.

As of March 30, 2025, the Company had accrued approximately $ 5.1 million for unrecognized tax benefits.

The Company’s deferred tax asset as of March 30, 2025 reflects a reduction for $ 2.6 million of these unrecognized tax benefits.

In the first six months of 2025, the Company increased its liability for unrecognized tax benefits by $ 0.2 million.

As of June 29, 2025, the Company had accrued approximately $ 5.0 million for unrecognized tax benefits.

The Company’s deferred tax asset as of June 29, 2025, reflects a reduction of $ 2.5 million of these unrecognized tax benefits.

Unrecognized tax benefits are reviewed on an ongoing basis and are adjusted for changing facts and circumstances, including the progress of tax audits and the closing of statutes of limitations.

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NOTE 13 – ITEMS RECLASSIFIED FROM ACCUMULATED OTHER COMPREHENSIVE LOSS

Amounts reclassified out of accumulated other comprehensive loss (“AOCL”), before tax, to the consolidated condensed statements of operations during the three months ended March 30, 2025 and March 31, 2024 are reflected in the table below:

Amounts reclassified out of accumulated other comprehensive loss (“AOCL”), before tax, to the consolidated condensed statements of operations during the three and six months ended June 29, 2025 and June 30, 2024 are reflected in the tables below:

Three Months Ended

Statement of Operations Location March 30, 2025 March 31, 2024

Statement of Operations Location June 29, 2025 June 30, 2024

(in thousands)

Amortization of benefit plan net actuarial losses and prior service cost Other expense (income), net $ ( 403 ) $ ( 371 )

$ ( 384 ) $ ( 374 )

Total loss reclassified from AOCL $ ( 403 ) $ ( 371 )

$ ( 384 ) $ ( 374 )

Six Months Ended

Statement of Operations Location June 29, 2025 June 30, 2024

(in thousands)

Amortization of benefit plan net actuarial losses and prior service cost Other expense (income), net $ ( 787 ) $ ( 745 )

Total loss reclassified from AOCL $ ( 787 ) $ ( 745 )

NOTE 14 – COMMITMENTS AND CONTINGENCIES

From time to time, we are a party to legal proceedings, whether arising in the ordinary course of business or otherwise.

Some of these proceedings are summarized below.

In April 2025, The Water Works Board of the City of Opelika, Alabama filed a lawsuit in the Circuit Court of Lee County, Alabama, The Water Works of the City of Opelika, Alabama, v.

3M Company, et al., Case No.

43-CV-2025-900229.00 , against Interface, Inc., our subsidiary InterfaceFLOR, LLC, and numerous other defendants.

The lawsuit alleges that the defendants, including Interface, manufactured, sold, used, and discharged per- and poly-fluoroalkyl substances (PFAS), which have allegedly contaminated the plaintiff's water supply.

The case was removed by defendant 3M Company to the United States District Court for the Middle District of Alabama, Case No.

3:25-cv-411-ECM-CWB.

Subsequently, a motion was filed to transfer the case to the Multi-District Litigation (MDL) concerning Aqueous Film-Forming Foams (AFFF) Products Liability Litigation, and the plaintiff filed a motion to remand the case to the Circuit Court of Lee County, Alabama.

The federal Alabama district court for the Opelika case has issued an order staying all deadlines in the case, pending further directives.

The nature of this litigation involves complex scientific, legal and factual issues.

Interface believes it has meritorious defenses to the claims brought against it, and intends to defend vigorously against them.

Former CEO Lawsuit

See disclosure under the heading “Lawsuit by Former CEO in Connection with Termination” set forth in Note 18 to the consolidated financial statements included in Item 8 of the Annual Report on Form 10-K for the fiscal year ended December 29, 202 4 .

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The following table presents the carrying values and estimated fair values, including the level within the fair value hierarchy, of certain financial instruments:

March 30, 2025 December 29, 2024

June 29, 2025 December 29, 2024

Carrying Value Fair Value (Level 1) Fair Value (Level 2) Carrying Value Fair Value (Level 1) Fair Value (Level 2)

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300,000 — 295,236 300,000 — 294,738

(1) Carrying values are presented gross, excluding the impact of unamortized debt issuance costs and including amounts presented as current liabilities on the consolidated balance sheets.

( 1) Carrying values are presented gross, excluding the impact of unamortized debt issuance costs and including amounts presented as current liabilities on the consolidated condensed balance sheets.

(2) Unamortized debt issuance costs associated with the revolving loan borrowings under the Facility were $ 0.9 million and $ 1.1 million as of June 29, 2025 and December 29, 2024, respectively, and are recorded as other assets in the consolidated condensed balance sheets.

The carrying value of borrowings under the Facility approximates fair value as the Facility bears variable interest rates that are similar to existing market rates.

The fair value of borrowings under the Facility is estimated using observable market rates.

(3) Unamortized debt issuance costs associated with the Senior Notes, recorded as a reduction of long-term debt in the consolidated balance sheets, were $ 2.6 million and $ 2.8 million as of March 30, 2025 and December 29, 2024, respectively.

(3) Unamortized debt issuance costs associated with the Senior Notes, recorded as a reduction of long-term debt in the consolidated condensed balance sheets, were $ 2.4 million and $ 2.8 million as of June 29, 2025 and December 29, 2024, respectively.

Fair value of the Senior Notes is derived using quoted prices for similar instruments.

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements