Interface (NASDAQ:TILE) Announces Quarterly Earnings Results

Key Points

• Interface delivered a strong second quarter: EPS was $0.88 versus the $0.64 consensus, while revenue rose 5.4% year over year to $395.7 million and margins improved significantly.
• Management raised its 2026 outlook to $1.455 billion-$1.485 billion in sales, supported by a 22% increase in year-to-date backlog, 5% order growth and strength in healthcare, education and corporate markets.
• Margin risks remain: Second-quarter profitability benefited from a one-time $15.6 million tariff refund, while ongoing tariffs and raw-material inflation are expected to pressure margins in future quarters.

Interface (NASDAQ:TILE - Get Free Report) announced its quarterly earnings results on Friday. The textile maker reported $0.88 EPS for the quarter, topping the consensus estimate of $0.64 by $0.24, FiscalAI reports. Interface had a net margin of 8.92% and a return on equity of 20.09%. The business had revenue of $395.70 million for the quarter, compared to analysts' expectations of $391.22 million. During the same quarter in the previous year, the company earned $0.60 EPS. The business's quarterly revenue was up 5.4% compared to the same quarter last year.

Here are the key takeaways from Interface's conference call:

• Strong second-quarter performance: Currency-neutral net sales increased 4%, with broad-based growth across regions, products, and market segments; adjusted EPS rose 47% to $0.88.
• Interface raised its full-year 2026 outlook to net sales of $1.455 billion-$1.485 billion and adjusted gross margin of approximately 40.6%, supported by a 22% year-to-date backlog increase and 5% order growth.
• Healthcare remained the standout market, with global billings up 19%, while education and corporate office billings each rose 5%; management cited return-to-office activity, Class A “flight to quality,” and renovation demand as ongoing drivers.
• Operational improvements from automation, robotics, pricing, mix, and manufacturing efficiencies contributed 131 basis points of gross-margin expansion, and management said these initiatives are durable and ahead of plan.
• Second-quarter margins benefited from a one-time $15.6 million IEEPA tariff refund, with no additional refunds assumed in guidance; ongoing tariffs and low-single-digit raw-material inflation are expected to pressure margins as higher costs flow through inventory in future quarters.

Interface Trading Up 9.1%

Shares of TILE traded up $3.19 during trading hours on Friday, reaching $38.29. 1,184,181 shares of the company traded hands, compared to its average volume of 531,157. The stock's fifty day moving average price is $32.91 and its 200 day moving average price is $30.41. The company has a current ratio of 2.43, a quick ratio of 1.16 and a debt-to-equity ratio of 0.30. The firm has a market cap of $2.22 billion, a price-to-earnings ratio of 17.89, a PEG ratio of 1.11 and a beta of 1.90. Interface has a 12-month low of $24.40 and a 12-month high of $40.50.

Interface Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Thursday, June 18th. Stockholders of record on Friday, June 5th were given a dividend of $0.03 per share. This represents a $0.12 annualized dividend and a dividend yield of 0.3%. The ex-dividend date was Friday, June 5th. Interface's dividend payout ratio (DPR) is 5.61%.

Insider Transactions at Interface

In related news, CFO Bruce Andrew Hausmann sold 50,000 shares of Interface stock in a transaction dated Wednesday, May 27th. The shares were sold at an average price of $29.66, for a total transaction of $1,483,000.00. Following the completion of the sale, the chief financial officer owned 119,256 shares in the company, valued at $3,537,132.96. This trade represents a 29.54% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, VP David B. Foshee sold 44,393 shares of the company's stock in a transaction dated Monday, May 18th. The stock was sold at an average price of $29.00, for a total transaction of $1,287,397.00. Following the completion of the transaction, the vice president owned 175,014 shares in the company, valued at $5,075,406. This represents a 20.23% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Company insiders own 2.47% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of TILE. CIBC Private Wealth Group LLC lifted its holdings in shares of Interface by 180.3% in the 4th quarter. CIBC Private Wealth Group LLC now owns 981 shares of the textile maker's stock worth $27,000 after buying an additional 631 shares during the period. Larson Financial Group LLC increased its stake in shares of Interface by 114.6% during the third quarter. Larson Financial Group LLC now owns 1,176 shares of the textile maker's stock valued at $34,000 after buying an additional 628 shares during the period. Wexford Capital LP purchased a new position in shares of Interface during the third quarter valued at $43,000. EverSource Wealth Advisors LLC bought a new stake in shares of Interface in the second quarter valued at about $35,000. Finally, State of Wyoming raised its holdings in shares of Interface by 651.1% in the fourth quarter. State of Wyoming now owns 2,734 shares of the textile maker's stock valued at $76,000 after acquiring an additional 2,370 shares in the last quarter. 98.34% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

Several brokerages have recently issued reports on TILE. Weiss Ratings reaffirmed a "buy (b-)" rating on shares of Interface in a report on Wednesday, June 17th. Barrington Research restated an "outperform" rating and set a $36.00 price target on shares of Interface in a report on Friday, April 17th. Wall Street Zen raised Interface from a "buy" rating to a "strong-buy" rating in a research note on Saturday, May 16th. Zacks Research lowered shares of Interface from a "strong-buy" rating to a "hold" rating in a report on Tuesday, July 28th. Finally, Benchmark started coverage on shares of Interface in a research report on Tuesday, May 19th. They issued a "buy" rating and a $36.00 price target on the stock. Three analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $36.00.

Trending Headlines about Interface

Here are the key news stories impacting Interface this week:

• Positive Sentiment: Significant earnings beat: Adjusted earnings were $0.88 per share, well above the $0.63-$0.64 analyst consensus and up from $0.60 a year earlier. Interface Surpasses Q2 Earnings and Revenue Estimates
• Positive Sentiment: Revenue exceeded expectations: Second-quarter sales totaled approximately $395.7 million, up 5.4% year over year and ahead of the roughly $391.2 million consensus estimate. Currency-neutral growth was 3.8%. Interface Reports Second Quarter 2026 Results
• Positive Sentiment: Margins improved sharply: Gross margin expanded by 560 basis points, while adjusted gross margin increased 524 basis points, including 131 basis points of operational improvement. The stronger profitability supports Interface’s earnings growth and cash-generation profile. Interface Reports Second Quarter 2026 Results
• Positive Sentiment: Full-year outlook was raised: Management lifted its 2026 outlook following the stronger-than-expected quarter, reinforcing confidence in demand, execution and profitability. Full-year revenue is now expected at approximately $1.5 billion. Interface Lifts Full-Year Outlook After Strong Q2 Results
• Neutral Sentiment: Third-quarter revenue guidance: Interface projected sales of $370 million to $380 million, close to the $379 million analyst estimate. This indicates expectations are broadly in line, although the midpoint leaves limited room for another revenue surprise.

Interface Company Profile

Interface, Inc NASDAQ: TILE is a global manufacturer of modular flooring and resilient commercial flooring solutions. The company specializes in carpet tiles, luxury vinyl tile (LVT) and other environmentally responsible hard-surface products designed for use in corporate, education, healthcare, hospitality and retail environments. Interface's portfolio also includes broadloom carpet, rubber flooring and acoustic underlays, all engineered to meet performance, design and sustainability requirements in modern interior spaces.

Founded in 1973 by Ray C.

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