Mohawk Industries Stock Earnings Reports

Mohawk reported Q3 2025 sales of ~$2.8 billion, roughly flat year-over-year on a constant currency basis. Adjusted EPS was $2.67, helped by productivity and restructuring, favorable FX and lower interest expense, offset by higher input costs and temporary plant shutdowns. Management generated strong operating cash flow/free cash flow (~$310M in the quarter), repurchased $40M of stock in Q3 ($108M YTD), and reduced full-year CapEx guidance to ~$480M. They are executing additional restructuring actions that add roughly $32M of annualized savings (bringing total anticipated savings to ~$110M for the year) at a net cash cost of ~$20M after asset sales. Key operational themes: hard-surface and commercial channels outperformed residential remodeling, which remains weak due to consumer uncertainty and lower housing turnover; tariff changes on imports are creating a meaningful cost headwind (management estimates ~20% on affected imports, ~ $100–110M annualized before mitigations), and the company is implementing price increases, supply-chain moves and productivity to offset the impact. Material and energy costs are easing from peaks, but there is a lag before savings flow through. Balance sheet remains strong (gross debt ~$1.9B, leverage ~1.1x) and management expects Q4 EPS of $1.90–$2.00 (excluding one-time charges), with volumes likely to remain soft into year-end but an eventual recovery anticipated as interest rates decline and housing activity normalizes.