Mohawk Industries Inc 8-K, filed Oct 29, 2026
Mohawk Industries Inc (MHK)
8-K
2026-10-29
For: 2026-10-29
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Added on
October 29, 2026
About this 8-K
Mohawk Industries Inc filed this 8-K on October 29, 2026.
Mohawk Industries, Inc. reported Q3 2026 net sales of $2.8 billion and adjusted EPS of $2.72, while authorizing a new share repurchase program of up to $500 million. It expects Q4 2026 adjusted EPS of $1.35 to $1.45. AI summary
Items reported
- Item 2.02: Financial results
- Item 7.01: Regulation FD disclosure
- Item 8.01: Other events
- Item 9.01: Financial statements and exhibits
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): October 29, 2026
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation or organization) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||||||
| (Address of principal executive offices) | (Zip Code) | |||||||
Registrant’s telephone number, including area code: (706 ) 629-7721
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities Registered Pursuant to Section 12(b) of the Act:
| Title of Each Class | Trading Symbol | Name of Each Exchange on Which Registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On October 29, 2026, Mohawk Industries, Inc. (the “Company”) issued a press release to report the Company’s earnings for the fiscal quarter ended October 3, 2026, which is attached to this report as Exhibit 99.1.
The information in this Item 2.02, including Exhibit 99.1 attached hereto, is being furnished pursuant to Item 2.02 and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended (the “Securities Act”), except as shall be expressly set forth by specific reference in such filing.
Item 7.01 Regulation FD Disclosure.
On October 29, 2026, the Company issued a press release regarding the share repurchase program described below, which is attached hereto as Exhibit 99.2 and is incorporated herein by reference.
The information under this caption Item 7.01, including information furnished in Exhibit 99.2, shall not be deemed “filed” for purposes of Section 18 of the Exchange Act, as amended, nor shall it be deemed incorporated by reference in any filing under the Securities Act, except as shall be expressly set forth by specific reference in such filing.
Item 8.01 Other Events.
On October 29, 2026, the Company announced that its Board of Directors approved a new share repurchase program on October 26, 2026, authorizing the Company to repurchase up to $500 million of its common stock (the “2026 Share Repurchase Program”).
Under the 2026 Share Repurchase Program, the Company may purchase common stock in open market transactions, block or privately negotiated transactions, and may from time to time purchase shares pursuant to a trading plan in accordance with Rule 10b5-1 and Rule 10b-18 under the Exchange Act or by any combination of such methods. The number of shares to be purchased and the timing of the purchases are based on a variety of factors, including, but not limited to, the level of cash balances, credit availability, general business conditions, regulatory requirements, the market price of the Company's stock and the availability of alternative investment opportunities. No time limit was set for completion of repurchases and each of the 2026 Share Repurchase Program may be suspended or discontinued at any time.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
104 Cover Page Interactive Data File (cover page XBRL tags are embedded within the iXBRL document)
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Mohawk Industries, Inc. | ||||||||||||||||||||
Date: | October 29, 2026 | By: | /s/ David L. Repp | |||||||||||||||||
DAVID L. REPP | ||||||||||||||||||||
Chief Accounting Officer and Corporate Controller | ||||||||||||||||||||
INDEX TO EXHIBITS
Exhibit | |||||||||||
99.1 | |||||||||||
| 99.2 | |||||||||||
| 104 | Cover Page Interactive Data File (cover page XBRL tags are embedded within the iXBRL document) | ||||||||||
MOHAWK INDUSTRIES REPORTS Q3 2026 RESULTS
HIGHLIGHTS:
•Q3 2026 Net Sales of $2.8 billion, up approximately 1% with growth in Global Ceramic and Flooring North America; adjusted Net Sales nearly flat with the prior year
•Q3 2026 Net Earnings of $163 million or 5.9% of Net Sales; adjusted EBITDA of approximately $353 million, adjusted EBITDA margin of 12.7%
•Q3 2026 Diluted EPS of $2.72, adjusted EPS of $2.72, up approximately 2%
•Q3 2026 Net Cash Provided by Operating Activities of $471 million; Q3 2026 Free Cash Flow of $390 million; YTD Q3 2026 Free Cash Flow of $626 million up 78%
•Returned $261 million to shareholders during the third quarter and $34 million during the fourth quarter, reducing shares outstanding by approximately 4%
•Expecting Q4 2026 Adjusted EPS of $1.35 to $1.45
Calhoun, Georgia, October 29, 2026 — Mohawk Industries, Inc. (NYSE: MHK), the world’s largest flooring and design surfaces company, today announced earnings for the third quarter of 2026. Commenting on the Company’s third quarter performance, Chief Executive Officer Paul De Cock stated, “We delivered a solid third quarter in a weak demand environment. We grew net sales as we executed price increases in response to rising inflation, we offset inflation with price, mix and productivity, and we are efficiently converting our earnings to strong cash flow. We are returning cash to shareholders, and our share repurchases in the third quarter were more than double what we completed in the first half of the year. Although we expect demand conditions to remain challenging and higher costs to persist, our teams are focused on serving our customers and delivering solid fourth quarter results.”
THIRD QUARTER 2026 RESULTS
Net sales for the third quarter of 2026 were $2.8 billion, up approximately 1% and approximately flat on an adjusted basis. An additional shipping day benefitted sales by approximately 1%. Volumes declined approximately 4% on an adjusted basis, primarily due to soft market demand. Price and mix improved sequentially and contributed approximately 4% to sales growth, benefitting from price increases taken to offset the impacts of inflation, along with positive mix. Net earnings were $163 million or 5.9% of net sales and adjusted EBITDA was approximately $353 million, with an adjusted EBITDA margin of 12.7%. Operating income was $188 million, up approximately $51 million from prior year, and adjusted operating income was $200 million, down approximately $5 million versus the prior year, primarily due to lower volume and higher inflation. Price, mix and productivity collectively of approximately $132 million more than offset higher underlying inflation of approximately $117 million. Diluted EPS for the third quarter of 2026 was $2.72, up approximately 55%, and adjusted EPS was $2.72, up approximately 2%, with operating results in line with the Company’s guidance assumptions.
SEGMENT RESULTS
Global Ceramic: Net sales were $1.1 billion, up approximately 2% and up approximately 1% on an adjusted basis. Currency was slightly favorable and an additional shipping day benefitted sales by approximately 1%. Excluding the benefit of the additional shipping day, volumes were down approximately 1%, and price and mix contributed approximately 2%, benefitting from price and other actions in response to higher inflation, as well as mix. Global Ceramic operating income was $66 million, or 5.8% of net sales, down approximately $6 million from the prior year. Adjusted operating income was $74 million, down $16 million versus the prior year, as higher underlying inflation and lower volumes were partially offset by productivity and price and mix.
Flooring North America: Net sales were $950 million, up approximately 1% and approximately flat on an adjusted basis. An additional shipping day benefitted sales by approximately 2%. Excluding the benefit of the additional shipping day, volumes declined approximately 3% and price and mix contributed approximately 3%, benefitting from price and other actions in response to higher inflation, as well as mix. Flooring North America operating income was $72 million or 7.6% of net sales, up approximately $18 million from the prior year. Adjusted operating income was $77 million, up $9 million, primarily due to productivity, price and mix partially offset by lower volumes and higher underlying inflation.
Flooring Rest of the World: Net sales were $707 million, down approximately 1% as reported; unfavorable currency was less than 1% and an additional shipping day benefitted sales by approximately 2%. Adjusted net sales declined approximately 2%, with volumes down approximately 10%, primarily due to soft market demand across categories. Price and mix was up approximately 7%, a sequential improvement benefitting from price increases implemented earlier in the year to offset the impact of higher inflation. Flooring Rest of the World operating income was $66 million or 9.3% of net sales, up approximately $22 million from the prior year. Adjusted operating income was $66 million, up $6 million, driven by favorable price and mix partially offset by higher inflation and lower volumes.
CASH FLOW AND CAPITAL DEPLOYMENT
For the three months ended October 3, 2026, cash from operations was $471 million and capital expenditures were $81 million, resulting in free cash flow of $390 million. For the nine months ended October 3, 2026, free cash flow was $626 million. The Company now anticipates full-year capital expenditures of approximately $445 million versus its previous expectation of $460 million, and expects free cash flow during the fourth quarter of 2026 to follow typical seasonality.
During the third quarter, the Company repurchased 2.0 million shares, returning $261 million of cash to shareholders and reducing outstanding shares by more than 3%. To date during the fourth quarter, the Company returned an additional $34 million to shareholders, bringing the reduction to approximately 4% during the second half of the year and completing the Company’s previous share repurchase authorization. The Company's Board of Directors has authorized a new share repurchase program of up to $500 million, which is described, together with the Company's strategic framework and capital deployment priorities, in a separate press release, issued today. Net debt to adjusted EBITDA ended the quarter at 0.7x.
FOURTH QUARTER 2026 OUTLOOK & GUIDANCE
Looking ahead to the fourth quarter, which has four fewer shipping days versus the prior year and three fewer shipping days versus the third quarter of the current year, the Company assumes flooring market conditions will be softer relative to the third quarter and expects low single-digit growth in adjusted net sales versus the prior year. Management also anticipates that the underlying cost of sales inflation headwind on a year-over-year basis will be similar to the third quarter and expects to fully offset this through pricing, mix and productivity. Given management's current input cost expectations and actions to date, the Company expects a similar dynamic in the first quarter of 2027. For the fourth quarter of 2026, the Company expects adjusted EPS in the range of $1.35 to $1.45. Assumptions included in the Company’s guidance are:
•Adjusted Net Interest Expense of approximately $4 to $5 million
•Adjusted Depreciation & Amortization Expense of approximately $148 million
•Adjusted Tax Rate of approximately 23.5%
•Weighted Average Diluted Share Count of approximately 58.5 million
ABOUT MOHAWK INDUSTRIES
Over the past two decades, Mohawk Industries has transformed its business into the world’s largest flooring and design surfaces company with leading positions in North America, Europe, South America and Oceania. Mohawk’s vertically integrated manufacturing and distribution operations provide a competitive advantage in the production of ceramic tile, carpet and laminate, wood, vinyl and hybrid flooring products. Mohawk’s industry-leading innovation has yielded designs and performance enhancements that differentiate its collections in the marketplace and satisfy all residential and commercial remodeling and new construction requirements. The Company’s brands are among the most recognized and respected in the industry and include American Olean, Daltile, Durkan, Eliane, Elizabeth, Feltex, Godfrey Hirst, Karastan, Marazzi, Mohawk, Mohawk Group, Mohawk Home, Mohawk Performance Accessories, Pergo, Quick-Step, Unilin and Vitromex.
Certain of the statements in this press release, particularly those anticipating future performance, business prospects, growth and operating strategies, and similar matters, and those that include the words “could,” “should,” “believes,” “anticipates,” “expects” and “estimates” or similar expressions constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. For those statements, Mohawk Industries, Inc. (“Mohawk” or the “Company”) claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Management believes that these forward-looking statements are reasonable as and when made; however, caution should be taken not to place undue reliance on any such forward-looking statements because such statements speak only as of the date when made. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. There can be no assurance that the forward-looking statements will be accurate because they are based on many assumptions, which involve risks and uncertainties. Important factors that could cause future results to differ from historical experience and our present expectations or projections include, but are not limited to, the following: changes in economic or industry conditions, including interest rates, availability of credit and residential and commercial construction and remodeling activity; the impact of tariffs and other trade restrictions; competition; inflation and deflation in raw material prices, freight and other input costs; inflation and deflation in consumer markets; currency fluctuations; rising energy costs and changes in the level of supply thereof; supply chain disruption and the availability of raw materials and sourced products; labor availability and costs; timing and level of capital expenditures; timing and implementation of price increases for the Company’s products; impairment charges; identification and consummation of acquisitions on favorable terms, if at all; integration of acquisitions; international operations; introduction of new products; rationalization of operations; tax and tax reform, product and other claims; litigation; geopolitical conflicts; sanctions and import and export restrictions; regulatory and political changes in the jurisdictions in which the Company does business; security breaches and other cybersecurity incidents; emerging issues related to the Company's integration and use of AI; and other risks identified in Mohawk’s United States Securities and Exchange Commission reports and public announcements.
Conference call Friday, October 30, 2026, at 11:00 AM Eastern Time
To participate in the conference call via the Internet, please visit https://ir.mohawkind.com/events/event-details/mohawk-industries-inc-3rd-quarter-2026-earnings-call. To participate in the conference call via telephone, register in advance at https://dpregister.com/sreg/10211917/104de4a22d1 to receive a unique personal identification number. You may also dial 1-833-630-1962 (U.S./Canada) or 1-412-317-1843 (international) on the day of the call for operator assistance. For those unable to listen at the designated time, the call will remain available for replay through November 27, 2026, by dialing 1-855-669-9658 (U.S./Canada) or 1-412-317-0088 (international) and entering Replay Access Code 7228212. The call will be archived and available for replay for one year under the “Investors” tab of mohawkind.com.
INVESTOR CONTACT
Joe Ahlersmeyer, CFA
VP, Finance & Investor Relations
joe_ahlersmeyer@mohawkind.com
| MOHAWK INDUSTRIES, INC. AND SUBSIDIARIES | ||||||||||||||||||||||||||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||||
| (In millions, except per share data) | October 3, 2026 | September 27, 2025 | October 3, 2026 | September 27, 2025 | ||||||||||||||||||||||||||||||||||
| Net sales | $ | 2,786.0 | 2,757.9 | 8,506.1 | 8,085.7 | |||||||||||||||||||||||||||||||||
| Cost of sales | 2,076.3 | 2,103.0 | 6,359.3 | 6,133.2 | ||||||||||||||||||||||||||||||||||
| Gross profit | 709.7 | 654.9 | 2,146.8 | 1,952.5 | ||||||||||||||||||||||||||||||||||
| Selling, general and administrative expenses | 522.0 | 518.2 | 1,593.5 | 1,531.0 | ||||||||||||||||||||||||||||||||||
| Operating income | 187.7 | 136.7 | 553.3 | 421.5 | ||||||||||||||||||||||||||||||||||
| Interest expense | 1.6 | 5.0 | 8.5 | 16.6 | ||||||||||||||||||||||||||||||||||
| Other (income) and expense, net | 2.8 | (0.4) | 4.7 | 2.2 | ||||||||||||||||||||||||||||||||||
| Earnings before income taxes | 183.3 | 132.1 | 540.1 | 402.7 | ||||||||||||||||||||||||||||||||||
| Income tax expense (benefit) | 20.1 | 23.3 | 63.6 | 74.8 | ||||||||||||||||||||||||||||||||||
| Net earnings including noncontrolling interests | 163.2 | 108.8 | 476.5 | 327.9 | ||||||||||||||||||||||||||||||||||
| Less: Net earnings attributable to noncontrolling interests | 0.1 | — | 0.1 | — | ||||||||||||||||||||||||||||||||||
| Net earnings attributable to Mohawk Industries, Inc. | 163.1 | 108.8 | 476.4 | 327.9 | ||||||||||||||||||||||||||||||||||
| Basic earnings per share attributable to Mohawk Industries, Inc. | $ | 2.73 | 1.75 | 7.86 | 5.26 | |||||||||||||||||||||||||||||||||
| Weighted-average common shares outstanding - basic | 59.8 | 62.0 | 60.6 | 62.3 | ||||||||||||||||||||||||||||||||||
| Diluted earnings per share attributable to Mohawk Industries, Inc. | $ | 2.72 | 1.75 | 7.82 | 5.24 | |||||||||||||||||||||||||||||||||
| Weighted-average common shares outstanding - diluted | 60.0 | 62.3 | 60.9 | 62.6 | ||||||||||||||||||||||||||||||||||
| Other Financial Information | ||||||||||||||||||||||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||||
| (In millions) | October 3, 2026 | September 27, 2025 | October 3, 2026 | September 27, 2025 | ||||||||||||||||||||||||||||||||||
| Net cash provided by operating activities | $ | 471.2 | 386.6 | 897.8 | 596.6 | |||||||||||||||||||||||||||||||||
| Less: Capital expenditures | 80.8 | 76.3 | 271.5 | 245.6 | ||||||||||||||||||||||||||||||||||
| Free cash flow | $ | 390.4 | 310.3 | 626.3 | 351.0 | |||||||||||||||||||||||||||||||||
| Depreciation and amortization | $ | 151.3 | 170.3 | 492.5 | 476.3 | |||||||||||||||||||||||||||||||||
| MOHAWK INDUSTRIES, INC. AND SUBSIDIARIES | ||||||||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||||||||
| (Unaudited) | ||||||||||||||
| (In millions) | October 3, 2026 | December 31, 2025 | ||||||||||||
| ASSETS | ||||||||||||||
| Current assets: | ||||||||||||||
| Cash and cash equivalents | $ | 816.8 | 856.1 | |||||||||||
| Receivables, net | 2,125.0 | 1,924.1 | ||||||||||||
| Inventories | 2,591.6 | 2,661.7 | ||||||||||||
| Prepaid expenses and other current assets | 539.8 | 525.2 | ||||||||||||
| Total current assets | 6,073.2 | 5,967.1 | ||||||||||||
| Property, plant and equipment, net | 4,491.4 | 4,772.0 | ||||||||||||
| Right of use operating lease assets | 409.8 | 408.7 | ||||||||||||
| Goodwill | 1,171.0 | 1,210.3 | ||||||||||||
| Intangible assets, net | 782.5 | 813.2 | ||||||||||||
| Deferred income taxes and other non-current assets | 507.2 | 516.0 | ||||||||||||
| Total assets | $ | 13,435.1 | 13,687.3 | |||||||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||
| Current liabilities: | ||||||||||||||
| Short-term debt and current portion of long-term debt | $ | 621.9 | 289.3 | |||||||||||
| Accounts payable and accrued expenses | 2,442.5 | 2,310.4 | ||||||||||||
| Current operating lease liabilities | 116.7 | 122.4 | ||||||||||||
| Total current liabilities | 3,181.1 | 2,722.1 | ||||||||||||
| Long-term debt, less current portion | 1,160.8 | 1,741.2 | ||||||||||||
| Non-current operating lease liabilities | 310.4 | 304.4 | ||||||||||||
| Deferred income taxes and other long-term liabilities | 476.4 | 540.9 | ||||||||||||
| Total liabilities | 5,128.7 | 5,308.6 | ||||||||||||
| Total stockholders' equity | 8,306.4 | 8,378.7 | ||||||||||||
| Total liabilities and stockholders' equity | $ | 13,435.1 | 13,687.3 | |||||||||||
| Segment Information | ||||||||||||||||||||||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||||
| (In millions) | October 3, 2026 | September 27, 2025 | October 3, 2026 | September 27, 2025 | ||||||||||||||||||||||||||||||||||
| Net sales: | ||||||||||||||||||||||||||||||||||||||
| Global Ceramic | $ | 1,128.6 | 1,104.7 | 3,435.7 | 3,219.3 | |||||||||||||||||||||||||||||||||
| Flooring NA | 949.9 | 936.8 | 2,806.0 | 2,746.0 | ||||||||||||||||||||||||||||||||||
| Flooring ROW | 707.5 | 716.4 | 2,264.4 | 2,120.4 | ||||||||||||||||||||||||||||||||||
| Consolidated net sales | $ | 2,786.0 | 2,757.9 | 8,506.1 | 8,085.7 | |||||||||||||||||||||||||||||||||
| Operating income (loss): | ||||||||||||||||||||||||||||||||||||||
| Global Ceramic | $ | 65.6 | 71.6 | 211.1 | 201.5 | |||||||||||||||||||||||||||||||||
| Flooring NA | 71.9 | 54.4 | 173.4 | 116.3 | ||||||||||||||||||||||||||||||||||
| Flooring ROW | 66.0 | 43.8 | 215.2 | 168.3 | ||||||||||||||||||||||||||||||||||
| Corporate and intersegment eliminations | (15.8) | (33.1) | (46.4) | (64.6) | ||||||||||||||||||||||||||||||||||
| Consolidated operating income | $ | 187.7 | 136.7 | 553.3 | 421.5 | |||||||||||||||||||||||||||||||||
| Three Months Ended | ||||||||||||||||||||||||||||||||||||||
| (In millions) | October 3, 2026 | December 31, 2025 | ||||||||||||||||||||||||||||||||||||
| Assets: | ||||||||||||||||||||||||||||||||||||||
| Global Ceramic | $ | 5,321.7 | 5,155.0 | |||||||||||||||||||||||||||||||||||
| Flooring NA | 3,740.0 | 3,832.6 | ||||||||||||||||||||||||||||||||||||
| Flooring ROW | 3,913.2 | 3,989.2 | ||||||||||||||||||||||||||||||||||||
| Corporate and intersegment eliminations | 460.2 | 710.5 | ||||||||||||||||||||||||||||||||||||
| Consolidated assets | $ | 13,435.1 | 13,687.3 | |||||||||||||||||||||||||||||||||||
| Reconciliation of Net Earnings Attributable to Mohawk Industries, Inc. to Adjusted Net Earnings Attributable to Mohawk Industries, Inc. and Adjusted Diluted Earnings Per Share Attributable to Mohawk Industries, Inc. | ||||||||||||||||||||||||||||||||||||||
| Three Months Ended | Nine months ended | |||||||||||||||||||||||||||||||||||||
| (In millions, except per share data) | October 3, 2026 | September 27, 2025 | October 3, 2026 | September 27, 2025 | ||||||||||||||||||||||||||||||||||
| Net earnings attributable to Mohawk Industries, Inc. | $ | 163.1 | 108.8 | 476.4 | 327.9 | |||||||||||||||||||||||||||||||||
| Adjusting items: | ||||||||||||||||||||||||||||||||||||||
| Restructuring, acquisition and integration-related and other costs | 12.4 | 47.2 | 89.0 | 102.9 | ||||||||||||||||||||||||||||||||||
| Software implementation cost write-off | — | — | — | (0.4) | ||||||||||||||||||||||||||||||||||
| Assets sale | — | — | (2.6) | — | ||||||||||||||||||||||||||||||||||
| Legal settlements, reserves and fees | — | 21.6 | 0.1 | 27.1 | ||||||||||||||||||||||||||||||||||
| Adjustments of indemnification asset | 6.6 | (0.3) | 4.6 | (0.5) | ||||||||||||||||||||||||||||||||||
| Income taxes - adjustments of uncertain tax position | (6.6) | 0.3 | (4.6) | 0.5 | ||||||||||||||||||||||||||||||||||
Other tax related items(1) | (7.5) | — | (38.2) | — | ||||||||||||||||||||||||||||||||||
Income tax effect of adjustments | (4.9) | (11.1) | (21.0) | (22.1) | ||||||||||||||||||||||||||||||||||
| Adjusted net earnings attributable to Mohawk Industries, Inc. | $ | 163.1 | 166.5 | 503.7 | 435.4 | |||||||||||||||||||||||||||||||||
| Adjusted diluted earnings per share attributable to Mohawk Industries, Inc. | $ | 2.72 | 2.67 | 8.27 | 6.96 | |||||||||||||||||||||||||||||||||
| Weighted-average common shares outstanding - diluted | 60.0 | 62.3 | 60.9 | 62.6 | ||||||||||||||||||||||||||||||||||
(1) Includes a one-time U.S. tax benefit associated with a legal entity restructuring initiative, tax credits issued by the Brazilian government related to prior years and a non-recurring tax benefit related to a U.S. tax election.
| Reconciliation of Total Debt to Net Debt | |||||
| (In millions) | October 3, 2026 | ||||
| Short-term debt and current portion of long-term debt | $ | 621.9 | |||
| Long-term debt, less current portion | 1,160.8 | ||||
| Total debt | 1,782.7 | ||||
| Less: Cash and cash equivalents | 816.8 | ||||
| Net debt | $ | 965.9 | |||
| Reconciliation of Net Earnings to Adjusted EBITDA | ||||||||||||||||||||||||||||||||
| Trailing Twelve | ||||||||||||||||||||||||||||||||
| Three Months Ended | Months Ended | |||||||||||||||||||||||||||||||
| (In millions) | December 31, 2025 | April 4, 2026 | July 4, 2026 | October 3, 2026 | October 3, 2026 | |||||||||||||||||||||||||||
| Net earnings including noncontrolling interests | $ | 42.0 | 117.1 | 196.1 | 163.2 | 518.4 | ||||||||||||||||||||||||||
| Interest expense | 1.2 | 2.4 | 4.8 | 1.6 | 10.0 | |||||||||||||||||||||||||||
| Income tax expense (benefit) | 24.0 | (8.9) | 52.3 | 20.1 | 87.5 | |||||||||||||||||||||||||||
Depreciation and amortization(1) | 176.3 | 181.8 | 159.3 | 151.3 | 668.7 | |||||||||||||||||||||||||||
| EBITDA | 243.5 | 292.4 | 412.5 | 336.2 | 1,284.6 | |||||||||||||||||||||||||||
| Restructuring, acquisition and integration-related and other costs | 25.6 | 7.6 | 29.0 | 10.6 | 72.8 | |||||||||||||||||||||||||||
| Assets sale | (5.1) | — | (2.6) | — | (7.7) | |||||||||||||||||||||||||||
| Inventory capitalization | (6.2) | — | — | — | (6.2) | |||||||||||||||||||||||||||
| Impairment of goodwill and indefinite-lived intangibles | 19.9 | — | — | — | 19.9 | |||||||||||||||||||||||||||
| Legal settlements, reserves and fees | 23.8 | 0.1 | — | — | 23.9 | |||||||||||||||||||||||||||
| Adjustments of indemnification asset | (0.3) | (0.3) | (1.7) | 6.6 | 4.3 | |||||||||||||||||||||||||||
| Adjusted EBITDA | $ | 301.2 | 299.8 | 437.2 | 353.4 | 1,391.6 | ||||||||||||||||||||||||||
| Net debt to adjusted EBITDA | 0.7 | |||||||||||||||||||||||||||||||
(1)Includes accelerated depreciation of $25.9 for Q4 2025, $30.0 for Q1 2026, $10.0 for Q2 2026 and $1.8 for Q3 2026.
| Reconciliation of Net Sales to Adjusted Net Sales | ||||||||||||||||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||
| (In millions) | October 3, 2026 | October 3, 2026 | ||||||||||||||||||||||||||||||
| Mohawk Consolidated | ||||||||||||||||||||||||||||||||
| Net sales | $ | 2,786.0 | 8,506.1 | |||||||||||||||||||||||||||||
| Adjustment for constant shipping days | (37.5) | (167.5) | ||||||||||||||||||||||||||||||
| Adjustment for constant exchange rates | (2.1) | (190.1) | ||||||||||||||||||||||||||||||
| Adjusted net sales | $ | 2,746.4 | 8,148.5 | |||||||||||||||||||||||||||||
| Three Months Ended | ||||||||||||||||||||||||||
| October 3, 2026 | ||||||||||||||||||||||||||
| Global Ceramic | ||||||||||||||||||||||||||
| Net sales | $ | 1,128.6 | ||||||||||||||||||||||||
| Adjustment for constant shipping days | (11.5) | |||||||||||||||||||||||||
| Adjustment for constant exchange rates | (5.4) | |||||||||||||||||||||||||
| Adjusted net sales | $ | 1,111.7 | ||||||||||||||||||||||||
| Flooring NA | ||||||||||||||||||||||||||
| Net sales | $ | 949.9 | ||||||||||||||||||||||||
| Adjustment for constant shipping days | (14.9) | |||||||||||||||||||||||||
| Adjusted net sales | $ | 935.0 | ||||||||||||||||||||||||
| Flooring ROW | ||||||||||||||||||||||||||
| Net sales | $ | 707.5 | ||||||||||||||||||||||||
| Adjustment for constant shipping days | (11.1) | |||||||||||||||||||||||||
| Adjustment for constant exchange rates | 3.2 | |||||||||||||||||||||||||
| Adjusted net sales | $ | 699.6 | ||||||||||||||||||||||||
| Reconciliation of Gross Profit to Adjusted Gross Profit | ||||||||||||||||||||||||||
| Three Months Ended | ||||||||||||||||||||||||||
| (In millions) | October 3, 2026 | September 27, 2025 | ||||||||||||||||||||||||
| Gross Profit | $ | 709.7 | 654.9 | |||||||||||||||||||||||
| Adjustments to gross profit: | ||||||||||||||||||||||||||
| Restructuring, acquisition and integration-related and other costs | 10.4 | 44.1 | ||||||||||||||||||||||||
| Adjusted gross profit | $ | 720.1 | 699.0 | |||||||||||||||||||||||
| Adjusted gross profit as a percent of net sales | 25.8 | % | 25.3 | % | ||||||||||||||||||||||
| Reconciliation of Selling, General and Administrative Expenses to Adjusted Selling, General and Administrative Expenses | ||||||||||||||
| Three Months Ended | ||||||||||||||
| (In millions) | October 3, 2026 | September 27, 2025 | ||||||||||||
| Selling, general and administrative expenses | $ | 522.0 | 518.2 | |||||||||||
| Adjustments to selling, general and administrative expenses: | ||||||||||||||
| Restructuring, acquisition and integration-related and other costs | (2.0) | (3.1) | ||||||||||||
| Legal settlements, reserves and fees | — | (21.6) | ||||||||||||
| Adjusted selling, general and administrative expenses | $ | 520.0 | 493.5 | |||||||||||
| Adjusted selling, general and administrative expenses as a percent of net sales | 18.7 | % | 17.9 | % | ||||||||||
| Reconciliation of Operating Income to Adjusted Operating Income | ||||||||||||||||||||||||||
| Three Months Ended | ||||||||||||||||||||||||||
| (In millions) | October 3, 2026 | September 27, 2025 | ||||||||||||||||||||||||
| Mohawk Consolidated | ||||||||||||||||||||||||||
| Operating income | $ | 187.7 | 136.7 | |||||||||||||||||||||||
| Adjustments to operating income: | ||||||||||||||||||||||||||
| Restructuring, acquisition and integration-related and other costs | 12.4 | 47.2 | ||||||||||||||||||||||||
| Legal settlements, reserves and fees | — | 21.6 | ||||||||||||||||||||||||
| Adjusted operating income | $ | 200.1 | 205.5 | |||||||||||||||||||||||
| Adjusted operating income as a percent of net sales | 7.2 | % | 7.5 | % | ||||||||||||||||||||||
| Global Ceramic | ||||||||||||||||||||||||||
| Operating income | $ | 65.6 | 71.6 | |||||||||||||||||||||||
| Adjustments to segment operating income: | ||||||||||||||||||||||||||
| Restructuring, acquisition and integration-related and other costs | 7.9 | 18.2 | ||||||||||||||||||||||||
| Adjusted segment operating income | $ | 73.5 | 89.8 | |||||||||||||||||||||||
| Adjusted segment operating income as a percent of net sales | 6.5 | % | 8.1 | % | ||||||||||||||||||||||
| Flooring NA | ||||||||||||||||||||||||||
| Operating income | $ | 71.9 | 54.4 | |||||||||||||||||||||||
| Adjustments to segment operating income: | ||||||||||||||||||||||||||
| Restructuring, acquisition and integration-related and other costs | 4.9 | 13.5 | ||||||||||||||||||||||||
| Adjusted segment operating income | $ | 76.8 | 67.9 | |||||||||||||||||||||||
| Adjusted segment operating income as a percent of net sales | 8.1 | % | 7.2 | % | ||||||||||||||||||||||
| Three Months Ended | ||||||||||||||||||||||||||
| October 3, 2026 | September 27, 2025 | |||||||||||||||||||||||||
| Flooring ROW | ||||||||||||||||||||||||||
| Operating income | $ | 66.0 | 43.8 | |||||||||||||||||||||||
| Adjustments to segment operating income: | ||||||||||||||||||||||||||
| Restructuring, acquisition and integration-related and other costs | (0.4) | 15.5 | ||||||||||||||||||||||||
| Adjusted segment operating income | $ | 65.6 | 59.3 | |||||||||||||||||||||||
| Adjusted segment operating income as a percent of net sales | 9.3 | % | 8.3 | % | ||||||||||||||||||||||
| Corporate and intersegment eliminations | ||||||||||||||||||||||||||
| Operating (loss) | $ | (15.8) | (33.1) | |||||||||||||||||||||||
| Adjustments to segment operating (loss): | ||||||||||||||||||||||||||
| Legal settlements, reserves and fees | — | 21.6 | ||||||||||||||||||||||||
| Adjusted segment operating (loss) | $ | (15.8) | (11.5) | |||||||||||||||||||||||
| Reconciliation of Earnings Before Income Taxes to Adjusted Earnings Before Income Taxes | ||||||||||||||||||||||||||||||||||||||
| Three Months Ended | ||||||||||||||||||||||||||||||||||||||
| (In millions) | October 3, 2026 | September 27, 2025 | ||||||||||||||||||||||||||||||||||||
| Earnings before income taxes | $ | 183.3 | 132.1 | |||||||||||||||||||||||||||||||||||
| Adjustments to earnings including noncontrolling interests before income taxes: | ||||||||||||||||||||||||||||||||||||||
| Restructuring, acquisition and integration-related and other costs | 12.4 | 47.2 | ||||||||||||||||||||||||||||||||||||
| Legal settlements, reserves and fees | — | 21.6 | ||||||||||||||||||||||||||||||||||||
| Adjustments of indemnification asset | 6.6 | (0.3) | ||||||||||||||||||||||||||||||||||||
| Adjusted earnings before income taxes | $ | 202.3 | 200.6 | |||||||||||||||||||||||||||||||||||
| Reconciliation of Income Tax Expense to Adjusted Income Tax Expense | |||||||||||||||||||||||||||||
| Three Months Ended | |||||||||||||||||||||||||||||
| (In millions) | October 3, 2026 | September 27, 2025 | |||||||||||||||||||||||||||
| Income tax expense (benefit) | $ | 20.1 | 23.3 | ||||||||||||||||||||||||||
| Adjustments to income tax expense: | |||||||||||||||||||||||||||||
| Income taxes - adjustments of uncertain tax position | 6.6 | (0.3) | |||||||||||||||||||||||||||
| Other tax related items | 7.5 | — | |||||||||||||||||||||||||||
| Income tax effect of adjusting items | 4.9 | 11.1 | |||||||||||||||||||||||||||
| Adjusted income tax expense | $ | 39.1 | 34.1 | ||||||||||||||||||||||||||
| Adjusted income tax expense to adjusted earnings before income taxes | 19.3% | 17.0% | |||||||||||||||||||||||||||
US GAAP to non-GAAP presentation
The Company supplements its condensed consolidated financial statements, which are prepared and presented in accordance with US GAAP, with certain non-GAAP financial measures. As required by the Securities and Exchange Commission rules, the tables above present a reconciliation of the Company’s non-GAAP financial measures to the most directly comparable US GAAP measure. Each of the non-GAAP measures set forth above should be considered in addition to the comparable US GAAP measure, and may not be comparable to similarly titled measures reported by other companies. The Company believes these non-GAAP measures, when reconciled to the corresponding US GAAP measure, help its investors as follows: Non-GAAP revenue measures that assist in identifying growth trends and in comparisons of revenue with prior and future periods and non-GAAP profitability measures that assist in understanding the long-term profitability trends of the Company's business and in comparisons of its profits with prior and future periods.
The Company excludes certain items from its non-GAAP revenue measures because these items can vary dramatically between periods and can obscure underlying business trends. Items excluded from the Company’s non-GAAP revenue measures include: foreign currency transactions and translation; more or fewer shipping days in a period and the impact of acquisitions.
The Company excludes certain items from its non-GAAP profitability measures because these items may not be indicative of, or are unrelated to, the Company's core operating performance. Items excluded from the Company's non-GAAP profitability measures include: restructuring, acquisition and integration-related and other costs, legal settlements, reserves and fees, impairment of goodwill and indefinite-lived intangibles, acquisition purchase accounting, including inventory step-up from purchase accounting, adjustments of indemnification asset, adjustments of uncertain tax position and European tax restructuring.
MOHAWK INDUSTRIES INTRODUCES STRATEGIC AND CAPITAL ALLOCATION FRAMEWORK AND ANNOUNCES NEW $500 MILLION SHARE REPURCHASE AUTHORIZATION
Calhoun, Georgia, October 29, 2026 — Mohawk Industries, Inc. (NYSE: MHK), the world’s largest flooring and design surfaces company, today introduced the strategic and capital allocation framework that will guide the Company’s priorities and shareholder value creation approach over the long term.
The framework was developed by management in collaboration with the Board of Directors, which has approved the plan. Consistent with the framework’s priorities, the Board has also approved a new share repurchase program authorizing the Company to repurchase up to $500 million of its common stock. Management will discuss the framework in more detail on the Company’s third quarter 2026 earnings conference call on Friday, October 30, 2026.
Commenting on the updates, CEO Paul De Cock stated, “Mohawk’s strengths – our leading market positions, our recognized brands, our innovation expertise, our customer relationships, and the scale and efficiency of our manufacturing and distribution – remain firmly in place. Amplifying our strengths with a clear and defined strategic and capital allocation framework will sharpen our focus, support disciplined execution, and underpin strong cash generation. We will strategically invest to grow and will deploy excess free cash to create value for shareholders through buybacks.”
STRATEGIC FRAMEWORK
The Company is aligning its actions and investments around a strategic framework comprising four pillars:
•Outperforming our Markets
•Product Innovation and Brand Strength
•Profitability and Operational Excellence
•Cash Generation and Capital Discipline
These goals and underlying actions are in support of delivering more value to customers and more value per share to investors.
CAPITAL ALLOCATION FRAMEWORK
To support the Company's strategy execution, management is also introducing a capital allocation framework based on the following priorities:
•Organic Investment: Invest in the highest-returning organic opportunities that sustain its core strengths, with limited need for additional capacity and baseline capital expenditures expected to be approximately $375 million annually for at least the next several years.
•Inorganic Investment: Disciplined evaluation of bolt-on acquisitions, executed only where they generate the highest returns and bring strategic value beyond the financial return.
•Share Repurchases: Consistent return to shareholders, through share repurchases, of capital not deployed in support of these priorities.
In addition, the Company seeks to maintain a strong and efficient balance sheet with a long-term net debt to adjusted EBITDA target of up to 2.0x, subject to a continuous assessment of cyclical risk and the Company’s commitment to its investment-grade credit ratings.
SHARE REPURCHASE AUTHORIZATION
The Company is announcing a new $500 million share repurchase program, effective immediately, which follows the completion of its prior $500 million authorization, approved in July 2025.
Under the prior program, the Company repurchased approximately 7% of shares outstanding at an average price of approximately $119 per share, including $261 million of repurchases in the third quarter of 2026 and $34 million in the fourth quarter to date.
Under the new authorization, the Company may purchase common stock in open market transactions, block or privately negotiated transactions, pursuant to trading plans in accordance with Rule 10b5-1 and Rule 10b-18 under the Securities Exchange Act of 1934, as amended, or by any combination of such methods. The timing and amount of repurchases will depend on the Company’s cash generation, net leverage, market conditions, the price of the Company’s common stock and other factors. No time limit has been set for
completion of the program, which does not obligate the Company to repurchase any specific number of shares and may be suspended or discontinued at any time.
ABOUT MOHAWK INDUSTRIES
Over the past two decades, Mohawk Industries has transformed its business into the world’s largest flooring and design surfaces company with leading positions in North America, Europe, South America and Oceania. Mohawk’s vertically integrated manufacturing and distribution operations provide a competitive advantage in the production of ceramic tile, carpet and laminate, wood, vinyl and hybrid flooring products. Mohawk’s industry-leading innovation has yielded designs and performance enhancements that differentiate its collections in the marketplace and satisfy all residential and commercial remodeling and new construction requirements. The Company’s brands are among the most recognized and respected in the industry and include American Olean, Daltile, Durkan, Eliane, Elizabeth, Feltex, Godfrey Hirst, Karastan, Marazzi, Mohawk, Mohawk Group, Mohawk Home, Mohawk Performance Accessories, Pergo, Quick-Step, Unilin and Vitromex.
Certain of the statements in this press release, particularly those anticipating future performance, business prospects, growth and operating strategies, and similar matters, and those that include the words “could,” “should,” “believes,” “anticipates,” “expects” and “estimates” or similar expressions constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. For those statements, Mohawk Industries, Inc. (“Mohawk” or the “Company”) claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Management believes that these forward-looking statements are reasonable as and when made; however, caution should be taken not to place undue reliance on any such forward-looking statements because such statements speak only as of the date when made. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. There can be no assurance that the forward-looking statements will be accurate because they are based on many assumptions, which involve risks and uncertainties. Important factors that could cause future results to differ from historical experience and our present expectations or projections include, but are not limited to, the following: changes in economic or industry conditions, including interest rates, availability of credit and residential and commercial construction and remodeling activity; the impact of tariffs and other trade restrictions; competition; inflation and deflation in raw material prices, freight and other input costs; inflation and deflation in consumer markets; currency fluctuations; rising energy costs and changes in the level of supply thereof; supply chain disruption and the availability of raw materials and sourced products; labor availability and costs; timing and level of capital expenditures; timing and implementation of price increases for the Company’s products; impairment charges; identification and consummation of acquisitions on favorable terms, if at all; integration of acquisitions; international operations; introduction of new products; rationalization of operations; tax and tax reform, product and other claims; litigation; geopolitical conflicts; sanctions and import and export restrictions; regulatory and political changes in the jurisdictions in which the Company does business; security breaches and other cybersecurity incidents; emerging issues related to the Company’s integration and use of AI; and other risks identified in Mohawk’s United States Securities and Exchange Commission reports and public announcements.
Conference call Friday, October 30, 2026, at 11:00 AM Eastern Time
To participate in the conference call via the Internet, please visit https://ir.mohawkind.com/events/event-details/mohawk-industries-inc-3rd-quarter-2026-earnings-call. To participate in the conference call via telephone, register in advance at https://dpregister.com/sreg/10211917/104de4a22d1 to receive a unique personal identification number. You may also dial 1-833-630-1962 (U.S./Canada) or 1-412-317-1843 (international) on the day of the call for operator assistance. For those unable to listen at the designated time, the call will remain available for replay through November 27, 2026, by dialing 1-855-669-9658 (U.S./Canada) or 1-412-317-0088 (international) and entering Replay Access Code 7228212. The call will be archived and available for replay for one year under the “Investors” tab of mohawkind.com.
INVESTOR CONTACT
Joe Ahlersmeyer, CFA
VP, Finance & Investor Relations
joe_ahlersmeyer@mohawkind.com