Interface (TILE)
NASDAQ:TILE
Top Page
Interface
(NASDAQ:TILE)
Select Model
Select Model
Rating:74Outperform
Price Target:
$28.00
▲(12.59% Upside)
Action:ReiteratedDate:02/24/26
The score is driven primarily by solid financial performance (improving profitability, stronger leverage profile, and healthy free cash flow) and a positive earnings outlook with supportive guidance and backlog trends. Valuation is reasonable, while technicals are the main offset due to weaker near-term momentum.
Positive Factors
Margin Expansion & Profitability
Sustained margin expansion to ~39% reflects lasting improvements from pricing, mix and manufacturing productivity. Management expects similar margins in 2026 and is investing in automation, making higher gross margins a durable structural support for earnings and cash generation over the next several quarters.
Negative Factors
Tariff & Policy Risk
Ongoing tariff and policy volatility is an external, hard-to-predict margin pressure that can erode gross profit and complicate pricing strategies. As management noted, shifting tariff outcomes could materially change margin assumptions and require sustained countermeasures (pricing, productivity) to preserve profitability.
Read all positive and negative factors
Positive Factors
Negative Factors
Margin Expansion & Profitability
Sustained margin expansion to ~39% reflects lasting improvements from pricing, mix and manufacturing productivity. Management expects similar margins in 2026 and is investing in automation, making higher gross margins a durable structural support for earnings and cash generation over the next several quarters.
Read all positive factors
Interface (TILE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.44B
Dividend Yield0.21%
Average Volume (3M)681.02K
Price to Earnings (P/E)14.4
Beta (1Y)0.78
Revenue Growth5.11%
EPS Growth34.02%
CountryUS
Employees3,636
SectorConsumer Cyclical
Sector Strength84
IndustryFurnishings, Fixtures & Appliances
Share Statistics
EPS (TTM)0.49
Shares Outstanding57,963,490
10 Day Avg. Volume1,020,445
30 Day Avg. Volume681,020
Financial Highlights & Ratios
PEG Ratio0.43
Price to Book (P/B)1.39
Price to Sales (P/S)1.21
P/FCF Ratio13.75
Enterprise Value/Market Cap1.14
Enterprise Value/Revenue1.18
Enterprise Value/Gross Profit3.06
Enterprise Value/Ebitda8.30
Forecast
1Y Price Target
$36.00Price Target Upside44.75% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)2.09
Revenue Forecast (FY)$1.46B
Interface Business Overview & Revenue Model
Company Description
Interface, Inc., a modular flooring company, designs, produces, and sells modular carpet products primarily in the Americas, Europe, and the Asia-Pacific. The company offers modular carpets under the Interface and FLOR brand names; carpet tiles un...
How the Company Makes Money
Interface makes money primarily by selling commercial flooring products. Its core revenue stream is the sale of modular carpet tile, which has historically been a major part of its portfolio, alongside revenue from resilient flooring (e.g., luxury...
Interface Earnings Call Summary
Earnings Call Date:Feb 24, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 01, 2026
Earnings Call Sentiment Positive
The call conveyed a broadly positive tone: management reported a record 2025 with strong top‑line growth, substantial margin expansion, meaningful segment outperformance (health care, education, nora rubber), healthy cash generation, disciplined capital allocation, and constructive 2026 guidance. The company also highlighted strategic progress—automation, the One Interface selling model, and a major new product (Noravant) with multiyear upside. Headwinds cited (tariff volatility, nonrecurring inventory/tax benefits, higher input costs, regional/order softness in some markets, and longer nora selling cycles) are tangible but described as manageable through pricing, productivity, and disciplined spending. On balance the positives and sustainable operating gains outweigh the one‑time items and risks discussed.Positive Updates
Record Financial Performance
Full year 2025 net sales of $1,390,000,000 (up 5.4% reported; currency‑neutral net sales +4.3% YoY). Full year adjusted operating income of $173.8M (up 22.9% YoY), adjusted EBITDA $217.9M (up 15.3% YoY), and adjusted diluted EPS $1.94 (up 33% YoY). Company described 2025 as a record year for net sales, adjusted operating income, and adjusted EBITDA.
Negative Updates
Tariff Headwinds and Policy Uncertainty
Tariffs created dilution to gross profit: ~20 basis points in 2025 and expected ~50 basis points headwind in 2026. Management highlighted ongoing tariff volatility (Supreme Court and policy shifts) as a moving target and risk to margins.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Financial Performance
Full year 2025 net sales of $1,390,000,000 (up 5.4% reported; currency‑neutral net sales +4.3% YoY). Full year adjusted operating income of $173.8M (up 22.9% YoY), adjusted EBITDA $217.9M (up 15.3% YoY), and adjusted diluted EPS $1.94 (up 33% YoY). Company described 2025 as a record year for net sales, adjusted operating income, and adjusted EBITDA.
Read all positive updates
Company Guidance
Interface provided Q1 2026 guidance of net sales of $315–$325 million, adjusted gross profit margin of ~38% of sales, adjusted SG&A of ~$94 million, adjusted interest and other of ~$4 million, an adjusted effective tax rate of ~18%, and a fully diluted share count of ~59.1 million; full‑year 2026 guidance is net sales of $1.42–$1.46 billion, adjusted gross profit margin of 38.5%–39.0%, adjusted SG&A of ~26.2%–26.4% of sales, adjusted interest and other of ~$16 million, an adjusted effective tax rate of 25%–26%, and capital expenditures of ~ $55 million, with the company noting a 53‑week year that should add roughly $5–$10 million to sales and a YTD backlog up ~7%.Interface Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
76
Positive
Cash Flow
73
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.39B | 1.32B | 1.26B | 1.30B | 1.20B |
| Gross Profit | 537.38M | 482.95M | 441.07M | 437.73M | 432.73M |
| EBITDA | 198.39M | 181.43M | 141.71M | 118.18M | 155.45M |
| Net Income | 116.10M | 86.95M | 44.52M | 19.56M | 55.23M |
Balance Sheet | |||||
| Total Assets | 1.77B | 1.17B | 1.23B | 1.27B | 1.33B |
| Cash, Cash Equivalents and Short-Term Investments | 71.32M | 99.23M | 110.50M | 97.56M | 97.25M |
| Total Debt | 264.53M | 383.14M | 515.45M | 610.62M | 615.59M |
| Total Liabilities | 565.85M | 681.67M | 804.15M | 904.97M | 966.66M |
| Stockholders Equity | 1.21B | 489.15M | 425.95M | 361.54M | 363.40M |
Cash Flow | |||||
| Free Cash Flow | 121.71M | 114.64M | 115.93M | 24.62M | 58.62M |
| Operating Cash Flow | 167.91M | 148.43M | 142.03M | 43.06M | 86.69M |
| Investing Cash Flow | -46.19M | -30.37M | -19.51M | -18.44M | -28.07M |
| Financing Cash Flow | -159.29M | -125.23M | -111.56M | -19.49M | -60.86M |
Interface Technical Analysis
Negative
24.87
Price Trends
29.59
Negative
28.87
Negative
27.09
Negative
Market Momentum
-1.28
Negative
33.08
Neutral
51.72
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TILE, the sentiment is Negative. The current price of 24.87 is below the 20-day moving average (MA) of 26.00, below the 50-day MA of 29.59, and below the 200-day MA of 27.09, indicating a bearish trend. The MACD of -1.28 indicates Negative momentum. The RSI at 33.08 is Neutral, neither overbought nor oversold. The STOCH value of 51.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TILE.
Interface Risk Analysis
Interface disclosed 9 risk factors in its most recent earnings report. Interface reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Interface Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $1.44B | 14.41 | 15.93% | 0.21% | 5.11% | 34.02% | |
65 Neutral | $1.31B | 18.08 | 8.12% | 2.39% | 1.78% | -25.36% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
57 Neutral | $1.33B | 6.47 | 26.15% | 1.84% | -6.03% | ― | |
54 Neutral | $146.90M | -1.14 | -15.57% | 7.20% | -12.09% | -204.66% | |
50 Neutral | $980.49M | 14.70 | 0.83% | 4.16% | 4.34% | -141.36% | |
47 Neutral | $1.05B | 53.13 | 1.98% | ― | 1.77% | -44.11% |
* Consumer Cyclical Sector Average
TILE
Interface
24.87
7.14
40.25%
MLKN
MillerKnoll
14.34
-1.22
-7.86%
HOFT
Hooker Furniture
13.63
5.80
74.14%
LZB
La-Z-Boy Incorporated
32.09
-2.72
-7.81%
LEG
Leggett & Platt
9.76
3.05
45.54%
MBC
MasterBrand Inc
8.20
-2.93
-26.33%
Interface Corporate Events
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Interface Posts Record 2025 Results, Strengthens Financial Position
Positive
Feb 24, 2026
Interface reported record fourth-quarter and full-year 2025 results on February 24, 2026, with net sales rising 4.3% in the quarter to $349 million and 5.4% for the year to $1.39 billion, and GAAP earnings per diluted share reaching $0.41 for the ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.