Interface (NASDAQ:TILE) Posts Quarterly Earnings Results, Beats Expectations By $0.07 EPS

Interface (NASDAQ:TILE) posted its earnings results on Friday. The textile maker reported $0.68 EPS for the quarter, topping the consensus estimate of $0.61 by $0.07, FiscalAI reports. Interface had a net margin of 10.10% and a return on equity of 21.77%. The company had revenue of $366.74 million during the quarter, compared to the consensus estimate of $377.60 million. During the same period in the previous year, the firm posted $0.61 earnings per share. The firm’s revenue for the quarter was up .6% on a year-over-year basis.

Here are the key takeaways from Interface’s conference call:

• Adjusted diluted EPS rose 11.5% to $0.68, while adjusted operating income increased 5.7%. Adjusted gross margin expanded 103 basis points to 40.6%, as pricing, mix, and manufacturing efficiencies more than offset higher costs.
• Demand indicators were broadly supportive: billings grew across healthcare, education, and corporate office, and Americas orders increased 6%. The company ended the quarter with backlog up 14% year to date.
• Interface lowered its full-year net sales outlook to $1.440 billion–$1.455 billion, citing softer European conditions; Q3 sales also came in slightly below the low end of guidance. EAAA orders declined 7% as opportunities took longer to convert.
• The company reaffirmed its full-year earnings outlook despite higher oil-related costs and new Canadian tariffs, estimated to add $5 million–$10 million annually. Management said pricing, productivity initiatives, and automation are helping offset cost pressures.

Interface Stock Performance

Shares of NASDAQ TILE traded down $7.08 during midday trading on Friday, reaching $30.74. The company’s stock had a trading volume of 1,862,459 shares, compared to its average volume of 521,792. Interface has a 12-month low of $24.40 and a 12-month high of $40.84. The firm has a 50 day moving average price of $35.78 and a 200-day moving average price of $32.30. The stock has a market capitalization of $1.78 billion, a P/E ratio of 12.45, a PEG ratio of 1.13 and a beta of 2.08. The company has a debt-to-equity ratio of 0.29, a current ratio of 2.53 and a quick ratio of 1.35.

Interface Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Friday, September 18th. Shareholders of record on Friday, September 4th were given a dividend of $0.03 per share. The ex-dividend date of this dividend was Friday, September 4th. This represents a $0.12 annualized dividend and a dividend yield of 0.4%. Interface’s dividend payout ratio (DPR) is currently 4.86%.

Wall Street Analyst Weigh In

Several brokerages recently weighed in on TILE. Barrington Research raised their price target on shares of Interface from $36.00 to $45.00 and gave the company an “outperform” rating in a research report on Monday, August 10th. Weiss Ratings downgraded Interface from a “buy (b+)” rating to a “buy (b)” rating in a research note on Tuesday, October 27th. Wall Street Zen lowered Interface from a “buy” rating to a “hold” rating in a report on Saturday, October 31st. Finally, Zacks Research lowered Interface from a “strong-buy” rating to a “hold” rating in a report on Friday, October 9th. Three research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company’s stock. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average price target of $40.50.

Interface News Summary

Here are the key news stories impacting Interface this week:

• Positive Sentiment: Adjusted earnings per share were $0.68, beating the $0.61 consensus estimate and rising 11.5% year over year. Interface Q3 Earnings Top Estimates
• Neutral Sentiment: Revenue edged up 0.6% year over year to $366.7 million, while GAAP diluted EPS was $0.67, down 14.1%. Interface Reports Third Quarter 2026 Results
• Negative Sentiment: Quarterly sales missed analysts’ $377.6 million estimate. Interface’s FY 2026 revenue guidance of $1.4 billion–$1.5 billion also falls short of the roughly $1.5 billion consensus at the midpoint, raising concerns about near-term growth. Interface Q3 Revenue Flash

Insider Activity

In related news, Director Daniel Hendrix sold 8,000 shares of the stock in a transaction that occurred on Wednesday, September 2nd. The stock was sold at an average price of $37.13, for a total transaction of $297,040.00. Following the completion of the sale, the director directly owned 88,147 shares of the company’s stock, valued at approximately $3,272,898.11. This trade represents a 8.32% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Laurel Hurd sold 7,000 shares of Interface stock in a transaction on Monday, August 24th. The stock was sold at an average price of $39.09, for a total value of $273,630.00. Following the sale, the chief executive officer owned 506,978 shares in the company, valued at $19,817,770.02. This trade represents a 1.36% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 65,621 shares of company stock valued at $2,378,904 over the last three months. Corporate insiders own 2.47% of the company’s stock.

About Interface

Interface, Inc designs and manufactures modular flooring products for commercial, institutional and residential interiors. Its portfolio includes carpet tile, broadloom carpet and resilient flooring, including luxury vinyl tile. The company serves markets such as corporate offices, hospitality, education, healthcare and retail.

Founded in 1973 by Ray Anderson, Interface is headquartered in Atlanta, Georgia, and sells its products through a global network serving customers in North America, Europe and the Asia-Pacific region.