Mohawk Industries Reports Q4 2025 Results

Rhea-AI Summary

Mohawk Industries (NYSE: MHK) reported Q4 2025 net earnings of $42 million and EPS of $0.68; adjusted net earnings were $124 million and adjusted EPS was $2.00. Q4 net sales were $2.7 billion (up 2.4% reported). For full-year 2025, net earnings were $370 million and EPS was $5.93; adjusted net earnings were $559 million and adjusted EPS was $8.96. The company generated approximately $621 million free cash flow, repurchased ~1.3 million shares for ~$150 million, reduced 2025 capital spending to $435 million, and gave 2026 first-quarter adjusted EPS guidance of $1.75–$1.85.

Positive

• Adjusted Q4 EPS of $2.00
• Free cash flow of approximately $621 million in 2025
• Share repurchase of ~1.3 million shares for ~$150 million
• Capex reduced to $435 million (about 30% below depreciation)
• First-quarter 2026 adjusted EPS guidance of $1.75–$1.85

Negative

• Q4 GAAP net earnings fell to $42 million from $90 million year-over-year
• Full-year net earnings declined to $370 million from $515 million year-over-year
• Flooring North America operating margin moved from 4.4% adjusted to -0.3% reported

Key Figures

Q4 2025 EPS: $0.68 Q4 2025 Adjusted EPS: $2.00 FY 2025 Adjusted EPS: $8.96 +5 more

8 metrics

Q4 2025 EPS $0.68 GAAP EPS for Q4 2025; down from $1.43 in Q4 2024

Q4 2025 Adjusted EPS $2.00 Adjusted EPS for Q4 2025; up from $1.95 in Q4 2024

FY 2025 Adjusted EPS $8.96 Full-year 2025 adjusted EPS vs $9.70 in 2024

FY 2025 Net Sales $10.8B Full-year 2025 net sales, down 0.5% reported vs prior year

FY 2025 Free Cash Flow $621M Free cash flow generated in 2025

Share Repurchases 2025 $150M 1.3M shares repurchased in 2025 under buyback authorization

2025 Capital Spending $435M Capex in 2025, about 30% below depreciation levels

Q1 2026 Adj EPS Guide $1.75–$1.85 Management guidance for Q1 2026 adjusted EPS, excluding one-time items

Market Reality Check

Price: $132.60 Vol: Volume 1,104,633 is eleva...

normal vol

$132.60 Last Close

Volume Volume 1,104,633 is elevated at 1.46x the 20-day average of 756,174 ahead of the report. normal

Technical Price at 134.90 is trading above the 200-day MA of 116.25 and about 5.75% below the 52-week high of 143.13.

Peers on Argus

MHK was down 1.46% while key peers were mixed: WHR +1.93%, PATK +1.56%, HNI -0.2...

MHK was down 1.46% while key peers were mixed: WHR +1.93%, PATK +1.56%, HNI -0.29%, SGI -0.53%, SN +9.92%. Moves were not broadly aligned, pointing to stock-specific factors rather than a sector-wide move.

Previous Earnings Reports

5 past events · Latest: Oct 23 (Positive)

Same Type Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Oct 23	Q3 2025 earnings	Positive	+0.5%	Q3 2025 beat prior year on earnings with solid free cash flow.
Jul 24	Q2 2025 earnings	Positive	+4.2%	Q2 earnings and EPS solid with flat sales and new buyback.
May 01	Q1 2025 earnings	Negative	-1.6%	Q1 sales declined and tariffs created a new cost headwind.
Feb 06	Q4 2024 earnings	Positive	-1.3%	Q4 2024 EPS improved with strong free cash flow and buybacks.
Oct 24	Q3 2024 earnings	Positive	-13.8%	Q3 2024 EPS and restructuring savings contrasted with a sharp selloff.

Pattern Detected

Across the last five earnings releases, price reactions have been mixed with an average move of about -2.42%, including both strong rallies and sharp selloffs, showing that earnings have often acted as meaningful catalysts with no consistent directional bias.

Recent Company History

Over the past five earnings reports from Oct 2024 through Oct 2025, Mohawk has operated in soft housing and remodeling markets while leaning on restructuring and productivity. Net earnings and EPS have stayed positive with flat-to-down sales, and management repeatedly highlighted cost savings and tariff impacts. Price reactions around these reports ranged from a drop of over 13% to a gain above 4%, underscoring that earnings headlines have been pivotal but not predictably received.

Historical Comparison

-2.4% avg move · In the last five earnings releases, MHK’s average move was -2.42%, with reactions ranging from a str...

earnings

-2.4%

Average Historical Move earnings

In the last five earnings releases, MHK’s average move was -2.42%, with reactions ranging from a strong rally above 4% to a double‑digit decline, showing earnings have been key swing points.

Earnings from late 2024 through 2025 show flat-to-declining sales, ongoing restructuring benefits, tariff and input-cost headwinds, and consistent focus on cash generation and buybacks.

Market Pulse Summary

This announcement highlights Q4 2025 and full‑year 2025 results, with GAAP EPS weaker but adjusted E...

Analysis

This announcement highlights Q4 2025 and full‑year 2025 results, with GAAP EPS weaker but adjusted EPS and cash generation solid, including $621M in free cash flow and $150M of buybacks. Sales of $10.8B were essentially flat, reflecting prolonged housing and remodeling softness. Historically, earnings releases have produced sizable moves in both directions, so investors often focus on guidance, restructuring progress, capital spending of $435M, and whether volume trends and pricing actions improve against macro headwinds.

Key Terms

eps, free cash flow, stock buyback authorization, operating margin, +1 more

5 terms

eps financial

"net earnings of $42 million and earnings per share (“EPS”) of $0.68"

Earnings per share (EPS) measures how much profit a company makes for each outstanding share of its stock by dividing the company’s profit after expenses by the number of shares. It matters to investors because it shows how much of the company’s “pie” each share represents—higher EPS usually signals greater profitability per share, helps compare companies of different sizes, and influences stock valuations and investor decisions.

free cash flow financial

"For the year, we generated free cash flow of approximately $621 million"

Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.

stock buyback authorization financial

"shares of our stock for approximately $150 million as part of our current stock buyback authorization"

A stock buyback authorization is formal approval from a company’s board to repurchase its own shares from the market up to a specified amount. It matters to investors because buying back shares reduces the number of shares outstanding, which can raise each remaining share’s claim on profits and often signals management believes the stock is undervalued; like a bakery pulling some vouchers out of circulation to increase the value of the rest, it can boost per-share results but also uses company cash.

operating margin financial

"The Segment’s operating margin was 6.1% as reported, or 5.9% on an adjusted basis"

Operating margin shows how much profit a company makes from its core business activities after paying for costs like wages and materials. It’s useful because it tells you how efficiently a company is running—higher margins mean it keeps more money from each dollar of sales, which can indicate better management or stronger products.

tariffs regulatory

"We managed the impact of U.S. tariffs, covering the cost as planned."

Tariffs are taxes imposed by a government on goods imported from other countries. They increase the cost of those goods, which can lead to higher prices for consumers and impact international trade. For investors, tariffs matter because they can influence the profitability of companies, affect supply chains, and shift economic stability across different regions.

AI-generated analysis. Not financial advice.

CALHOUN, Ga., Feb. 12, 2026 (GLOBE NEWSWIRE) -- Mohawk Industries, Inc. (NYSE: MHK) today announced fourth quarter 2025 net earnings of $42 million and earnings per share (“EPS”) of $0.68; adjusted net earnings were $124 million, and adjusted EPS was $2.00. Net sales for the fourth quarter of 2025 were $2.7 billion, up 2.4% as reported and down 3.3% on an adjusted basis versus the prior year. During the fourth quarter of 2024, the Company reported net sales of $2.6 billion, net earnings of $90 million and earnings per share of $1.43; adjusted net earnings were $123 million, and adjusted EPS was $1.95.

For the twelve months ended December 31, 2025, net earnings and EPS were $370 million and $5.93, respectively; adjusted net earnings were $559 million, and adjusted EPS was $8.96. Net sales for the twelve months of 2025 were $10.8 billion, a decrease of 0.5% as reported and 1.3% on an adjusted basis versus the prior year. For the twelve months ended December 31, 2024, the Company reported net sales of $10.8 billion, net earnings and EPS were $515 million and $8.09, respectively; adjusted net earnings were $617 million and adjusted EPS was $9.70.

Commenting on the Company’s fourth quarter and full year performance, Chairman and CEO Jeff Lorberbaum stated, “Our results for the quarter were in line with our expectations as our earnings benefited from productivity, restructuring initiatives, product mix and lower interest expense, partially offset by market pricing pressures and increased input costs. We managed the impact of U.S. tariffs, covering the cost as planned. Across our markets, commercial demand remained stable, though continued weakness in housing turnover and sluggish new home construction in the U.S. impacted our volume. For the year, we generated free cash flow of approximately $621 million and repurchased approximately 1.3 million shares of our stock for approximately $150 million as part of our current stock buyback authorization. Approximately 55% of our 2025 sales were in the U.S., 30% were in Europe and 15% were in other geographies.

The fourth quarter reflected a continuation of macroeconomic factors our industry has faced since the second half of 2022. With weak consumer confidence, many large discretionary investments such as home renovations continued to be postponed. Housing turnover in our major regions remains at historical lows due to affordability challenges and economic uncertainty. While 2025 U.S. existing home sales did not improve, sales in December increased over the prior year. Currently, U.S. mortgage rates are at their lowest levels since autumn 2022, and we anticipate that these lower rates combined with potential government actions will benefit housing turnover. In Europe, interest rates are also at their lowest since autumn 2022, and consumers have built record levels of savings, inflation has eased, and employment has remained steady. Across all our markets, housing availability remains constrained as construction levels have not kept pace with household formations since the Great Financial Crisis. In the U.S., builders completed fewer homes in the fourth quarter as they focused on reducing inventories, lowering the supply of new homes. In Europe, completed housing units declined in 2025, though moderate home building recoveries in Southern and Eastern Europe have emerged. Across our regions, the commercial channel outperformed residential throughout the year, and we anticipate that lower interest rates will encourage additional investments in commercial construction and renovation.

In response to these ongoing conditions, we took actions throughout 2025 to stimulate sales and enhance our mix in soft markets through innovative product introductions, marketing actions and promotional programs. Our premium product launches delivered differentiated design and performance features to incentivize remodeling, and our new commercial collections helped us gain momentum in both new construction and remodeling projects. To partially cover inflation, we took pricing actions in regions and product categories as market conditions allowed. We initiated numerous restructuring actions and operational improvements that lowered our cost position and will benefit our longer term performance, including the fourth quarter write-off of idle assets and the consolidation of inefficient operations and administrative costs. In 2025, our markets did not improve, and, in response, we reduced our capital spending to $435 million, about 30% below our depreciation levels. We continue to take the proper actions to manage the present environment, pursue profitable growth opportunities and strengthen our position when housing markets rebound.   

Turning to the fourth quarter results in our segments, net sales in the Global Ceramic Segment increased by 6.1% as reported, or decreased by 0.4% adjusted for constant days and exchange rates versus the prior year. The Segment’s operating margin was 6.1% as reported, or 5.9% on an adjusted basis due to higher input costs versus the prior year and lower sales volume, partially offset by productivity gains and improved price mix.

Net sales in the Flooring Rest of the World Segment increased by 6.5% as reported, or decreased by 3.5% adjusted for constant days and exchange rates versus the prior year. The Segment’s operating margin was 6.1% as reported, or 8.8% on an adjusted basis due to pressures from competitive industry pricing.

Net sales in the Flooring North America Segment decreased by 4.8% as reported and 6.2% on an adjusted basis versus the prior year. The Segment’s operating margin was negative 0.3% as reported, or was 4.4% on an adjusted basis due to productivity gains, partially offset by higher input costs and pressures from competitive industry pricing.

Thus far, first quarter market conditions have been similar to the fourth quarter. While home renovation remains soft, the NAHB Remodeling Market Index has shown improvement in the last two quarters. We expect our markets to remain competitive, and we are implementing price increases across most regions and product categories. We continue to manage the impact of tariffs through pricing actions and supply chain optimization. We anticipate benefits from product mix, productivity and cost reductions to offset headwinds from higher energy and labor costs. Our 2026 product introductions are entering the market throughout this quarter, and initial feedback has been positive. Our first quarter is seasonally our slowest and this year includes four additional shipping days. Given these factors, we expect our first quarter adjusted EPS will be between $1.75 and $1.85, excluding any restructuring or other one-time charges. 

The global flooring industry has been in a recession for almost four years, and historically we have multiple years of higher growth as markets recover. This year, we anticipate that the economies in most of our regions will improve, with housing markets benefiting from lower mortgage rates and greater availability. We expect some increases in industry volume as we proceed through the year, though pricing pressures are likely to remain. In response, we will execute our announced restructuring actions and continue to implement productivity initiatives to lower our cost position. Given this, we expect our 2026 sales and earnings to improve, though the extent of our growth this year will depend on economic conditions, interest rates, geopolitical events and, most importantly, the degree to which residential remodeling recovers. With our global reach, product advantages and operational strengths, Mohawk is uniquely positioned to deliver long-term profitable growth as we transition into the recovery cycle.”

ABOUT MOHAWK INDUSTRIES
Over the past two decades, Mohawk Industries has transformed its business into the world’s largest flooring company with leading positions in North America, Europe, South America and Oceania. Mohawk’s vertically integrated manufacturing and distribution operations provide a competitive advantage in the production of ceramic tile, carpet and laminate, wood, vinyl and hybrid flooring products. Mohawk’s industry-leading innovation has yielded designs and performance enhancements that differentiate its collections in the marketplace and satisfy all residential and commercial remodeling and new construction requirements. The Company’s brands are among the most recognized and respected 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, February 13, 2026, 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-4th-quarter-2025-earnings-call. To participate in the conference call via telephone, register in advance at https://dpregister.com/sreg/10205489/10301ee32db 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 March 13, 2026, by dialing 1-855-669-9658 (U.S./Canada) or 1-412-317-0088 (international) and entering Conference ID # 6945334. 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					Twelve Months Ended
(In millions, except per share data)		December 31, 2025			December 31, 2024		December 31, 2025		December 31, 2024
Net sales		$	2,699.6		2,637.2		10,785.4		10,836.9
Cost of sales			2,077.4		2,016.6		8,210.7		8,150.4
Gross profit			622.2		620.6		2,574.7		2,686.5
Selling, general and administrative expenses			534.0		491.8		2,065.0		1,984.8
Impairment of goodwill and indefinite-lived intangibles			19.9		8.2		19.9		8.2
Operating income			68.3		120.6		489.8		693.5
Interest expense			1.2		9.8		17.8		48.5
Other (income) and expense, net			1.1		2.3		3.3		2.0
Earnings before income taxes			66.0		108.5		468.7		643.0
Income tax expense			24.0		18.3		98.8		128.2
Net earnings including noncontrolling interests			42.0		90.2		369.9		514.8
Net earnings attributable to noncontrolling interests			—		—		—		0.1
Net earnings attributable to Mohawk Industries, Inc.		$	42.0		90.2		369.9		514.7
Basic earnings per share attributable to Mohawk Industries, Inc.		$	0.68		1.44		5.96		8.13
Weighted-average common shares outstanding - basic			61.6		62.8		62.1		63.3
Diluted earnings per share attributable to Mohawk Industries, Inc.		$	0.68		1.43		5.93		8.09
Weighted-average common shares outstanding - diluted			61.9		63.2		62.4		63.6

Other Financial Information
		Three Months Ended					Twelve Months Ended
(In millions)		December 31, 2025			December 31, 2024		December 31, 2025		December 31, 2024
Net cash provided by operating activities		$	459.6		397.0		1,056.2		1,133.9
Less: Capital expenditures			189.4		160.8		435.0		454.4
Free cash flow		$	270.2		236.2		621.2		679.5
Depreciation and amortization		$	176.3		156.4		652.6		638.3

MOHAWK INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In millions)	December 31, 2025			December 31, 2024
ASSETS
Current assets:
Cash and cash equivalents	$	856.1		666.6
Receivables, net		1,924.1		1,762.1
Inventories		2,661.7		2,513.6
Prepaid expenses and other current assets		525.2		512.5
Total current assets		5,967.1		5,454.8
Property, plant and equipment, net		4,772.0		4,579.9
Right of use operating lease assets		408.7		374.0
Goodwill		1,210.3		1,112.1
Intangible assets, net		813.2		791.9
Deferred income taxes and other non-current assets		516.0		423.8
Total assets	$	13,687.3		12,736.5
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Short-term debt and current portion of long-term debt	$	289.3		559.4
Accounts payable and accrued expenses		2,310.4		2,004.4
Current operating lease liabilities		122.4		108.5
Total current liabilities		2,722.1		2,672.3
Long-term debt, less current portion		1,741.2		1,677.4
Non-current operating lease liabilities		304.4		283.0
Deferred income taxes and other long-term liabilities		540.9		589.0
Total liabilities		5,308.6		5,221.7
Total stockholders' equity		8,378.7		7,514.8
Total liabilities and stockholders' equity	$	13,687.3		12,736.5

Segment Information
		Three Months Ended							As of or for the Twelve Months Ended
(In millions)		December 31, 2025				December 31, 2024			December 31, 2025				December 31, 2024
Net sales:
Global Ceramic		$	1,070.0			1,008.2				4,289.4			4,226.6
Flooring NA			892.5			937.2				3,638.5			3,769.9
Flooring ROW			737.1			691.8				2,857.5			2,840.4
Consolidated net sales		$	2,699.6			2,637.2				10,785.4			10,836.9
Operating income (loss):
Global Ceramic		$	65.1			34.2				266.7			249.5
Flooring NA			(2.7	)		41.0				113.6			237.3
Flooring ROW			44.6			60.9				212.9			265.2
Corporate and intersegment eliminations			(38.7	)		(15.5	)			(103.4	)		(58.5	)
Consolidated operating income		$	68.3			120.6				489.8			693.5
Assets:
Global Ceramic									$	5,155.0			4,591.0
Flooring NA										3,832.6			3,883.4
Flooring ROW										3,989.2			3,594.7
Corporate and intersegment eliminations										710.5			667.4
Consolidated assets									$	13,687.3			12,736.5

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							Twelve Months Ended
(In millions, except per share data)		December 31, 2025				December 31, 2024			December 31, 2025			December 31, 2024
Net earnings attributable to Mohawk Industries, Inc.		$	42.0			90.2			369.9			514.7
Adjusting items:
Restructuring, acquisition and integration-related and other costs			51.4			25.6			154.2			94.4
Software implementation cost write-off			—			5.1			(0.4	)		12.9
Impairment of goodwill and indefinite-lived intangibles			19.9			8.2			19.9			8.2
Assets sale			(5.1	)		—			(5.1	)		—
Inventory capitalization			(6.2	)		—			(6.2	)		—
Legal settlements, reserves and fees			23.8			(0.9	)		50.9			9.9
Adjustments of indemnification asset			(0.3	)		—			(0.7	)		1.8
Income taxes - adjustments of uncertain tax position			0.3			—			0.7			(1.8	)
Income taxes - impairment of goodwill and indefinite-lived intangibles			(5.0	)		(1.9	)		(5.0	)		(1.9	)
Accounts receivable write-off			—			3.0			—			3.0
Income tax effect of foreign tax regulation change			—			—			—			2.9
Income tax effect of adjustments and other tax-related items			3.1			(6.4	)		(18.9	)		(26.9	)
Adjusted net earnings attributable to Mohawk Industries, Inc.		$	123.9			122.9			559.3			617.2
Adjusted diluted earnings per share attributable to Mohawk Industries, Inc.		$	2.00			1.95			8.96			9.70
Weighted-average common shares outstanding - diluted			61.9			63.2			62.4			63.6

Reconciliation of Total Debt to Net Debt
(In millions)	December 31, 2025
Short-term debt and current portion of long-term debt	$	289.3
Long-term debt, less current portion		1,741.2
Total debt		2,030.5
Less: Cash and cash equivalents		856.1
Net debt	$	1,174.4

Reconciliation of Net Earnings to Adjusted EBITDA
															Trailing Twelve
		Three Months Ended													Months Ended
(In millions)		March 29, 2025				June 28, 2025			September 27, 2025			December 31, 2025			December 31, 2025
Net earnings including noncontrolling interests		$	72.6			146.5			108.8			42.0			369.9
Interest expense			6.4			5.2			5.0			1.2			17.8
Income tax expense			17.5			34.0			23.3			24.0			98.8
Depreciation and amortization(1)			150.4			155.6			170.3			176.3			652.6
EBITDA			246.9			341.3			307.4			243.5			1,139.1
Restructuring, acquisition and integration-related and other costs			20.8			25.3			30.7			25.6			102.4
Software implementation cost write-off			(0.4	)		—			—			—			(0.4	)
Assets sale			—			—			—			(5.1	)		(5.1	)
Inventory capitalization			—			—			—			(6.2	)		(6.2	)
Impairment of goodwill and indefinite-lived intangibles			—			—			—			19.9			19.9
Legal settlements, reserves and fees			0.6			4.9			21.6			23.8			50.9
Adjustments of indemnification asset			—			(0.1	)		(0.3	)		(0.3	)		(0.7	)
Adjusted EBITDA		$	267.9			371.4			359.4			301.2			1,299.9
Net debt to adjusted EBITDA															0.9

⁽¹⁾Includes accelerated depreciation of $5.4 for Q1 2025, $4.1 for Q2 2025, $16.4 for Q3 2025, and $25.9 for Q4 2025.

Reconciliation of Net Sales to Adjusted Net Sales
		Three Months Ended				Twelve Months Ended
(In millions)		December 31, 2025				December 31, 2025
Mohawk Consolidated
Net sales		$	2,699.6			10,785.4
Adjustment for constant shipping days			(47.6	)		53.1
Adjustment for constant exchange rates			(102.0	)		(140.7	)
Adjusted net sales		$	2,550.0			10,697.8

		Three Months Ended
		December 31, 2025
Global Ceramic
Net sales		$	1,070.0
Adjustment for constant shipping days			(13.1	)
Adjustment for constant exchange rates			(53.1	)
Adjusted net sales		$	1,003.8
Flooring NA
Net sales		$	892.5
Adjustment for constant shipping days			(13.7	)
Adjusted net sales		$	878.8

Flooring ROW
Net sales		$	737.1
Adjustment for constant shipping days			(20.7	)
Adjustment for constant exchange rates			(48.9	)
Adjusted net sales		$	667.5

Reconciliation of Gross Profit to Adjusted Gross Profit
		Three Months Ended
(In millions)		December 31, 2025				December 31, 2024
Gross Profit		$	622.2			620.6
Adjustments to gross profit:
Restructuring, acquisition and integration-related and other costs			46.1			22.6
Asset sale			(5.1	)		—
Inventory capitalization			(6.2	)		—
Adjusted gross profit		$	657.0			643.2

Adjusted gross profit as a percent of net sales

24.3

%

24.4

%

Reconciliation of Selling, General and Administrative Expenses to Adjusted Selling, General and Administrative Expenses
		Three Months Ended
(In millions)		December 31, 2025				December 31, 2024
Selling, general and administrative expenses		$	534.0			491.8
Adjustments to selling, general and administrative expenses:
Restructuring, acquisition and integration-related and other costs			(5.3	)		(3.0	)
Software implementation cost write-off			—			(5.1	)
Legal settlements, reserves and fees			(23.8	)		0.9
Adjusted selling, general and administrative expenses		$	504.9			484.6

Adjusted selling, general and administrative expenses as a percent of net sales

18.7

%

18.4

%

Reconciliation of Operating Income to Adjusted Operating Income
		Three Months Ended
(In millions)		December 31, 2025				December 31, 2024
Mohawk Consolidated
Operating income		$	68.3			120.6
Adjustments to operating income:
Restructuring, acquisition and integration-related and other costs			51.4			25.6
Inventory capitalization			(6.2	)		—
Software implementation cost write-off			—			5.1
Asset sale			(5.1	)		—
Accounts receivable write-off			—			1.2
Impairment of goodwill and indefinite-lived intangibles			19.9			8.2
Legal settlements, reserves and fees			23.8			(0.9	)
Adjusted operating income		$	152.1			159.8

Adjusted operating income as a percent of net sales

5.6

%

6.1

%

Global Ceramic
Operating income		$	65.1			34.2
Adjustments to segment operating income:
Restructuring, acquisition and integration-related and other costs			3.8			6.0
Software implementation cost write-off			—			5.1
Impairment of goodwill and indefinite-lived intangibles			—			8.2
Inventory capitalization			(6.2	)		—
Adjusted segment operating income		$	62.7			53.5

Adjusted segment operating income as a percent of net sales

5.9

%

5.3

%

Flooring NA
Operating income		$	(2.7	)		41.0
Adjustments to segment operating income:
Restructuring, acquisition and integration-related and other costs			41.9			11.5
Accounts receivable write-off		$	—			1.2
Adjusted segment operating income		$	39.2			53.7

Adjusted segment operating income as a percent of net sales

4.4

%

5.7

%

Flooring ROW
Operating income		$	44.6			60.9
Adjustments to segment operating income:
Restructuring, acquisition and integration-related and other costs			5.7			8.0
Asset sale			(5.1	)		—
Impairment of goodwill and indefinite-lived intangibles			19.9			—
Adjusted segment operating income		$	65.1			68.9

Adjusted segment operating income as a percent of net sales

8.8

%

10.0

%

Corporate and intersegment eliminations
Operating (loss)	$	(38.7	)		(15.5	)
Adjustments to segment operating (loss):
Restructuring, acquisition and integration-related and other costs		—			0.1
Legal settlements, reserves and fees		23.8			(0.9	)
Adjusted segment operating (loss)	$	(14.9	)		(16.3	)

Reconciliation of Earnings Before Income Taxes to Adjusted Earnings Before Income Taxes
		Three Months Ended
(In millions)		December 31, 2025				December 31, 2024
Earnings before income taxes		$	66.0			108.5
Net earnings attributable to noncontrolling interests			—			—
Adjustments to earnings including noncontrolling interests before income taxes:
Restructuring, acquisition and integration-related and other costs			51.4			25.6
Software implementation cost write-off			—			5.1
Assets sale			(5.1	)		—
Inventory capitalization			(6.2	)		—
Impairment of goodwill and indefinite-lived intangibles			19.9			8.2
Legal settlements, reserves and fees			23.8			(0.9	)
Accounts receivable write-off			—			3.0
Adjustments of indemnification asset			(0.3	)		—
Adjusted earnings before income taxes		$	149.5			149.5

Reconciliation of Income Tax Expense to Adjusted Income Tax Expense
		Three Months Ended
(In millions)		December 31, 2025				December 31, 2024
Income tax expense		$	24.0			18.3
Adjustments to income tax expense:
Income taxes - adjustments of uncertain tax position			(0.3	)		—
Income tax effect on impairment of goodwill and indefinite-lived intangibles			5.0			1.9
Income tax effect of adjusting items			(3.1	)		6.4
Adjusted income tax expense		$	25.6			26.6
Adjusted income tax expense to adjusted earnings before income taxes			17.1	%		17.8	%

Immaterial Correction of Prior Period Financial Statements

During the fourth quarter of 2025, the Company identified an immaterial error affecting the Company’s previously issued financial statements, no impact to current year financial statements. The misstatements related to intercompany activity impacting accounts receivable. The Company determined that the impacts were not material, individually or in the aggregate, to its previously issued Consolidated Financial Statements and accompanying Notes to the Consolidated Financial Statements for any of the prior quarters or the annual period in which they occurred. However, in accordance with Staff Accounting Bulletin No. 108 of the Securities and Exchange Commission (“SEC”), the Company concluded that correcting the cumulative misstatement in the current period would be material to its results of operations for the fiscal year ended December 31, 2025.

Accordingly, the Company has revised its previously issued Consolidated Financial Statements, as applicable. The revision did not have an impact on the Company's net revenue. The correction was achieved by reducing reported accounts receivable by $42.1 million over the prior periods affected. For the year ended 2023 and 2024 corrections, the Company has revised the 2023 and 2024 statement of operations by recording expenses of $9.5 million ($4.1 million was recorded to cost of sales and $5.4 million to other (income) and expense, net) and recording expenses of $3.0 million ($1.2 million was recorded to cost of sales and $1.8 million to other (income) and expense, net), respectively, and reduced the retained earnings balance for the year ended December 31, 2022, by $29.6 million. The revisions ensure comparability across all periods in the consolidated financial statements.

US GAAP to non-GAAP presentation

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  

FAQ

What were Mohawk Industries (MHK) Q4 2025 earnings and adjusted EPS?

Q4 2025 GAAP net earnings were $42 million with EPS of $0.68. According to the company, adjusted net earnings were $124 million and adjusted EPS were $2.00, reflecting productivity gains offset by pricing pressure and higher input costs.

How did Mohawk’s full-year 2025 earnings compare to 2024 for MHK?

Full-year 2025 net earnings were $370 million versus $515 million in 2024. According to the company, adjusted 2025 net earnings were $559 million compared with $617 million in 2024, showing year-over-year contraction.

What cash generation and shareholder actions did Mohawk (MHK) report for 2025?

Mohawk generated about $621 million in free cash flow and repurchased ~1.3 million shares for ~$150 million. According to the company, buybacks were executed under the current repurchase authorization.

What guidance did Mohawk (MHK) give for Q1 2026 adjusted EPS?

Mohawk expects first-quarter 2026 adjusted EPS between $1.75 and $1.85, excluding one-time charges. According to the company, the quarter is seasonally slow and includes four additional shipping days.

How did Mohawk’s segment performance affect margins in Q4 2025 (MHK)?

Flooring North America reported a reported operating margin of -0.3%, versus 4.4% adjusted. According to the company, lower volume, competitive pricing, and input costs pressured margins despite productivity gains.

Why did Mohawk (MHK) cut capital spending in 2025 and by how much?

Mohawk reduced 2025 capital spending to $435 million, about 30% below depreciation. According to the company, the cut was a response to weak markets and to preserve cash while executing restructuring and productivity initiatives.