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1. Company Snapshot

1.a. 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 under the GlasBacRE name for use in commercial interiors, including offices, healthcare facilities, airports, educational and other institutions, hospitality spaces, and retail facilities, as well as residential interiors; modular resilient flooring products; rubber flooring under the norament and noraplan brand names; and luxury vinyl tile products.It also produces and sells an adapted version of its carpet tile for the healthcare facilities market; and two-meter roll goods that are structure-backed for use in education, healthcare, and government markets, as well as carpet replacement, installation, and maintenance services.


In addition, the company sells and licenses a proprietary antimicrobial chemical compound under the Intersept name for use in interior finishes; sells TacTiles, a carpet tile installation system, as well as various adhesives and products; and provides turnkey project management services for global accounts and other customers through its InterfaceSERVICES business.It sells its products directly to end-users, as well as indirectly through independent contractors or distributors, and FLOR line of products through Internet sales and commercial sales force.The company has product showrooms or design studios in the United States, Canada, Mexico, England, France, Germany, Spain, the Netherlands, India, Australia, Norway, the United Arab Emirates, Russia, Singapore, Hong Kong, Thailand, China, and others.


Interface, Inc.was incorporated in 1973 and is headquartered in Atlanta, Georgia.

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1.b. Last Insights on TILE

Interface, Inc.'s recent performance was driven by strong Q2 2025 earnings, with net sales totaling $376 million, up 8% year-over-year. The company's adjusted earnings per diluted share jumped 50% to $0.60, beating estimates. Its One Interface strategy continues to drive growth. Additionally, Interface introduced new global carpet tile and LVT collections, expanding its product offerings. The company's efficient operations and solid net profit margins have earned it a spot on lists of top stocks to buy.

1.c. Company Highlights

2. Interface's Q3 2025 Earnings: A Strong Performance

Interface reported a robust third quarter, with net sales reaching $364.5 million, up 5.9% as reported and 4.2% on a currency-neutral basis versus the third quarter of 2024. The company's adjusted gross profit margin was 39.5%, up 208 basis points versus the third quarter of 2024, driven by favorable pricing and product mix combined with manufacturing efficiencies. Earnings per share (EPS) came in at $0.61, significantly beating analyst estimates of $0.46. The strong financial performance was driven by the successful execution of the One Interface strategy, which has enabled the company to deliver a single cohesive customer experience across its product categories.

Publication Date: Nov -24

📋 Highlights
  • Strong Sales Growth:: Currency-neutral net sales rose 4% QoQ and 4.2% YTD, with Q3 net sales reaching $364.5M (up 5.9% reported).
  • Profitability Gains:: Adjusted gross profit margin hit 39.5%, a 208 bps increase YoY, driven by pricing, product mix, and manufacturing efficiency.
  • Nora Rubber Expansion:: Nora Rubber sales grew 20% in Q3 and 19% YTD, supported by a combined selling team and planned 2026 healthcare-focused innovation.
  • Healthcare Segment Surge:: Healthcare sales surged 29% in Q3, outpacing expectations and becoming a key growth driver.
  • Full-Year Guidance Raised:: 2025 net sales updated to $1.375–$1.390B, with 38.5% gross margin target achieved early due to productivity and mix improvements.

Revenue Growth Drivers

The company's revenue growth was driven by broad-based growth across all regions, product categories, and the majority of its market segments. The Healthcare segment was a standout, with growth of 29% in the quarter, driven by the company's focus on this segment and investments in capacity, productivity, and innovation. As Laurel Hurd noted, "We've been really focused on the Healthcare segment... We're investing in making sure we can support the capacity."

Margin Expansion

The company's gross margin expansion was driven by a combination of favorable pricing, product mix, and manufacturing efficiencies. The company's investments in automation and robotics have delivered meaningful productivity gains and margin improvement. The adjusted gross profit margin of 39.5% was above expectations, and the company's guidance for full-year adjusted gross profit margin has been maintained at 38.5%.

Valuation Metrics

With a P/E Ratio of 13.8, P/B Ratio of 2.52, and P/S Ratio of 1.14, Interface's valuation multiples suggest that the market is pricing in a moderate growth outlook. The company's EV/EBITDA ratio of 8.66 and Net Debt / EBITDA ratio of 0.99 indicate a healthy balance sheet. The market is also expecting a relatively high return on equity (ROE) of 20.65% and return on invested capital (ROIC) of 11.86%. Analysts estimate revenue growth of 4.8% next year, which is slightly above the company's historical growth rate.

Outlook

The company's guidance for the full fiscal year 2025 has been raised, with net sales expected to reach $1.375 billion to $1.390 billion. The company's focus on driving efficiencies in its manufacturing environment, expanding its addressable market, and investing in innovation is expected to drive continued growth and margin expansion. With a strong track record of execution and a solid balance sheet, Interface is well-positioned to deliver long-term value to shareholders.

3. NewsRoom

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3 Must-Buy Efficient Stocks to Boost Your Portfolio Returns

Dec -04

Source: zacks.com

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5.5V, 4A, Low IQ Synchronous Buck Converter with Versatile I2C Interface from Diodes Incorporated is Optimized for Efficiency and Size in Automotive POL Systems

Dec -04

Source: businesswire.com

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Forget Profit, Bet on 4 Stocks With Increasing Cash Flows

Dec -01

Source: zacks.com

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Interface, Inc. $TILE Shares Purchased by American Century Companies Inc.

Nov -29

Source: defenseworld.net

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Best Value Stocks to Buy for Nov. 28

Nov -28

Source:

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Wearable Devices Unveils EMG-Based Weight Estimation Technology, Advancing Its Neural-Interface IP Into Pre-Commercial Development

Nov -18

Source: globenewswire.com

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Campbell & CO Investment Adviser LLC Has $381,000 Stock Position in Interface, Inc. $TILE

Nov -17

Source: defenseworld.net

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Forget the Fed, Bet on These 4 Stocks With Increasing Cash Flows

Nov -14

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.00%)

6. Segments

Modular Carpet

Expected Growth: 4.0%

Interface, Inc.'s Modular Carpet segment growth of 4.0% is driven by increasing demand for sustainable and flexible flooring solutions, particularly in the corporate and education sectors. Growing adoption of hybrid workspaces and emphasis on indoor air quality also contribute to this growth, as modular carpets offer improved acoustics, comfort, and easy maintenance.

7. Detailed Products

Modular Carpet

Modular carpet is a type of carpet that is designed to be modular, allowing for easy installation, replacement, and reconfiguration.

Luxury Vinyl Tiles (LVT)

LVT is a type of flooring that mimics natural stone or wood, offering a durable and low-maintenance alternative.

Nora Rubber Flooring

Nora rubber flooring is a type of flooring made from natural and synthetic rubber, offering a durable and comfortable flooring solution.

FLOR Modular Flooring

FLOR is a modular flooring system that allows for easy installation, replacement, and reconfiguration of flooring tiles.

Interface Hospitality Flooring

Interface Hospitality Flooring is a range of flooring products designed specifically for the hospitality industry.

8. Interface, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Interface, Inc. faces moderate threat from substitutes due to the availability of alternative materials and products in the market.

Bargaining Power Of Customers

Interface, Inc. has a diverse customer base, which reduces the bargaining power of individual customers, giving the company an upper hand in negotiations.

Bargaining Power Of Suppliers

Interface, Inc. relies on a few large suppliers for raw materials, giving them some bargaining power, but the company's size and reputation also give it negotiating power.

Threat Of New Entrants

The capital requirements and regulatory hurdles in the industry make it difficult for new entrants to join the market, reducing the threat of new competition for Interface, Inc.

Intensity Of Rivalry

The modular carpet industry is highly competitive, with several established players competing for market share, leading to a high intensity of rivalry for Interface, Inc.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 50.36%
Debt Cost 8.55%
Equity Weight 49.64%
Equity Cost 13.86%
WACC 11.19%
Leverage 101.46%

11. Quality Control: Interface, Inc. passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Bassett Furniture

A-Score: 5.4/10

Value: 5.9

Growth: 1.3

Quality: 4.4

Yield: 9.0

Momentum: 7.0

Volatility: 5.0

1-Year Total Return ->

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Stock-Card
Hooker Furnishings

A-Score: 4.9/10

Value: 9.8

Growth: 1.0

Quality: 5.0

Yield: 9.0

Momentum: 1.5

Volatility: 3.3

1-Year Total Return ->

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Stock-Card
Interface

A-Score: 4.9/10

Value: 5.5

Growth: 5.4

Quality: 5.7

Yield: 0.0

Momentum: 8.5

Volatility: 4.3

1-Year Total Return ->

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Stock-Card
American Woodmark

A-Score: 4.0/10

Value: 7.0

Growth: 6.0

Quality: 4.9

Yield: 0.0

Momentum: 1.5

Volatility: 4.7

1-Year Total Return ->

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Stock-Card
MillerKnoll

A-Score: 3.9/10

Value: 7.3

Growth: 3.6

Quality: 2.4

Yield: 4.0

Momentum: 1.5

Volatility: 4.3

1-Year Total Return ->

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Stock-Card
MasterBrand

A-Score: 3.6/10

Value: 6.8

Growth: 4.7

Quality: 4.4

Yield: 0.0

Momentum: 1.5

Volatility: 4.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

27.8$

Current Price

27.8$

Potential

-0.00%

Expected Cash-Flows