Industry Update: Takeaways from TISE 2026

Following our recent market updates, we wanted to share several observations from The International Surface Event (TISE) in Las Vegas and how those conversations are shaping our near-term outlook for the flooring, tile, stone, and broader surfaces sector.

We spent time with manufacturers, distributors, fabricators/installers, and big-box retailers, meeting with both U.S.- and Canadian-based companies. Discussions included AHF, Mannington, GESCO, Spartan Surfaces, Floform, and Lowe’s, among others. While overall attendance was lighter than in prior years—likely impacted by winter storms and flight cancellations—the quality of dialogue was strong and notably more constructive than what we experienced in 2024 and 2025.

Market Tone and Operating Environment

The overarching takeaway from TISE was a more positive tone across the industry. Companies with meaningful exposure to higher-end residential and commercial markets continue to perform well, with several participants reporting revenue growth and improved profitability in 2025. This aligns with our recent market updates, which highlighted that strength in commercial and specialty segments continues to offset broader residential softness.

Residential demand remains challenged; however, several operators noted that the underlying economy appears stronger than prevailing sentiment would suggest. Participants pointed to continued U.S. GDP growth and company-specific performance as evidence that demand has not disappeared, even if it remains uneven. In Canada, companies emphasized that tariffs have had a more limited impact than commonly perceived, noting that approximately 85–90% of trade remains exempt under USMCA. As a result, attributing broader industry weakness solely to tariffs may be overstated.

Looking ahead, many cited a strong U.S. equity market, lower interest rates, existing home sales driven by life events, and an ongoing housing shortage as potential catalysts for improvement in 2026. At the same time, companies consistently emphasized the need for stability—particularly reduced trade and tariff uncertainty—as a critical factor in sustaining and building on current momentum.

M&A Sentiment and Strategic Activity

If operating momentum continues, we expect M&A activity to pick up meaningfully in the second and third quarters of the year. As noted previously, strategic buyers remain active and engaged, even as announced deal volume has lagged.

Lowe’s, following its acquisitions of FBM and ADG last year, indicated a continued interest in expanding both platforms through additional acquisitions. Spartan Surfaces reiterated its desire to grow capabilities both geographically and across new product categories. Mannington, which has been relatively quiet in recent years, conveyed that internal improvements and balance sheet cleanup are largely complete, and the company is now more receptive to transformational acquisition opportunities.

Private equity sponsors continue to face pressure to deploy capital and are increasingly focused on accelerating activity. Importantly, even lower middle-market companies are now actively exploring acquisition strategies as a means of scaling and positioning for the next phase of growth. We were asked by two stone fabricators about potential acquisition targets in the Las Vegas area, underscoring continued interest in markets benefiting from population growth and commercial development. More broadly, the Southeast remains a focal point for buyers given favorable demographics and business-friendly environments, and we received inquiries from several tile companies regarding opportunities in the region.

In addition, we spoke confidentially with a tile manufacturer evaluating the addition of a new product category in the U.S. as a way to increase share of wallet and deepen customer relationships—another example of the strategic repositioning underway across the sector.

Outlook

While challenges persist—particularly in residential—the conversations at TISE reinforced our view that the industry is moving off the lows and laying the groundwork for the next upcycle. Improving sentiment, disciplined operators, and sustained strategic interest suggest that, with continued macro stability, transaction activity could reaccelerate as early as mid-year.

TwinShore Advisors remains deeply engaged across the flooring, tile, stone, and broader surfaces ecosystem, working with founders, family-owned businesses, and management teams as they evaluate growth strategies, acquisitions, and long-term exit planning. We welcome confidential conversations with owners considering their next chapter.

To further discuss these themes or explore strategic opportunities, please reach out to Chobun Hieblinger (chieblinger@twinshoreadvisors.com) or Wade Bennett (wbennett@twinshoreadvisors.com).