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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.
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Q3 2025 earnings summary24 Oct, 2025

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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Frequently asked questions

Mohawk Industries, Inc. designs, manufactures, sources, distributes, and markets flooring products for remodeling and new constructions of residential and commercial spaces in the United States, Europe, Russia, and internationally. The company offers a range of hardwood flooring products; laminate flooring products; ceramic tile flooring products; broadloom carpet products; residential wall base systems; surface protection systems; finishing products; stone wool insulation products; vermiculite attic insulating bats; acoustic ceiling systems; ceilings and interior partitions for the light commercial market; wood trim moldings for doors, windows, cabinets, and furniture crafting applications; architectural millwork products comprising beams and divider partition boards used to create living zones from flat spaces among others. The company also provides rubber sheet used to seal joints around vent penetrations through ceiling tile installations for proper air flow management within the structure.

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