Interface, Inc.

Third-quarter net sales were $366.7 million, up 0.6% as reported and 0.4% on a currency-neutral basis. Adjusted gross profit margin was 40.6%, up 103 basis points year over year. Adjusted SG&A was $91.5 million versus $90.0 million last year. Adjusted operating income was $57.2 million, up 5.7%; adjusted net income was $39.9 million versus $35.9 million; adjusted EBITDA was $69.3 million, up 4.7%; and adjusted EPS was $0.68, up 11.5%. Currency-neutral orders increased 1%, with the Americas up 6% and EAAA down 7%. For full-year 2026, Interface now expects net sales of $1.440 billion to $1.455 billion, adjusted gross margin of about 40.4%, adjusted SG&A of about $387 million, adjusted interest and other expense of about $14 million, an adjusted tax rate of about 25%, fully diluted shares of about 58.5 million, and capex of about $60 million. Management said the full-year gross margin guide includes a one-time IEPA tariff refund benefit; excluding that, baseline gross margin is about 39.3%.

Laurel Hurd said the quarter showed broad-based demand and good execution, with adjusted earnings growth ahead of expectations and billings rising across all three primary end markets. She emphasized the company’s ‘1 Interface’ strategy, including stronger global functions, commercial productivity, supply chain efficiency, and ongoing innovation in design and sustainability. Her tone was confident but realistic: she highlighted strong momentum in the Americas, acknowledged softer European conditions, and framed the EMEA reorganization as a long-term opportunity rather than a near-term fix.

Bruce Hausmann focused on operating discipline and margin performance. He cited $366.7 million of sales, 40.6% adjusted gross margin, $91.5 million of SG&A, $57.2 million of adjusted operating income, and $39.9 million of adjusted net income, saying earnings growth outpaced expectations even with only modest sales growth. He also noted $86.3 million of operating cash flow, $9.1 million of capex, and reaffirmed full-year earnings while lowering sales guidance because of softer Europe, elevated oil prices, and new Canadian tariffs; he said Canadian tariffs could run $5 million to $10 million annually.

Analysts pressed on gross margin into Q4 and 2027, and management said the Q4 pressure is mainly timing and flow-through of raw material costs, with a run-rate gross profit margin around 39%. They also discussed Europe, where Laurel said the macro softened, orders are taking longer to convert, and the company is moving to a single-leader, 1-team selling model next year. On cost inflation, Bruce said the new Canadian tariffs and higher energy/oil prices were the main surprises, but the company has offset most of the impact so far and will continue using pricing, productivity, and mix to protect margins.