Interface Eyes Growth as One Interface Strategy Targets Commercial Flooring Share

Interface is targeting growth in commercial flooring through its "One Interface" global operating model, focused product portfolio and emphasis on design, performance and sustainability. The company serves more than 100 countries and generates about $1.4 billion in annual revenue, with 98% from commercial customers.

The company estimates its addressable commercial flooring market at more than $9 billion , with opportunities in carpet tile, LVT and differentiated rubber flooring. It says it is gaining share in corporate office, healthcare and education, particularly in Class A properties and facilities undergoing refresh projects.

Interface is investing $25 million to support growth while continuing to expand margins through manufacturing and operating efficiencies. With net debt at just 0.5 times EBITDA, management says it can balance reinvestment, selective acquisitions, dividends and share repurchases.

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Interface (NASDAQ:TILE) Chief Financial Officer Bruce Hausmann told investors that the commercial flooring company is pursuing growth through a focused product portfolio, global operating model and emphasis on design, performance and sustainability.

Speaking at an investor conference, Hausmann said Interface operates three brands: Interface, nora rubber flooring and consumer-focused FLOR. The company generates about $1.4 billion in revenue, with approximately 60% coming from the Americas, 29% from Europe and 11% from Asia-Pacific, he said. About 98% of its business is commercial, while FLOR accounts for its roughly 2% residential exposure.

The company distributes products in more than 100 countries, manufactures on six continents and employs about 3,600 people globally, according to Hausmann.

Hausmann said Interface concentrates primarily on corporate office, education and healthcare, while also participating in transportation, government, retail and hospitality. He described the company as a high-price-point provider focused on Class A office space and other areas where its products can be differentiated.

Interface's three principal product lines are carpet tile, luxury vinyl tile, or LVT, and rubber flooring. The company invented carpet tile, according to Hausmann, entered LVT in 2017 and acquired nora flooring in 2018. He said nora was the company's only acquisition in roughly 20 years and characterized the transaction as a success.