Interface, Inc. 2025 Annual Report – Detailed Investor Analysis

Ticker: TILE
Exchange: Nasdaq Global Select Market
Fiscal Year Ended: December 28, 2025
Shares Outstanding (as of Feb 13, 2026): 57,963,488
Public Float (as of June 27, 2025): \$1,203,605,034 (57,097,013 shares at \$21.08/share)

Key Corporate Developments and Operational Highlights

• Operating Segments: Interface, Inc. operates two main business segments:
  • Americas (“AMS”) – includes the United States, Canada, and Latin America.
  • Europe, Africa, Asia and Australia (“EAAA”) – grouped into a consolidated segment.

  Segment net sales percentages in recent years remain stable, signifying a diverse global footprint.

• Product Portfolio: The company markets a broad range of commercial flooring solutions, including modular carpet tile, resilient flooring, LVT, and rubber flooring under the brands noraplan® and norament®.
• Strategic Initiatives:
  • Expanding and diversifying market segments, with an increasing focus on education, healthcare, government, hospitality, and residential living to reduce reliance on the cyclical corporate office sector.
  • Enhancing commercial productivity, building strong global functions, and accelerating growth through improved supply chain management and operational simplification.
  • Continued investment in design, innovation, and sustainability, positioning Interface as a leader in the industry.
• Recognition & Awards:
  • Reuters Net Zero Leader Award for carbon reduction strategy (2025).
  • Named Circularity Lighthouse in the Built Environment by the World Economic Forum and McKinsey for circular solutions (2024).
  • Corporate Sustainability Initiative Winner (2025).
• Seasonality: The business is subject to seasonality and cyclical trends common to the commercial interiors industry.

Key Risk Factors and Shareholder Considerations

• Challenging Market Environment: The company faces significant headwinds including:
  • Global pressures in the commercial office market,
  • Inflation and slow market conditions in certain regions,
  • Geopolitical risks including wars and conflicts,
  • Risks from changes in U.S. and international trade policies, tariffs, and retaliatory tariffs,
  • Ongoing volatility in raw material costs, shipping, and currency fluctuations.

  These factors can impact profitability and could be price-sensitive for shareholders depending on future developments.

• Competition: The commercial flooring industry is highly competitive with several large players. Some competitors have greater financial resources, which could put pressure on Interface’s margins and market share.
• Sustainability Differentiation at Risk: If competitors improve or better market their sustainability features, Interface might lose its competitive edge, potentially leading to inventory write-downs and sales losses.
• Goodwill Impairment: Interface recorded impairment charges due to macroeconomic conditions (inflation, interest rates, Euro weakening) impacting the EMEA reporting unit. Further impairment charges may occur if negative events persist, which could materially impact earnings and share value.
• Sales Organization Transformation: Ongoing changes in sales processes and technology tools may cause disruption. There is no guarantee these changes will be successful and may instead reduce sales and profitability.
• Regulatory Compliance: Interface remains a large accelerated filer and is subject to all related SEC and Sarbanes-Oxley reporting requirements, including auditor attestation of internal controls.

Financial and Regulatory Disclosures

• SEC Compliance: Interface confirms timely filing of all required SEC reports and has submitted all Interactive Data Files as required.
• Not a Shell Company: Interface is not a shell company and continues as an operating entity.
• Forward-Looking Statements: The company notes that forward-looking statements are subject to risks and uncertainties, and actual results may differ materially due to macroeconomic, industry, and company-specific factors.
• Information Access: All filings and reports are available on the company’s website (www.interface.com) and the SEC’s website (www.sec.gov).

Potential Share Price Movers

• Impairment Charges: Further goodwill impairment, especially if the commercial market continues to soften, could materially impact future earnings.
• Global Market Conditions: Any significant deterioration or improvement in global commercial office demand, trade policy (tariffs), or raw material prices would impact revenue and profitability.
• Competitive Positioning: Sustained leadership in sustainability and design, or loss thereof, will be critical in maintaining premium pricing and market share.
• Execution of Strategic Initiatives: Success or failure in diversifying the customer base and improving operational efficiency will directly affect long-term shareholder value.

Conclusion

Interface, Inc. remains a significant player in the global commercial flooring market, with a strong emphasis on sustainability, innovation, and diversification. However, investors should closely monitor global market trends, the company’s execution on strategic initiatives, risks associated with goodwill impairment, and competitive dynamics in the commercial interiors sector, as these may have a direct impact on future financial performance and share valuation.