This presentation may include discussion of non-GAAP numbers. For a reconciliation of any non-GAAP to GAAP amounts, please refer to the reconciliation tables at the end of this presentation. MOHAWK INDUSTRIES 1 Q1 2025 Ways We Win Forward-looking Statements & Non-GAAP Numbers Certain of the statements in this presentation, particularly those anticipating future performance, business prospects, growth and operating strategies and similar matters and those that include the words "could," "should," "believes," ...

Following my coverage on Mohawk Industries (NYSE: MHK ), which I downgraded to a hold rating due to my expectation that demand will face significant headwinds due to the mortgage rate environment, this post is to provide an updateI take a fundamentals-based approach to value investing.I disagree with the common misconception held by many investors that low multiple stocks must be cheap. I look for companies that offer the best long-term durability at the most affordable prices. Consequently, I have a propen ...

Mohawk Industries, Inc. (MHK) reported mixed results for the first quarter of 2025, with earnings topping the Zacks Consensus Estimate and net sales missing the same. On a year-over-year basis, both top and bottom lines declined.The quarterly results were impacted by two fewer shipping days and foreign exchange headwinds. The company also faced challenges due to the new Flooring North America order system, though service levels have returned to normal. The bottom line benefited from productivity gains, rest ...

Mohawk Industries (MHK) Q1 2025 Earnings Call May 02, 2025 11:00 AM ET Company Participants James Brunk - CFOJeffrey Lorberbaum - Chairman & CEOPaul De Cock - President & COOJohn Lovallo - Managing Director, Corporate Affairs & FinancialCollin Verron - DirectorKeith Hughes - Managing DirectorAdam Baumgarten - Managing DirectorMichael Rehaut - Executive DirectorStephen Kim - Senior Managing DirectorTrevor Allinson - Director - Equity ResearchPhilip Ng - Managing DirectorLaura Champine - Director of ResearchM ...

Financial Data and Key Metrics Changes - Reported sales for the first quarter were $2.5 billion, a decrease of 5.7% as reported or approximately flat on a constant basis, impacted by two fewer shipping days and foreign exchange headwinds [3][12] - Earnings per share (EPS) for the quarter was $1.52, benefiting from productivity gains, restructuring actions, and a lower tax rate, which offset pricing pressure and higher input costs [4][14] - Gross margin for the quarter was 23.1% as reported, and 24.1% excluding charges, consistent with the prior year [13] - Operating income was reported at $96 million, or 3.8%, with adjusted operating margin at 4.8%, a decrease of 130 basis points year-over-year due to higher input costs [14][18] Business Line Data and Key Metrics Changes - Global Ceramic segment had sales of over $990 million, a 4.9% decrease as reported but a 1.2% increase on a constant basis, driven by improved product and channel mix [15] - Flooring North America sales were $862 million, a decrease of 4.2% as reported or 1.1% on a constant basis, impacted by the order management system conversion [15] - Flooring Rest of the World reported sales of $670 million, an 8.8% decrease as reported and 2.9% on an adjusted basis, driven by lower sales volume and unfavorable price mix [16] Market Data and Key Metrics Changes - Conditions in the first quarter weakened sequentially, with residential remodeling remaining the lowest sector [8][11] - Consumer confidence in the U.S. has been declining, affecting home sales and remodeling activities [10][11] - In Europe, consumer confidence has also declined due to economic uncertainty, leading to postponed home sales and remodeling activities [11][12] Company Strategy and Development Direction - The company aims to grow market share in a challenging environment by optimizing product mix and reducing costs [19] - Restructuring projects are on schedule, with expected savings of approximately $100 million this year [14][30] - The company is focusing on enhancing domestic manufacturing capabilities to mitigate tariff impacts and improve competitive positioning [5][21] Management Comments on Operating Environment and Future Outlook - Management anticipates that the impact of tariffs will influence consumer and business spending, though the extent is unpredictable [7][29] - The company expects pricing pressure to continue across all regions due to low demand and competitive markets [30] - Long-term prospects for the flooring category remain optimistic, with expectations of significant improvement when industry volumes return to historical levels [31] Other Important Information - The company purchased 225,000 shares of its stock for approximately $26 million during the quarter [4] - Cash and cash equivalents were over $700 million, with free cash flow usage of approximately $85 million primarily due to delayed invoicing and increased imports ahead of tariffs [16][17] Q&A Session Summary Question: Timing of tariff impact - The company expects the $50 million annualized cost impact from tariffs to be more pronounced in the late third quarter and fourth quarter, as inventory turnover takes time [34][36] Question: Pricing power in a promotional environment - The company believes that tariffs will be passed through to consumers, with selective pricing actions being taken to offset costs [42][44] Question: EPS growth outlook - Management indicated that EPS growth will depend on market conditions, with efforts to offset tariff impacts through pricing and cost-cutting measures [51][52] Question: Energy cost headwinds - The company expects energy costs to be slightly higher in Q2, with potential benefits from lower natural gas prices in the fourth quarter [118][120] Question: Inventory levels and market share - The company has increased inventory levels due to imports ahead of tariffs, and is focused on maintaining market share without leading with price [97][95]

For the quarter ended March 2025, Mohawk Industries (MHK) reported revenue of $2.53 billion, down 5.7% over the same period last year. EPS came in at $1.52, compared to $1.86 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $2.57 billion, representing a surprise of -1.84%. The company delivered an EPS surprise of +7.80%, with the consensus EPS estimate being $1.41.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Str ...

Core Viewpoint - Mohawk Industries reported quarterly earnings of $1.52 per share, exceeding the Zacks Consensus Estimate of $1.41 per share, but down from $1.86 per share a year ago, indicating a 7.80% earnings surprise [1][2] Financial Performance - The company posted revenues of $2.53 billion for the quarter, missing the Zacks Consensus Estimate by 1.84% and down from $2.68 billion year-over-year [2] - Over the last four quarters, Mohawk Industries has surpassed consensus EPS estimates four times and topped revenue estimates twice [2] Stock Performance - Mohawk Industries shares have declined approximately 10.7% since the beginning of the year, compared to a 5.3% decline in the S&P 500 [3] - The current Zacks Rank for Mohawk Industries is 4 (Sell), indicating expected underperformance in the near future [6] Earnings Outlook - The consensus EPS estimate for the upcoming quarter is $2.83 on revenues of $2.78 billion, and for the current fiscal year, it is $9.45 on revenues of $10.8 billion [7] - The trend of estimate revisions for Mohawk Industries has been unfavorable leading up to the earnings release [6] Industry Context - The Textile - Home Furnishing industry, to which Mohawk Industries belongs, is currently ranked in the top 11% of over 250 Zacks industries, suggesting a favorable industry outlook [8]

NEWS RELEASE For Release: Immediately Contact: James Brunk, Chief Financial Officer - (706) 624-2239 MOHAWK INDUSTRIES REPORTS Q1 RESULTS Calhoun, Georgia, May 1, 2025 — Mohawk Industries, Inc. (NYSE: MHK) today announced first quarter 2025 net earnings of $73 million and earnings per share ("EPS") of $1.15; adjusted net earnings were $96 million, and adjusted EPS was $1.52. Net sales for the first quarter of 2025 were $2.5 billion, a decrease of 5.7% as reported and a decrease of 0.7% adjusted for constant ...

CALHOUN, Georgia, May 01, 2025 (GLOBE NEWSWIRE) -- Mohawk Industries, Inc. (NYSE: MHK) today announced first quarter 2025 net earnings of $73 million and earnings per share (“EPS”) of $1.15; adjusted net earnings were $96 million, and adjusted EPS was $1.52. Net sales for the first quarter of 2025 were $2.5 billion, a decrease of 5.7% as reported and a decrease of 0.7% adjusted for constant days and exchange rates versus the prior year. During the first quarter of 2024, the Company reported net sales of $2. ...

Mohawk Industries, Inc. (MHK) is scheduled to report results for the first quarter of 2025 on May 1, after market close.In the last reported quarter, the company’s adjusted earnings topped the Zacks Consensus Estimate by 3.7% but declined by a penny year over year. Net sales beat the consensus estimate by 2.8% and inched up 1% year over year.MHK’s earnings surpassed expectations in each of the trailing four quarters, delivering an average surprise of 5.6%.How Are Estimates Placed for Mohawk Stock?The Zacks ...