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what it is
Interface makes modular carpet, luxury vinyl tile, vinyl sheet, and rubber flooring for commercial buildings around the world.
how it gets paid
Last year Interface made $1.4B in revenue. Modular carpet tile was the main engine at $0.77B, or 55% of sales.
why it's growing
Revenue grew 5.4% last year. 38.8% gross margin is the tell, because this is what separates a branded flooring system from a plain old materials business.
what just happened
Interface posted $1.55 EPS on $1.0B of quarterly revenue, with gross margin at 38.8%.
At a glance
B+ balance sheet — decent shape, but not bulletproof
45/100 earnings predictability — expect surprises
10.7x trailing p/e — the market's not buying it — or you found a deal
0.4% dividend yield — cash in your pocket every quarter
14.2% return on capital — nothing to write home about
xvary composite: 64/100 — average
What they do
Interface makes modular carpet, luxury vinyl tile, vinyl sheet, and rubber flooring for commercial buildings around the world.
You are not buying one floor. You are buying a system. Modular carpet system → carpet in replaceable squares → so what: a customer can swap one damaged tile instead of ripping up a whole room. That convenience, plus a full product stack across carpet, LVT, vinyl sheet, and rubber flooring, helped support a 38.8% gross margin on $1.4B of annual revenue.
How they make money
$1.4B
annual revenue · their business grew +5.4% last year
Modular carpet tile
$0.77B
+3.0%
Luxury vinyl tile
$0.32B
+8.0%
nora rubber flooring
$0.17B
+6.0%
Vinyl sheet
$0.08B
+1.0%
FLOR direct-to-consumer
$0.06B
2.0%
The products that matter
modular commercial flooring
Modular Carpet Tile
$840M · 60% of revenue
This is the center of gravity: $840M of revenue, or 60% of the business. If this segment slows, the whole story slows with it.
core product
hard surface flooring
Luxury Vinyl Tile (LVT)
$420M · 30% of revenue
At $420M, this is the second leg of the stool. It matters because it gives Interface a broader commercial flooring mix than carpet alone.
30% of revenue
specialty resilient flooring
nora & Other
$140M · 10% of revenue
This $140M bucket is smaller, but it rounds out the product set. On a $1.4B base, it is support, not the main event.
10% of revenue
Key numbers
38.8%
gross margin
Gross margin → money left after making the product → so what: Interface keeps nearly $0.39 of every sales dollar before overhead.
10.7x
trailing p/e
P/E → price compared with annual profit → so what: you are paying a low multiple for a business that just lifted EPS from $0.76 to $1.48.
14.9%
operating margin
Operating margin → profit after running the business → so what: this is better than a commodity manufacturer and supports the bull case.
$247M
long-term debt
Long-term debt → money owed over many years → so what: debt is real but manageable at 13% of capital.
Financial health
B+
strength
- balance sheet grade B+ — solid but not elite
- risk rank 2 — safer than 80% of stocks
- price stability 40 / 100
- long-term debt $247M (13% of capital)
B+ — functional but not a standout on the balance sheet.
Total return vs. market
Return history isn't available for TILE right now.
source: institutional data · return history unavailable
What just happened
beat estimates
Interface posted $1.55 EPS on $1.0B of quarterly revenue, with gross margin at 38.8%.
Margins did the heavy lifting. Gross margin hit 38.8%, while recent company commentary pointed to productivity gains offsetting tariffs and mix pressure.
$1.0B
revenue
$1.55
eps
38.8%
gross margin
the number that mattered
38.8% gross margin is the tell, because this is what separates a branded flooring system from a plain old materials business.
source: company earnings report, 2026
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What could go wrong
the #1 thing to watch is margin durability in commercial flooring. A 10.7x multiple looks cheap only if the 38% margin range sticks.
med
internal control and reporting failure
A prior SEC filing flagged risk around not detecting a material misstatement. That is not a routine line item when you are underwriting earnings quality.
This snapshot cites roughly $210M–$350M of modeled revenue exposure tied to that risk scenario.
med
tariff and supply chain pressure
Interface sells globally and still relies on moving materials through a world that enjoys making that harder. Tariffs and supply disruptions can hit both cost and delivery.
This snapshot ties that pressure to roughly $140M–$210M of revenue exposure.
med
2025 turns out to be the peak
Record EPS of $1.96 and a 38.7% gross margin set a high bar. If sales land near the low end of the $1.42B–$1.46B guide and margin slips, the market will treat 2025 like a one-off.
That would pressure both earnings and the multiple. Cheap stocks stay cheap when the best year is behind them.
The quantified risks on this page touch roughly $350M of revenue, and the unquantified one is simpler: if the 38% margin range breaks, the valuation argument gets a lot weaker.
source: institutional data · regulatory filings · risk analysis
Pay attention to
earnings
Q1 2026 earnings report
Expected May 1, 2026. Management set the bar at $315M–$325M in sales and gross margin around 38%.
guidance
full-year 2026 sales range
The guide is $1.42B–$1.46B. If that starts moving down, the 10.7x multiple will not feel as generous.
margin
gross margin holding the 38% line
2025 gross margin was 38.7%, and Q4 printed 38.6%. That consistency is the number that mattered.
controls
any update on reporting controls
The material misstatement language in a prior SEC filing makes any follow-up disclosure worth reading, not skimming.
Analyst rankings
earnings predictability
45 / 100
In human-speak, analysts do not see this as a clockwork earnings story.
risk rank
2
That translates to safer than roughly 80% of stocks on the balance-sheet and stability side.
price stability
40 / 100
The business may be steadier than the stock. Do not confuse a low p/e with a smooth ride.
source: institutional data
Institutional activity
institutional ownership data for TILE is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$30
current price
n/a
target midpoint · n/a from current
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