Interface, Inc. (NASDAQ: TILE) announced on February 24, 2026 that its Board of Directors has increased the regular quarterly cash dividend from $0.02 to $0.03 per share. The dividend will be payable on April 10, 2026 to shareholders of record as of March 27, 2026, marking a 50 % increase that underscores the company’s confidence in its cash‑flow generation and earnings durability.
The 50 % hike is a significant financing decision for a company that has consistently raised dividends for at least one successive year. By raising the dividend, Interface signals that it has sufficient liquidity to reward shareholders while maintaining a strong balance sheet, which has seen total debt fall 40 % year‑over‑year to $181.6 million and net debt to $110.3 million as of the end of 2025.
Interface’s dividend decision comes on the heels of a strong Q4 2025 earnings release. The company reported adjusted earnings per share of $0.49, beating analyst consensus of $0.40 by $0.09 or 22.5 %. Revenue for the quarter was $349.4 million, slightly below the $349.64 million estimate, a miss of $0.24 million. Adjusted gross profit margin expanded to 38.6 %, up 169 basis points from the prior year, driven by favorable pricing and a shift toward higher‑margin product mix, while higher input costs partially offset the margin gain.
Management highlighted the dividend increase as a reflection of its confidence in ongoing cash‑flow strength. CFO Bruce Hausmann said, "Our board recently approved an increase in the quarterly dividend from $0.02 to $0.03 per share, reflecting confidence in our cash flow generation and our earnings durability." CEO Laurel Hurd added, "We delivered record results in 2025 as our team executed well in a dynamic macro environment. Currency‑neutral net sales increased 4% year over year, driven by growth across all regions, all product categories, and key market segments. Adjusted gross profit margin expanded to 39%, reflecting favorable pricing and mix, as well as manufacturing efficiencies."
The dividend increase, coupled with the Q4 earnings beat and margin expansion, signals that Interface is in a strong financial position. The company’s One Interface strategy—focused on global functions, accelerated growth, and margin expansion—has translated into record net sales, adjusted operating income, and adjusted EBITDA for fiscal 2025. With a healthy backlog and solid orders, management projects continued confidence in cash‑flow generation and earnings durability into 2026.
In summary, Interface’s decision to raise its quarterly dividend to $0.03 per share, announced on February 24, 2026, reflects robust earnings performance, margin expansion, and a solid balance sheet. The move reinforces the company’s commitment to returning value to shareholders while maintaining the financial flexibility needed to support its growth strategy.
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