Core Viewpoint - Mohawk Industries, Inc. reported mixed results for Q1 2025, with earnings exceeding estimates while net sales fell short, reflecting a year-over-year decline in both metrics [1][5]. Financial Performance - Adjusted EPS was $1.52, surpassing the Zacks Consensus Estimate of $1.41 by 7.8%, but down from $1.86 in the prior year [5]. - Net sales reached $2.53 billion, missing the consensus estimate of $2.57 billion by 1.8% and declining 5.7% year-over-year from $2.68 billion [5]. - Adjusted gross margin contracted by 30 basis points to 24.1%, while adjusted operating margin decreased by 130 basis points to 4.8% [6]. Segment Performance - Global Ceramic segment sales totaled $993.8 million, down 4.9% year-over-year, with adjusted sales up 1.2% to $1.057 billion [7]. - Flooring North America reported net sales of $862.4 million, down 4.2% year-over-year, with adjusted net sales at $890.2 million [8]. - Flooring Rest of the World saw net sales decrease by 8.8% year-over-year to $669.6 million, with adjusted sales down 2.9% to $713.3 million [9]. Market Conditions and Challenges - The company faced challenges from two fewer shipping days, foreign exchange headwinds, and a new order system in Flooring North America, although service levels have normalized [2][3]. - Market conditions weakened, particularly in residential remodeling, with consumer confidence declining and global tariffs complicating the situation [3][12]. - The company anticipates an annualized cost of around $50 million due to tariffs at the current 10% rate, and is focusing on inventory management and pricing adjustments [3][12]. Future Outlook - Despite current challenges, the company remains optimistic about the long-term prospects of the flooring market, expecting a significant rebound as industry volumes return to historical levels [4]. - The company projects adjusted EPS for Q2 2025 in the range of $2.52-$2.62, down from $3 in the prior year [15].

Financial Data and Key Metrics Changes - The company reported sales of $2,500,000,000, a decrease of 5.7% as reported or about flat on a constant basis, impacted by two fewer shipping days and foreign exchange headwinds [6][16]. - Earnings per share (EPS) were $1.52, benefiting from productivity gains, restructuring actions, and a lower tax rate, which offset pricing pressure and higher input costs [7][19]. - Gross margin for the quarter was 23.1% as reported, and 24.1% excluding charges, in line with the prior year [17]. - Operating income was $96,000,000 or 3.8%, with adjusted operating margin at 4.8%, a decrease of 130 basis points year-over-year due to higher input costs [17][18]. Business Line Data and Key Metrics Changes - **Global Ceramic**: Sales were just over $990,000,000, a 4.9% decrease as reported but a 1.2% increase on a constant basis, driven by improved product and channel mix [20]. - **Flooring North America**: Sales were $862,000,000, a decrease of 4.2% as reported or 1.1% on a constant basis, impacted by the order management system conversion [20]. - **Flooring Rest of the World**: Sales were $670,000,000, an 8.8% decrease as reported and 2.9% on an adjusted basis, driven by lower sales volume and unfavorable price mix [21]. Market Data and Key Metrics Changes - Conditions in the first quarter weakened sequentially, with residential remodeling remaining the lowest sector [12]. - Consumer confidence in the U.S. has been declining, affecting spending and housing activity [13]. - In Europe, consumer confidence has also declined due to economic uncertainty, leading to postponed home sales and remodeling activities [14]. Company Strategy and Development Direction - The company aims to grow market share in a challenging environment by optimizing product mix and reducing costs [24]. - Restructuring projects are on schedule, with expected savings of approximately $100,000,000 this year [18][34]. - The company is focusing on enhancing domestic manufacturing capabilities to mitigate tariff impacts and improve competitive positioning [9][24]. Management's Comments on Operating Environment and Future Outlook - Management anticipates that the impact of tariffs will influence consumer spending and new construction, though the extent is unpredictable [11]. - The company expects pricing pressure to continue across all regions due to low demand and competitive markets [35]. - The outlook for the second quarter adjusted EPS is projected to be between $2.52 and $2.62, excluding any restructuring or one-time charges [36]. Other Important Information - The company purchased 225,000 shares of its stock for approximately $26,000,000 during the quarter [8]. - Cash and cash equivalents were just over $700,000,000, with free cash flow expected to remain strong despite a use of approximately $85,000,000 in Q1 [22][23]. Q&A Session Summary Question: Timing of tariff impact and pricing actions - The CFO indicated that the $50,000,000 annualized cost impact from tariffs would be more evident in the late third to fourth quarter, as inventory turnover takes time [41]. Question: Domestic capacity and pricing strategy - Management emphasized the advantage of domestic production capacity in the U.S. market, which will be leveraged to optimize results amid tariff increases [43]. Question: Balancing pricing power and demand - Management acknowledged the challenge of balancing pricing power with slower demand, indicating that pricing actions are being assessed continuously [49][50]. Question: EPS growth outlook amid tariff impacts - Management expressed that EPS growth would depend on market conditions, with efforts to offset tariff impacts through pricing and cost-cutting measures [58][59]. Question: Inventory levels and market dynamics - The company noted an increase in inventory levels due to preemptive imports ahead of tariffs, with no significant changes in downstream volumes observed [105][106]. Question: Breakdown of imports and tariff exposure - The company clarified that a significant portion of imports comes from countries like Vietnam and India, with minimal exposure to China [111][112].

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]

Core Insights - Mohawk Industries reported revenue of $2.53 billion for the quarter ended March 2025, a decrease of 5.7% year-over-year, with EPS at $1.52 compared to $1.86 in the same quarter last year [1] - The revenue fell short of the Zacks Consensus Estimate of $2.57 billion, resulting in a surprise of -1.84%, while the EPS exceeded the consensus estimate of $1.41 by 7.80% [1] Financial Performance Metrics - Global Ceramic net sales were reported at $993.80 million, below the five-analyst average estimate of $1.02 billion, reflecting a year-over-year decline of 4.9% [4] - Flooring ROW net sales reached $669.60 million, compared to the estimated $705.06 million, marking an 8.8% decrease from the previous year [4] - Flooring NA net sales were $862.40 million, slightly above the estimated $856.50 million, but still down 4.2% year-over-year [4] - Adjusted Operating Income for Global Ceramic was $48.20 million, below the average estimate of $50.12 million [4] - Adjusted Operating Income for Flooring NA was $25.50 million, exceeding the average estimate of $20.44 million [4] - Adjusted Operating Income for Flooring ROW was $61 million, slightly below the average estimate of $62.52 million [4] - Corporate and intersegment eliminations reported an adjusted operating income of -$12.30 million, worse than the average estimate of -$10.65 million [4] Stock Performance - Shares of Mohawk Industries have returned -9.2% over the past month, compared to a -0.7% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

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]

Financial Performance - Mohawk Industries reported Q1 2025 net earnings of $73 million and adjusted net earnings of $96 million, with adjusted EPS of $1.52, down from $1.86 in Q1 2024[2]. - Net sales for Q1 2025 were $2.5 billion, a decrease of 5.7% compared to $2.7 billion in Q1 2024, with a 0.7% decrease when adjusted for constant days and exchange rates[2]. - Net earnings attributable to Mohawk Industries, Inc. for the three months ended March 29, 2025, were $72.6 million, down from $105.0 million in the same period last year, representing a decrease of 30.0%[20]. - Adjusted net earnings attributable to Mohawk Industries, Inc. for the same period were $95.6 million, compared to $118.8 million in the prior year, a decline of 19.5%[20]. - Adjusted diluted earnings per share decreased to $1.52 from $1.86, reflecting a drop of 18.3% year-over-year[20]. - Adjusted EBITDA for the three months ended March 29, 2025, was $267.9 million, down from $310.4 million in the previous year, a decrease of 13.6%[22]. - Gross profit for the three months ended March 29, 2025, was $583.3 million, down from $649.5 million, resulting in an adjusted gross profit of $608.5 million[25]. - Operating income for Mohawk Consolidated was $96.0 million, down from $146.6 million, with adjusted operating income at $122.4 million[27]. Segment Performance - The Global Ceramic Segment saw net sales decrease by 4.9% as reported, but increased by 1.2% when adjusted for constant days and exchange rates[5]. - The Flooring North America Segment experienced a 4.2% decrease in net sales, with an operating margin of 1.1% as reported, impacted by the new order system conversion and higher input costs[7]. - Net sales for Mohawk Consolidated were reported at $2,525.8 million, with adjusted net sales reaching $2,660.6 million after adjustments for shipping days and exchange rates[23]. Cash Flow and Debt - Free cash flow for Q1 2025 was negative at $(85.4) million, compared to $96.9 million in Q1 2024[16]. - Total debt as of March 29, 2025, was $2,386.1 million, with net debt standing at $1,683.6 million after accounting for cash and cash equivalents of $702.5 million[21]. Cost Management and Future Outlook - Mohawk anticipates second quarter adjusted EPS to be between $2.52 and $2.62, excluding any restructuring or one-time charges[8]. - The company expects to incur an annualized cost of approximately $50 million due to tariffs, which will be addressed through price increases and supply chain adjustments[4]. - Mohawk's restructuring initiatives are expected to yield a benefit of approximately $100 million this year[8]. - Selling, general and administrative expenses decreased to $487.3 million from $502.9 million, with adjusted expenses at $486.1 million[26]. - The adjusted income tax expense for the three months ended March 29, 2025, was $20.9 million, compared to $33.1 million in the prior year, reflecting a decrease of 36.5%[30]. Shareholder Actions - The company purchased 225,000 shares of stock for approximately $26 million during the quarter[3]. Asset Management - Total assets decreased to $13.4 billion as of March 29, 2025, from $13.5 billion a year earlier[18].

Core Insights - Mohawk Industries reported first quarter 2025 net earnings of $73 million, with an earnings per share (EPS) of $1.15, and adjusted net earnings of $96 million, with an adjusted EPS of $1.52, reflecting a decrease in net sales to $2.5 billion, down 5.7% year-over-year [1][2][3] Financial Performance - The company experienced a decrease in net sales across various segments, with Global Ceramic sales down 4.9% and Flooring Rest of the World (FROW) sales down 8.8% as reported [4][5] - Flooring North America (FNA) segment sales decreased by 4.2%, with an operating margin of 1.1% reported [6] - Adjusted net earnings attributable to Mohawk Industries were $95.6 million for the first quarter, down from $118.8 million in the prior year [22] Market Conditions - The residential remodeling sector remains the slowest, with consumer confidence declining due to economic uncertainties and tariffs impacting business and consumer spending [3][7] - The company anticipates an annualized cost of approximately $50 million due to tariffs, which it plans to address through price increases and supply chain adjustments [3] Strategic Actions - Mohawk Industries has implemented restructuring initiatives expected to yield approximately $100 million in benefits this year, focusing on optimizing sales and reducing operational costs [7][8] - The company purchased 225,000 shares of stock for approximately $26 million during the quarter [2] Future Outlook - The company remains optimistic about long-term prospects in the flooring category, expecting significant improvement when industry volumes return to historical levels [9][10] - For the second quarter, adjusted EPS is anticipated to be between $2.52 and $2.62, excluding any restructuring or one-time charges [7]

Core Viewpoint - Mohawk Industries is facing significant challenges in the upcoming first quarter of 2025, with expectations of declining earnings and sales due to macroeconomic pressures and operational issues. Financial Performance - The adjusted earnings for Mohawk in the last reported quarter exceeded the Zacks Consensus Estimate by 3.7% but saw a year-over-year decline of $0.01. Net sales also surpassed estimates by 2.8%, with a slight year-over-year increase of 1% [1] - The Zacks Consensus Estimate for Mohawk's EPS has decreased to $1.40, reflecting a 24.7% decline from the previous year. The consensus for net sales is projected at $2.57 billion, indicating a 4.1% decrease year-over-year [2] Influencing Factors - The first quarter results are likely to be impacted by ongoing macroeconomic challenges, including high interest rates, low housing turnover, and cautious consumer behavior, which are expected to affect both sales volumes and pricing power [3] - The Global Ceramic segment is anticipated to decline by 5.8% to $984.6 million, Flooring North America by 4% to $864.4 million, and Flooring Rest of World by 2.4% to $717.1 million year-over-year [4] Cost and Operational Challenges - Cost inflation in materials, labor, and energy remains a significant challenge. Although the company is pursuing pricing actions and cost reductions, management acknowledges that fully offsetting rising costs through pricing alone will be difficult. Additionally, currency headwinds from a stronger U.S. dollar are expected to impact international results by $7–$10 million in operating income [5] - The Flooring North America segment faced issues with a new order management system, leading to shipment and invoicing delays. This is expected to reduce first-quarter operating income by $25–$30 million, with potential lost sales up to $50 million [6] Strategic Initiatives - Despite near-term challenges, the company is implementing restructuring efforts expected to yield $100 million in incremental savings in 2025 and $285 million on a run-rate basis by 2026. New higher-margin products are being introduced to improve product mix and stimulate demand [7] Margin Expectations - The adjusted gross margin is expected to decline by 110 basis points year-over-year to 23.3%, while the adjusted operating margin is projected to decrease to 4.8% from 6.1% reported a year ago [8] Earnings Prediction - Current models do not predict an earnings beat for Mohawk, with an Earnings ESP of -0.28% and a Zacks Rank of 4 (Sell) [9][10]

Company Overview - Mohawk Industries (NYSE: MHK) has been experiencing poor performance recently [1] - The company specializes in flooring, carpets, rugs, ceramic tiles, and similar products for both commercial and residential markets [1] Industry Insights - Crude Value Insights focuses on the oil and natural gas sector, emphasizing cash flow and companies that generate it [1] - The service aims to identify value and growth prospects within the industry [1]

乔治亚州卡尔洪, April 06, 2025 (GLOBE NEWSWIRE) -- Mohawk Industries, Inc.（纽约证券交易所代码：MHK）将于 2025 年 5 月 1 日（星期四）发布 2025 年第一季度财报，并诚邀您收听公司于 2025 年 5 月 2 日（星期五）美国东部时间上午 11:00 实时直播的财报电话会议。 内容: Mohawk Industries 第一季度财报电话会议 时间: 2025 年 5 月 2 日 美国东部时间上午 11:00 网址: www.mohawkind.com 选择“投资者”标签 方式: 网上实况直播——只需通过上述网址登录，或 访问以下链接注册参加电话会议：https://dpregister.com/sreg/10198186/feca56553a 直播电话会议：拨打 1-833-630-1962（美国/加拿大） ...