Performance Overview - River Oaks Capital's performance since inception shows a return of 73.7% compared to benchmarks like Russell 2000 TR at 61.2% and S&P 500 TR at 132.2% [2] Investment Philosophy - The investment strategy focuses on identifying small, underfollowed public companies that are undervalued and have strong management teams [7][10] - The approach emphasizes rigorous due diligence and active engagement with management to enhance shareholder value [11][12] Company Strategies - **Ascent Industries (ACNT)**: A specialty chemical manufacturer with a market cap of $150 million, focusing on transforming into a 'Chemicals-as-a-Service' model to serve small to mid-size customers [60][88] - **BuildDirect (BILD.V)**: A flooring company with a market cap of $90 million, pursuing a strategy to consolidate the professional flooring industry through acquisitions, aiming for 75+ centers [89][92] - **Truxton Trust (TRUX)**: A financial institution maintaining low operational costs while generating consistent free cash flow, operating efficiently like a private company [40][42] Recent Developments - Ascent Industries has improved gross margins from 5% to ~30% by adjusting pricing and focusing on higher-margin product sales [74][86] - BuildDirect's recent acquisition of Greyn Custom Wood is expected to generate significant incremental revenue and cost savings, enhancing its market position [92][94] Capital Allocation - Ascent Industries plans to utilize its $60 million cash balance for growth investments, share buybacks, and disciplined acquisitions [83][88] - BuildDirect is positioned to grow revenue significantly through strategic acquisitions and operational improvements, targeting a revenue of ~$165 million in the next 2-3 years [110] Market Conditions - The flooring industry is currently experiencing a downturn, leading to lower acquisition prices for professional centers, which presents a favorable environment for strategic acquisitions [102][103]

Interface also emphasized growth in healthcare and education. Hurd said global healthcare billings increased 21% year-over-year in 2025, with double-digit gains in the Americas and EAAA. Education billings rose 8% for the year, which she attributed in part to expanded offerings at more approachable price points. Corporate office billings were “up slightly” for the year, while retail was described as choppy and softer in the fourth quarter.A key component is Interface’s combined U.S. selling team model spann ...

Interface (NasdaqGS:TILE) Q4 2025 Earnings call February 24, 2026 08:00 AM ET Company ParticipantsAlex Paris - President and Senior Managing DirectorBruce Hausmann - VP and CFOChristine Needles - Global Head of Corporate CommunicationsLaurel Hurd - President and CEOConference Call ParticipantsBrian Biros - Senior AnalystDavid MacGregor - President and Senior AnalystReuben Garner - Equity Research AnalystOperatorone on your telephone keypad. If you would like to withdraw your question, please press star one ...

Interface (NasdaqGS:TILE) Q4 2025 Earnings call February 24, 2026 08:00 AM ET Company ParticipantsAlex Paris - President and Senior Managing DirectorBruce Hausmann - VP and CFOChristine Needles - Global Head of Corporate CommunicationsLaurel Hurd - President and CEOConference Call ParticipantsBrian Biros - Senior AnalystDavid MacGregor - President and Senior AnalystReuben Garner - Equity Research AnalystOperatorone on your telephone keypad. If you would like to withdraw your question, please press star one ...

Interface (NasdaqGS:TILE) Q4 2025 Earnings call February 24, 2026 08:00 AM ET Speaker6one on your telephone keypad. If you would like to withdraw your question, please press star one again. Thank you. I would now like to turn the call over to Christine Needles, Corporate Communications. Please go ahead.Speaker3Good morning, and welcome to Interface's conference call regarding fourth quarter and full year 2025 results, hosted by Laurel Hurd, CEO, and Bruce Hausmann, CFO. During today's conference call, any m ...

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 ...

ATLANTA--(BUSINESS WIRE)--Interface, Inc. (Nasdaq: TILE), the global flooring and sustainability leader, today announced results for the fourth quarter and full fiscal year ended December 28, 2025. Fourth quarter highlights (all comparisons are year-over-year): Net sales totaled $349 million, up 4.3% and 1.6% on a currency-neutral basis. GAAP earnings per diluted share of $0.41; Adjusted earnings per diluted share of $0.49. Generated $49 million of cash from operations, repaid $128 million of d. ...

Core Insights - Mohawk Industries reported fourth-quarter 2025 net sales of approximately $2.7 billion, reflecting a 2.4% increase as reported but a 3.3% decrease on a constant-currency basis, with stable commercial demand offset by weakness in U.S. housing turnover and sluggish new home construction [3][5][6] - The company generated about $620 million of free cash flow in 2025 and ended the year with $856 million in cash and $2.0 billion in gross debt, while repurchasing $149 million of stock [4][14][15] - Management expects improved sales and earnings in 2026, contingent on macroeconomic conditions and interest rate developments, with guidance for Q1 adjusted EPS of $1.75 to $1.85 [5][18] Financial Performance - Adjusted earnings per share for Q4 were $2.00, up about 3% year over year, supported by productivity and restructuring initiatives, product mix, and lower interest expenses [3][6] - Gross margin was reported at 23%, with adjusted operating income of $152 million after $84 million of non-recurring charges [8][9] - For the full year 2025, Mohawk reported sales of approximately $10.8 billion, flat year over year, and adjusted EPS of $8.96, down about 7.5% [14] Segment Performance - Global Ceramic segment showed the strongest year-over-year sales performance, with sales just under $1.1 billion, up 6.1% as reported [11] - Flooring North America sales were $893 million, down 4.8% as reported, primarily due to weakness in residential soft surfaces [12] - Flooring Rest of the World sales were $737 million, up 6.5% as reported, but down 3.5% on a constant-currency basis, with lower residential remodeling volumes impacting performance [13] Cash Flow and Capital Allocation - The company generated approximately $620 million of free cash flow for the year and reported fourth-quarter free cash flow of $270 million [14][15] - Capital spending in 2025 was $435 million, about 30% below depreciation, with plans to invest approximately $480 million in 2026 focused on product innovation and cost reduction [15] Tariffs and Restructuring - Management addressed the impact of U.S. tariffs, which range from 15% to 50%, and emphasized efforts to offset these costs through pricing actions and supply chain optimization [16][17] - Restructuring initiatives delivered about $115 million in savings for 2025, with additional savings expected from new restructuring actions announced in Q4 [17] Leadership Changes - CFO James Brunk will retire in April, with Nick Manthey set to assume the CFO role [19]

Financial Data and Key Metrics Changes - The company's fourth quarter net sales were approximately $2.7 billion, an increase of 2.4% as reported, but a decrease of approximately 3.3% on a constant basis compared to the prior year [5][11] - Adjusted EPS for the quarter was $2, up approximately 3% versus the prior year, while the full year adjusted EPS was $8.96, a decrease of approximately 7.5% [5][6] - Free cash flow for the year was approximately $620 million, with a stock repurchase of approximately 1.3 million shares for $149 million [6][18] Business Line Data and Key Metrics Changes - Global Ceramic segment had sales of just under $1.1 billion, a 6.1% increase as reported, while Flooring North America sales were $893 million, a 4.8% decrease as reported [14][15] - Flooring Rest of the World reported sales of $737 million, a 6.5% increase as reported, but a 3.5% decrease on a constant basis [17] - The operating income for Global Ceramic was $63 million, or 5.9%, while Flooring North America had an operating income of $39 million, or 4.4% [15][16] Market Data and Key Metrics Changes - Approximately 55% of sales were in the U.S., 30% in Europe, and 15% in other geographies [6] - Housing turnover in major regions remains at historical lows due to affordability challenges and economic uncertainty, impacting consumer confidence [6][7] - In Europe, high building costs and labor constraints continue to impede residential construction, although there are moderate recoveries in Southern and Eastern Europe [8] Company Strategy and Development Direction - The company is focusing on innovative product introductions and marketing actions to stimulate sales in soft markets [9] - Capital expenditures for 2026 are estimated at approximately $480 million, focusing on product innovation and cost reduction [19] - The company anticipates leveraging the housing recovery and improving its position through restructuring and operational improvements [10][31] Management's Comments on Operating Environment and Future Outlook - Management noted that while home renovation remains soft, there is optimism for improvement in existing home sales due to lower mortgage rates and increased housing supply [31] - The company expects competitive market conditions to persist, with pricing pressures likely to remain [30] - Management anticipates that 2026 will be a transitional year with some improvement in remodeling activity and overall sales and earnings expected to improve [31] Other Important Information - The company has initiated numerous restructuring actions and operational improvements that lowered its cost position [10] - The balance sheet remains strong, with gross debt of $2 billion and leverage of 0.9 times adjusted EBITDA [19] - The company plans to continue its stock buyback strategy as part of its financial management [88] Q&A Session Summary Question: Expectations for price and mix in 2026 - Management anticipates continued pressure in the market, with inflation levels similar to 2025, but expects pricing, improved mix, and productivity to help offset inflation [34][35] Question: Inventory management ahead of spring selling season - Inventories were taken down in the fourth quarter, and management believes they are close to where they need to be, with optimism from customers for the year [41][42] Question: Outlook for 2026 and pricing pressures - Management expects price, mix, and volume to improve, with pricing initiatives in place to recover inflation and enhance product mix [59][60] Question: Impact of tariffs and cost management - Tariffs range from 15%-50%, and management has taken actions to offset these costs through pricing and supply chain management [92][93] Question: Pricing stabilization in Flooring Rest of the World - Management noted that geopolitical events are impacting consumer confidence, but targeted price increases are expected to have a slightly positive effect as the year progresses [95]

Financial Data and Key Metrics Changes - The company's fourth quarter net sales were approximately $2.7 billion, an increase of 2.4% as reported, but a decrease of approximately 3.3% on a constant basis compared to the prior year [5][11] - Adjusted EPS for the quarter was $2, up approximately 3% versus the prior year, with full year adjusted EPS at $8.96, a decrease of approximately 7.5% [5][6] - Free cash flow for the year was approximately $620 million, with a stock repurchase of approximately 1.3 million shares for $149 million [6][19] Business Line Data and Key Metrics Changes - Global Ceramic segment had sales of just under $1.1 billion, a 6.1% increase as reported, with operating income on an adjusted basis of $63 million, or 5.9% [14][15] - Flooring North America sales were $893 million, a 4.8% decrease as reported, with operating income of $39 million, or 4.4% [15][16] - Flooring Rest of the World sales were $737 million, a 6.5% increase as reported, with operating income of $65 million, or 8.8% [17] Market Data and Key Metrics Changes - Approximately 55% of sales were in the U.S., 30% in Europe, and 15% in other geographies [6] - U.S. housing turnover remains at historical lows due to affordability challenges and economic uncertainty, while European markets face high building costs and labor constraints [6][8] - Commercial channel outperformed residential, with strength in healthcare, education, and hospitality [8][24] Company Strategy and Development Direction - The company is focusing on innovative product introductions, marketing actions, and promotional activities to stimulate sales in soft markets [9] - Restructuring actions and operational improvements were initiated to lower cost positions and benefit long-term performance [10] - The company plans to invest approximately $480 million in 2026, focusing on product innovation, cost reduction, and general maintenance [19] Management's Comments on Operating Environment and Future Outlook - Management noted that consumer confidence remains weak due to inflation, employment concerns, and geopolitical tensions, impacting discretionary investments [6][7] - Lower mortgage rates and potential government actions are expected to benefit housing turnover [7][31] - The company anticipates that 2026 will be a transitional year with some improvement in remodeling activity and existing home sales [31] Other Important Information - The company managed the impact of U.S. tariffs through pricing actions and supply chain optimization [9][30] - The balance sheet remains strong, with gross debt of $2 billion and leverage of 0.9x adjusted EBITDA [19] Q&A Session All Questions and Answers Question: Expectations for price and mix in 2026 - Management anticipates continued pressure in the market, with inflation levels similar to 2025, but expects pricing, improved mix, and productivity to help offset inflation [34][35] Question: Inventory management ahead of spring selling season - Inventories were taken down in the fourth quarter, and management believes they are close to where they need to be, with optimism from customers for the year [41][43] Question: Outlook for 2026 and consumer activity - Management reflects a transitional year with expectations for lower mortgage rates and increased housing supply to benefit existing home sales, anticipating some improvement in pricing mix and volume [46][47] Question: Pricing backdrop in the builder channel - The builder channel is weak, with pressure to maintain prices, and management is implementing targeted price increases to offset inflation [82] Question: Impact of tariffs and pricing strategies - Tariffs range from 15%-50%, and management is taking actions to offset them through pricing and supply chain management [92]