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EarningsQ2 2026 Earnings Report
TILE Q2 2026 EPS Results
Actual EPS$0.88
Consensus EPS$0.64
Beat/MissBeat by +$0.24
One Year Ago EPS$0.60
TILE Q2 2026 Revenue Results
Actual Revenue$395.70M
Expected Revenue$391.22M
Beat/MissBeat by +$4.48M
YoY Revenue Growth+5.37%
Earnings Announcement Details
QuarterQ2 2026
Date08/07/2026
TimeBefore Open
Conference CallFriday, August 7, 2026
TILE Upcoming Earnings
Interface's next earnings date is estimated for October 30, 2026, based on past reporting schedules.
Q2 2026 Earnings Call Audio
TILE Q2 2026 Earnings Call
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Q2 2026 Earnings Slide Deck
Q2 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was predominantly positive: Interface reported broad‑based revenue growth, strong segment performance (notably Healthcare), meaningful backlog and order momentum, significant profitability and EPS improvement, and productivity gains from automation that are described as durable. Sustainability progress and culture recognition add strategic strength. The headline improvement in gross margin was materially aided by a one‑time $15.6 million tariff refund (not expected to recur), and management flagged ongoing tariff exposure, raw material inflation timing effects, and higher SG&A dollars tied to variable compensation and FX. These risks create some near‑term margin timing volatility but do not outweigh the operational and commercial momentum reflected in raised guidance and improved cash generation. Overall, positive operational execution and diversified growth drivers outweigh the manageable one‑time and ongoing headwinds.Company Guidance
Revenue Growth and Raised Guidance
Second quarter net sales of $395.7 million, up 5.4% reported and ~3.8%–4.0% currency‑neutral year‑over‑year. Company raised full‑year fiscal 2026 guidance to $1.455 billion–$1.485 billion in net sales and provided Q3 net sales guidance of $370 million–$380 million.
Broad-Based Segment Strength
Growth was broad based across regions and segments: Healthcare billings +19% YoY, Education billings +5% YoY (on top of double‑digit comps prior years), Corporate Office billings +5% YoY. Americas and EAAA currency‑neutral net sales increased ~3% and ~5% respectively.
Orders and Backlog Momentum
Consolidated currency‑neutral orders increased ~5% YoY and backlog was strong, up 22% year‑to‑date, providing confidence to raise full‑year guidance.
Profitability and EPS Improvement
Adjusted operating income rose to $74.9 million (up 34% YoY). Adjusted net income increased to $51.5 million (vs $35.4 million prior year). Adjusted EBITDA was $87.7 million (vs $64.8 million). Adjusted diluted EPS was $0.88, up 47% YoY ($0.88 vs $0.60).
Gross Margin Expansion driven by Operations and One‑offs
Second quarter adjusted gross profit margin was 45%, an increase of 524 basis points YoY. Management attributes ~131 basis points to durable operational improvements (volume, pricing, mix, manufacturing efficiencies) and ~393 basis points to a one‑time $15.6 million IEEPA tariff refund (approx. $0.19 per share).
Product Innovation and Commercial Initiatives
Continued product launches and portfolio expansion (noravant timber, Open Air Neutrals, Twist & Texture) and expanded commercial initiatives (combined selling teams, Interface Design Studio) which are driving specification activity and share gains across price points and categories.
Manufacturing Automation and Productivity
Investments in robotics and packaging automation (Europe, Australia, Germany) are 'exceeding expectations' and contributing to improved throughput, efficiency and margin expansion. Capital expenditures were $12.2 million in Q2, focused on automation and productivity.
Sustainability and Culture Achievements
2025 Impact report highlights: product carbon footprint down 4% vs 2024; 51% of materials recycled or bio‑based; 79% of manufacturing energy from renewables; GHG emissions down 36% vs 2019 baseline. Certified Great Place to Work in 14 eligible countries, representing 95% of workforce.
Healthy Cash Generation and Shareholder Returns
Generated $38.4 million cash from operating activities in Q2. Continued disciplined capital allocation: Q2 share repurchases of $8.8 million (~310,000 shares in the quarter), ~$21 million repurchased year‑to‑date, and ongoing quarterly dividend paid.
TILE Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed