Mohawk Industries (MHK) investor relations material

Executive summary

• Q3 net sales were $2,786.0M, up 1.0% YoY and flat on an FX- and shipping-day-adjusted basis; softer demand was offset by price/mix and productivity.

• Operating income rose 37.3% to $187.7M and net earnings were $163.1M; adjusted EBITDA was $353.4M at a 12.7% margin.

• New strategy focuses on market outperformance, innovation and brands, operational excellence, and cash generation with disciplined capital deployment.

Financial highlights

• Q3 gross profit was $709.7M versus $654.9M; adjusted gross margin was 25.8% versus 25.3%.

• Adjusted operating income was $200.1M versus $205.5M; reported diluted EPS was $2.72 versus $1.75, and adjusted diluted EPS was $2.72.

• Nine-month sales rose 5.2% to $8,506.1M; net earnings increased to $476.4M from $327.9M, and adjusted diluted EPS was $8.27 versus $6.96.

• Q3 sales gains included ~$103M from price and mix and ~$38M from additional shipping days, partly offset by ~$105M lower volume.

Outlook and guidance

• Q4 adjusted EPS guidance is $1.35–$1.45; adjusted net sales are expected to grow at a low-single-digit rate YoY.

• Q4 assumes softer flooring demand, four fewer shipping days YoY, and inflation similar to Q3; price, mix, and productivity are expected to offset inflation.

• 2027 planning assumes declining market volumes and mid-single-digit cost-of-sales inflation into early year, with pricing, mix, and productivity expected to offset inflation dollar-for-dollar.

• 2026 capital expenditures are expected to be ~$445M, down from prior guidance of $460M; baseline annual capital needs are estimated at ~$375M.