Mohawk(MHK)2025-05-01 20:22Financial 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].