Interface (TILE) Stock Forecast & Price Target

Interface Inc. has demonstrated strong financial performance, with currency-neutral net sales increasing 4.1% year-over-year to $301.7 million, primarily driven by a 6.4% increase in the Americas segment. Notably, global billings in the Education sector rose by 13% and in Healthcare by 16% during Q1 2025, highlighting robust demand in significant markets that contribute to gross billings. The company's strategic initiative, known as the "One Interface" strategy, appears to positively influence sales growth, particularly in the Americas, reinforcing a favorable outlook for the company moving forward.

Interface Inc. reported an adjusted gross profit margin of 37.7%, reflecting an anticipated decline of 82 basis points from the previous year, primarily attributed to rising manufacturing and freight costs in the EAAA region. Additionally, the company's GAAP net income decreased by 8.3% to $13.0 million, equating to $0.22 per diluted share, despite surpassing the estimates. The ongoing pressures from increased costs and the decline in net income underscore a challenging financial landscape for Interface, warranting a negative outlook on its stock.