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Interface
(NASDAQ:TILE)
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Rating:80Outperform
Price Target:
$39.00
▲(0.13% Upside)
Action:Reiterated
Date:08/17/26
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.
Positive Factors
Revenue and Backlog Momentum
Broad-based sales growth, stronger orders and a 22% year-to-date backlog increase provide visible support for revenue over the next several quarters. The raised FY2026 outlook indicates management sees commercial demand and project conversion remaining sufficiently strong to sustain momentum.
Negative Factors
Tariff Exposure and Nonrecurring Margin Benefit
The sharp quarterly margin improvement was materially supported by a one-time refund that management does not expect to recur. Ongoing tariffs on 15%–20% of COGS therefore remain a structural cost headwind, potentially limiting future margin gains and earnings visibility.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and Backlog Momentum
Broad-based sales growth, stronger orders and a 22% year-to-date backlog increase provide visible support for revenue over the next several quarters. The raised FY2026 outlook indicates management sees commercial demand and project conversion remaining sufficiently strong to sustain momentum.
Read all positive factors
Interface (TILE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.98B
Dividend Yield0.32%
Average Volume (3M)516.84K
Price to Earnings (P/E)13.7
Beta (1Y)0.80
Revenue Growth6.54%
EPS Growth53.02%
CountryUS
Employees3,570
SectorGeneral
Sector StrengthN/A
IndustryFurnishings, Fixtures & Appliances
Share Statistics
EPS (TTM)2.50
Shares Outstanding57,800,460
10 Day Avg. Volume559,158
30 Day Avg. Volume516,844
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$45.00Price Target Upside15.53% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)2.32
Revenue Forecast (FY)$1.47B
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; rub...
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 a...
Interface Earnings Call Summary
Earnings Call Date:Aug 07, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 30, 2026
Earnings Call Sentiment Positive
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.Positive Updates
Revenue Growth and Raised Guidance
Second quarter net sales of $395.7 million, up 5.4% reported and ~3.8%–4.0% currency‑neutral year‑over‑year. Company raised full‑year fiscal 2026 guidance to $1.455 billion–$1.485 billion in net sales and provided Q3 net sales guidance of $370 million–$380 million.
Negative Updates
One‑Time Tariff Refund and Ongoing Tariff Exposure
A $15.6 million IEEPA tariff refund materially boosted Q2 margins (≈393 bps of the 524 bps improvement). Management notes this was a one‑time benefit and does not assume additional refunds; tariffs still apply to ~15%–20% of COGS and are being paid going forward.
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue Growth and Raised Guidance
Second quarter net sales of $395.7 million, up 5.4% reported and ~3.8%–4.0% currency‑neutral year‑over‑year. Company raised full‑year fiscal 2026 guidance to $1.455 billion–$1.485 billion in net sales and provided Q3 net sales guidance of $370 million–$380 million.
Read all positive 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
Income Statement
82
Very Positive
Balance Sheet
74
Positive
Cash Flow
77
Positive
| 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 | 230.47M | 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
Negative
38.95
Price Trends
35.63
Negative
33.08
Positive
31.01
Positive
Market Momentum
-0.65
Positive
39.10
Neutral
21.12
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 38.95 is above the 20-day moving average (MA) of 36.32, above the 50-day MA of 35.63, and above the 200-day MA of 31.01, indicating a neutral trend. The MACD of -0.65 indicates Positive momentum. The RSI at 39.10 is Neutral, neither overbought nor oversold. The STOCH value of 21.12 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 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 (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $1.98B | 13.70 | 18.54% | 0.32% | 6.54% | 53.02% | |
56 Neutral | $1.42B | 15.65 | 6.94% | 3.63% | 4.68% | ― | |
56 Neutral | $141.78M | -7.89 | -10.59% | 3.47% | -28.13% | -38.44% | |
56 Neutral | $1.20B | 14.97 | 7.86% | 3.24% | 0.20% | -10.08% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
51 Neutral | $1.35B | -9.59 | -6.44% | ― | -0.01% | -192.77% |
* General Sector Average
TILE
Interface
34.26
4.64
15.67%
MLKN
MillerKnoll
20.66
1.55
8.09%
HOFT
Hooker Furniture
13.26
3.00
29.26%
LZB
La-Z-Boy Incorporated
29.84
-3.08
-9.35%
MBC
MasterBrand Inc
6.62
-6.29
-48.72%
Interface Corporate Events
Business Operations and Strategy
Interface Highlights Investor Engagement at Midwest IDEAS Conference
Positive
Aug 11, 2026
On 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 ...
Business Operations and StrategyFinancial Disclosures
Interface lifts full-year outlook after strong Q2 results
Positive
Aug 7, 2026
Interface 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%, supporte...
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.