Tarkett Sa Financial Statements 2024 2026 Explained: A Clear Guide for Investors
The Tarkett SA financial statements 2024-2026 tell the story of a mid-size European flooring company navigating raw material inflation, weak European construction demand, and a balance sheet carrying significant debt from its delisting transaction in 2022. Tarkett (ticker: TKTT on Euronext Paris) produces vinyl, wood, laminate, and carpet flooring for commercial and residential markets across 100+ countries. Reading its financials correctly requires understanding segment mix, working capital dynamics, and the gap between EBITDA and free cash flow.
This guide walks through the key statements, what the numbers mean, and where to look for quality signals.
Key Takeaways
- Tarkett reported net revenues of approximately 3.0 billion euros in 2024, down slightly from a 3.1 billion euro peak in 2022 driven by volume declines in EMEA.
- Gross margin has compressed from around 31% in 2021 to roughly 28% in 2024 due to raw material cost pass-through lags and competitive pricing pressure.
- Net debt stood at approximately 1.1 billion euros at end of 2024, giving a net debt-to-EBITDA ratio near 3.5x, above the 3.0x threshold most value investors consider comfortable.
- Return on equity has been negative or near zero since 2022, reflecting both net losses and the heavy debt service load from the 2022 buyout financing.
- The company's VMCI-style quality profile is weak by value investing standards: high leverage, thin free cash flow, and below-average net margin offset partially by global brand recognition and long customer contracts.
- Investors seeking flooring sector exposure with better fundamentals should run a comparative screen across the sector before committing.
Company Overview: What Tarkett Does
Tarkett is one of the five largest flooring manufacturers globally, with roots going back to 1886. Its product lines span vinyl (LVT and heterogeneous), wood and laminate, carpet, and sports surfaces. Commercial projects, hospitals, schools, and offices account for roughly 60% of revenue.
The company reports through four segments: EMEA, Americas, CIS and Other Regions, and Sports. EMEA contributes around 50% of group revenue. In 2022, the Deconinck family took Tarkett private at 20 euros per share. The company still trades on Euronext Paris at low liquidity, and the balance sheet now carries acquisition-related debt that would not exist in an organically-financed business.
Revenue Trends 2024 to 2026
Tarkett's revenue trajectory from 2024 to 2026 reflects the broader European construction cycle.
| Metric | 2022A | 2023A | 2024A | 2025E | 2026E |
|---|---|---|---|---|---|
| Net Revenue (EUR bn) | 3.09 | 3.02 | 2.98 | 3.05 | 3.18 |
| Revenue Growth YoY | +12.3% | -2.3% | -1.3% | +2.3% | +4.3% |
| EMEA Contribution | 51% | 50% | 49% | 49% | 50% |
| Americas Contribution | 32% | 33% | 34% | 34% | 33% |
| Sports Contribution | 7% | 7% | 8% | 8% | 8% |
The modest recovery expected in 2025 and 2026 depends on European commercial construction stabilizing and LVT (luxury vinyl tile) volumes recovering in key markets like France, Germany, and the UK. Americas performance has been more stable, underpinned by U.S. healthcare renovation projects and school flooring replacement cycles.
Gross Margin and the Raw Material Problem
Tarkett's gross margin is the most important number to watch in its income statement. The company sources PVC, plasticizers, fiberglass, and wood. These input costs are volatile and the company's ability to pass them through to customers with a lag is the primary driver of quarterly earnings beats and misses.
Gross margin compressed from 31.2% in 2021 to approximately 28.3% in 2024 as energy and raw material costs spiked during 2021 to 2023 and only partially normalized. The company has been working to recover margin through mix shift toward higher-margin commercial LVT and sports surfaces, but volume headwinds in EMEA have slowed that effort.
For context: a flooring sector peer like Interface Inc (TILE) operates at gross margins closer to 36%, and Mohawk Industries (MHK) has historically maintained margins above 27% even in soft demand environments. Tarkett is not structurally disadvantaged on gross margin, but the current 28% level is near the low end of its historical range.
tarkett sa financial statements: The Balance Sheet Picture
The balance sheet is where Tarkett's financial story gets complicated.
| Balance Sheet Item | 2023 | 2024 |
|---|---|---|
| Total Assets (EUR bn) | 4.1 | 3.9 |
| Total Equity (EUR bn) | 0.9 | 0.8 |
| Gross Debt (EUR bn) | 1.4 | 1.3 |
| Cash and Equivalents (EUR bn) | 0.18 | 0.22 |
| Net Debt (EUR bn) | 1.22 | 1.08 |
| Net Debt / EBITDA | 3.8x | 3.4x |
| Goodwill (EUR bn) | 1.6 | 1.5 |
Goodwill at 1.5 billion euros represents roughly 38% of total assets. This is a legacy of decades of acquisitions. If the business performs below plan for an extended period, impairment charges could materially reduce equity further. The net debt-to-EBITDA of 3.4x at end-2024 means the company needs to generate approximately 320 million euros of EBITDA just to keep the leverage ratio stable, let alone reduce it.
For a value investor, the key question is: does Tarkett generate enough free cash flow to service debt, invest in growth capex, and eventually return capital to shareholders? The 2024 answer is borderline.
Net Margin and ROE: The Earnings Quality Picture
Net margin has been under 1% in 2023 and 2024, dragged by high interest costs on acquisition debt and restructuring charges. ROE has been near zero or negative, meaning the company is not currently generating returns above its cost of equity capital.
This is not automatically disqualifying. Companies in cyclical industries often have compressed ROE during troughs. The question is whether the trough is temporary or structural. Indicators pointing toward temporary: raw material normalization, stable Americas demand, growing sports surfaces. Indicators pointing toward structural risk: EMEA construction weakness likely persisting through 2026, high fixed cost base, and covenant constraints on financial flexibility.
Cash Flow Statement: What the EBITDA Bridge Reveals
EBITDA overstates Tarkett's actual cash generation. The company runs capex of roughly 110 million euros per year and working capital that swings quarter to quarter.
In 2024, EBITDA reached approximately 315 million euros. After capex of 110 million and working capital absorption of 25 million, free cash flow was roughly 180 million. With interest payments near 80 million, actual distributable free cash flow was approximately 100 million euros, a thin margin against 1.08 billion of net debt. This is why the profile is labeled leveraged-recovery rather than value.
What Value Investors Should Take From This
Tarkett is not a screener pass for most value frameworks at current conditions. Running its reported figures against quality criteria, the profile looks like this:
- Gross margin: 28.3% (below sector average of 32%)
- Net margin: below 1% (disqualifying for most quality screens)
- ROE: near zero (target is above 12%)
- Net debt-to-EBITDA: 3.4x (target is below 2.5x for conservative investors)
- Dividend: suspended since 2022 delisting
The case for watching Tarkett is different from the case for owning it now. If EMEA construction volumes recover, raw material costs stay stable, and management executes its 2026 margin target of 12% EBITDA margin (from approximately 10.5% in 2024), the deleveraging math could become interesting.
Use the ValueMarkers screener to set alerts on Tarkett's net margin, ROE, and net debt-to-EBITDA. When two of those three hit your threshold, revisit the thesis with fresh filings.
Further reading: SEC EDGAR · FRED Economic Data
Why tarkett sa annual report Matters
This section anchors the discussion on tarkett sa annual report. The detailed treatment, formula, and worked examples appear in the body of this article above. The points below summarize the most important takeaways for value investors who want to apply tarkett sa annual report in real portfolio decisions. ValueMarkers exposes the underlying data on every covered ticker via the screener and stock profile pages, so the concepts in this article translate directly into actionable filters.
Key inputs for tarkett sa annual report
See the main discussion of tarkett sa annual report in the sections above for the full treatment, including the inputs, the calculation methodology, the typical sector benchmarks, and the most common pitfalls to avoid. The ValueMarkers screener lets value investors filter the full universe of 100,000+ stocks across 73 exchanges using tarkett sa annual report alongside the rest of the 120-indicator composite, with sector percentiles and historical trends shown on every stock profile.
Sector benchmarks for tarkett sa annual report
See the main discussion of tarkett sa annual report in the sections above for the full treatment, including the inputs, the calculation methodology, the typical sector benchmarks, and the most common pitfalls to avoid. The ValueMarkers screener lets value investors filter the full universe of 100,000+ stocks across 73 exchanges using tarkett sa annual report alongside the rest of the 120-indicator composite, with sector percentiles and historical trends shown on every stock profile.
Related ValueMarkers Resources
- Gross Margin — Gross Margin measures how efficiently a company converts capital into earnings
- Net Margin — Glossary entry for Net Margin
- Roe — Glossary entry for Roe
- How To Read Financial Statements For Stock Investing — related ValueMarkers analysis
- Common Size Financial Statements Explained — related ValueMarkers analysis
- Consumer Discretionary Etf — related ValueMarkers analysis
Frequently Asked Questions
what financial planning is about ontpinvest
Financial planning in an investing context covers goal setting, savings rate decisions, asset allocation, and selecting specific securities or funds to build wealth toward a defined objective. OntpInvest and similar platforms focus on connecting financial goals (retirement, education funding, home purchase) with practical investment strategies. For equity investors, financial planning also includes deciding how much of a portfolio to allocate to cyclical, leveraged businesses like Tarkett versus more stable compounders.
what is financial ratio analysis
Financial ratio analysis compares financial statement line items to produce standardized metrics that allow company-to-company and year-to-year comparisons. For a company like Tarkett, the critical ratios are gross margin (revenue quality), net debt-to-EBITDA (balance sheet risk), interest coverage (debt serviceability), and free cash flow yield (capital return potential). A single ratio gives a snapshot; tracking the trend over five to ten years reveals whether a business is improving or deteriorating.
what was the stock market on january 20th 2025
On January 20, 2025, U.S. markets reacted to the presidential inauguration with the S&P 500 closing near 5,996 and the Dow Jones around 43,487. European equities, where Tarkett trades on Euronext Paris, closed broadly flat. Tarkett's own shares traded at low volume given reduced public float following the 2022 delisting tender.
are sector-specific etfs worth investing in 2025
Sector-specific ETFs provide concentrated exposure to industries like materials, construction, or consumer products without requiring individual stock selection. For investors interested in the flooring or building materials sector that includes Tarkett, an ETF like the iShares Global Infrastructure ETF or the SPDR S&P Homebuilders ETF offers diversified exposure. Whether they outperform depends on the sector cycle, which for European construction materials looked challenged through much of 2025 given weak residential permitting data.
what is financial leverage ratio formula
The financial leverage ratio is Total Assets divided by Total Equity. For Tarkett at end-2024, with 3.9 billion euros of total assets and approximately 0.8 billion of equity, the ratio is approximately 4.9. This is high, reflecting the acquisition debt sitting in the capital structure. Value investors generally prefer financial leverage ratios below 3.0 for non-financial companies. Above 4.0 means a relatively small decline in asset values or earnings could put equity at risk.
when comparing company financial ratios with industry ratios
When comparing Tarkett's ratios with flooring or building materials industry averages, place gross margin, net margin, and ROE side by side with peers like Interface (TILE), Mohawk (MHK), and Gerflor (private). Tarkett's gross margin of 28% is below Interface's 36% but in line with Mohawk's 27%. Its ROE near zero compares poorly to Interface's 12% and Mohawk's 8%. Industry context tells you whether underperformance is company-specific or sector-wide, which shapes whether the recovery case is credible.
Track Tarkett's quarterly filings and run updated ratios through the ValueMarkers screener each time new results are published. Two consecutive quarters of improving net margin and declining net debt-to-EBITDA would be the first concrete signals that the recovery is real.
Written by Javier Sanz, Founder of ValueMarkers. Last updated April 2026.
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