Interface raises full-year guidance on 4% sales growth and margin expansion

Interface, Inc. has reported currency-neutral net sales growth of 4% for the second quarter of 2026, attributing the performance to its 'One Interface' strategic initiative. The company raised its full-year 2026 guidance, citing a 22% year-to-date increase in backlog and robust order momentum across all geographies. The 'One Interface' strategy integrates global functions to support local selling teams, aiming to enhance commercial productivity and drive broad-based results across regions and segments.

Healthcare billings grew 19% globally, building on a 28% comparable increase in the prior year. The Corporate Office segment also expanded by 5% globally, driven by a 'flight to quality' in Class A spaces. Management noted that companies are redesigning offices to support collaboration and talent retention, viewing investment in office environments as a human capital strategy rather than merely a facility cost.

Financially, Interface achieved its 2030 gross margin target of 38.5% ahead of schedule. Management anticipates a second-half gross margin run rate of approximately 39%, representing a 60 basis point improvement over the prior year's baseline. This expansion was supported by operational improvements, including automation and robotics in Europe and Australia, which reduced costs and increased throughput.

The company recognised a $15.6 million benefit from IEEPA tariff refunds in the second quarter, contributing approximately $0.19 to earnings per diluted share. No further refunds are assumed in the current guidance. Adjusted selling, general and administrative expenses increased to $103.1 million, primarily due to higher sales commissions and variable compensation resulting from exceeding sales and profit targets.

Innovation and sustainability remain central to the company's growth strategy. Interface launched 'noravant timber', a rubber flooring product with a wood grain aesthetic, targeting the premium vinyl sheet market in healthcare patient rooms. Sustainability metrics showed a 4% reduction in product carbon footprint year-over-year, with 51% of materials now being recycled or bio-based. The company remains committed to becoming carbon negative by 2040 without the use of offsets.