Interface Cuts Fiscal 2026 Sales Outlook After Growth Slows

The Tip Desk · November 6, 2026 · 3 min read

Net sales were $366.7 million, up 0.6% year over year, as the flooring maker reaffirmed earnings guidance and lowered the sales range to $1.440–$1.455 billion.

Interface, Inc. (TILE), the global flooring and sustainability leader, reported third-quarter net sales of $366.7 million, up 0.6% from a year earlier and 0.4% on a currency-neutral basis, a sharp slowdown from 5.4% growth in the second quarter and 11.3% in the first.

The company said Healthcare billings increased 5% on top of 29% growth in the prior-year quarter, while Education and Corporate Office each grew in the low single digits. Chief Executive Laurel Hurd said global billings grew across all three primary market segments and that momentum in the Americas, disciplined execution, and progress on the One Interface strategy helped offset softer conditions in EMEA. Chief Financial Officer Bruce Hausmann said operating discipline drove adjusted earnings growth ahead of expectations even with modest net sales growth, as certain Retail and nora deliveries shifted into future periods.

GAAP earnings were $0.67 a share, down 14.1% from $0.78 a year earlier, when a non-cash German deferred-tax credit had lifted the prior-year result. Adjusted earnings were $0.68 a share, up 11.5% from $0.61. GAAP net income was $39.2 million; adjusted net income was $39.9 million.

Adjusted gross profit margin expanded 103 basis points year over year to 40.6%, after a 524-basis-point expansion in the second quarter that included $15.6 million of IEEPA tariff refunds. The company said favorable pricing and product mix combined with manufacturing efficiencies were partially offset by higher raw material and tariff-related costs. Adjusted SG&A expenses were $91.5 million, up $1.5 million from a year earlier on higher inflation and marketing costs. Adjusted EBITDA was $69.3 million.

The Americas segment posted net sales of $219.4 million, up 0.3% year over year, after 3.4% growth in the second quarter. Currency-neutral orders in the Americas rose 6.2%. Operating income there was $41.2 million.

Europe, Asia and Australia net sales were $147.4 million, up 1.0% year over year, after 8.8% growth in the second quarter. Currency-neutral orders in that region decreased 6.8%. Operating income rose 17.0% to $15.1 million; adjusted operating income was $16.0 million.

Interface reaffirmed full-year earnings guidance and revised its fiscal 2026 net sales outlook lower to $1.440 billion to $1.455 billion from $1.455 billion to $1.485 billion, citing softer conditions in Europe. Adjusted gross profit margin guidance was cut to 40.4% of net sales from 40.6%. Adjusted SG&A expense guidance was lowered to $387 million from $395 million, adjusted interest and other expenses to $14 million from $15 million, and the adjusted effective tax rate to 25.0% from 26.0%. Guidance includes $15.6 million of IEEPA tariff refunds received in the second quarter.

Cash was $81.1 million at October 4, 2026. Total debt fell to $130.2 million from $204.4 million at the end of the second quarter, and net debt fell to $49.1 million from $122.8 million. Net leverage declined to 0.2 times last-twelve-months adjusted EBITDA from 0.5 times.

Hausmann said the company’s backlog is solid, the balance sheet is healthy, and it remains focused on margin expansion and cost discipline.