Interface (TILE) Q2 2026 earnings summary

Executive summary

• Net sales reached $396 million in Q2 2026, up 5.4% year-over-year, with broad-based growth across all regions and product categories, led by Healthcare billings up 19%.

• Gross profit margin expanded by 560 basis points, with adjusted gross profit margin up 524 basis points, benefiting from operational improvements and $15.6 million in IEEPA tariff refunds.

• Operating income rose to $74.9 million from $52.0 million, and net income increased to $51.4 million from $32.6 million year-over-year, with adjusted EPS up 47% to $0.88.

• Adjusted EBITDA for the quarter was $87.7 million, up 35.2% year-over-year.

• The company raised its full-year 2026 guidance based on strong first-half performance and a robust backlog.

Financial highlights

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

• Gross profit margin: 45.0% (up 560 bps); adjusted gross profit margin: 45.0% (up 524 bps).

• Adjusted operating income: $74.9 million (up 34%); adjusted net income: $51.5 million; adjusted EBITDA: $87.7 million (up 35%).

• Adjusted EPS: $0.88 (up 47% year-over-year).

• Return on invested capital reached 19.8%.

Outlook and guidance

• Full-year 2026 outlook: net sales $1.455–$1.485 billion, adjusted gross profit margin 40.6%, SG&A $395 million, capex $60 million.

• Q3 2026 outlook: net sales $370–$380 million, adjusted gross profit margin 40.8%.

• Guidance raised from previous outlook, reflecting Q2 IEEPA tariff refund and strong backlog.

• No further tariff refunds assumed in guidance; proactive pricing to offset raw material inflation.

• Liquidity is expected to be sufficient for the next 12 months.