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

Interface (NASDAQ:TILE) posted its quarterly earnings data 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 company had revenue of $395.70 million during the quarter, compared to analysts’ expectations of $391.22 million. Interface had a net margin of 8.92% and a return on equity of 20.09%. The firm’s revenue for the quarter was up 5.4% on a year-over-year basis. During the same period in the prior year, the business posted $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 Interface stock opened at $38.29 on Friday. The business’s 50 day moving average price is $33.08 and its 200 day moving average price is $30.46. The company 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. The company has a debt-to-equity ratio of 0.30, a quick ratio of 1.16 and a current ratio of 2.43. Interface has a one year low of $24.40 and a one year high of $40.50.

Interface Dividend Announcement

The business 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 annualized dividend and a dividend yield of 0.3%. The ex-dividend date of this dividend was Friday, June 5th. Interface’s dividend payout ratio (DPR) is currently 5.61%.

Wall Street Analysts Forecast Growth

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

Insider Buying and Selling at Interface

In other news, CFO Bruce Andrew Hausmann sold 50,000 shares of the business’s 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 transaction, the chief financial officer owned 119,256 shares of the company’s stock, valued at approximately $3,537,132.96. The trade was a 29.54% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, VP David B. Foshee sold 44,393 shares of the company’s stock in a transaction dated Monday, May 18th. The shares were sold at an average price of $29.00, for a total transaction of $1,287,397.00. Following the completion of 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. Additional details regarding this sale are available in the official SEC disclosure. 2.47% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Interface

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

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.