Interface (NASDAQ:TILE) Releases Earnings Results, Beats Estimates By $0.24 EPS

Interface (NASDAQ:TILE) released its quarterly earnings data on Friday. The textile maker reported $0.88 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.64 by $0.24, FiscalAI reports. The firm had revenue of $395.70 million for the quarter, compared to the consensus estimate 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% on a year-over-year basis. During the same period last 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 Interface stock traded up $3.19 during midday trading on Friday, hitting $38.29. The company had a trading volume of 1,184,181 shares, compared to its average volume of 531,157. The company has a fifty day simple moving average of $32.91 and a 200 day simple moving average of $30.41. The stock 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 quick ratio of 1.16, a current ratio of 2.43 and a debt-to-equity ratio of 0.30. Interface has a 12-month low of $24.40 and a 12-month high of $40.50.

Interface Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Thursday, June 18th. Investors of record on Friday, June 5th were given 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 presently 5.61%.

Insider Activity at Interface

In other Interface news, CFO Bruce Andrew Hausmann sold 50,000 shares of the business’s stock in a transaction that occurred 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 sale, 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 transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, VP David B. Foshee sold 44,393 shares of the company’s stock in a transaction that occurred on 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 transaction, the vice president owned 175,014 shares in the company, valued at $5,075,406. The trade was 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 currently owned by insiders.

Hedge Funds Weigh In On Interface

Several hedge funds have recently made changes to their positions in the company. Royal Bank of Canada grew its stake in Interface by 8.4% during the 1st quarter. Royal Bank of Canada now owns 19,657 shares of the textile maker’s stock valued at $390,000 after purchasing an additional 1,522 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its holdings in shares of Interface by 4.6% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 34,118 shares of the textile maker’s stock worth $677,000 after purchasing an additional 1,485 shares during the period. Goldman Sachs Group Inc. boosted its position in Interface by 5.9% in the first quarter. Goldman Sachs Group Inc. now owns 748,701 shares of the textile maker’s stock valued at $14,854,000 after buying an additional 42,011 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its position in Interface by 6.7% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 151,950 shares of the textile maker’s stock valued at $3,015,000 after buying an additional 9,580 shares during the last quarter. Finally, JPMorgan Chase & Co. increased its holdings in Interface by 24.7% in the 2nd quarter. JPMorgan Chase & Co. now owns 201,630 shares of the textile maker’s stock worth $4,220,000 after buying an additional 39,941 shares during the period. 98.34% of the stock is owned by institutional investors and hedge funds.

Analyst Ratings Changes

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

More Interface News

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.

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.