Core Insights - Mohawk Industries reported fourth-quarter 2025 net sales of approximately $2.7 billion, reflecting a 2.4% increase as reported but a 3.3% decrease on a constant-currency basis, with stable commercial demand offset by weakness in U.S. housing turnover and sluggish new home construction [3][5][6] - The company generated about $620 million of free cash flow in 2025 and ended the year with $856 million in cash and $2.0 billion in gross debt, while repurchasing $149 million of stock [4][14][15] - Management expects improved sales and earnings in 2026, contingent on macroeconomic conditions and interest rate developments, with guidance for Q1 adjusted EPS of $1.75 to $1.85 [5][18] Financial Performance - Adjusted earnings per share for Q4 were $2.00, up about 3% year over year, supported by productivity and restructuring initiatives, product mix, and lower interest expenses [3][6] - Gross margin was reported at 23%, with adjusted operating income of $152 million after $84 million of non-recurring charges [8][9] - For the full year 2025, Mohawk reported sales of approximately $10.8 billion, flat year over year, and adjusted EPS of $8.96, down about 7.5% [14] Segment Performance - Global Ceramic segment showed the strongest year-over-year sales performance, with sales just under $1.1 billion, up 6.1% as reported [11] - Flooring North America sales were $893 million, down 4.8% as reported, primarily due to weakness in residential soft surfaces [12] - Flooring Rest of the World sales were $737 million, up 6.5% as reported, but down 3.5% on a constant-currency basis, with lower residential remodeling volumes impacting performance [13] Cash Flow and Capital Allocation - The company generated approximately $620 million of free cash flow for the year and reported fourth-quarter free cash flow of $270 million [14][15] - Capital spending in 2025 was $435 million, about 30% below depreciation, with plans to invest approximately $480 million in 2026 focused on product innovation and cost reduction [15] Tariffs and Restructuring - Management addressed the impact of U.S. tariffs, which range from 15% to 50%, and emphasized efforts to offset these costs through pricing actions and supply chain optimization [16][17] - Restructuring initiatives delivered about $115 million in savings for 2025, with additional savings expected from new restructuring actions announced in Q4 [17] Leadership Changes - CFO James Brunk will retire in April, with Nick Manthey set to assume the CFO role [19]

Financial Data and Key Metrics Changes - The company's fourth quarter net sales were approximately $2.7 billion, an increase of 2.4% as reported, but a decrease of approximately 3.3% on a constant basis compared to the prior year [5][11] - Adjusted EPS for the quarter was $2, up approximately 3% versus the prior year, while the full year adjusted EPS was $8.96, a decrease of approximately 7.5% [5][6] - Free cash flow for the year was approximately $620 million, with a stock repurchase of approximately 1.3 million shares for $149 million [6][18] Business Line Data and Key Metrics Changes - Global Ceramic segment had sales of just under $1.1 billion, a 6.1% increase as reported, while Flooring North America sales were $893 million, a 4.8% decrease as reported [14][15] - Flooring Rest of the World reported sales of $737 million, a 6.5% increase as reported, but a 3.5% decrease on a constant basis [17] - The operating income for Global Ceramic was $63 million, or 5.9%, while Flooring North America had an operating income of $39 million, or 4.4% [15][16] Market Data and Key Metrics Changes - Approximately 55% of sales were in the U.S., 30% in Europe, and 15% in other geographies [6] - Housing turnover in major regions remains at historical lows due to affordability challenges and economic uncertainty, impacting consumer confidence [6][7] - In Europe, high building costs and labor constraints continue to impede residential construction, although there are moderate recoveries in Southern and Eastern Europe [8] Company Strategy and Development Direction - The company is focusing on innovative product introductions and marketing actions to stimulate sales in soft markets [9] - Capital expenditures for 2026 are estimated at approximately $480 million, focusing on product innovation and cost reduction [19] - The company anticipates leveraging the housing recovery and improving its position through restructuring and operational improvements [10][31] Management's Comments on Operating Environment and Future Outlook - Management noted that while home renovation remains soft, there is optimism for improvement in existing home sales due to lower mortgage rates and increased housing supply [31] - The company expects competitive market conditions to persist, with pricing pressures likely to remain [30] - Management anticipates that 2026 will be a transitional year with some improvement in remodeling activity and overall sales and earnings expected to improve [31] Other Important Information - The company has initiated numerous restructuring actions and operational improvements that lowered its cost position [10] - The balance sheet remains strong, with gross debt of $2 billion and leverage of 0.9 times adjusted EBITDA [19] - The company plans to continue its stock buyback strategy as part of its financial management [88] Q&A Session Summary Question: Expectations for price and mix in 2026 - Management anticipates continued pressure in the market, with inflation levels similar to 2025, but expects pricing, improved mix, and productivity to help offset inflation [34][35] Question: Inventory management ahead of spring selling season - Inventories were taken down in the fourth quarter, and management believes they are close to where they need to be, with optimism from customers for the year [41][42] Question: Outlook for 2026 and pricing pressures - Management expects price, mix, and volume to improve, with pricing initiatives in place to recover inflation and enhance product mix [59][60] Question: Impact of tariffs and cost management - Tariffs range from 15%-50%, and management has taken actions to offset these costs through pricing and supply chain management [92][93] Question: Pricing stabilization in Flooring Rest of the World - Management noted that geopolitical events are impacting consumer confidence, but targeted price increases are expected to have a slightly positive effect as the year progresses [95]

Financial Data and Key Metrics Changes - The company's fourth quarter net sales were approximately $2.7 billion, an increase of 2.4% as reported, but a decrease of approximately 3.3% on a constant basis compared to the prior year [5][11] - Adjusted EPS for the quarter was $2, up approximately 3% versus the prior year, with full year adjusted EPS at $8.96, a decrease of approximately 7.5% [5][6] - Free cash flow for the year was approximately $620 million, with a stock repurchase of approximately 1.3 million shares for $149 million [6][19] Business Line Data and Key Metrics Changes - Global Ceramic segment had sales of just under $1.1 billion, a 6.1% increase as reported, with operating income on an adjusted basis of $63 million, or 5.9% [14][15] - Flooring North America sales were $893 million, a 4.8% decrease as reported, with operating income of $39 million, or 4.4% [15][16] - Flooring Rest of the World sales were $737 million, a 6.5% increase as reported, with operating income of $65 million, or 8.8% [17] Market Data and Key Metrics Changes - Approximately 55% of sales were in the U.S., 30% in Europe, and 15% in other geographies [6] - U.S. housing turnover remains at historical lows due to affordability challenges and economic uncertainty, while European markets face high building costs and labor constraints [6][8] - Commercial channel outperformed residential, with strength in healthcare, education, and hospitality [8][24] Company Strategy and Development Direction - The company is focusing on innovative product introductions, marketing actions, and promotional activities to stimulate sales in soft markets [9] - Restructuring actions and operational improvements were initiated to lower cost positions and benefit long-term performance [10] - The company plans to invest approximately $480 million in 2026, focusing on product innovation, cost reduction, and general maintenance [19] Management's Comments on Operating Environment and Future Outlook - Management noted that consumer confidence remains weak due to inflation, employment concerns, and geopolitical tensions, impacting discretionary investments [6][7] - Lower mortgage rates and potential government actions are expected to benefit housing turnover [7][31] - The company anticipates that 2026 will be a transitional year with some improvement in remodeling activity and existing home sales [31] Other Important Information - The company managed the impact of U.S. tariffs through pricing actions and supply chain optimization [9][30] - The balance sheet remains strong, with gross debt of $2 billion and leverage of 0.9x adjusted EBITDA [19] Q&A Session All Questions and Answers Question: Expectations for price and mix in 2026 - Management anticipates continued pressure in the market, with inflation levels similar to 2025, but expects pricing, improved mix, and productivity to help offset inflation [34][35] Question: Inventory management ahead of spring selling season - Inventories were taken down in the fourth quarter, and management believes they are close to where they need to be, with optimism from customers for the year [41][43] Question: Outlook for 2026 and consumer activity - Management reflects a transitional year with expectations for lower mortgage rates and increased housing supply to benefit existing home sales, anticipating some improvement in pricing mix and volume [46][47] Question: Pricing backdrop in the builder channel - The builder channel is weak, with pressure to maintain prices, and management is implementing targeted price increases to offset inflation [82] Question: Impact of tariffs and pricing strategies - Tariffs range from 15%-50%, and management is taking actions to offset them through pricing and supply chain management [92]

Core Insights - Mohawk Industries, Inc. (MHK) reported mixed fourth-quarter 2025 results, with earnings exceeding the Zacks Consensus Estimate while net sales slightly missed expectations, both metrics showing year-over-year growth [1][5] Financial Performance - Adjusted earnings per share (EPS) for Q4 2025 were $2.00, surpassing the Zacks Consensus Estimate of $1.98 by 1%, and up from $1.95 in the same quarter last year [5] - Net sales reached $2.7 billion, falling short of the consensus mark of $2.72 billion by 0.7%, but reflecting a 2.3% increase year-over-year; on an adjusted basis, net sales declined 3.3% year-over-year [5] - For the full year 2025, net sales totaled $10.79 billion, a decrease of 0.5% from $10.84 billion in 2024, with operating income dropping to $489.8 million from $693.5 million [11] Segment Performance - Global Ceramic segment reported net sales of $1.07 billion, a 6.1% increase year-over-year; adjusted operating income rose to $62.7 million, with an adjusted operating margin of 5.9% [7] - Flooring North America (NA) segment saw net sales of $892.5 million, down 4.8% year-over-year, with adjusted operating profit declining to $39.2 million and an adjusted operating margin of 4.4% [8] - Flooring Rest of the World (ROW) segment experienced a 6.5% increase in net sales to $737.1 million; adjusted operating income was $65.1 million, with an adjusted operating margin of 8.8% [9] Operational Insights - The company is focusing on restructuring actions and operational improvements that have reduced costs and are expected to enhance long-term performance, despite ongoing tariff uncertainties [3] - Mohawk anticipates improvements in sales and earnings for 2026, driven by a recovery in residential remodeling and stabilization of economic risks, alongside new product innovations and operational excellence [4][10] Financial Position - As of the end of 2025, Mohawk had cash and cash equivalents of $856.1 million, an increase from $666.6 million in 2024; long-term debt rose to $1.74 billion from $1.68 billion [12] - The company generated free cash flow of $621.2 million in 2025, compared to $679.5 million the previous year, and repurchased approximately 1.3 million shares for about $150 million [12]

Financial Data and Key Metrics Changes - The fourth quarter net sales were approximately $2.7 billion, an increase of 2.4% as reported, but a decrease of approximately 3.3% on a constant basis compared to the prior year [4] - Adjusted EPS for the quarter was $2, up approximately 3% versus the prior year, while the full year adjusted EPS was $8.96, a decrease of approximately 7.5% [5][13] - Free cash flow for the year was approximately $620 million, with stock repurchases of approximately 1.3 million shares for $149 million [5] Business Line Data and Key Metrics Changes - Global Ceramic segment had sales of just under $1.1 billion, a 6.1% increase as reported, and flat on a constant basis [13] - Flooring North America sales were $893 million, a 4.8% decrease as reported, or 6.2% on a constant basis, primarily due to a decline in the residential soft surface business [14] - Flooring Rest of the World sales were $737 million, a 6.5% increase as reported, but a 3.5% decrease on a constant basis [16] Market Data and Key Metrics Changes - Approximately 55% of sales were in the U.S., 30% in Europe, and 15% in other geographies [5] - Housing turnover in major regions remains at historical lows due to affordability challenges and economic uncertainty [5] - In Europe, high building costs and labor constraints continue to impede residential construction, although moderate recoveries have emerged in Southern and Eastern Europe [8] Company Strategy and Development Direction - The company is focusing on innovative product introductions and marketing actions to stimulate sales in soft markets [9] - Capital expenditures for 2026 are planned at approximately $480 million, focusing on product innovation and cost reduction [18] - The company anticipates benefits from product mix, productivity, and cost reductions to offset headwinds from higher energy and labor costs [28] Management's Comments on Operating Environment and Future Outlook - Management noted that while home renovation remains soft, there is optimism for improvement in existing home sales due to lower mortgage rates and increased housing supply [44] - The company expects 2026 to be a transitional year with some improvement in remodeling activity and anticipates exceeding last year's earnings [44][46] - Management highlighted that pricing pressures are likely to remain due to competitive market conditions [32] Other Important Information - The company initiated numerous restructuring actions and operational improvements that lowered its cost position [10] - The balance sheet remains strong, with gross debt of $2 billion and leverage of 0.9 times adjusted EBITDA [18] Q&A Session Summary Question: Expectations for price and mix in 2026 - Management anticipates continued pressure in the market, with inflation levels similar to 2025, but expects pricing, improved mix, and productivity to help offset inflation [32][33] Question: Inventory management ahead of spring selling season - Inventories were reduced in the fourth quarter, and management believes they are close to where they need to be, with optimism from customers for the upcoming year [39][41] Question: Outlook for 2026 and pricing dynamics - Management expects price, mix, and volume to improve, driven by pricing initiatives and a stable commercial business [57][58] Question: Impact of tariffs and pricing strategies - Tariffs range from 15%-50%, and management has taken actions to offset these costs through pricing and supply chain management [93] Question: Pricing pressure in Flooring Rest of the World - Management noted strong price competition but anticipates a slightly positive price effect as they move through the year [97]

Core Viewpoint - Mohawk Industries reported mixed financial results for Q4 2025, with net earnings of $42 million and adjusted net earnings of $124 million, reflecting ongoing challenges in the housing market and increased input costs [1][2][3]. Financial Performance - Q4 2025 net sales were $2.7 billion, a 2.4% increase year-over-year, but a 3.3% decrease on an adjusted basis [1][2]. - For the full year 2025, net earnings were $370 million, with an EPS of $5.93, while adjusted net earnings were $559 million, with an adjusted EPS of $8.96 [2]. - The company generated free cash flow of approximately $621 million in 2025 and repurchased about 1.3 million shares for approximately $150 million [3]. Market Conditions - The company faced macroeconomic challenges, including weak consumer confidence and low housing turnover, which affected sales volume [4][5]. - U.S. existing home sales remained stagnant, although December saw a slight increase compared to the previous year [4]. - In Europe, interest rates and inflation have eased, contributing to stable consumer savings and steady employment [4]. Segment Performance - The Global Ceramic Segment saw a 6.1% increase in net sales, while the Flooring North America Segment experienced a 4.8% decrease [6][8][20]. - The Flooring Rest of the World Segment reported a 6.5% increase in net sales, but a 3.5% decrease when adjusted for constant days and exchange rates [7][20]. Strategic Actions - The company implemented various strategies to stimulate sales, including innovative product launches and marketing initiatives [5]. - Capital expenditures were reduced to $435 million, approximately 30% below depreciation levels, in response to market conditions [5]. - Mohawk anticipates that lower interest rates will encourage investments in commercial construction and renovation [4][10]. Future Outlook - The company expects continued competitive market conditions in Q1 2026, with adjusted EPS projected between $1.75 and $1.85 [9]. - Mohawk anticipates improvements in sales and earnings for 2026, contingent on economic conditions and the recovery of residential remodeling [10].

Core Insights - Live Ventures Incorporated reported a significant operational improvement in its fiscal first quarter of 2026, with a 352.9% increase in operating income despite challenges in the housing market [3][4]. Financial Performance - Revenue for the quarter ended December 31, 2025, was approximately $108.5 million, a decrease of 2.7% from $111.5 million in the prior-year period [5][6]. - Gross profit remained stable at approximately $35.4 million, with a gross margin increase to 32.6% from 31.7% in the prior-year period [6]. - Operating income rose to $3.5 million, up from $0.8 million in the prior-year period, marking a 352.9% increase [5][8]. - The net loss for the quarter was approximately $0.1 million, with diluted loss per share at $0.02, compared to net income of $0.5 million and diluted EPS of $0.16 in the prior-year period [9][26]. - Adjusted EBITDA increased by 35.7% to approximately $7.8 million from $5.7 million in the prior-year period [10][14]. Segment Performance - Retail-Entertainment segment revenue increased by 11.0% to approximately $23.6 million, driven by strong consumer demand [15]. - Retail-Flooring segment revenue decreased by 20.2% to approximately $25.3 million, attributed to store location changes and a soft housing market [16]. - Flooring Manufacturing segment revenue slightly decreased by 1.1% to approximately $28.9 million, but operating income improved significantly due to better gross margins [17]. - Steel Manufacturing segment revenue fell by 4.3% to approximately $31.9 million, with operating income increasing due to improved gross margins [18]. - Corporate and Other segment operating loss decreased to approximately $1.2 million from $1.6 million, reflecting reduced corporate expenses [19]. Strategic Initiatives - The company is implementing a comprehensive strategy to integrate AI across its business units to enhance operational efficiency and support long-term growth [4]. - Successful refinancing of a $47.0 million credit facility in the Steel Manufacturing segment has strengthened the balance sheet and increased lending capacity [6][10]. Balance Sheet Highlights - As of December 31, 2025, total assets were approximately $389.2 million, with stockholders' equity at $95.3 million [6][23]. - The company had approximately $38.7 million in cash and availability under credit facilities [10].

Core Insights - Mohawk Industries, Inc. (MHK) is set to report its fourth-quarter results for 2025 on February 12, after market close [1] - In the last reported quarter, adjusted earnings per share (EPS) missed the Zacks Consensus Estimate by 0.4%, while net sales exceeded expectations by 1.1% [1] - Year-over-year, net sales grew by 1.4%, but adjusted EPS declined by 7.9% [1] Earnings Performance - MHK's earnings surpassed expectations in three of the last four quarters, with an average surprise of 4.2% [2] - The Zacks Consensus Estimate for fourth-quarter EPS remains unchanged at $1.98, reflecting a 1.5% increase from the previous year's EPS of $1.95 [3] Sales Trends - The fourth-quarter top-line performance is expected to improve year-over-year, driven by contributions from the Global Ceramic (40.1% of Q3 2025 net sales) and Flooring Rest of the World (26% of Q3 2025 net sales) segments [4] - The Global Ceramic segment is anticipated to benefit from premium collections, commercial sales, and expanded distribution [4] - The Flooring Rest of the World segment is expected to see growth due to strong performance in panels and insulation, with increased plant utilization [4] Segment Performance - The model predicts fourth-quarter net sales for Global Ceramic to rise by 6.4% to $1.07 billion, while Flooring North America is expected to decline by 1.2% to $926.4 million, and Flooring Rest of World is projected to increase by 1.1% to $699.7 million [7] Margin Expectations - The bottom line is expected to improve compared to the previous year due to favorable pricing strategies aimed at offsetting cost pressures from tariffs and macroeconomic challenges [8] - Productivity gains and improved profitability from strategic efforts, such as closing high-cost facilities and streamlining distribution, are also expected to enhance margins [8] - Adjusted EPS is projected to be in the range of $1.90-$2.00, compared to $1.95 reported a year ago [9] - The adjusted gross margin is expected to expand by 40 basis points to 24.8%, while the adjusted EBITDA margin is projected to increase by 500 basis points to 13.8% [10] Earnings Prediction - The model does not predict an earnings beat for Mohawk this time, as the company has an Earnings ESP of 0.00% and a Zacks Rank of 4 (Sell) [11]

Core Viewpoint - Live Ventures Incorporated will release its financial results for the fiscal first quarter ended December 31, 2025, on February 12, 2026, before market opening [1]. Group 1: Financial Results Announcement - The financial results will be discussed in a conference call scheduled for February 12, 2026, at 2:00 p.m. Pacific Standard Time [1]. - Dial-in numbers for the conference call are provided, and participants are advised to connect at least 15 minutes in advance [2]. Group 2: Company Overview - Live Ventures is a diversified holding company focused on value-oriented acquisitions of domestic middle-market companies [3]. - The acquisition strategy is sector agnostic, targeting well-run, closely held businesses with a proven track record of earnings growth and cash flow generation [3]. - The company aims to partner with management teams of acquired businesses to enhance stockholder value through a disciplined buy-build-hold strategy [3]. - Founded in 1968, the company was refocused into a diversified holding company in 2011 under the leadership of CEO Jon Isaac [3]. - The current portfolio includes subsidiaries in various industries such as textile, flooring, tools, steel, and entertainment [3].

Core Insights - The International Surface Event (tise) 2026 concluded successfully, showcasing the latest trends and products in the flooring, stone, and tile industries, while fostering collaboration among leading brands and professionals [1][16] Industry Highlights - The event featured prominent brands such as Mohawk, Shaw, Mannington, and Engineered Floors, unveiling innovative products and providing insights into future market trends [3] - Dedicated pavilions and immersive show floor experiences were designed to cater to various business types, focusing on technology, materials, and market opportunities [4][6] Networking and Educational Opportunities - tise 2026 introduced new networking programs, including Retail Roundtables for discussing business strategies and a dedicated tise LIVE Theatre for trend presentations and educational sessions [7][8] - The event also included specialized areas like the Natural Stone Theatre and The Learning Lab, which focused on sustainability, design trends, and legal updates in the industry [8] Recognition and Awards - The National Installer of the Year Competition highlighted the skills of flooring installers, with winners recognized for their craftsmanship in various installation categories [10][15] Future Outlook - tise is set to return to the Mandalay Bay Convention Center from February 1-4, 2027, continuing its role as a key platform for industry professionals [13]