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Interface (TILE) AI Stock Analysis
Interface
(NASDAQ:TILE)
Overall score reflects strong fundamental momentum (improving revenue, margins, and earnings with solid free cash flow) as the primary driver. Technicals are supportive with the stock trading above key moving averages and positive MACD. Valuation is favorable given a moderate P/E and very high dividend yield, while the earnings-call outlook is constructive but tempered by one-time margin benefits and ongoing tariff/raw-material timing risks.
Interface (TILE) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $2.32B
- Dividend Yield
- 0.27%
- Average Volume (3M)
- 484.45K
- Price to Earnings (P/E)
- 16.1
- Beta (1Y)
- 0.84
- Revenue Growth
- 6.54%
- EPS Growth
- 53.02%
- Country
- US
- Employees
- 3,570
- Sector
- Consumer Cyclical
- Sector Strength
- 61
- Industry
- Furnishings, Fixtures & Appliances
Interface Business Overview & Revenue Model
Company Description
Interface, Inc. designs, produces, and sells modular carpet products in the United States, Canada, Latin America, Europe, Africa, Asia, and Australia. The company offers modular carpets; luxury vinyl tiles; modular resilient flooring products; rubber...
How the Company Makes Money
Interface makes money primarily by selling commercial flooring products and related services. Its core revenue stream is the sale of modular carpet tile, which is typically specified by architects and designers and purchased for new construction and...
Interface Earnings Call Summary
The call was predominantly positive: Interface reported broad‑based revenue growth, strong segment performance (notably Healthcare), meaningful backlog and order momentum, significant profitability and EPS improvement, and productivity gains from automation that are described as durable. Sustainability progress and culture recognition add strategic strength. The headline improvement in gross margin was materially aided by a one‑time $15.6 million tariff refund (not expected to recur), and management flagged ongoing tariff exposure, raw material inflation timing effects, and higher SG&A dollars tied to variable compensation and FX. These risks create some near‑term margin timing volatility but do not outweigh the operational and commercial momentum reflected in raised guidance and improved cash generation. Overall, positive operational execution and diversified growth drivers outweigh the manageable one‑time and ongoing headwinds.
Q2-2026 Updates
Positive Updates
Negative Updates
Company Guidance
Interface raised its outlook after a strong Q2 beat and provided detailed near‑ and full‑year guidance: for Q3 FY2026 management expects net sales of $370–$380 million, adjusted gross profit margin ~40.8% of sales, adjusted SG&A ≈ $100 million, adjusted interest & other ≈ $4 million, an adjusted effective tax rate ~27.5% and fully diluted weighted average shares ≈ 58.2 million. For full FY2026 (a 53‑week year) they now guide net sales of $1.455–$1.485 billion, adjusted gross profit margin ~40.6%, adjusted SG&A ≈ $395 million, adjusted interest & other ≈ $15 million, an adjusted effective tax rate ~26% and capital expenditures ≈ $60 million. Management said the raise reflects strong momentum (Q2 net sales $395.7M, up 5.4% reported / 3.8% currency‑neutral), improved margins (Q2 adjusted gross profit margin 45%, up 524 bps — 131 bps from price/volume/mix/efficiency and 393 bps from a $15.6M IEEPA tariff refund that added roughly $0.19 to EPS), healthier orders (consolidated currency‑neutral orders +5%) and backlog (up 22% YTD); the $15.6M refund was a one‑time benefit and is not assumed going forward.
Interface Financial Statement Overview
Summary
Strong multi-year improvement: revenue up sharply TTM, meaningful gross and net margin expansion, and materially higher earnings. Balance sheet leverage is much improved versus 2022–2023 though it ticked up TTM and should be monitored. Cash generation is solid with strong free cash flow, but operating cash flow and FCF trail net income, suggesting some earnings-quality/working-capital sensitivity.
Income Statement
82Very PositiveBalance Sheet
74PositiveCash Flow
77Positive| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.44B | 1.39B | 1.32B | 1.26B | 1.30B | 1.20B |
| Gross Profit | 583.25M | 537.38M | 482.95M | 441.07M | 437.73M | 432.73M |
| EBITDA | 230.94M | 198.39M | 181.43M | 141.71M | 118.18M | 155.45M |
| Net Income | 145.55M | 116.10M | 86.95M | 44.52M | 19.56M | 55.23M |
Balance Sheet | ||||||
| Total Assets | 1.27B | 1.77B | 1.17B | 1.23B | 1.27B | 1.33B |
| Cash, Cash Equivalents and Short-Term Investments | 81.53M | 71.32M | 99.23M | 110.50M | 97.56M | 97.25M |
| Total Debt | 278.95M | 264.53M | 383.14M | 515.45M | 610.62M | 615.59M |
| Total Liabilities | 591.88M | 565.85M | 681.67M | 804.15M | 904.97M | 966.66M |
| Stockholders Equity | 678.37M | 1.21B | 489.15M | 425.95M | 361.54M | 363.40M |
Cash Flow | ||||||
| Free Cash Flow | 124.03M | 121.71M | 114.64M | 115.93M | 24.62M | 58.62M |
| Operating Cash Flow | 177.93M | 167.91M | 148.43M | 142.03M | 43.06M | 86.69M |
| Investing Cash Flow | -53.90M | -46.19M | -30.37M | -19.51M | -18.44M | -28.07M |
| Financing Cash Flow | -163.40M | -159.29M | -125.23M | -111.56M | -19.49M | -60.86M |
Interface Technical Analysis
Price Trends
Market Momentum
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 40.16 is above the 20-day moving average (MA) of 36.29, above the 50-day MA of 35.79, and above the 200-day MA of 32.19, indicating a bullish trend. The MACD of 0.81 indicates Negative momentum. The RSI at 73.17 is Negative, neither overbought nor oversold. The STOCH value of 84.78 is Negative, 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.
Latest Risks Added
0 New RisksInterface Peers Comparison
Overall Rating
- TILE80Outperform
MHK73Outperform
KEQU67Neutral
MLKN54Neutral
HNI53Neutral
PATK53Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| TILE | 80Outperform | $2.19B | 16.06 | 18.54% | 0.27% | 6.54% | 53.02% |
| MHK | 73Outperform | $8.45B | 17.94 | 6.17% | ― | 4.50% | 26.62% |
| KEQU | 67Neutral | $97.95M | 11.97 | 11.34% | ― | 5.33% | -33.32% |
| Sector * | 61Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
| MLKN | 54Neutral | $1.47B | 16.15 | 7.34% | 3.29% | 1.20% | ― |
| HNI | 53Neutral | $3.49B | 111.68 | 2.92% | 2.81% | 104.43% | -84.48% |
| PATK | 53Neutral | $2.61B | 20.45 | 11.45% | 2.22% | 1.69% | 11.81% |
* Consumer Cyclical Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| TILE | Interface Inc | 40.16 | 14.48 | 56.37% | |
| MLKN | MillerKnoll, Inc. | 22.77 | 8.81 | 63.17% | |
| HNI | Hni Corp | 49.14 | 10.71 | 27.86% | |
| KEQU | Kewaunee Scientific | 34.23 | -6.20 | -15.34% | |
| MHK | Mohawk Industries, Inc. | 153.36 | 46.48 | 43.49% | |
| PATK | Patrick Industries, Inc. | 84.68 | -17.53 | -17.15% |
Interface Corporate Events
Interface Highlights Investor Engagement at Midwest IDEAS Conference
PositiveOn August 26, 2026, Interface, Inc. presented to investors and potential investors at the Midwest IDEAS Investor Conference, reinforcing its ongoing engagement with the capital markets and highlighting its efforts to maintain visibility among the inv...
Interface lifts full-year outlook after strong Q2 results
PositiveInterface reported strong financial results for the second quarter ended July 5, 2026, with net sales rising 5.4% year over year to $395.7 million and currency-neutral sales up 3.8%. Gross profit margin expanded 560 basis points to 45.0%, supported b...
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.
Date of analysis: Aug 17, 2026