Interface, Inc. Reports 5.4% Revenue Growth to $395.7 Million in Q2 Fiscal 2026

Interface, Inc. reported a solid financial performance for the second quarter and first half of fiscal 2026, with consolidated net sales reaching $395.7 million, a 5.4% increase from $375.5 million in the same period last year. For the first six months, net sales totaled $726.7 million, up 8.0% from $672.9 million in the prior year. The growth was attributed to higher customer demand, particularly in the corporate office, healthcare, and education sectors, as well as favorable currency fluctuations that positively impacted sales.

The company's operating income for the second quarter was $74.9 million, compared to $52.0 million in the prior year, driven by increased sales and improved gross profit margins. The gross profit margin rose to 45.0% from 39.4% year-over-year, primarily due to lower manufacturing costs and the recognition of approximately $15.6 million in refunds for tariffs previously paid under the International Emergency Economic Powers Act (IEEPA). Net income for the quarter was $51.4 million, or $0.88 per diluted share, compared to $32.6 million, or $0.55 per diluted share, in the same quarter last year.

Interface's balance sheet showed total assets of $1.27 billion as of July 5, 2026, an increase from $1.21 billion at the end of December 2025. Current assets rose to $625.6 million, driven by higher accounts receivable and inventory levels, reflecting increased production volumes and customer demand. The company reported a total debt of $204.4 million, with a significant portion attributed to its syndicated credit facility, which provides ample liquidity with $216.3 million available for borrowing.

Operationally, Interface experienced a notable increase in customer engagement, with a consolidated backlog of unshipped orders amounting to approximately $269.1 million as of July 20, 2026, up from $222.8 million in February 2026. The company continues to focus on enhancing its manufacturing capabilities, investing in automation and robotics solutions, which contributed to a $22.5 million cash outflow for capital expenditures in the first half of 2026. Employee headcount remained stable, supporting the company's operational needs amid ongoing market challenges.

Looking ahead, Interface anticipates continued revenue growth in the third quarter of fiscal 2026, although it expects to face challenges from rising raw material and energy costs amid global economic uncertainties. The company is implementing strategies to mitigate these impacts through pricing adjustments and productivity improvements. Overall, Interface remains optimistic about its financial outlook, supported by strong demand across key market segments and effective cost management strategies.