Overview

• Flooring maker's Q1 sales rose 11% yr/yr, beating analyst expectations

• Adjusted EPS for Q1 increased 64% and beat analyst expectations

• Company raised full-year 2026 guidance after strong Q1 performance

Outlook

• Interface raises full-year 2026 net sales outlook to $1.45 bln-$1.48 bln from $1.42 bln-$1.46 bln

• Company expects Q2 2026 net sales of $385 mln to $395 mln

• Interface anticipates full-year 2026 adjusted gross profit margin of 38.8%-39.0% of net sales

Result Drivers

• BROAD-BASED GROWTH - Co said sales growth was broad-based across all product categories and key market segments, with Corporate Office and Healthcare leading performance

• MARGIN EXPANSION - Adjusted gross profit margin increased due to favorable pricing, product mix, and manufacturing efficiencies

• HIGHER VARIABLE COMPENSATION - Adjusted SG&A expenses rose due to higher sales commissions and variable compensation on increased sales and profits

Company press release: ID:nBw2y4fj9a

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Sales	Beat	$331 mln	$320.04 mln (3 Analysts)
Q1 Adjusted EPS	Beat	$0.41	$0.33 (3 Analysts)
Q1 EPS		$0.40
Q1 Net Income		$23.60 mln

Analyst Coverage

• The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the construction supplies & fixtures peer group is "buy."

• Wall Street's median 12-month price target for Interface Inc is $36.00, about 30.7% above its May 7 closing price of $27.55

• The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 16 three months ago

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