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Mohawk Industries (MHK) investor relations material
Mohawk Industries Q3 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Q3 2025 net sales were $2.8 billion, up 1.4% year-over-year, with adjusted EPS at $2.67 and adjusted EBITDA at $359 million (13.0% margin), supported by premium and commercial products despite weaker industry demand.
Net earnings for Q3 2025 were $109 million ($1.75 EPS), down from $162 million in Q3 2024, mainly due to higher input costs, legal settlements, and restructuring expenses.
Free cash flow for Q3 was $310 million, with $40 million spent on share repurchases and $108 million year-to-date.
Productivity and restructuring initiatives, favorable FX, and lower interest expense benefited results, offset by higher input costs and temporary plant shutdowns.
Restructuring actions are expected to deliver $110 million in annualized savings in 2025, with an additional $32 million from new initiatives.
Financial highlights
Q3 2025 gross margin was 23.7% reported and 25.3% excluding charges; adjusted operating income was $205.5 million (7.5% margin), down from $240.3 million (8.8%) in Q3 2024.
Interest expense decreased to $5 million due to lower debt and higher interest income; net debt to adjusted EBITDA improved to 1.1x.
Cash and equivalents at quarter end were $516 million; inventories were $2.7 billion.
CapEx for Q3 was $76 million; full-year CapEx guidance is $480 million.
Free cash flow for Q3 was $310 million, up from $204 million in Q3 2024.
Outlook and guidance
Q4 2025 adjusted EPS is expected between $1.90 and $2.00, with one extra shipping day and excluding restructuring or one-time charges.
Market volume is anticipated to remain soft through year-end; restructuring and productivity initiatives are expected to support margins.
For 2026, $60–$70 million in restructuring savings are expected, with ongoing productivity gains.
Long-term outlook anticipates industry volumes returning to historical levels, with 2026 as a transitional year.
Planned capital investments for 2025 are approximately $480 million, focused on capacity expansion and cost reduction.
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