Interface (TILE) Q2 2026 earnings summary

Executive summary

• Q2 2026 net sales reached $396 million, up 5.4% year-over-year (3.8% currency neutral), with broad-based growth across all regions and product categories, led by Healthcare billings up 19%.

• Adjusted gross profit margin was 45%, up 524 basis points, aided by operational improvements and a one-time $15.6 million IEEPA tariff refund.

• Adjusted EBITDA for Q2 was $87.7 million, up 35.2% year-over-year, and net income rose to $51.4 million, up 58%.

• The company raised its full-year 2026 guidance based on strong backlog and order momentum.

• Continued investment in innovation, automation, and sustainability, with new product launches and manufacturing efficiencies.

Financial highlights

• Q2 2026 net sales: $395.7 million, up 5.4% year-over-year; currency-neutral net sales up 3.8%.

• Adjusted gross profit margin: 45% (up 524 bps); adjusted operating income: $74.9 million (up 34%); adjusted EBITDA: $87.7 million (up 35%).

• Adjusted EPS: $0.88, up 47% year-over-year; adjusted net income: $51.5 million.

• Generated $38.4 million in operating cash flow and invested $12.2 million in capex.

• Return on invested capital reached 19.8%.

Outlook and guidance

• Raised full-year 2026 guidance: net sales $1.455–$1.485 billion, adjusted gross margin ~40.6%, SG&A ~$395 million, capex ~$60 million.

• Q3 2026 guidance: net sales $370–$380 million, adjusted gross margin ~40.8%, SG&A ~$100 million.

• No further tariff refunds assumed in guidance; ongoing tariffs remain in COGS.

• Guidance reflects Q2 IEEPA tariff refund and strong backlog.

• Strategy centers on accelerating growth through commercial productivity, innovation, and expanding addressable markets.