Interface (TILE) investor relations material

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 to 45.0%, benefiting from operational improvements and a $15.6 million IEEPA tariff refund.

• Operating income rose to $74.9 million (up 44%), and net income increased to $51.4 million (up 58%), with adjusted EPS at $0.88 (up 47%).

• 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, robust backlog, and broad-based order momentum.

Financial highlights

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

• Adjusted gross profit margin: 45.0% (up 524 bps); adjusted operating income: $74.9 million (up 34%); adjusted net income: $51.5 million (up 45%).

• Adjusted EBITDA: $87.7 million (22.2% of net sales), up 35.2% year-over-year.

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

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

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%, SG&A $100 million.

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

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

• Initiatives underway to offset higher raw material, energy, and procurement costs through pricing and productivity.