Core Viewpoint - Mohawk Industries, Inc. is expected to report a decline in both earnings and net sales for the second quarter of 2025 due to ongoing macroeconomic challenges and industry headwinds, particularly in the residential remodeling market [2][4][10]. Financial Performance - The adjusted earnings for the last reported quarter beat the Zacks Consensus Estimate by 3.7% but declined 18.3% year over year [2]. - The consensus estimate for Mohawk's earnings per share (EPS) for the upcoming quarter is $2.63, reflecting a decrease of 12.3% from the previous year [3]. - Net sales are projected at $2.79 billion, indicating a 0.3% decrease from the year-earlier level [3][10]. Segment Performance - The Global Ceramic segment, which accounted for 39.3% of first-quarter 2025 net sales, is expected to decline by 0.5% to $1.1 billion year over year [5]. - The Flooring Rest of World segment, contributing 26.6% to net sales, is anticipated to decrease by 1.2% to $718.5 million [5]. - Conversely, the Flooring North America segment, which represents 34.1% of net sales, is expected to see a slight increase of 0.1% year over year to $959.1 million [5]. Cost and Margin Outlook - Cost inflation remains a significant challenge, particularly in raw materials, labor, and energy, making it difficult for the company to fully offset rising costs through pricing actions alone [6]. - The company expects adjusted EPS in the range of $2.52-$2.62, down from $3 in the previous year, with an adjusted gross margin decline of 170 basis points year over year to 25.4% [7][10]. Strategic Initiatives - Mohawk is implementing restructuring efforts expected to yield $100 million in incremental savings in 2025 and $285 million on a run-rate basis by 2026 [8]. - Strategic investments in new products, particularly in premium laminate and LVT, are anticipated to provide long-term pricing and margin benefits [8].