Interface (NASDAQ:TILE) Issues Earnings Results

Interface (NASDAQ:TILE) announced its earnings results on Friday. The textile maker reported $0.88 earnings per share for the quarter, beating analysts’ consensus estimates of $0.64 by $0.24, FiscalAI reports. The business had revenue of $395.70 million during 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 company’s quarterly revenue was up 5.4% compared to the same quarter last year. During the same period in the previous year, the business earned $0.60 EPS.

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 stock traded up $3.19 during mid-day trading on Friday, reaching $38.29. 1,184,181 shares of the company’s stock traded hands, compared to its average volume of 361,082. Interface has a 12 month low of $24.40 and a 12 month high of $40.50. The firm has a 50 day moving average price of $33.08 and a two-hundred day moving average price of $30.46. The company has a debt-to-equity ratio of 0.30, a quick ratio of 1.16 and a current ratio of 2.43. The firm has a market capitalization of $2.22 billion, a PE ratio of 17.89, a price-to-earnings-growth ratio of 1.11 and a beta of 1.90.

Interface Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, June 18th. Stockholders of record on Friday, June 5th were paid 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 currently 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.

Analyst Ratings Changes

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

Insider Buying and Selling at Interface

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

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the stock. Fuller & Thaler Asset Management Inc. increased its stake in Interface by 133.9% in 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 during the last quarter. Balyasny Asset Management L.P. boosted its position 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 valued at $10,800,000 after acquiring an additional 283,152 shares during the last quarter. Cubist Systematic Strategies LLC boosted its position 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 valued at $6,283,000 after acquiring an additional 156,220 shares during the last quarter. First Trust Advisors LP bought a new position in shares of Interface during the 2nd quarter valued at approximately $2,345,000. Finally, JPMorgan Chase & Co. grew its holdings in shares of Interface by 43.4% in the third quarter. JPMorgan Chase & Co. now owns 289,092 shares of the textile maker’s stock valued at $8,366,000 after purchasing an additional 87,462 shares in the last quarter. Institutional investors own 98.34% of the company’s stock.

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.