Interface (NASDAQ:TILE) Issues Earnings Results, Beats Expectations By $0.08 EPS

Key Points

• Interface beat Q1 expectations, reporting adjusted EPS of $0.41 versus the $0.33 consensus estimate and revenue of $331.04 million, which was also above forecasts. Revenue rose 11.3% year over year.
• Management said the One Interface strategy is driving momentum, with consolidated orders up 8% and backlog up 18% year to date. The company also raised its FY26 revenue outlook to $1.45 billion to $1.48 billion.
• Interface highlighted product innovation and operational improvements, including new collections and the launch of noravant, while also noting cost pressures from tariffs and Middle East-related input costs. The stock rose 7.6% after the results.

Interface (NASDAQ:TILE - Get Free Report) announced its quarterly earnings data on Friday. The textile maker reported $0.41 earnings per share for the quarter, beating analysts' consensus estimates of $0.33 by $0.08, FiscalAI reports. Interface had a net margin of 8.37% and a return on equity of 19.54%. The company had revenue of $331.04 million during the quarter, compared to analyst estimates of $320.38 million. During the same quarter last year, the business posted $0.25 EPS. The firm's revenue for the quarter was up 11.3% on a year-over-year basis.

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

• Interface beat expectations in Q1 with currency-neutral net sales up 7%, adjusted EPS up 64% to $0.41, adjusted EBITDA of $46.8M, and a raised FY26 revenue guide of $1.45–$1.48B with ~38.8%–39.0% adjusted gross margin.
• Management says the One Interface strategy is driving broad-based momentum — consolidated orders +8%, backlog up 18% YTD, EMEA commercial alignment completed, and robotic automation deployed in Europe and Australia to improve supply chain efficiency.
• Product innovation is expanding addressable markets — launched noravant (rubber with wood-look) and two new carpet tile collections; carpet tile billings were up double digits and noravant is expected to begin contributing in Q4 2026.
• Cost risks remain — the Middle East situation is expected to add a low single-digit increase to input costs globally, and management notes ~15–20% of COGS are subject to tariffs with no tariff refund assumed in guidance.
• Strong balance sheet and capital allocation — $13.5M cash from operations in Q1, $12M of buybacks executed, FY26 capex guided to ~$60M to fund innovation/automation, and sustainability credentials (>$50% recycled/bio-based inputs) support differentiation.

Interface Stock Up 7.6%

Shares of NASDAQ:TILE traded up $2.09 during trading hours on Friday, hitting $29.64. The company's stock had a trading volume of 745,381 shares, compared to its average volume of 516,815. Interface has a 52 week low of $18.74 and a 52 week high of $35.11. The company has a debt-to-equity ratio of 0.27, a current ratio of 2.34 and a quick ratio of 1.18. The company has a market capitalization of $1.72 billion, a price-to-earnings ratio of 15.12, a P/E/G ratio of 0.91 and a beta of 1.92. The firm's fifty day moving average price is $27.26 and its 200 day moving average price is $28.48.

Interface Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, April 10th. Stockholders of record on Friday, March 27th were issued a $0.03 dividend. The ex-dividend date was Friday, March 27th. This represents a $0.12 annualized dividend and a dividend yield of 0.4%. This is an increase from Interface's previous quarterly dividend of $0.02. Interface's dividend payout ratio (DPR) is presently 6.12%.

Insider Activity at Interface

In other news, VP James Poppens sold 8,000 shares of the business's stock in a transaction dated Friday, March 6th. The shares were sold at an average price of $28.05, for a total value of $224,400.00. Following the completion of the sale, the vice president owned 103,846 shares in the company, valued at approximately $2,912,880.30. The trade was a 7.15% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. In the last three months, insiders have sold 25,650 shares of company stock valued at $736,292. Insiders own 2.47% of the company's stock.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of TILE. Fuller & Thaler Asset Management Inc. raised its stake in shares of Interface by 133.9% during the 4th quarter. Fuller & Thaler Asset Management Inc. now owns 2,008,260 shares of the textile maker's stock worth $56,071,000 after acquiring an additional 1,149,733 shares in the last quarter. Balyasny Asset Management L.P. raised its stake in shares of Interface by 273.1% during the 4th quarter. Balyasny Asset Management L.P. now owns 386,828 shares of the textile maker's stock worth $10,800,000 after acquiring an additional 283,152 shares in the last quarter. Cubist Systematic Strategies LLC raised its stake in shares of Interface by 108.5% during the 2nd quarter. Cubist Systematic Strategies LLC now owns 300,203 shares of the textile maker's stock worth $6,283,000 after acquiring an additional 156,220 shares in the last quarter. First Trust Advisors LP bought a new position in shares of Interface during the 2nd quarter worth approximately $2,345,000. Finally, JPMorgan Chase & Co. raised its stake in shares of Interface by 43.4% during the 3rd quarter. JPMorgan Chase & Co. now owns 289,092 shares of the textile maker's stock worth $8,366,000 after acquiring an additional 87,462 shares in the last quarter. Institutional investors own 98.34% of the company's stock.

Key Stories Impacting Interface

Here are the key news stories impacting Interface this week:

• Positive Sentiment: Q1 beat on EPS and revenue — Interface reported adjusted EPS of $0.41 vs. consensus $0.33 and net sales of ~$331M (up 11.3% YoY), showing margin and top‑line strength. Interface Reports First Quarter 2026 Results
• Positive Sentiment: Company raised FY outlook/updated guidance — Management raised its full‑year revenue outlook and provided Q2 revenue guidance of $385M–$395M, signaling confidence that One Interface strategy is gaining traction. Interface Raises Outlook After Strong First-Quarter Results
• Neutral Sentiment: Investor materials and call provide color — Management attributed momentum to One Interface strategy and provided additional detail on margins and regional performance in the earnings call/transcript for those modeling forward performance. Interface Q1 2026 Earnings Call Transcript
• Neutral Sentiment: Analyst/press coverage echoes beats — Zacks, MarketBeat and other outlets highlighted the EPS/revenue beat and growth metrics; useful for confirmation but not new catalysts. Interface (TILE) Beats Q1 Earnings and Revenue Estimates
• Neutral Sentiment: Broader market chatter (unrelated to Interface) — Jim Cramer coverage on AI/cloud names is driving sector flows but does not directly affect Interface’s flooring business. Jim Cramer Lists Alphabet and Other Key Players
• Negative Sentiment: One-time timing benefit — Management noted Q1 included an extra week, which contributed to the year-over-year lift; investors should consider this when projecting sequential growth and margin sustainability. Interface: Q1 Earnings Snapshot

Analyst Ratings Changes

A number of brokerages recently weighed in on TILE. Barrington Research reiterated an "outperform" rating and set a $36.00 price objective on shares of Interface in a report on Friday, April 17th. Weiss Ratings upgraded shares of Interface from a "hold (c+)" rating to a "buy (b-)" rating in a report on Friday, March 20th. Finally, Wall Street Zen lowered shares of Interface from a "strong-buy" rating to a "buy" rating in a report on Tuesday, March 17th. Two analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $36.00.

About Interface

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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