MHK · Mohawk Industries, Inc.

Mohawk Industries delivered Q1 2026 results with net sales of $2.73 billion, reflecting an 8.0% reported increase over prior year despite 2.6% decline adjusted for constant days and exchange rates, driven by benefits from productivity, restructuring, and product mix offset by inflation and volume pressures. GAAP net earnings rose to $117.1 million from $72.6 million, with diluted EPS at $1.90 versus $1.15, aligning with adjusted figures due to one-time tax benefits including a U.S. restructuring initiative and Brazilian tax credits. Segment performance varied: Global Ceramic sales grew 10.4% reported to $1.10 billion with 4.7% operating margin (5.0% adjusted), impacted by higher input costs but supported by productivity and price mix; Flooring ROW sales up 12.2% reported but down 4.4% adjusted with 9.4% margin (9.8% adjusted) pressured by competitive pricing; Flooring NA sales up 2.0% reported but down 4.1% adjusted with slim 0.4% margin (4.0% adjusted) due to input costs and pricing. Management highlighted commercial sector strength over soft residential new construction and deferred remodeling amid economic uncertainty, exacerbated by Middle East conflict driving energy cost volatility. The company repurchased 607,000 shares for $64 million, maintaining a strong balance sheet with $872 million cash and $1.24 billion net debt. Looking ahead, Q2 adjusted EPS guidance of $2.50-$2.60 excludes restructuring charges, factoring one less shipping day and rising input costs with pricing actions in progress; full pricing and cost impacts expected in H2. CEO Lorberbaum emphasized adaptability, cost control, new product launches, and positioning for industry rebound via increased new home construction and deferred remodeling demand.