Earning Preview: Interface revenue is expected to increase by 2.99%, and institutional views are bullish

Earnings Agent
Yesterday

Abstract

Interface will release its quarterly results on February 24, 2026 Pre-Market. This preview consolidates last quarter’s actuals and the current quarter’s forecasts, along with recent institutional commentary, to frame expectations for revenue, gross margin, net profitability, and adjusted EPS.

Market Forecast

Consensus-style projections for Interface this quarter indicate revenue of $350.54 million with an estimated year-over-year growth of 2.99%, EBIT of $38.34 million with an estimated year-over-year growth of 27.69%, and adjusted EPS of $0.40 with an estimated year-over-year growth of 40.70%. The company’s margin outlook embedded in the forecast points to continued efficiency gains, although explicit gross margin and net margin guidance is not provided; the prior quarter’s operational performance suggests a constructive margin trajectory. The main business mix is not itemized in the current feed, but demand trends for core carpet tile and resilient flooring categories underpin steady revenue expectations in North America and selected international markets. The most promising segment appears to be those products tied to performance and specification-led projects, given institutional commentary indicating a constructive stance on Interface’s execution and mix shift; specific revenue and year-over-year growth for that segment are not disclosed in the datasets.

Last Quarter Review

Interface’s previous quarter delivered revenue of $364.53 million, a gross profit margin of 39.40%, GAAP net profit attributable to the parent company of $46.15 million, a net profit margin of 12.66%, and adjusted EPS of $0.61, with year-over-year growth of 27.08%. The company exceeded expectations with EBIT of $54.10 million versus estimates of $44.29 million, highlighting operational leverage and disciplined cost control. Although the detailed revenue breakdown by main business is not provided here, the overall revenue grew 5.88% year over year, indicating healthy end-market demand across Interface’s core portfolio.

Current Quarter Outlook

Main Business

The company’s core business centers on commercial flooring solutions where project pipelines and specification wins drive quarterly revenue cadence. For the current quarter, the earnings forecast implies stability in top line at $350.54 million while maintaining margin discipline supported by prior-quarter gross margin of 39.40%. The estimated EPS of $0.40, up 40.70% year over year, suggests that cost structure improvements and mix optimization will be critical to earnings quality. In the absence of a formal segment breakdown, investors may focus on the balance between retrofit and new-build demand, where the timing of project completions can affect quarterly recognition. The forecasted EBIT growth of 27.69% points to favorable operating efficiency, likely aided by procurement savings and lean manufacturing, which should help counterbalance potential softness in discretionary corporate renovation cycles.

Largest Growth Potential Business

The most promising lane remains higher-value, performance-focused flooring tied to sustainability credentials and specification-based commercial projects. Institutional commentary in recent months has maintained a constructive view on Interface’s execution, which often correlates with mix-driven margin improvements even when aggregate volumes fluctuate. Products that command premium pricing due to durability, design, and environmental attributes can sustain profitability as customers prioritize lifecycle costs. In the current quarter, such a mix can support the elevated EPS trajectory relative to last year, with EBIT expansion reflecting improved throughput and pricing discipline. Although explicit revenue and year-over-year growth for this subsegment are not enumerated, the strong EBIT and EPS growth estimates suggest this business mix is contributing meaningfully to the quarter’s earnings setup.

Stock Price Drivers This Quarter

Three factors are likely to shape near-term stock performance around the print: the relationship between revenue and margin outcomes, confidence in operational efficiency, and the visibility of the order pipeline. If reported gross margin holds near or above the last quarter’s 39.40%, the market may extrapolate sustained cost advantages into the rest of the year. The degree to which EPS aligns with or beats the $0.40 estimate will be a focal point, as it synthesizes price discipline and cost control into a market-readable metric. Pipeline clarity around specification wins and large project schedules will serve as a proxy for demand stability, helping investors gauge whether the modest revenue growth forecast of 2.99% comes with resilient profitability. The stock’s reaction could be sensitive to commentary about regional demand variability, especially any signs of delayed installations or budget tightening among corporate customers, which would color the durability of above-trend EBIT growth.

Analyst Opinions

Recent institutional commentary points toward a bullish skew. Barrington Research reiterated a Buy rating with a price target of $32.00, highlighting strong prior-quarter performance and an optimistic outlook. The tone of this coverage aligns with the upbeat estimates for EPS and EBIT growth this quarter. Based on the set of views collected in the last six months, the ratio tilts to bullish over bearish, with no explicit bearish counterpoint surfaced in the screened period; thus, the majority view is bullish. Barrington’s stance underscores confidence in execution, margin durability, and mix benefits, suggesting that the company can deliver on the forecasted earnings trajectory if operational momentum persists and backlog conversion remains steady.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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