What Interface, Inc. told the SEC could break it.

Interface's products are petroleum-derived (nylon synthetic fiber, vinyl), and its substantial European manufacturing operations (Germany, Netherlands, UK) — including its sole rubber-flooring plant in Germany and primary European carpet-tile plant in the Netherlands — and its key European suppliers rely on natural gas, oil and other raw materials. It warns that any disruption in the supply of natural gas, oil or other raw materials from Russia to Europe could adversely affect its ability to operate and its suppliers' ability to meet its raw-material requirements. Spikes in petroleum feedstock or European energy prices flow directly into cost of sales. A core energy/petroleum commodity dependence.

“Any disruption in the supply of natural gas, oil, or other raw materials from Russia to Europe could adversely affect our ability to operate our business”

Interface is particularly vulnerable to U.S. trade-policy changes because it sources its luxury vinyl tile (LVT) from a third-party manufacturer in South Korea and makes all of its rubber flooring in Germany; importing these goods into the U.S. is its primary tariff exposure. Increased tariffs on rubber and LVT products imported into the U.S. added approximately $7.3 million to 2025 cost of sales, and it expects continuing tariff costs in 2026. Higher tariffs could raise COGS further, force price increases that dampen demand, or compress margins. A specific, quantified import-tariff/trade-policy exposure.

“We are particularly vulnerable to these trade policy changes as we source our luxury vinyl tile (LVT) products from a third-party manufacturer in South Korea and manufacture all our rubber flooring in Germany.”

Interface depends on a small number of third-party suppliers of synthetic fiber (nylon — the core input for its modular carpet tile) and is largely dependent on a single primary supplier for its luxury vinyl tile (LVT) products, whose primary manufacturing facility is in South Korea. Termination or interruption of these arrangements would raise manufacturing costs and delay production while it shifts to alternative suppliers. The suppliers are not named, so this is a sole/limited-source dependence risk rather than a named edge. A real synthetic-fiber and single-LVT-supplier concentration with added South Korea geographic exposure.

“We depend on a small number of third-party suppliers of synthetic fiber and are largely dependent upon a primary supplier for our LVT products.”