Mohawk Industries, Inc. (NYSE:MHK) Q3 2023 Earnings Conference Call October 27, 2023 11:00 AM ET Company Participants James Brunk - Chief Financial Officer Jeff Lorberbaum - Chairman and CEO Chris Wellborn - President and COO Conference Call Participants Matthew Bouley - Barclays John Lovallo - UBS Joe Ahlersmeyer - Deutsche Bank Susan Maklari - Goldman Sachs Stephen Kim - Evercore Keith Hughes - Truist Phil Ng - Jefferies Andrew Harvey - JPMorgan Adam Baumgarten - Zelman Kathryn Thompson - Thompson Researc ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q [Mark One] ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 01-13697 __________________________________________ MOHAWK INDUSTRIES, INC. (Exact name of registrant as speci ...

The Long View mohawkind.com NYSE: MHK July 2023 Q2 2023 Investor Presentation Forward-looking | --- | --- | --- | |------------------------------------------|-------|-------| | Statements | | | | This presentation may include | | | | forward-looking statements as | | | | defined in the Private Securities | | | | Litigation Reform Act of 1995, which | | | | are subject to various risks and | | | | uncertainties including, but not limited | | | | to, those set forth in our press | | | | releases and our perio ...

Financial Data and Key Metrics - Q2 sales were $2.95 billion, down 6.4% as reported or 9.6% on a constant and legacy basis, primarily due to pressure on residential remodeling across all regions [95] - Gross margin for Q2 was 24.8% as reported and 25.9% excluding one-time items, down from 27.7% in the prior year due to softening volume, temporary plant shutdowns, unfavorable price mix, higher inflation, and FX impact [64] - Operating income as reported was 5.2%, with restructuring, integration, and other items totaling $91 million for the quarter [66] - Q2 adjusted EPS was $2.76, with free cash flow of over $145 million during the quarter [83] - Inventory decreased by $110 million sequentially from Q1 to Q2, with 60% due to volume and 40% due to lower costs [61] Business Line Data and Key Metrics - Global Ceramics segment sales were flat at $1.2 billion, with operating margin excluding charges at 8.6% [69][70] - Flooring North America sales decreased 8.9% to $1 billion, with operating margin excluding charges at 6% [71][72] - Flooring Rest of the World sales decreased 11.4% to $790 million, with operating margin excluding charges at 12.1% [73][74] Market Data and Key Metrics - In the U.S., new home starts increased to 1.45 million in Q2, showing the first quarterly increase since the beginning of last year [85] - The U.S. commercial sector has proven more resilient, with businesses continuing to invest in new construction and remodeling projects [52] - In Europe, residential remodeling remains slow, with competition intensifying due to low industry volume and declining energy costs [38] - Latin America is performing better in Mexico due to the economy and lower interest rates, while Brazil is more impacted by economic conditions [40][42] Company Strategy and Industry Competition - The company is focusing on managing short-term challenges while preparing for long-term growth, with investments in capacity expansions and recent acquisitions expected to enhance results [25] - Restructuring initiatives are expected to save $35 million annually, with half of the savings realized in the current year [96] - The company is introducing higher style products to improve mix and focusing on stronger sales channels to offset weakness in residential remodeling [36] - Competitive pressures are increasing globally, with declining industry volumes and input costs driving price competition [97] Management Commentary on Operating Environment and Future Outlook - Management anticipates commercial sector performance to weaken later in the year, with signs of weakening orders already emerging [3][13] - The company expects Q3 adjusted EPS to be between $2.62 and $2.72, with seasonal weakness due to summer holidays, lower consumer spending, and lower production in Europe [24] - Long-term prospects remain strong, with pent-up demand expected to drive growth as the economy recovers [30][32] - The company is optimistic about the long-term, with new investments and expansions expected to drive growth in high-demand categories [32] Other Important Information - The company has made progress in integrating acquisitions in Brazil and Mexico, with synergies partially offsetting weakening market conditions [35][40] - The U.S. Forced Labor Protection Act is impacting some shipments, particularly in the LVT segment [56] - The company has reduced inventory and working capital, with inventory days decreasing from 128 days in Q1 to 120 days in Q2 [75] Q&A Session Summary Question: How is the commercial sector performing, and what are the expectations for the rest of the year? - The commercial sector has been outperforming but is expected to weaken later in the year, with signs of weakening orders already emerging [3][13] Question: What is the impact of lower input costs on pricing and volumes? - Lower input costs are expected to align the company with competition, with pricing pressure likely to continue as costs decline [5][17] Question: How is the company managing inventory levels? - Inventory decreased by $110 million sequentially from Q1 to Q2, with further decreases expected this year depending on demand and inflation [61] Question: What are the expectations for Q3 and Q4 in terms of pricing and cost dynamics? - Sequentially, lower input costs are expected to offset price mix pressure in Q3 and Q4, with the gap between inflation and price mix closing significantly by Q4 [7][138] Question: How is the company addressing competitive pressures in the market? - The company is focusing on cost containment, productivity projects, and alternative formulations to manage competitive pressures [39][97] Question: What are the long-term growth prospects for the company? - The company is optimistic about long-term growth, with pent-up demand expected to drive growth as the economy recovers and new investments in capacity expansions and acquisitions expected to enhance results [25][32]

Company Participants Conference Call Participants Operator I would now like to turn the conference over to James Brunk. Please go ahead. Thank you, Dave. Good morning, everyone. Welcome to Mohawk Industries' quarterly investor call. Joining me on today's call are Jeff Lorberbaum, Chairman, Chief Executive Officer; and Chris Wellborn, President and Chief Operating Officer. Today, we'll update you on the company's first quarter performance and provide guidance for the second quarter of 2023. This call may inc ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K [Mark One] ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to MOHAWK INDUSTRIES, INC. (Exact name of registrant as specified in its charter) | Delaware | 01-13697 | 52-1604305 | | --- | --- | --- | | (State or other jurisd ...

Mohawk Industries, Inc. (NYSE:MHK) Q4 2022 Earnings Conference Call February 10, 2023 4:00 AM ET Company Participants James Brunk - Chief Financial Officer Jeff Lorberbaum - Chairman & Chief Executive Officer Christopher Wellborn - President & Chief Operating Officer. Conference Call Participants Phil Ng - Jefferies Susan Maklari - Goldman Sachs Eric Bosshard - Cleveland Research Company Truman Patterson - Wolfe Research Mike Dahl - RBC Capital Markets Stephen Kim - Evercore ISI Keith Hughes - Truist Securi ...

Mohawk Industries, Inc. (NYSE:MHK) Q3 2022 Earnings Conference Call October 28, 2022 11:00 AM ET Company Participants James Brunk - Chief Financial Officer Jeff Lorberbaum - Chairman & Chief Executive Officer Chris Wellborn - President & Chief Operating Officer. Conference Call Participants Susan Maklari - Goldman Sachs John Lovallo - UBS Michael Rehaut - JPMorgan Keith Hughes - Truist Phil Ng - Jefferies Adam Baumgarten - Zelman & Associates Mike Dahl - RBC Capital Markets Laura Champine - Loop Capital Ste ...

Mohawk Industries, Inc. (NYSE:MHK) Q2 2022 Earnings Conference Call July 29, 2022 11:00 AM ET Company Participants James Brunk - Chief Financial Officer Jeff Lorberbaum - Chairman & Chief Executive Officer Chris Wellborn - President & Chief Operating Officer. Conference Call Participants Stephen Kim - Evercore ISI Susan Maklari - Goldman Sachs David MacGregor - Longbow Research Phil Ng - Jefferies Eric Bosshard - Cleveland Research Kathryn Thompson - Thompson Research Group Michael Rehaut - JPMorgan Keith H ...

Mohawk Industries, Inc. (NYSE:MHK) Q1 2022 Earnings Conference Call April 29, 2022 11:00 AM ET Company Participants James Brunk - CFO Jeffrey Lorberbaum - Chairman & CEO William Wellborn - President, COO & Director Conference Call Participants Timothy Wojs - Robert W. Baird & Co. Matthew Bouley - Barclays Bank Susan Maklari - Goldman Sachs Group Keith Hughes - Truist Securities Michael Rehaut - JPMorgan Chase & Co. Stephen Kim - Evercore ISI Michael Dahl - RBC Capital Markets Philip Ng - Jefferies Truman Pa ...