Record Financial Performance
Full year 2025 net sales of $1,390,000,000 (up 5.4% reported; currency‑neutral net sales +4.3% YoY). Full year adjusted operating income of $173.8M (up 22.9% YoY), adjusted EBITDA $217.9M (up 15.3% YoY), and adjusted diluted EPS $1.94 (up 33% YoY). Company described 2025 as a record year for net sales, adjusted operating income, and adjusted EBITDA.
Margins Expanded Meaningfully
Full year adjusted gross profit margin expanded to 39.0% (up ~187 basis points YoY). Fourth quarter adjusted gross profit margin was 38.6% (up 169 basis points YoY). Management expects 2026 adjusted gross margin of ~38.5%–39%.
Strong Q4 and Full-Year Operational Results
Q4 net sales $349.4M (up 4.3% as reported; currency‑neutral +1.6%); Q4 adjusted operating income $38.2M (up 16.7% YoY), Q4 adjusted EBITDA $49.8M (up 8.2% YoY), and Q4 adjusted EPS $0.49 (up 44.1% YoY).
Commercial Execution & Segment Wins (Health Care & Education)
Full year global health care billings +21% YoY (double‑digit gains in Americas and EAAA). Education billings +8% YoY. Q4 health care +11.7% and education +11.6%, reflecting share gains and strong demand.
nora Rubber Business Momentum
Global nora rubber billings up 17% in 2025, cited as a standout example of success from the One Interface combined selling teams; Noravant launch expected to further expand resilient market opportunity.
Product Innovation — Noravant Timber Launch
Launched Noravant (PVC‑free rubber sheet with wood grain 'Noravant Timber') to address premium vinyl sheet category and health care/education applications. Management expects Noravant to begin contributing in 2026 (~$5M–$10M in year‑one ramp) and projects the platform could deliver ~$50M–$100M over five years.
Productivity & Automation Investments
Ongoing investments in automation and robotics (U.S. carpet tile and nora plants) produced productivity gains and margin expansion; plans to extend robotic solutions to Europe and Australia and further automate cutting/packaging to drive efficiencies.
Healthy Cash Flow and Capital Allocation
Operating cash flow $167.9M in 2025 vs $148.4M in 2024. Capital expenditures $46.2M in 2025 with planned ~$55M in 2026 for automation and Noravant capacity. Returned cash via $18.2M share repurchases (full year) and increased quarterly dividend from $0.02 to $0.03 per share.
Balance Sheet & Leverage Management
Redeemed $300M of senior notes (used new $170M term loan + cash), repaid ~$124M of debt in 2025, and amended/extended syndicated credit facility to 2030 to reduce interest expense and extend maturities.
Positive 2026 Outlook & Backlog
Entered 2026 with orders/backlog up ~7% YTD. 2026 guidance: net sales $1.42B–$1.46B, adjusted gross margin ~38.5%–39%, SG&A ~26.2%–26.4% of net sales, capex ~$55M. Q1 2026 guide: net sales $315M–$325M and adjusted gross margin ~38%.