Mohawk's Q4 Earnings & Sales Beat, Adjusted Gross Margin Down Y/Y

Core Insights - Mohawk Industries, Inc. (MHK) reported better-than-expected fourth-quarter results for 2024, with adjusted earnings and revenues exceeding the Zacks Consensus Estimate [1][4] - The company's top line increased year over year, while the bottom line saw a decline [1][4] Financial Performance - Adjusted earnings per share (EPS) for Q4 were $1.95, surpassing the Zacks Consensus Estimate of $1.88 by 3.7%, but down from $1.96 in the same quarter last year [4] - Net sales reached $2.64 billion, exceeding the consensus estimate of $2.57 billion by 2.8% and increasing 1% year over year from $2.61 billion [4] - Adjusted gross margin contracted by 30 basis points to 24.4%, while adjusted operating margin decreased by 60 basis points to 6.1% [5] Segment Performance - Global Ceramic segment sales totaled $1.008 billion, up 1.5% year over year, with adjusted operating income increasing to $53.5 million [6] - Flooring North America segment net sales were $937.2 million, up 2.8% year over year, but adjusted operating profit decreased to $53.7 million [7] - Flooring Rest of the World segment net sales decreased 2.1% year over year to $691.8 million, with adjusted operating income down to $68.9 million [8] Annual Highlights - For the full year 2024, Mohawk reported net sales of $10.84 billion, down from $11.14 billion in 2023, while adjusted EPS increased to $9.70 from $9.19 [9] Cash Flow and Debt - As of December 31, 2024, Mohawk had cash and cash equivalents of $666.6 million, up from $642.6 million at the end of 2023 [11] - The company repurchased 1.3 million shares for $161 million during 2024 and generated free cash flow of $680 million, down from $716.3 million a year ago [11]