Interface (TILE) Stock Forecast & Price Target

Interface Inc has demonstrated a strong performance in Q1 of 2025, reporting a 4.1% year-over-year increase in currency-neutral net sales, which reached $301.7 million, with notable contributions from its Americas segment, which grew by 6.4%. The company's success is further underscored by a 13% increase in global billings in the Education sector and a significant 16% rise in Healthcare billings, collectively representing 29% of its gross billings for 2024. The positive momentum in these key segments, along with the effective implementation of its One Interface strategy, positions Interface favorably for continued revenue growth across its operational regions.

Interface Inc. reported a decline in its adjusted gross profit margin to 37.7%, which is an expected decrease of 82 basis points from the previous year's 38.6%, primarily attributed to increasing manufacturing and freight costs in its EAAA segment. While the company managed to achieve a GAAP net income of $13 million, or $0.22 per diluted share, this reflected an 8.3% decrease from $14.2 million, or $0.24 per diluted share, a year prior. Overall financial performance indicates rising costs that could continue to pressure profit margins and net income, fostering a cautious outlook on the company's stock.