Interface (TILE) Q1 2026 earnings summary

Executive summary

• Net sales reached $331 million in Q1 2026, up 11.3% year-over-year, with 6.8% currency-neutral growth, driven by broad-based momentum across all product categories and key market segments, especially Corporate Office and Healthcare.

• Adjusted earnings per diluted share rose 64% to $0.41, and net income increased 81.6% to $23.6 million, reflecting strong operational execution and margin expansion.

• Launched new products, including noravant rubber flooring and new carpet tile collections, expanding addressable markets and advancing sustainability initiatives with over 50% recycled or bio-based materials.

• Raised full-year 2026 guidance based on robust backlog, operational efficiencies, and continued margin expansion.

• Maintained industry-leading adjusted gross profit margins and a robust balance sheet.

Financial highlights

• Q1 2026 net sales were $331 million, up 11.3% year-over-year; adjusted gross profit margin improved to 38.3%, up 55 basis points.

• Adjusted EBITDA reached $46.8 million (14.1% of net sales), up 26.3%; adjusted operating income was $32.7 million, up 28.6%.

• Adjusted net income was $23.9 million, up from $14.6 million; GAAP net income was $23.6 million, up from $13.0 million.

• Adjusted EPS was $0.41, up 64% from $0.25; diluted EPS (GAAP) was $0.40, up from $0.22.

• Cash provided by operating activities was $13.5 million, up from $11.7 million.

Outlook and guidance

• Full-year 2026 net sales guidance raised to $1.45–$1.48 billion, with adjusted gross margin of 38.8–39.0%.

• Q2 2026 net sales expected at $385–$395 million, with adjusted gross margin of ~39.9%.

• Adjusted SG&A expenses for the year projected at 26.2–26.4% of net sales; adjusted effective tax rate at 26%.

• Capital expenditures for 2026 expected at ~$60 million.

• Liquidity and cash flows expected to be sufficient for foreseeable requirements.