Interface Q2 earnings call highlights. August 7, 2026 Key points. * Interface delivered broad-based Q2 growth: Net sales rose 5.4% to $395.7 million, while adjusted EPS increased 47% to $0.88. Healthcare led demand with a 19% increase in billings, alongside 5% growth in education and corporate office markets. * Profitability benefited from operational improvements and a one-time tariff refund: Adjusted gross margin expanded to 45%, including a $15.6 million tariff-refund benefit, while adjusted operating income rose 34% to $74.9 million. * The company raised its full-year outlook as orders increased 5% and backlog climbed 22% year to date. Interface now expects 2026 sales of $1.455 billion to $1.485 billion and adjusted gross margin of approximately 40.6%. * MarketBeat previews top five stocks to own in September. Interface NASDAQ: TILE reported second-quarter 2026 sales growth across regions, product categories and its largest end markets, while profitability benefited from operational improvements and a one-time tariff refund. The commercial flooring company raised its full-year outlook, citing order momentum and a backlog that was up 22% year to date at the end of the quarter. Second-quarter net sales totaled $395.7 million, up 5.4% as reported and 3.8% on a currency-neutral basis. CEO Laurel Hurd said the company achieved 4% currency-neutral sales growth, building on 7% currency-neutral growth in the prior-year quarter. "Growth was broad-based across regions, product categories, and primary market segments," Hurd said, attributing the performance to contributions from both price and volume as well as the company's diversified portfolio. Margins rise on operations and tariff refund. Adjusted gross profit margin increased 524 basis points from a year earlier to 45% during the second quarter. CFO Bruce Hausmann said 131 basis points of the increase came from higher volumes, pricing, favorable product mix and manufacturing efficiencies. The remaining 393 basis points reflected a $15.6 million benefit from IEEPA tariff refunds, equal to approximately $0.19 per diluted share, Hausmann said. He noted that the refund had not been included in the company's previous full-year guidance and that Interface is not assuming additional refunds going forward. Hausmann said Interface continues to face low-single-digit raw-material cost inflation and implemented proactive pricing during the second quarter. The increased input costs will flow through the income statement in future periods as inventory is sold, creating differences in expected quarterly margin performance during the second half. For the back half of 2026, Interface expects gross margins of roughly 39%, which Hausmann said would represent about a 60-basis-point improvement from the comparable prior-year period, excluding the effects of the one-time tariff refund. Hurd said the company is ahead of its earlier margin objectives but has not established a new long-term gross-margin target amid volatile input costs and tariffs. Second-quarter adjusted operating income rose 34% to $74.9 million, while adjusted net income increased to $51.5 million from $35.4 million a year earlier. Adjusted EBITDA was $87.7 million, compared with $64.8 million in the prior-year quarter. Adjusted diluted earnings per share rose 47% to $0.88 from $0.60. Healthcare leads growth across key markets. Healthcare was the company's fastest-growing primary market, with global billings up 19% after rising 28% in the second quarter of 2025. Hurd said nora rubber flooring remained a meaningful driver in the segment, supported by combined Interface and nora sales teams in the United States. Discover more American Consumer News Dictionaries & Encyclopedias Education billings increased 5%, following 11% growth in the previous year's second quarter. Hurd said demand spans both K-12 and higher education, supported by renovation, modernization and new-construction activity. The company said it has been gaining share through its range of price points in carpet tile and luxury vinyl tile, as well as nora products used in K-12 cafeterias, laboratories and other settings. Corporate office billings also rose 5%, driven by broad-based global growth. The segment represented approximately 44% of year-to-date billings, according to Hausmann. Management cited return-to-office trends, renovations and a "flight to quality" in Class A office space as supporting demand. Hurd said customers are increasingly focused on designing offices for collaboration, concentrated work and employee recruitment and retention rather than simply outfitting workspace. The company's Interface Design Studio, which pairs customers with design specialists, has helped customers evaluate flooring across the company's carpet tile, LVT and rubber offerings, she said. Product, automation investments continue. Interface highlighted several newer products intended to broaden its addressable market. The company launched Open Air Neutrals, an extension of its carpet-tile platform with warmer and neutral tones, and previewed Twist and Texture, a textile-inspired carpet-tile offering positioned at an accessible price point with quick delivery. Hurd also pointed to noravant timber, a rubber flooring product with a woodgrain appearance that was introduced earlier in 2026. The product was named Best Product for Healthcare at London's Clerkenwell Design Week, and the company has seen specifications from design firms and healthcare systems. Management said the product's contribution was not yet reflected meaningfully in second-quarter healthcare sales because it remains early in its commercial rollout. In manufacturing, Interface continued to invest in automation and robotics across carpet tile and rubber flooring facilities. Hurd said robotic investments in Europe and Australia were exceeding expectations, while packaging automation in Australia and robotics investments in Germany are intended to reduce costs, increase throughput and support capacity. Guidance raised as orders and backlog strengthen. Currency-neutral orders increased 5% in the quarter, including 5% growth in the Americas and 6% growth in EAAA. Management said strong order activity and backlog supported its decision to raise full-year guidance. * Third-quarter net sales are expected to be $370 million to $380 million. * Third-quarter adjusted gross margin is expected to be approximately 40.8%. * Full-year 2026 net sales are projected at $1.455 billion to $1.485 billion. * Full-year adjusted gross margin is expected to be approximately 40.6%. * Capital expenditures are forecast at approximately $60 million for the 53-week fiscal year. During the quarter, Interface generated $38.4 million in cash from operating activities and spent $12.2 million on capital expenditures. The company repurchased $8.8 million of common stock, or approximately 310,000 shares, and paid its quarterly dividend. Hausmann said share repurchases will remain "disciplined and opportunistic" as part of a capital-allocation approach that also prioritizes business investment, leverage management and potential acquisitions. About Interface (NASDAQ:TILE). Interface, Inc NASDAQ: TILE is a global manufacturer of modular flooring and resilient commercial flooring solutions. The company specializes in carpet tiles, luxury vinyl tile (LVT) and other environmentally responsible hard-surface products designed for use in corporate, education, healthcare, hospitality and retail environments. Interface's portfolio also includes broadloom carpet, rubber flooring and acoustic underlays, all engineered to meet performance, design and sustainability requirements in modern interior spaces. Founded in 1973 by Ray C. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. Continue following MarketBeat Before you consider Interface, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Interface wasn't on the list. While Interface currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.

Radical circularity: moving beyond recycling. Posted on 29-06-2026 by Bas Fransen What if EcoMatcher Ltd. told you that only 9% of all plastic ever produced has actually been recycled? The rest sits in landfills, floats in oceans, or gets incinerated. Recycling is just one piece of the puzzle. The real question to be asking is how to stop creating waste in the first place. This is where radical circularity comes in: a fundamental reimagining of its relationship with materials, resources, and the living world itself. Nature's original design. Walk into an old-growth forest and try to find waste. You likely won't! Dead trees become nurse logs for seedlings. Fallen leaves decompose into nutrient-rich soil. Fungi break down organic matter and redistribute resources through underground mycelial networks spanning acres. Every output from one organism becomes input for another. The forest operates as a perfectly calibrated circular economy, and it's been doing so for millions of years. This is the blueprint EcoMatcher Ltd. abandoned during the Industrial Revolution. EcoMatcher Ltd. replaced nature's circles with straight lines: extract resources, manufacture products, use them briefly, then discard. This "take-make-waste" model has given EcoMatcher Ltd. unprecedented convenience and catastrophic consequences. The global economy consumes over 100 billion tons of materials annually, yet only 8.6% of these materials are cycled back into use. Radical circularity means returning to nature's wisdom through sophisticated design that mimics ecological intelligence. Why recycling falls short. Recycling is better than landfilling, but let's be honest about its limitations. Most recycling is actually "downcycling": degrading materials into lower-quality products that themselves cannot be recycled again. Your plastic bottle becomes a park bench that will eventually end up in a landfill anyway. The process is also resource-intensive. Recycling facilities require enormous amounts of energy and water. Contamination rates are high: one greasy container can ruin an entire batch of recycling. And the global recycling trade has revealed uncomfortable truths: for decades, wealthy nations shipped their recycling to countries in Asia and Africa. Before 2018, China was importing two-thirds of the world's plastic waste (UN Environment Programme, 2019). When China's National Sword policy banned most imports, the waste crisis shifted to Southeast Asia, then to Turkey and Poland, revealing that much "recycling" was simply waste colonialism in disguise. Designing waste out of existence. True circularity starts at the design phase. The Cradle-to-Cradle framework, developed by architect William McDonough and chemist Michael Braungart, asks: what if every product was designed to be either safely composted or endlessly recycled without degradation? This means rethinking everything. Instead of gluing phone components together, design them to snap apart for easy repair and material recovery. Instead of mixing synthetic and natural fibers in clothing (making recycling impossible), keep material streams pure. Instead of packaging food in mixed-material pouches, use mono-materials or truly compostable alternatives. Companies like Patagonia have embraced this philosophy with their Worn Wear program, which repairs, refurbishes, and resells used gear, keeping materials in circulation far longer than the typical "buy-use-discard" cycle. Interface, a carpet manufacturer, pioneered a take-back program that reclaims old carpets and transforms them into new ones, creating a closed-loop system that has diverted millions of pounds of material from landfills. Circular business models. Radical circularity also transforms how EcoMatcher Ltd. do business. Product-as-a-service models - where companies retain ownership and lease products to customers - incentivize durability and repairability. Why would a lighting company that leases fixtures design them to fail when they're responsible for maintenance and replacement? Regenerative agriculture takes this principle to its food systems. Instead of depleting soil through chemical-intensive monoculture, regenerative farms build soil health through practices like cover cropping, composting, and rotational grazing. These farms actively improve ecosystems, sequestering carbon, restoring watersheds, and supporting biodiversity. The forest connection. This is where tree planting enters the circular equation as an investment in Earth's fundamental circularity infrastructure. Forests are carbon recyclers, pulling CO[2] from the atmosphere and storing it in wood, leaves, and soil. They're water recyclers, capturing precipitation, filtering it through soil, and releasing it slowly into watersheds. They're nutrient recyclers, building soil fertility year after year. A single mature tree can absorb approximately 48 pounds of CO[2] per year, but its circular benefits extend far beyond carbon accounting. When EcoMatcher Ltd. plant trees with ecological intention - prioritizing native species, supporting biodiversity, and restoring degraded ecosystems - EcoMatcher Ltd. is rebuilding the living infrastructure that makes all other cycles possible. Healthy forests create microclimates that support agriculture. They prevent erosion that would otherwise choke waterways. They provide habitat for pollinators that fertilize crops. In the end, circularity is about relationships, dependencies, and interconnected systems. Every tree planted strengthens these connections. Becoming circular citizens. So what does radical circularity look like in daily life? It starts with a shift in identity from consumer to steward. Instead of asking "how do I dispose of this responsibly?" ask "should this exist at all?" Buy less, but choose well. Seek out products designed for longevity and repair. Support companies with transparent, circular supply chains. Embrace the repair culture: visit community repair cafés, learn to mend clothing, fix what breaks before replacing it. Compost your organic waste. Food scraps become soil amendments, which grow more food, which feeds you and eventually returns to soil. Composting can divert up to 30% of household waste from landfills (EPA), but more importantly, it reconnects EcoMatcher Ltd. to regenerative cycles EcoMatcher Ltd. has forgotten. Support refill stations and package-free stores. Choose local food systems where you can see the circular relationships between farm, table, and compost. Vote with your wallet for businesses that view waste as a design failure, not an inevitability. Ask better questions: Can this product return safely to soil? Can its components be separated and reclaimed? Does this purchase support regenerative practices or extractive ones? Thinking in circles. The transition from a linear economy to a circular one represents more than logistical reorganization. It's a cultural evolution. It requires long-term thinking in a world addicted to quarterly returns. It demands systemic solutions in a culture of individual convenience. It asks EcoMatcher Ltd. to see ourselves not as apex consumers but as participants in living systems. Every tree you plant is a vote for circularity. Every product you refuse to buy breaks a linear chain. Every time you choose repair over replacement, you're practicing the oldest economics on Earth. Recycling was never the destination. It was a rest stop on the journey toward something more fundamental: learning to live within the cycles that sustain all life. The forests have been showing EcoMatcher Ltd. how all along. It's time EcoMatcher Ltd. started paying attention.

Interface, a global manufacturer of modular carpet tiles and sustainable flooring solutions, reported first-quarter revenues of $331 million, up 11.3% year on year and exceeding analysts' expectations by 3.5%. The company delivered currency-neutral net sales growth of 7% and adjusted earnings per diluted share growth of 64%. CEO Laurel Hurd highlighted consistent execution and continued momentum across the business. The stock has risen 15.8% since reporting results and currently trades at $31.89. Across the business services and supplies sector, 20 tracked companies reported strong first-quarter results, with revenues beating consensus estimates by 2.4%. Share prices have risen 9.9% on average since earnings announcements. Brady led the sector with revenues of $435.2 million, up 13.8% year on year and exceeding expectations by 7.2%.