Mohawk Industries Reports Q2 2025 Results
Mohawk Industries (NYSE:MHK) reported Q2 2025 financial results with net earnings of $147 million and EPS of $2.34. Net sales remained flat at $2.8 billion, with adjusted EPS of $2.77. The company's performance reflects operational improvements and cost containment initiatives amid challenging market conditions.
Key segment performance: Global Ceramic sales increased 0.5%, Flooring Rest of World sales grew 1.0%, while Flooring North America sales declined 1.2%. The company generated $125 million in free cash flow and repurchased 393,000 shares for $42 million. The Board approved a new $500 million stock buyback authorization.
Looking ahead, Mohawk expects Q3 2025 adjusted EPS of $2.56-$2.66. The company is positioned to benefit from U.S. trade policies, with 85% of U.S. sales coming from North American production. Restructuring actions are expected to deliver $100 million in benefits this year.
Mohawk Industries (NYSE:MHK) ha riportato i risultati finanziari del secondo trimestre 2025 con utile netto di 147 milioni di dollari e EPS di 2,34 dollari. Le vendite nette sono rimaste stabili a 2,8 miliardi di dollari, con un EPS rettificato di 2,77 dollari. Le performance dell'azienda riflettono miglioramenti operativi e iniziative di contenimento dei costi in un contesto di mercato difficile.
Performance chiave per segmento: le vendite di Global Ceramic sono aumentate dello 0,5%, quelle di Flooring Rest of World sono cresciute dell'1,0%, mentre le vendite di Flooring North America sono diminuite dell'1,2%. L'azienda ha generato 125 milioni di dollari di free cash flow e ha riacquistato 393.000 azioni per 42 milioni di dollari. Il Consiglio di Amministrazione ha approvato una nuova autorizzazione al riacquisto di azioni per 500 milioni di dollari.
Guardando al futuro, Mohawk prevede un EPS rettificato per il terzo trimestre 2025 tra 2,56 e 2,66 dollari. L'azienda è ben posizionata per beneficiare delle politiche commerciali statunitensi, con l'85% delle vendite negli USA provenienti dalla produzione nordamericana. Le azioni di ristrutturazione dovrebbero generare benefici per 100 milioni di dollari entro quest'anno.
Mohawk Industries (NYSE:MHK) reportó los resultados financieros del segundo trimestre de 2025 con ganancias netas de 147 millones de dólares y EPS de 2,34 dólares. Las ventas netas se mantuvieron estables en 2,8 mil millones de dólares, con un EPS ajustado de 2,77 dólares. El desempeño de la compañía refleja mejoras operativas e iniciativas de control de costos en un entorno de mercado desafiante.
Desempeño clave por segmento: las ventas de Global Ceramic aumentaron un 0,5%, las de Flooring Rest of World crecieron un 1,0%, mientras que las ventas de Flooring North America disminuyeron un 1,2%. La empresa generó 125 millones de dólares en flujo de caja libre y recompró 393,000 acciones por 42 millones de dólares. La Junta aprobó una nueva autorización para recompra de acciones por 500 millones de dólares.
De cara al futuro, Mohawk espera un EPS ajustado para el tercer trimestre de 2025 entre 2,56 y 2,66 dólares. La compañía está posicionada para beneficiarse de las políticas comerciales de EE.UU., con el 85% de las ventas en EE.UU. provenientes de la producción norteamericana. Se espera que las acciones de reestructuración generen beneficios por 100 millones de dólares este año.
Mohawk Industries (NYSE:MHK)는 2025년 2분기 실적을 발표하며 순이익 1억 4700만 달러와 주당순이익(EPS) 2.34달러를 기록했습니다. 순매출은 28억 달러로 전년과 동일했으며, 조정 EPS는 2.77달러였습니다. 회사의 성과는 어려운 시장 상황 속에서 운영 개선과 비용 절감 노력을 반영합니다.
주요 부문 실적: Global Ceramic 매출은 0.5% 증가했고, Flooring Rest of World 매출은 1.0% 성장했으며, Flooring North America 매출은 1.2% 감소했습니다. 회사는 1억 2500만 달러의 잉여현금흐름을 창출하고, 393,000주를 4200만 달러에 재매입했습니다. 이사회는 새로운 5억 달러 규모의 자사주 매입 승인을 승인했습니다.
앞으로 Mohawk은 2025년 3분기 조정 EPS를 2.56~2.66달러로 예상합니다. 회사는 미국 무역 정책의 혜택을 받을 위치에 있으며, 미국 매출의 85%가 북미 생산에서 나옵니다. 구조조정 조치는 올해 1억 달러의 이익을 창출할 것으로 기대됩니다.
Mohawk Industries (NYSE:MHK) a annoncé ses résultats financiers du deuxième trimestre 2025 avec un bénéfice net de 147 millions de dollars et un BPA de 2,34 dollars. Le chiffre d'affaires net est resté stable à 2,8 milliards de dollars, avec un BPA ajusté de 2,77 dollars. La performance de l'entreprise reflète des améliorations opérationnelles et des initiatives de maîtrise des coûts dans un contexte de marché difficile.
Performance clé par segment : les ventes de Global Ceramic ont augmenté de 0,5 %, celles de Flooring Rest of World ont progressé de 1,0 %, tandis que les ventes de Flooring North America ont diminué de 1,2 %. L'entreprise a généré un flux de trésorerie disponible de 125 millions de dollars et a racheté 393 000 actions pour 42 millions de dollars. Le conseil d'administration a approuvé une nouvelle autorisation de rachat d'actions de 500 millions de dollars.
Pour l'avenir, Mohawk prévoit un BPA ajusté pour le troisième trimestre 2025 compris entre 2,56 et 2,66 dollars. L'entreprise est bien positionnée pour bénéficier des politiques commerciales américaines, avec 85 % des ventes aux États-Unis provenant de la production nord-américaine. Les actions de restructuration devraient générer 100 millions de dollars d'avantages cette année.
Mohawk Industries (NYSE:MHK) meldete die Finanzergebnisse für das zweite Quartal 2025 mit Nettoeinnahmen von 147 Millionen US-Dollar und einem Gewinn je Aktie (EPS) von 2,34 US-Dollar. Der Nettoumsatz blieb mit 2,8 Milliarden US-Dollar stabil, das bereinigte EPS lag bei 2,77 US-Dollar. Die Unternehmensleistung spiegelt operative Verbesserungen und Kostensenkungsmaßnahmen in einem herausfordernden Marktumfeld wider.
Wesentliche Segmentergebnisse: Die Umsätze im Segment Global Ceramic stiegen um 0,5 %, die Umsätze im Segment Flooring Rest of World wuchsen um 1,0 %, während die Umsätze im Segment Flooring North America um 1,2 % zurückgingen. Das Unternehmen generierte 125 Millionen US-Dollar freien Cashflow und kaufte 393.000 Aktien für 42 Millionen US-Dollar zurück. Der Vorstand genehmigte eine neue Aktienrückkaufgenehmigung in Höhe von 500 Millionen US-Dollar.
Für die Zukunft erwartet Mohawk ein bereinigtes EPS für das dritte Quartal 2025 von 2,56 bis 2,66 US-Dollar. Das Unternehmen ist gut positioniert, um von den US-Handelspolitiken zu profitieren, da 85 % der US-Verkäufe aus nordamerikanischer Produktion stammen. Umstrukturierungsmaßnahmen sollen in diesem Jahr Vorteile in Höhe von 100 Millionen US-Dollar bringen.
- None.
- Net earnings declined to $147 million from $157 million year-over-year
- Adjusted EPS decreased to $2.77 from $3.00 in Q2 2024
- Flooring North America segment sales decreased by 1.2%
- Facing continued pricing pressure from lower market volumes
- Higher input costs expected to peak in Q3 2025
Insights
Mohawk reports slight revenue decline with lower margins due to pricing pressure and higher costs despite productivity initiatives.
Mohawk's Q2 results reveal a company navigating difficult market conditions across its segments. With
The company's profitability metrics have deteriorated, with net earnings declining to
Despite challenging conditions, management has implemented several strategic initiatives. Their restructuring program is on track to deliver approximately
Looking at segment performance, Global Ceramic showed modest growth of
Management expects continued input cost pressures to peak in Q3 as higher costs flow through inventory. Their Q3 guidance projects adjusted EPS between
A significant external factor to monitor is the evolving U.S. tariff situation. With approximately
CALHOUN, Ga., July 24, 2025 (GLOBE NEWSWIRE) -- Mohawk Industries, Inc. (NYSE: MHK) today announced second quarter 2025 net earnings of
For the six months ended June 28, 2025, net earnings and EPS were
Commenting on the Company’s second quarter, Chairman and CEO Jeff Lorberbaum stated, “In challenging conditions across our regions, our results reflect the impact of our ongoing operational improvements, cost containment actions and market development initiatives. Our premium residential and commercial products and new collections introduced during the past 24 months benefited our performance. Our restructuring actions are on schedule and delivering the expected savings as we have closed high-cost operations, eliminated inefficient assets, streamlined distribution and leveraged technology to improve our administrative and operational costs. Our global operations teams continue to identify productivity initiatives to lower our costs through enhancements to equipment, conserving energy, optimizing our supply chain and re-engineering products. Our industry faced continued pricing pressure from lower market volumes, which we are mitigating through strengthening product and channel mix.
During the second quarter, we generated approximately
Given the increasing tariffs, we are emphasizing the benefits of our locally produced collections and leading position as a North American manufacturer. We have begun to address the implemented tariffs through price adjustments and supply chain optimization. Earlier this month, the U.S. government set a new deadline of August 1 for countries to complete tariff negotiations while also announcing specific tariffs on key trading partners. We are continuing to monitor the changing tariff levels and will adjust our strategies as they evolve.
Net sales in the Global Ceramic Segment increased by
Net sales in the Flooring Rest of the World Segment increased by
Net sales in the Flooring North America Segment decreased by
As we focus on market development, operational improvements and cost containment, we are continuing to take actions that will optimize our performance in the current market. Ongoing inflation and low consumer confidence are constraining industry sales, and the timing of the inflection point remains unpredictable. To improve sales, we are leveraging the strength of our portfolio, superior service and brand value to expand our business with current and new customers. Though pricing pressure in our markets remains elevated, we are improving our mix through our premium collections, commercial sales and recent product introductions. Input cost pressures will continue, with the impact peaking in the third quarter as higher costs flow through our inventory. To mitigate these higher costs, our teams continue to execute productivity initiatives in all aspects of our operations. Our restructuring actions should deliver approximately
Historically, down cycles in our industry are followed by several years of sales growth from pent up demand. During the past three years, we have made targeted investments to improve our operational performance, cost position and product features. Through these actions, we are strategically positioned to respond to today’s challenges and capitalize on opportunities as the industry recovers.”
ABOUT MOHAWK INDUSTRIES
Mohawk Industries is a leading global flooring manufacturer, providing products that enhance residential and commercial spaces in approximately 180 countries. During the past two decades, we have expanded the Company’s operational footprint with manufacturing facilities in North America, Europe, South America, Oceania and Asia. Our vertically integrated manufacturing and distribution processes provide competitive advantages in the production of ceramic tile, carpet, laminate, wood, stone, and vinyl flooring. Our industry-leading innovation has yielded products and technologies that differentiate our brands in the marketplace and satisfy all remodeling and new construction requirements. Our brands are among the most recognized in the industry and include American Olean, Daltile, Durkan, Eliane, Elizabeth, Feltex, Godfrey Hirst, Karastan, Marazzi, Mohawk, Mohawk Group, Pergo, Quick-Step, Unilin and Vitromex.
Certain of the statements in the immediately preceding paragraphs, particularly anticipating future performance, business prospects, growth and operating strategies and similar matters and those that include the words “could,” “should,” “believes,” “anticipates,” “expects,” and “estimates,” or similar expressions constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. For those statements, Mohawk claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Management believes that these forward-looking statements are reasonable as and when made; however, caution should be taken not to place undue reliance on any such forward-looking statements because such statements speak only as of the date when made. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. There can be no assurance that the forward-looking statements will be accurate because they are based on many assumptions, which involve risks and uncertainties. Important factors that could cause future results to differ from historical experience and our present expectations or projections include, but are not limited to, the following: changes in economic or industry conditions; the impact of tariffs; competition; inflation and deflation in freight, raw material prices and other input costs; inflation and deflation in consumer markets; currency fluctuations; energy costs and supply; timing and level of capital expenditures; timing and implementation of price increases for the Company’s products; impairment charges; identification and consummation of acquisitions on favorable terms, if at all; integration of acquisitions; international operations; introduction of new products; rationalization of operations; taxes and tax reform; product and other claims; litigation; geopolitical conflict; regulatory and political changes in the jurisdictions in which the Company does business; and other risks identified in Mohawk’s U.S. Securities and Exchange Commission reports and public announcements.
Conference call Friday, July 25, 2025, at 11:00 AM Eastern Time
To participate in the conference call via the Internet, please visit https://ir.mohawkind.com/events/event-details/mohawk-industries-inc-2nd-quarter-2025-earnings-call. To participate in the conference call via telephone, register in advance at https://dpregister.com/sreg/10200728/ff6a160a78 to receive a unique personal identification number. You may also dial 1-833-630-1962 (U.S./Canada) or 1-412-317-1843 (international) on the day of the call for operator assistance. For those unable to listen at the designated time, the call will remain available for replay through August 22, 2025, by dialing 1-877-344-7529 (U.S./Canada) or 1-412-317-0088 (international) and entering Conference ID #7404010. The call will be archived and available for replay for one year under the “Investors” tab of mohawkind.com.
| MOHAWK INDUSTRIES, INC. AND SUBSIDIARIES | |||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||
| (Unaudited) | |||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||
| (In millions, except per share data) | June 28, 2025 | June 29, 2024 | June 28, 2025 | June 29, 2024 | |||||||||
| Net sales | $ | 2,802.1 | 2,801.3 | 5,327.9 | 5,480.7 | ||||||||
| Cost of sales | 2,087.7 | 2,077.5 | 4,030.2 | 4,107.4 | |||||||||
| Gross profit | 714.4 | 723.8 | 1,297.7 | 1,373.3 | |||||||||
| Selling, general and administrative expenses | 525.7 | 509.8 | 1,012.9 | 1,012.7 | |||||||||
| Operating income | 188.7 | 214.0 | 284.8 | 360.6 | |||||||||
| Interest expense | 5.2 | 12.6 | 11.6 | 27.5 | |||||||||
| Other (income) and expense, net | 3.0 | 1.6 | 2.7 | 0.5 | |||||||||
| Earnings before income taxes | 180.5 | 199.8 | 270.5 | 332.6 | |||||||||
| Income tax expense | 34.0 | 42.3 | 51.5 | 70.1 | |||||||||
| Net earnings including noncontrolling interests | 146.5 | 157.5 | 219.0 | 262.5 | |||||||||
| Net earnings attributable to noncontrolling interests | — | 0.1 | — | 0.1 | |||||||||
| Net earnings attributable to Mohawk Industries, Inc. | $ | 146.5 | 157.4 | 219.0 | 262.4 | ||||||||
| Basic earnings per share attributable to Mohawk Industries, Inc. | $ | 2.35 | 2.47 | 3.50 | 4.12 | ||||||||
| Weighted-average common shares outstanding - basic | 62.3 | 63.6 | 62.5 | 63.7 | |||||||||
| Diluted earnings per share attributable to Mohawk Industries, Inc. | $ | 2.34 | 2.46 | 3.49 | 4.10 | ||||||||
| Weighted-average common shares outstanding - diluted | 62.6 | 63.9 | 62.7 | 64.0 | |||||||||
| Other Financial Information | |||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||
| (In millions) | June 28, 2025 | June 29, 2024 | June 28, 2025 | June 29, 2024 | |||||||||
| Net cash provided by operating activities | $ | 206.3 | 233.6 | 210.0 | 417.3 | ||||||||
| Less: Capital expenditures | 80.2 | 91.4 | 169.3 | 178.2 | |||||||||
| Free cash flow | $ | 126.1 | 142.2 | 40.7 | 239.1 | ||||||||
| Depreciation and amortization | $ | 155.6 | 171.5 | 306.0 | 325.7 | ||||||||
| MOHAWK INDUSTRIES, INC. AND SUBSIDIARIES | ||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||
| (Unaudited) | ||||||
| (In millions) | June 28, 2025 | June 29, 2024 | ||||
| ASSETS | ||||||
| Current assets: | ||||||
| Cash and cash equivalents | $ | 546.7 | 497.4 | |||
| Receivables, net | 2,254.8 | 2,018.5 | ||||
| Inventories | 2,709.9 | 2,579.9 | ||||
| Prepaid expenses and other current assets | 553.5 | 545.5 | ||||
| Total current assets | 6,064.9 | 5,641.3 | ||||
| Property, plant and equipment, net | 4,778.0 | 4,759.2 | ||||
| Right of use operating lease assets | 409.9 | 396.2 | ||||
| Goodwill | 1,201.1 | 1,136.7 | ||||
| Intangible assets, net | 843.5 | 841.4 | ||||
| Deferred income taxes and other non-current assets | 481.4 | 504.8 | ||||
| Total assets | $ | 13,778.8 | 13,279.6 | |||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||
| Current liabilities: | ||||||
| Short-term debt and current portion of long-term debt | $ | 458.8 | 718.0 | |||
| Accounts payable and accrued expenses | 2,278.2 | 2,109.8 | ||||
| Current operating lease liabilities | 116.2 | 109.9 | ||||
| Total current liabilities | 2,853.2 | 2,937.7 | ||||
| Long-term debt, less current portion | 1,742.2 | 1,691.5 | ||||
| Non-current operating lease liabilities | 311.9 | 301.6 | ||||
| Deferred income taxes and other long-term liabilities | 573.9 | 696.3 | ||||
| Total liabilities | 5,481.2 | 5,627.1 | ||||
| Total stockholders' equity | 8,297.6 | 7,652.5 | ||||
| Total liabilities and stockholders' equity | $ | 13,778.8 | 13,279.6 | |||
| Segment Information | ||||||||||||||
| Three Months Ended | As of or for the Six Months Ended | |||||||||||||
| (In millions) | June 28, 2025 | June 29, 2024 | June 28, 2025 | June 29, 2024 | ||||||||||
| Net sales: | ||||||||||||||
| Global Ceramic | $ | 1,120.9 | 1,115.6 | $ | 2,114.7 | 2,160.4 | ||||||||
| Flooring NA | 946.8 | 958.5 | 1,809.2 | 1,858.7 | ||||||||||
| Flooring ROW | 734.4 | 727.2 | 1,404.0 | 1,461.6 | ||||||||||
| Consolidated net sales | $ | 2,802.1 | 2,801.3 | $ | 5,327.9 | 5,480.7 | ||||||||
| Operating income (loss): | ||||||||||||||
| Global Ceramic | $ | 88.2 | 83.1 | $ | 130.0 | 131.9 | ||||||||
| Flooring NA | 52.5 | 78.3 | 61.8 | 123.3 | ||||||||||
| Flooring ROW | 65.8 | 65.6 | 124.5 | 136.5 | ||||||||||
| Corporate and intersegment eliminations | (17.8 | ) | (13.0 | ) | (31.5 | ) | (31.1 | ) | ||||||
| Consolidated operating income | $ | 188.7 | 214.0 | $ | 284.8 | 360.6 | ||||||||
| Assets: | ||||||||||||||
| Global Ceramic | $ | 5,158.4 | 4,931.5 | |||||||||||
| Flooring NA | 4,034.5 | 3,940.2 | ||||||||||||
| Flooring ROW | 4,078.7 | 3,899.2 | ||||||||||||
| Corporate and intersegment eliminations | 507.2 | 508.7 | ||||||||||||
| Consolidated assets | $ | 13,778.8 | 13,279.6 | |||||||||||
| Reconciliation of Net Earnings Attributable to Mohawk Industries, Inc. to Adjusted Net Earnings Attributable to Mohawk Industries, Inc. and Adjusted Diluted Earnings Per Share Attributable to Mohawk Industries, Inc. | |||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||
| (In millions, except per share data) | June 28, 2025 | June 29, 2024 | June 28, 2025 | June 29, 2024 | |||||||||
| Net earnings attributable to Mohawk Industries, Inc. | $ | 146.5 | 157.4 | 219.0 | 262.4 | ||||||||
| Adjusting items: | |||||||||||||
| Restructuring, acquisition and integration-related and other costs | 29.4 | 41.4 | 55.7 | 49.3 | |||||||||
| Software implementation cost write-off | — | — | (0.4 | ) | — | ||||||||
| Legal settlements, reserves and fees | 4.9 | 1.3 | 5.5 | 10.1 | |||||||||
| Adjustments of indemnification asset | (0.1 | ) | (0.2 | ) | (0.1 | ) | 2.2 | ||||||
| Income taxes - adjustments of uncertain tax position | 0.1 | 0.2 | 0.1 | (2.2 | ) | ||||||||
| Income tax effect of adjusting items | (7.5 | ) | (8.6 | ) | (11.0 | ) | (11.5 | ) | |||||
| Adjusted net earnings attributable to Mohawk Industries, Inc. | $ | 173.3 | 191.5 | 268.8 | 310.3 | ||||||||
| Adjusted diluted earnings per share attributable to Mohawk Industries, Inc. | $ | 2.77 | 3.00 | 4.29 | 4.85 | ||||||||
| Weighted-average common shares outstanding - diluted | 62.6 | 63.9 | 62.7 | 64.0 | |||||||||
| Reconciliation of Total Debt to Net Debt | |||
| (In millions) | June 28, 2025 | ||
| Short-term debt and current portion of long-term debt | $ | 458.8 | |
| Long-term debt, less current portion | 1,742.2 | ||
| Total debt | 2,201.0 | ||
| Less: Cash and cash equivalents | 546.7 | ||
| Net debt | $ | 1,654.3 | |
| Reconciliation of Net Earnings to Adjusted EBITDA | |||||||||||||||
| Trailing Twelve | |||||||||||||||
| Three Months Ended | Months Ended | ||||||||||||||
| (In millions) | September 28, 2024 | December 31, 2024 | March 29, 2025 | June 28, 2025 | June 28, 2025 | ||||||||||
| Net earnings including noncontrolling interests | $ | 162.0 | 93.2 | 72.6 | 146.5 | 474.3 | |||||||||
| Interest expense | 11.2 | 9.8 | 6.4 | 5.2 | 32.6 | ||||||||||
| Income tax expense | 39.8 | 18.3 | 17.5 | 34.0 | 109.6 | ||||||||||
| Net (earnings) loss attributable to noncontrolling interests | — | — | — | — | — | ||||||||||
| Depreciation and amortization(1) | 156.2 | 156.4 | 150.4 | 155.6 | 618.6 | ||||||||||
| EBITDA | 369.2 | 277.7 | 246.9 | 341.3 | 1,235.1 | ||||||||||
| Restructuring, acquisition and integration-related and other costs | 15.1 | 20.3 | 20.8 | 25.3 | 81.5 | ||||||||||
| Software implementation cost write-off | 7.8 | 5.1 | (0.4 | ) | — | 12.5 | |||||||||
| Impairment of goodwill and indefinite-lived intangibles | — | 8.2 | — | — | 8.2 | ||||||||||
| Legal settlements, reserves and fees | 0.7 | (0.9 | ) | 0.6 | 4.9 | 5.3 | |||||||||
| Adjustments of indemnification asset | (0.4 | ) | — | — | (0.1 | ) | (0.5 | ) | |||||||
| Adjusted EBITDA | $ | 392.4 | 310.4 | 267.9 | 371.4 | 1,342.1 | |||||||||
| Net debt to adjusted EBITDA | 1.2 | ||||||||||||||
(1)Includes accelerated depreciation of
| Reconciliation of Net Sales to Adjusted Net Sales | |||||||
| Three Months Ended | Six Months Ended | ||||||
| (In millions) | June 28, 2025 | June 28, 2025 | |||||
| Mohawk Consolidated | |||||||
| Net sales | $ | 2,802.1 | 5,327.9 | ||||
| Adjustment for constant shipping days | 12.0 | 89.9 | |||||
| Adjustment for constant exchange rates | (34.4 | ) | 22.5 | ||||
| Adjusted net sales | $ | 2,779.7 | 5,440.3 | ||||
| Three Months Ended | ||||
| June 28, 2025 | ||||
| Global Ceramic | ||||
| Net sales | $ | 1,120.9 | ||
| Adjustment for constant shipping days | 12.0 | |||
| Adjustment for constant exchange rates | (5.0 | ) | ||
| Adjusted net sales | $ | 1,127.9 | ||
| Flooring ROW | ||||
| Net sales | $ | 734.4 | ||
| Adjustment for constant exchange rates | (29.4 | ) | ||
| Adjusted net sales | $ | 705.0 | ||
| Reconciliation of Gross Profit to Adjusted Gross Profit | |||||||
| Three Months Ended | |||||||
| (In millions) | June 28, 2025 | June 29, 2024 | |||||
| Gross Profit | $ | 714.4 | 723.8 | ||||
| Adjustments to gross profit: | |||||||
| Restructuring, acquisition and integration-related and other costs | 26.2 | 35.2 | |||||
| Adjusted gross profit | $ | 740.6 | 759.0 | ||||
| Adjusted gross profit as a percent of net sales | |||||||
| Reconciliation of Selling, General and Administrative Expenses to Adjusted Selling, General and Administrative Expenses | |||||||
| Three Months Ended | |||||||
| (In millions) | June 28, 2025 | June 29, 2024 | |||||
| Selling, general and administrative expenses | $ | 525.7 | 509.8 | ||||
| Adjustments to selling, general and administrative expenses: | |||||||
| Restructuring, acquisition and integration-related and other costs | (3.2 | ) | (6.2 | ) | |||
| Legal settlements, reserves and fees | (4.9 | ) | (1.3 | ) | |||
| Adjusted selling, general and administrative expenses | $ | 517.6 | 502.3 | ||||
| Adjusted selling, general and administrative expenses as a percent of net sales | |||||||
| Reconciliation of Operating Income to Adjusted Operating Income | |||||||
| Three Months Ended | |||||||
| (In millions) | June 28, 2025 | June 29, 2024 | |||||
| Mohawk Consolidated | |||||||
| Operating income | $ | 188.7 | 214.0 | ||||
| Adjustments to operating income: | |||||||
| Restructuring, acquisition and integration-related and other costs | 29.4 | 41.4 | |||||
| Legal settlements, reserves and fees | 4.9 | 1.3 | |||||
| Adjusted operating income | $ | 223.0 | 256.7 | ||||
| Adjusted operating income as a percent of net sales | |||||||
| Global Ceramic | |||||||
| Operating income | $ | 88.2 | 83.1 | ||||
| Adjustments to segment operating income: | |||||||
| Restructuring, acquisition and integration-related and other costs | 2.1 | 11.7 | |||||
| Adjusted segment operating income | $ | 90.3 | 94.8 | ||||
| Adjusted segment operating income as a percent of net sales | |||||||
| Flooring NA | |||||||
| Operating income | $ | 52.5 | 78.3 | ||||
| Adjustments to segment operating income: | |||||||
| Restructuring, acquisition and integration-related and other costs | 16.7 | — | |||||
| Legal settlements, reserves and fees | — | 3.7 | |||||
| Adjusted segment operating income | $ | 69.2 | 82.0 | ||||
| Adjusted segment operating income as a percent of net sales | |||||||
| Flooring ROW | |||||||
| Operating income | $ | 65.8 | 65.6 | ||||
| Adjustments to segment operating income: | |||||||
| Restructuring, acquisition and integration-related and other costs | 10.6 | 25.8 | |||||
| Adjusted segment operating income | $ | 76.4 | 91.4 | ||||
| Adjusted segment operating income as a percent of net sales | |||||||
| Corporate and intersegment eliminations | ||||||
| Operating (loss) | $ | (17.8 | ) | (13.0 | ) | |
| Adjustments to segment operating (loss): | ||||||
| Restructuring, acquisition and integration-related and other costs | — | 0.2 | ||||
| Legal settlements, reserves and fees | 4.9 | 1.3 | ||||
| Adjusted segment operating (loss) | $ | (12.9 | ) | (11.5 | ) | |
| Reconciliation of Earnings Before Income Taxes to Adjusted Earnings Before Income Taxes | |||||||
| Three Months Ended | |||||||
| (In millions) | June 28, 2025 | June 29, 2024 | |||||
| Earnings before income taxes | $ | 180.5 | 199.8 | ||||
| Net earnings attributable to noncontrolling interests | — | (0.1 | ) | ||||
| Adjustments to earnings including noncontrolling interests before income taxes: | |||||||
| Restructuring, acquisition and integration-related and other costs | 29.4 | 41.4 | |||||
| Legal settlements, reserves and fees | 4.9 | 1.3 | |||||
| Adjustments of indemnification asset | (0.1 | ) | (0.2 | ) | |||
| Adjusted earnings before income taxes | $ | 214.7 | 242.2 | ||||
| Reconciliation of Income Tax Expense to Adjusted Income Tax Expense | |||||||
| Three Months Ended | |||||||
| (In millions) | June 28, 2025 | June 29, 2024 | |||||
| Income tax expense | $ | 34.0 | 42.3 | ||||
| Adjustments to income tax expense: | |||||||
| Income taxes - adjustments of uncertain tax position | (0.1 | ) | (0.2 | ) | |||
| Income tax effect of adjusting items | 7.5 | 8.6 | |||||
| Adjusted income tax expense | $ | 41.4 | 50.7 | ||||
| Adjusted income tax rate to adjusted earnings before income taxes | 19.3% | ||||||
The Company supplements its condensed consolidated financial statements, which are prepared and presented in accordance with US GAAP, with certain non-GAAP financial measures. As required by the Securities and Exchange Commission rules, the tables above present a reconciliation of the Company’s non-GAAP financial measures to the most directly comparable US GAAP measure. Each of the non-GAAP measures set forth above should be considered in addition to the comparable US GAAP measure, and may not be comparable to similarly titled measures reported by other companies. The Company believes these non-GAAP measures, when reconciled to the corresponding US GAAP measure, help its investors as follows: Non-GAAP revenue measures that assist in identifying growth trends and in comparisons of revenue with prior and future periods and non-GAAP profitability measures that assist in understanding the long-term profitability trends of the Company's business and in comparisons of its profits with prior and future periods.
The Company excludes certain items from its non-GAAP revenue measures because these items can vary dramatically between periods and can obscure underlying business trends. Items excluded from the Company’s non-GAAP revenue measures include: foreign currency transactions and translation; more or fewer shipping days in a period and the impact of acquisitions.
The Company excludes certain items from its non-GAAP profitability measures because these items may not be indicative of, or are unrelated to, the Company's core operating performance. Items excluded from the Company's non-GAAP profitability measures include: restructuring, acquisition and integration-related and other costs, legal settlements, reserves and fees, impairment of goodwill and indefinite-lived intangibles, acquisition purchase accounting, including inventory step-up from purchase accounting, adjustments of indemnification asset, adjustments of uncertain tax position and European tax restructuring.
Contact: James Brunk, Chief Financial Officer - (706) 624-2239
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