Core Insights - Mohawk Industries reported $2.8 billion in revenue for Q2 2025, showing no change year over year, with an EPS of $2.77 compared to $3.00 a year ago [1] - The revenue was slightly below the Zacks Consensus Estimate of $2.79 billion, resulting in a surprise of +0.37%, while the EPS exceeded expectations by +5.73% against a consensus estimate of $2.62 [1] Financial Performance Metrics - Global Ceramic net sales were reported at $1.12 billion, matching analyst estimates and reflecting a +0.5% change year over year [4] - Flooring ROW net sales reached $734.4 million, surpassing the average estimate of $718.31 million, with a year-over-year increase of +1% [4] - Flooring NA net sales were $946.8 million, slightly below the average estimate of $947.28 million, indicating a -1.2% change year over year [4] - Adjusted Operating Income for Global Ceramic was $90.3 million, exceeding the average estimate of $80.12 million [4] - Adjusted Operating Income for Flooring NA was $69.2 million, below the average estimate of $72.17 million [4] - Adjusted Operating Income for Flooring ROW was $76.4 million, closely aligning with the average estimate of $76.45 million [4] - Corporate and intersegment eliminations reported an adjusted operating income of -$12.9 million, worse than the average estimate of -$10.13 million [4] Stock Performance - Mohawk Industries shares have returned +13.7% over the past month, outperforming the Zacks S&P 500 composite, which saw a +5.7% change [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Core Viewpoint - Mohawk Industries reported quarterly earnings of $2.77 per share, exceeding the Zacks Consensus Estimate of $2.62 per share, but down from $3 per share a year ago, indicating a +5.73% earnings surprise [1][2] Financial Performance - The company achieved revenues of $2.8 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 0.37%, consistent with year-ago revenues [2] - Over the last four quarters, Mohawk Industries has surpassed consensus EPS estimates four times and topped consensus revenue estimates three times [2] Stock Performance - Mohawk Industries shares have declined approximately 2.1% since the beginning of the year, contrasting with the S&P 500's gain of 8.1% [3] - The current Zacks Rank for Mohawk Industries is 3 (Hold), indicating expected performance in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $2.74 on revenues of $2.73 billion, and for the current fiscal year, it is $9.13 on revenues of $10.77 billion [7] - The trend of estimate revisions for Mohawk Industries was mixed ahead of the earnings release, which may change following the recent report [6] Industry Context - The Textile - Home Furnishing industry, to which Mohawk Industries belongs, is currently in the top 39% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

[Q2 2025 Financial Highlights](index=1&type=section&id=Q2%202025%20Financial%20Highlights) Mohawk Industries reported Q2 2025 net sales were flat year-over-year, while both GAAP and adjusted net earnings and EPS declined Q2 & H1 2025 Key Financial Results (vs. Prior Year) | Metric | Q2 2025 (USD) | Q2 2024 (USD) | Change | H1 2025 (USD) | H1 2024 (USD) | Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Net Sales | $2.8B | $2.8B | ~0% | $5.3B | $5.5B | -2.8% | | Net Earnings | $147M | $157M | -6.4% | $219M | $262M | -16.4% | | EPS | $2.34 | $2.46 | -4.9% | $3.49 | $4.10 | -14.9% | | Adjusted Net Earnings | $173M | $192M | -9.9% | $269M | $310M | -13.2% | | Adjusted EPS | $2.77 | $3.00 | -7.7% | $4.29 | $4.85 | -11.5% | [Management Commentary & Business Outlook](index=1&type=section&id=Management%20Commentary%20%26%20Business%20Outlook) Management highlights operational improvements and tariff management, anticipating input cost pressures to peak in Q3 with adjusted EPS guidance of **$2.56** to **$2.66** [Operational Performance and Strategy](index=1&type=section&id=Operational%20Performance%20and%20Strategy) The company is executing restructuring plans for **$100 million** in benefits, enhancing product mix, and leveraging North American manufacturing to mitigate tariffs - Restructuring actions are on schedule and expected to deliver approximately **$100 million** in benefits this year[10](index=10&type=chunk) - The company is mitigating industry pricing pressure by strengthening its product and channel mix, with a focus on premium collections and new introductions[3](index=3&type=chunk) - To counter increasing tariffs, the company is emphasizing its locally produced collections, as approximately **85%** of its U.S. sales are from goods produced in North America[6](index=6&type=chunk)[10](index=10&type=chunk) [Segment Performance](index=3&type=section&id=Segment%20Performance) In Q2 2025, Global Ceramic net sales and operating margin slightly increased, while Flooring Rest of World and North America segments experienced sales declines and margin pressures Q2 2025 Segment Performance vs. Prior Year | Segment | Net Sales Change (Reported) (%) | Net Sales Change (Adjusted) (%) | Operating Margin (Adjusted) (%) | | :--- | :--- | :--- | :--- | | Global Ceramic | +0.5% | +1.1% | 8.1% | | Flooring Rest of World | +1.0% | -3.0% | 10.4% | | Flooring North America | -1.2% | N/A | 7.3% | [Future Outlook and Guidance](index=3&type=section&id=Future%20Outlook%20and%20Guidance) The company anticipates continued sales constraints due to inflation and low consumer confidence, with input cost pressures peaking in Q3, and projects Q3 2025 adjusted EPS between **$2.56** and **$2.66** - Q3 2025 adjusted EPS is guided to be between **$2.56** and **$2.66**, excluding any restructuring charges or potential new tariff impacts[11](index=11&type=chunk) - Input cost pressures are expected to continue, with the impact peaking in the third quarter as higher costs flow through inventory[10](index=10&type=chunk) - The company believes it is strategically positioned to capitalize on opportunities as the industry recovers from the current cyclical downturn[5](index=5&type=chunk)[12](index=12&type=chunk) [Capital Allocation](index=1&type=section&id=Capital%20Allocation) Mohawk generated approximately **$125 million** in Q2 2025 free cash flow, repurchased **$42 million** in shares, and authorized a new **$500 million** share repurchase program - Generated approximately **$125 million** of free cash flow in Q2 2025[4](index=4&type=chunk) - Purchased approximately **393,000** shares for **$42 million** during the quarter[4](index=4&type=chunk) - The Board of Directors approved a new **$500 million** share repurchase authorization[4](index=4&type=chunk) [Consolidated Financial Statements](index=6&type=section&id=Consolidated%20Financial%20Statements) The consolidated financial statements show a decline in Q2 2025 gross profit and operating income, an increase in total assets, and a significant decrease in H1 2025 operating cash flow [Condensed Consolidated Statements of Operations](index=6&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) Q2 2025 net sales remained flat at **$2.80 billion**, while gross profit, operating income, and net earnings all experienced year-over-year declines Q2 2025 Statement of Operations Highlights (in millions) | Account | Q2 2025 (USD millions) | Q2 2024 (USD millions) | | :--- | :--- | :--- | | Net sales | $2,802.1 | $2,801.3 | | Gross profit | $714.4 | $723.8 | | Operating income | $188.7 | $214.0 | | Net earnings | $146.5 | $157.4 | [Condensed Consolidated Balance Sheets](index=7&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) As of June 28, 2025, total assets increased to **$13.78 billion**, total liabilities decreased to **$5.48 billion**, and total stockholders' equity rose to **$8.30 billion** Balance Sheet Summary (in millions) | Account | June 28, 2025 (USD millions) | June 29, 2024 (USD millions) | | :--- | :--- | :--- | | Total current assets | $6,064.9 | $5,641.3 | | Total assets | $13,778.8 | $13,279.6 | | Total current liabilities | $2,853.2 | $2,937.7 | | Total liabilities | $5,481.2 | $5,627.1 | | Total stockholders' equity | $8,297.6 | $7,652.5 | [Other Financial Information (Cash Flow)](index=6&type=section&id=Other%20Financial%20Information%20%28Cash%20Flow%29) Net cash provided by operating activities for H1 2025 significantly decreased to **$210.0 million**, resulting in free cash flow of **$40.7 million** after capital expenditures Cash Flow Summary (in millions) | Metric | Six Months Ended 2025 (USD millions) | Six Months Ended 2024 (USD millions) | | :--- | :--- | :--- | | Net cash provided by operating activities | $210.0 | $417.3 | | Capital expenditures | $169.3 | $178.2 | | Free cash flow | $40.7 | $239.1 | [Segment Information](index=8&type=section&id=Segment%20Information) For H1 2025, all segments experienced year-over-year net sales declines, with Flooring North America's operating income halving, while Global Ceramic remained stable and Flooring Rest of World decreased Six Months Ended Segment Performance (in millions) | Segment | Net Sales H1 2025 (USD millions) | Net Sales H1 2024 (USD millions) | Operating Income H1 2025 (USD millions) | Operating Income H1 2024 (USD millions) | | :--- | :--- | :--- | :--- | :--- | | Global Ceramic | $2,114.7 | $2,160.4 | $130.0 | $131.9 | | Flooring NA | $1,809.2 | $1,858.7 | $61.8 | $123.3 | | Flooring ROW | $1,404.0 | $1,461.6 | $124.5 | $136.5 | [Non-GAAP Financial Measures and Reconciliations](index=8&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Reconciliations) This section details reconciliations of GAAP to non-GAAP financial measures, adjusting for items like restructuring costs and currency effects to provide a clearer view of core operating performance [Reconciliation of Net Earnings to Adjusted Net Earnings and EPS](index=8&type=section&id=Reconciliation%20of%20Net%20Earnings%20to%20Adjusted%20Net%20Earnings%20and%20EPS) Q2 2025 GAAP net earnings of **$146.5 million** were adjusted to **$173.3 million**, primarily due to **$29.4 million** in restructuring costs, resulting in an adjusted EPS of **$2.77** Q2 2025 Reconciliation of Net Earnings to Adjusted Net Earnings (in millions) | Metric | Q2 2025 (USD millions) | Q2 2024 (USD millions) | | :--- | :--- | :--- | | Net earnings (GAAP) | $146.5 | $157.4 | | Restructuring & other costs | $29.4 | $41.4 | | Other adjustments (net) | $4.9 | $(7.3) | | Adjusted net earnings (Non-GAAP) | $173.3 | $191.5 | [Reconciliation of Net Sales to Adjusted Net Sales](index=9&type=section&id=Reconciliation%20of%20Net%20Sales%20to%20Adjusted%20Net%20Sales) Q2 2025 reported net sales of **$2.802 billion** were adjusted to **$2.780 billion** after accounting for constant shipping days and exchange rates, representing a **0.8%** adjusted year-over-year decrease Q2 2025 Reconciliation of Net Sales (in millions) | Metric | Amount (USD millions) | | :--- | :--- | | Net sales (GAAP) | $2,802.1 | | Adjustment for constant shipping days | $12.0 | | Adjustment for constant exchange rates | $(34.4) | | Adjusted net sales (Non-GAAP) | $2,779.7 | [Reconciliation of Profitability Metrics](index=10&type=section&id=Reconciliation%20of%20Profitability%20Metrics) Q2 2025 adjusted operating income decreased to **$223.0 million** (**8.0%** margin) from **$256.7 million** (**9.2%** margin) in Q2 2024, primarily due to restructuring cost adjustments Q2 2025 Reconciliation of Operating Income (in millions) | Metric | Q2 2025 (USD millions) | Q2 2024 (USD millions) | | :--- | :--- | :--- | | Operating income (GAAP) | $188.7 | $214.0 | | Restructuring & other costs | $29.4 | $41.4 | | Legal settlements, etc. | $4.9 | $1.3 | | Adjusted operating income (Non-GAAP) | $223.0 | $256.7 | | Adjusted operating margin | 8.0% | 9.2% | [Reconciliation of Net Earnings to Adjusted EBITDA](index=9&type=section&id=Reconciliation%20of%20Net%20Earnings%20to%20Adjusted%20EBITDA) Mohawk's TTM Adjusted EBITDA was **$1,342.1 million** as of June 28, 2025, resulting in a net debt to Adjusted EBITDA ratio of **1.2x** - Trailing twelve months Adjusted EBITDA was **$1,342.1 million**[26](index=26&type=chunk) - The ratio of Net Debt to Adjusted EBITDA was **1.2x** as of June 28, 2025[26](index=26&type=chunk) [Reconciliation of Total Debt to Net Debt](index=9&type=section&id=Reconciliation%20of%20Total%20Debt%20to%20Net%20Debt) As of June 28, 2025, total debt was **$2.201 billion**, and after subtracting cash, net debt stood at **$1.654 billion** Net Debt Calculation as of June 28, 2025 (in millions) | Metric | Amount (USD millions) | | :--- | :--- | | Total debt | $2,201.0 | | Less: Cash and cash equivalents | $546.7 | | Net debt | $1,654.3 | - The company provides non-GAAP measures to help investors understand long-term profitability trends by excluding items that may not be indicative of core operating performance[34](index=34&type=chunk)[36](index=36&type=chunk)

Core Insights - Mohawk Industries reported second quarter 2025 net earnings of $147 million and earnings per share (EPS) of $2.34, with adjusted net earnings of $173 million and adjusted EPS of $2.77, indicating a decline from the previous year's figures [1][2] - Net sales for the second quarter were $2.8 billion, remaining flat year-over-year, but showing a decrease of 0.8% when adjusted for constant days and exchange rates [1][2] - The company generated approximately $125 million in free cash flow and repurchased around 393,000 shares for approximately $42 million, with a new authorization to acquire $500 million of outstanding common stock [4] Financial Performance - For the first six months of 2025, net earnings were $219 million, with an EPS of $3.49, and adjusted net earnings of $269 million, with an adjusted EPS of $4.29, reflecting a decrease from the prior year [2] - The company reported net sales of $5.3 billion for the first half of 2025, down 2.8% as reported and 0.7% on an adjusted basis compared to the previous year [2] Operational Insights - The Chairman and CEO highlighted ongoing operational improvements, cost containment actions, and market development initiatives as key factors in navigating challenging market conditions [3] - The company is focusing on enhancing productivity through equipment upgrades, energy conservation, supply chain optimization, and product re-engineering [3][9] Segment Performance - The Global Ceramic Segment saw a net sales increase of 0.5% as reported, with an operating margin of 7.9% [6] - The Flooring North America Segment experienced a 1.2% decrease in net sales, with an operating margin of 5.5% [8] - The Flooring Rest of the World Segment reported a 1.0% increase in net sales, but a 3.0% decrease when adjusted for constant days and exchange rates, with an operating margin of 9.0% [7] Strategic Initiatives - The company is addressing increasing tariffs by emphasizing locally produced collections and adjusting prices accordingly [5] - Mohawk's restructuring actions are expected to deliver approximately $100 million in benefits this year, while also strengthening operations for future growth [10] Market Outlook - The company anticipates that the third quarter adjusted EPS will be between $2.56 and $2.66, excluding any restructuring or one-time charges [10] - Historical trends suggest that down cycles in the industry are typically followed by several years of sales growth due to pent-up demand [11]

Company Overview - Mohawk Industries, Inc. operates as a provider of rugs, flooring, carpets, ceramic tiles, and other similar products [1] Investment Insights - Crude Value Insights offers an investing service and community focused on oil and natural gas, emphasizing cash flow and companies that generate it, leading to value and growth prospects with real potential [1] Subscriber Benefits - Subscribers gain access to a 50+ stock model account, in-depth cash flow analyses of exploration and production (E&P) firms, and live chat discussions of the sector [2]

Core Viewpoint - Mohawk Industries, Inc. is expected to report a decline in both earnings and net sales for the second quarter of 2025 due to ongoing macroeconomic challenges and industry headwinds, particularly in the residential remodeling market [2][4][10]. Financial Performance - The adjusted earnings for the last reported quarter beat the Zacks Consensus Estimate by 3.7% but declined 18.3% year over year [2]. - The consensus estimate for Mohawk's earnings per share (EPS) for the upcoming quarter is $2.63, reflecting a decrease of 12.3% from the previous year [3]. - Net sales are projected at $2.79 billion, indicating a 0.3% decrease from the year-earlier level [3][10]. Segment Performance - The Global Ceramic segment, which accounted for 39.3% of first-quarter 2025 net sales, is expected to decline by 0.5% to $1.1 billion year over year [5]. - The Flooring Rest of World segment, contributing 26.6% to net sales, is anticipated to decrease by 1.2% to $718.5 million [5]. - Conversely, the Flooring North America segment, which represents 34.1% of net sales, is expected to see a slight increase of 0.1% year over year to $959.1 million [5]. Cost and Margin Outlook - Cost inflation remains a significant challenge, particularly in raw materials, labor, and energy, making it difficult for the company to fully offset rising costs through pricing actions alone [6]. - The company expects adjusted EPS in the range of $2.52-$2.62, down from $3 in the previous year, with an adjusted gross margin decline of 170 basis points year over year to 25.4% [7][10]. Strategic Initiatives - Mohawk is implementing restructuring efforts expected to yield $100 million in incremental savings in 2025 and $285 million on a run-rate basis by 2026 [8]. - Strategic investments in new products, particularly in premium laminate and LVT, are anticipated to provide long-term pricing and margin benefits [8].

Core Insights - Analysts project Mohawk Industries (MHK) will report quarterly earnings of $2.63 per share, a decline of 12.3% year over year, with revenues expected to reach $2.79 billion, down 0.3% from the same quarter last year [1] - The consensus EPS estimate has been revised 2% lower over the last 30 days, indicating a collective reevaluation by analysts [2] - Changes in earnings estimates are crucial for predicting investor reactions, with empirical studies showing a strong relationship between earnings estimate revisions and short-term stock price performance [3] Financial Metrics - Analysts estimate 'Net Sales- Global Ceramic' will reach $1.12 billion, reflecting a change of +0.2% year over year [5] - 'Net Sales- Flooring ROW' is projected at $718.31 million, indicating a decline of -1.2% year over year [5] - 'Net Sales- Flooring NA' is expected to be $947.28 million, also down -1.2% from the previous year [5] - The consensus estimate for 'Adjusted Operating Income- Global Ceramic' is $80.12 million, down from $94.80 million in the same quarter last year [6] - 'Adjusted Operating Income- Flooring NA' is projected at $72.17 million, compared to $82.00 million in the same quarter of the previous year [6] - 'Adjusted Operating Income- Flooring ROW' is estimated at $76.45 million, down from $91.40 million year over year [7] Market Performance - Shares of Mohawk Industries have returned +6.3% over the past month, outperforming the Zacks S&P 500 composite's +5.9% change [7] - With a Zacks Rank 4 (Sell), MHK is expected to underperform the overall market in the near future [7]

Core Viewpoint - Mohawk Industries, Inc. has released its 2024 Impact Report, highlighting progress in sustainability goals, new eco-friendly products, and initiatives benefiting employees, communities, and the planet [1][2]. Group 1: Sustainable Product Leadership - The report emphasizes Mohawk's commitment to designing products that reduce carbon emissions, increase recyclable components, and promote circular design [1][2]. - Mohawk offers a comprehensive range of sustainable products, including tiles, carpets, resilient materials, laminates, and wood, marketed in approximately 180 countries [1][5]. Group 2: Carbon Reduction and Resource Conservation - In 2024, Mohawk recycled billions of plastic bottles into flooring and repurposed nearly 1.5 billion pounds of waste wood into particleboard, along with upgrading approximately 50 million pounds of discarded tires into decorative mats [5]. - The company exceeded its Scope 1, 2, and biogenic emissions intensity targets, achieving a 30% reduction from a 2010 baseline, earning recognition as a climate leader in the U.S. [5]. - Renewable energy consumption increased by 117% in 2024, with solar energy generated from rooftop panels rising by 53% [5]. - Global water intensity improved by 45% compared to the 2010 baseline, reflecting significant wastewater reuse in production processes [5]. Group 3: High-Performance Workforce - Among Mohawk's 41,900 global employees, 10.5% have been with the company for 25 years or more, contributing to its recognition as one of America's best large employers [5]. - The company's global recordable incident rate has decreased by approximately 35% compared to the 2010 baseline due to safety initiatives and employee engagement [5].

CALHOUN, Georgia, July 15, 2025 (GLOBE NEWSWIRE) -- Mohawk Industries, Inc. (NYSE: MHK) today published its 16th annual impact report, which highlights progress toward the Company’s sustainability goals, new environmentally friendly residential and commercial products, and activities that benefit the Company’s people and communities as well as the planet. “At Mohawk, we invest in what works—solutions that reduce our environmental impact, strengthen our business and benefit our customers,” said Chairman and ...

Core Viewpoint - Mohawk Industries will release its Q2 2025 financial results on July 24, 2025, and will host a live earnings call on July 25, 2025, at 11:00 AM ET [1]. Group 1: Company Overview - Mohawk Industries is a leading global flooring manufacturer, providing products for residential and commercial spaces [2]. - The company has established a competitive advantage through vertically integrated production and distribution processes across various flooring types, including carpets, tiles, and vinyl [2]. - Over the past two decades, Mohawk has transformed from a U.S. carpet manufacturer to the largest flooring company globally, with operations in North America, Europe, South America, Oceania, and Asia [2]. Group 2: Earnings Call Information - The earnings call will be accessible via a live stream and can also be replayed until August 22, 2025, using specific access codes [1][3]. - For those unable to attend the live call, a replay can be accessed through the company's investor relations website [1].