Interface Inc (TILE)
NASDAQ:TILE
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Interface
(NASDAQ:TILE)
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Rating:71Outperform
Price Target:
$33.00
▲(17.02% Upside)
Action:Reiterated
Date:05/09/26
The score is driven mainly by improved profitability and a materially stronger balance sheet, supported by a constructive technical setup and positive guidance/backlog commentary. The biggest offset is valuation opacity from an unusable P/E figure and only a modest dividend yield, alongside moderate cash conversion and softer near-term free cash flow growth.
Positive Factors
Margin Improvement & Profitability
Sustained margin expansion and higher net income reflect durable gains from pricing, mix and manufacturing efficiencies. Stronger gross and net margins improve earnings power across cycles, enabling reinvestment, shareholder returns and resilience against moderate demand swings over the next 2–6 months.
Negative Factors
Moderate Cash Conversion & FCF Trajectory
Cash conversion below earnings indicates working-capital or timing friction that can constrain capital allocation. Negative recent FCF growth reduces optionality for buybacks/dividends or faster debt paydown and raises reliance on operational execution to fund capex and product ramps.
Read all positive and negative factors
Positive Factors
Negative Factors
Margin Improvement & Profitability
Sustained margin expansion and higher net income reflect durable gains from pricing, mix and manufacturing efficiencies. Stronger gross and net margins improve earnings power across cycles, enabling reinvestment, shareholder returns and resilience against moderate demand swings over the next 2–6 months.
Read all positive factors
Interface (TILE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.63B
Dividend Yield0.21%
Average Volume (3M)563.07K
Price to Earnings (P/E)15.4
Beta (1Y)0.79
Revenue Growth7.34%
EPS Growth48.24%
CountryUS
Employees3,636
SectorConsumer Cyclical
Sector Strength84
IndustryFurnishings, Fixtures & Appliances
Share Statistics
EPS (TTM)2.17
Shares Outstanding58,056,190
10 Day Avg. Volume605,614
30 Day Avg. Volume563,069
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 Cap1.15
Enterprise Value/Revenue1.32
Enterprise Value/Gross Profit3.38
Enterprise Value/Ebitda9.44
Forecast
1Y Price Target
$36.00Price Target Upside27.66% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)2.1
Revenue Forecast (FY)$1.45B
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:Jul 31, 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
82
Very Positive
Cash Flow
63
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.42B | 1.39B | 1.32B | 1.26B | 1.30B | 1.20B |
| Gross Profit | 553.14M | 537.38M | 482.95M | 441.07M | 437.73M | 432.73M |
| EBITDA | 198.07M | 198.39M | 181.43M | 141.71M | 118.18M | 155.45M |
| Net Income | 126.71M | 116.10M | 86.95M | 44.52M | 19.56M | 55.23M |
Balance Sheet | ||||||
| Total Assets | 1.21B | 1.77B | 1.17B | 1.23B | 1.27B | 1.33B |
| Cash, Cash Equivalents and Short-Term Investments | 61.23M | 71.32M | 99.23M | 110.50M | 97.56M | 97.25M |
| Total Debt | 274.42M | 264.53M | 383.14M | 515.45M | 610.62M | 615.59M |
| Total Liabilities | 571.20M | 565.85M | 681.67M | 804.15M | 904.97M | 966.66M |
| Stockholders Equity | 634.59M | 1.21B | 489.15M | 425.95M | 361.54M | 363.40M |
Cash Flow | ||||||
| Free Cash Flow | 120.65M | 121.71M | 114.64M | 115.93M | 24.62M | 58.62M |
| Operating Cash Flow | 169.71M | 167.91M | 148.43M | 142.03M | 43.06M | 86.69M |
| Investing Cash Flow | -49.05M | -46.19M | -30.37M | -19.51M | -18.44M | -28.07M |
| Financing Cash Flow | -163.01M | -159.29M | -125.23M | -111.56M | -19.49M | -60.86M |
Interface Technical Analysis
Positive
28.20
Price Trends
27.02
Positive
29.00
Negative
28.09
Positive
Market Momentum
0.28
Negative
54.54
Neutral
44.35
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TILE, the sentiment is Positive. The current price of 28.2 is above the 20-day moving average (MA) of 28.01, above the 50-day MA of 27.02, and above the 200-day MA of 28.09, indicating a bullish trend. The MACD of 0.28 indicates Negative momentum. The RSI at 54.54 is Neutral, neither overbought nor oversold. The STOCH value of 44.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TILE.
Interface Risk Analysis
Interface disclosed 1 risk factors in its most recent earnings report. Interface reported the most risks in the "Legal & Regulatory" 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 |
|---|---|---|---|---|---|---|---|
71 Outperform | $1.63B | 15.39 | 16.69% | 0.21% | 7.34% | 48.24% | |
65 Neutral | $1.40B | 18.08 | 8.12% | 2.39% | 1.69% | -31.16% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
59 Neutral | $138.60M | 67.14 | -14.75% | 7.20% | -23.22% | -111.83% | |
52 Neutral | $1.25B | 17.20 | 23.12% | 1.84% | -8.33% | ― | |
50 Neutral | $988.70M | 14.70 | 0.83% | 4.16% | 5.62% | -65.76% | |
42 Neutral | $895.89M | -16.99 | -0.15% | ― | -1.11% | -101.88% |
* Consumer Cyclical Sector Average
TILE
Interface
28.52
7.76
37.35%
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LEG
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Interface Corporate Events
Business Operations and StrategyFinancial Disclosures
Interface Raises Outlook After Strong First-Quarter Results
Positive
May 8, 2026
Interface reported a strong first quarter for the period ended April 5, 2026, with net sales rising 11.3% year over year to $331 million, or 6.8% on a currency-neutral basis, and GAAP earnings per diluted share climbing to $0.40. Adjusted earnings...
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.