Interface (NASDAQ:TILE) Posts Earnings Results, Beats Expectations By $0.24 EPS

Interface (NASDAQ:TILE) released its earnings results on Friday. The textile maker reported $0.88 earnings per share for the quarter, topping analysts’ consensus estimates of $0.64 by $0.24, FiscalAI reports. The firm had revenue of $395.70 million for the quarter, compared to analyst estimates of $391.22 million. Interface had a net margin of 8.92% and a return on equity of 20.09%. The business’s quarterly revenue was up 5.4% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.60 earnings per share.

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 Stock Performance

Shares of TILE opened at $38.29 on Friday. The stock has a 50 day moving average price of $33.08 and a 200 day moving average price of $30.46. The company has a quick ratio of 1.16, a current ratio of 2.43 and a debt-to-equity ratio of 0.30. The company has a market capitalization of $2.22 billion, a price-to-earnings ratio of 15.50, a price-to-earnings-growth ratio of 1.21 and a beta of 1.90. Interface has a 52-week low of $24.40 and a 52-week high of $40.50.

Interface Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, June 18th. Investors of record on Friday, June 5th were issued a $0.03 dividend. This represents a $0.12 dividend on an annualized basis and a yield of 0.3%. The ex-dividend date of this dividend was Friday, June 5th. Interface’s dividend payout ratio is 5.61%.

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.

Insider Activity at Interface

In other news, VP David B. Foshee sold 44,393 shares of the company’s stock in a transaction on Monday, May 18th. The shares were sold at an average price of $29.00, for a total value of $1,287,397.00. Following the completion of the transaction, the vice president owned 175,014 shares in the company, valued at approximately $5,075,406. This represents a 20.23% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, CFO Bruce Andrew Hausmann sold 50,000 shares of the stock in a transaction on 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 transaction, the chief financial officer directly owned 119,256 shares in the company, valued at $3,537,132.96. This trade represents a 29.54% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Corporate insiders own 2.47% of the company’s stock.

Institutional Investors Weigh In On Interface

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. CIBC Private Wealth Group LLC grew its holdings in shares of Interface by 180.3% during the fourth quarter. CIBC Private Wealth Group LLC now owns 981 shares of the textile maker’s stock worth $27,000 after purchasing an additional 631 shares during the last quarter. Larson Financial Group LLC increased its position 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 worth $34,000 after purchasing an additional 628 shares in the last quarter. EverSource Wealth Advisors LLC purchased a new stake in shares of Interface in the 2nd quarter valued at about $35,000. Wexford Capital LP purchased a new stake in shares of Interface in the 3rd quarter valued at about $43,000. Finally, State of Wyoming boosted its position in shares of Interface by 651.1% in the 4th quarter. State of Wyoming now owns 2,734 shares of the textile maker’s stock valued at $76,000 after purchasing an additional 2,370 shares during the period. 98.34% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

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