Interface (TILE) investor relations material

Executive summary

• Q3 net sales rose 0.6% to $366.7M; adjusted diluted EPS increased 11.5% to $0.68, supported by higher adjusted gross margin and operating discipline.

• Billings grew across healthcare, education, and corporate office; Americas momentum helped offset softer European conditions.

• FY26 earnings guidance was reaffirmed while the sales outlook was lowered to reflect softer Europe.

Financial highlights

• Q3 net sales were $366.7M, up 0.6% reported and 0.4% currency-neutral; 9M sales rose 5.4% to $1,093.5M.

• Q3 adjusted gross margin increased 103 bps to 40.6%; pricing, product mix, and manufacturing efficiencies partly offset higher raw-material and tariff costs.

• Adjusted operating income rose 5.7% to $57.2M, adjusted EBITDA rose 4.7% to $69.3M, and adjusted net income increased to $39.9M from $35.9M.

• Q3 adjusted diluted EPS was $0.68, up 11.5%; GAAP net income fell 15.0% to $39.2M and diluted EPS declined to $0.67 from $0.78, partly reflecting a prior-year tax benefit.

• 9M adjusted operating income rose 21.7% to $164.9M and adjusted EPS increased 35.9% to $1.97; GAAP net income was $114.2M and diluted EPS was $1.95.

Outlook and guidance

• FY26 net sales outlook is $1.440B–$1.455B, down from $1.455B–$1.485B; adjusted gross margin guidance is 40.4%, including the Q2 IEEPA refund.

• FY26 adjusted SG&A is $387M, adjusted interest and other expense is $14M, and adjusted effective tax rate is 25.0%; capex is $60M and diluted weighted-average shares are 58.5M.

• Earnings guidance was reaffirmed; guidance reflects softer Europe, higher oil-related input costs, and new Canadian tariffs.

• FY26 is a 53-week year, with the extra week in Q1; excluding the one-time IEEPA tariff refund, baseline adjusted gross margin guidance is ~39.3%.