Mohawk(US:MHK) Globenewswire·2025-10-23 20:15Core Insights - Mohawk Industries reported third quarter 2025 net earnings of $109 million and earnings per share (EPS) of $1.75, with adjusted net earnings of $167 million and adjusted EPS of $2.67, reflecting a slight increase in net sales to $2.8 billion, up 1.4% year-over-year [1][2][3] Financial Performance - For the nine months ended September 27, 2025, net earnings were $328 million with an EPS of $5.24, while adjusted net earnings were $435 million and adjusted EPS was $6.96. Net sales for this period totaled $8.1 billion, a decrease of 1.4% compared to the previous year [2][3] - The company generated approximately $310 million in free cash flow during the quarter and repurchased 315,000 shares for about $40 million [5][17] Market Conditions and Strategy - The company faced weakened economic conditions but believes it outperformed its markets, benefiting from a successful product mix and ongoing productivity initiatives [3][10] - Mohawk is executing targeted actions to enhance performance, including operational improvements and cost structure reductions, aiming for annualized savings of approximately $32 million [4][10] Segment Performance - Net sales in the Global Ceramic Segment increased by 4.4% as reported, with an operating margin of 6.5% [7] - The Flooring Rest of the World Segment saw a 4.3% increase in net sales, while the Flooring North America Segment experienced a 3.8% decrease [8][9] Industry Outlook - The flooring industry is currently challenged by low home sales and postponed consumer purchases, but declining interest rates and increased disposable income are expected to support future home sales and remodeling [11][10] - The company anticipates that market volume will remain soft through the end of the year, projecting fourth quarter adjusted EPS between $1.90 and $2.00 [10][11]