Mohawk Industries Inc 10-Q for FY2026 Q3

Mohawk Industries Inc (MHK)

10-Q 2026-10-30 For: 2026-10-03

Added on October 30, 2026

About this 10-Q

Mohawk Industries Inc filed this 10-Q on October 30, 2026, covering the quarter ended October 3, 2026 (FY2026 Q3).

Mohawk Industries, Inc. reported quarterly net sales of $2,786.0 million and net earnings attributable to the Company of $163.1 million, plus $67.0 million in IEEPA tariff refunds as of October 3, 2026, and authorized a new $500 million share repurchase program. AI summary

Headline figures

Quarter ended October 3, 2026, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $2.79B; up 1.0% from $2.76B a year earlier
Net income: $163.1M; up 49.9% from net income of $108.8M a year earlier
Diluted EPS: $2.72; up 55.4% from $1.75 a year earlier

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Title of Each Class	Trading Symbol	Name of Each Exchange on Which Registered
Common Stock, $.01 par value	MHK	New York Stock Exchange


		Page No
	Forward Looking Statements	4

Part I.	FINANCIAL INFORMATION

Item 1.	Financial Statements (unaudited)

	Condensed Consolidated Statements of Operations for the three and nine months ended October 3, 2026 and September 27, 2025	5

	Condensed Consolidated Statements of Comprehensive Income (Loss) for the three and nine months ended October 3, 2026 and September 27, 2025	6

	Condensed Consolidated Balance Sheets as of October 3, 2026 and December 31, 2025	7

	Condensed Consolidated Statements of Cash Flows for the nine months ended October 3, 2026 and September 27, 2025	8

	Notes to the Condensed Consolidated Financial Statements	9

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	28

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	37

Item 4.	Controls and Procedures	38

Part II.	OTHER INFORMATION

Item 1.	Legal Proceedings	39

Item 1A.	Risk Factors	39

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	39

Item 3.	Defaults Upon Senior Securities	39

Item 4.	Mine Safety Disclosures	40

Item 5.	Other Information	41

Item 6.	Exhibits	42


	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	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


	Three Months Ended			Nine Months Ended
(In millions)	October 3, 2026		September 27, 2025		October 3, 2026	September 27, 2025
Net earnings including noncontrolling interests	$	163.2	108.8		476.5	327.9
Other comprehensive income (loss):
Foreign currency translation adjustments	(146.0)		(32.1)		(176.7)	548.8

Other comprehensive income (loss)	(146.0)		(32.1)		(176.7)	548.8
Comprehensive income	17.2		76.7		299.8	876.7
Less: comprehensive income (loss) attributable to noncontrolling interests	0.1		(0.1)		(1.2)	0.5
Comprehensive income attributable to Mohawk Industries, Inc.	$	17.1	76.8		301.0	876.2


(In millions, except par value and preferred stock shares)	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	531.0		512.2

Other current assets	8.8		13.0
Total current assets	6,073.2		5,967.1
Property, plant, and equipment, at cost	10,869.9		11,032.0
Less: accumulated depreciation and amortization	6,378.5		6,260.0
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
Tradenames	682.0		695.8
Other intangible assets subject to amortization, net	100.5		117.4
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
Deferred income taxes	129.3		185.4
Long-term debt, less current portion	1,160.8		1,741.2
Non-current operating lease liabilities	310.4		304.4
Other long-term liabilities	347.1		355.5
Total liabilities	$	5,128.7	5,308.6
Commitments and contingencies (Note 15)

Stockholders’ equity:
Preferred stock, $.01 par value; 60,000 shares authorized; no shares issued	$	–	–
Common stock, $.01 par value; 150.0 shares authorized; 65.8 and 68.8 shares issued in 2026 and 2025, respectively	0.7		0.7
Additional paid-in capital	2,008.9		1,992.6
Retained earnings	7,591.0		7,503.1
Accumulated other comprehensive income (loss)	(1,083.3)		(907.9)
	8,517.3		8,588.5
Less: treasury stock at cost; 7.3 shares in 2026 and 2025	215.0		215.2
Total Mohawk Industries, Inc. stockholders' equity	8,302.3		8,373.3
Noncontrolling interests	4.1		5.4
Total stockholders' equity	8,306.4		8,378.7
Total liabilities and stockholders' equity	$	13,435.1	13,687.3


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934



(In millions)
October 3, 2026	Global Ceramic		Flooring NA	Flooring ROW	Total
Geographical Markets:
United States	$	600.7	923.5	4.2	1,528.4
Europe	297.6		0.7	530.8	829.1
Latin America	185.1		1.5	14.7	201.3
Other	45.2		24.2	157.8	227.2
Total	$	1,128.6	949.9	707.5	2,786.0

Product Categories:
Ceramic & Stone	$	1,109.6	–	–	1,109.6
Carpet & Resilient	19.0		737.5	202.2	958.7
Laminate & Wood	–		212.4	229.3	441.7
Other (1)	–		–	276.0	276.0
Total	$	1,128.6	949.9	707.5	2,786.0


(In millions)	Lease impairments		Asset write-downs and gains on disposals	Severance	Other restructuring costs	Total
Balance as of July 4, 2026	$	—	—	21.1	—	21.1
Restructuring costs
Global Ceramic	0.1		1.0	(1.0)	7.7	7.8
Flooring NA	—		3.3	1.0	0.6	4.9
Flooring ROW	—		(1.0)	(0.4)	1.0	(0.4)

Total restructuring costs	0.1		3.3	(0.4)	9.3	12.3
Cash payments	—		4.7	(3.8)	(1.8)	(0.9)
Non-cash items	(0.1)		(8.0)	(0.5)	(7.5)	(16.1)
Balance as of October 3, 2026	$	–	–	16.4	–	16.4


Restructuring costs recorded in:
Cost of sales	$	0.1	2.0	(0.3)	8.6	10.4
Selling, general and administrative expenses	–		1.3	(0.1)	0.7	1.9
Total restructuring costs	$	0.1	3.3	(0.4)	9.3	12.3


(In millions)	Tradenames
Balance as of December 31, 2025	$	695.8


Currency translation during the period	(13.8)
Balance as of October 3, 2026	$	682.0


(In millions)	Customer Relationships		Patents	Other	Total











Balances as of December 31, 2025
Gross carrying amount	$	716.2	265.8	9.1	991.1
Intangible assets acquired	–		–	0.9	0.9
Accumulated amortization	(607.2)		(264.5)	(2.9)	(874.6)
Net intangible assets subject to amortization	109.0		1.3	7.1	117.4
Balance as of October 3, 2026
Gross carrying amount	698.3		254.6	17.5	970.4

Accumulated amortization	(612.0)		(254.0)	(3.9)	(869.9)
Net intangible assets subject to amortization	$	86.3	0.6	13.6	100.5


(In millions)	Foreign Currency Translation Adjustment		Prior Pension and Post-Retirement Benefit Service Cost and Actuarial Gain (Loss)	Total
Balance as of December 31, 2025	$	(908.6)	0.7	(907.9)
Current period other comprehensive income (loss)	(175.4)		–	(175.4)

Balance as of October 3, 2026	$	(1,084.0)	0.7	(1,083.3)


Period	Total Number of Shares Purchased in Millions	Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plan in Millions(1)	Approximate Dollar Value of Shares That May Yet Be Purchased Under the Plan in Millions(1)
July 5 through August 7, 2026	–	$	–	–	$	295.6
August 8 through September 4, 2026	1.2	$	132.7	1.2	$	133.0
September 5 through October 3, 2026	0.8	$	126.3	0.8	$	34.4
Total	2.0	$	130.2	2.0


No.						Description

3.1						Restated Certificate of Incorporation of Mohawk, as amended. (Incorporated herein by reference to Exhibit 3.1 in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 1998.)
3.2						Amended and Restated Bylaws of Mohawk. (Incorporated herein by reference to Exhibit 3.1 in the Company’s Report on Form 8-K dated October 31, 2024.)
10.1						Form of Restricted Stock Unit Award Agreement under the Mohawk Industries, Inc. 2026 Incentive Plan.
31.1						Certification Pursuant to Rule 13a-14(a).
31.2						Certification Pursuant to Rule 13a-14(a).
32.1						Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2						Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
95.1						Mine Safety Disclosure pursuant to Section 1503(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act
101.SCH						XBRL Taxonomy Extension Schema Document.
101.CAL						XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF						XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB						XBRL Taxonomy Extension Label Linkbase Document.
101.PRE						XBRL Taxonomy Extension Presentation Linkbase Document.
104						Cover Page Interactive Data File (embedded within the Inline XBRL document and contained in Exhibit 101)


1		I have reviewed this quarterly report on Form 10-Q of Mohawk Industries, Inc.;
2		Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3		Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4		The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
	(a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
	(b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
	(c)	Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
	(d)	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5		The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
	(a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
	(b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.


	Nine Months Ended
(In millions)	October 3, 2026		September 27, 2025
Cash flows from operating activities:
Net earnings including noncontrolling interests	$	476.5	327.9
Adjustments to reconcile net earnings to net cash provided by operating activities:
Restructuring, excluding accelerated depreciation	44.7		75.6



Depreciation and amortization	492.5		476.3
Deferred income taxes	(50.3)		(75.0)

(Gain) loss on disposal of property, plant and equipment	14.6		(4.8)
Stock-based compensation expense	22.7		22.6

Changes in operating assets and liabilities, net of effects of acquisitions:
Receivables, net	(239.5)		(313.3)

Inventories	25.3		(75.2)
Accounts payable and accrued expenses	150.1		161.2
Other assets and prepaid expenses	(33.6)		(19.1)


Other liabilities	(5.2)		20.4
Net cash provided by operating activities	897.8		596.6
Cash flows from investing activities:
Additions to property, plant and equipment	(271.5)		(245.6)
Divestitures	6.7		–





Net cash used in investing activities	(264.8)		(245.6)
Cash flows from financing activities:
Payments on Senior Credit Facility	(195.8)		(413.0)
Proceeds from Senior Credit Facility	195.8		429.9
Payments on commercial paper	(10,051.6)		(7,666.4)
Proceeds from commercial paper	9,820.7		7,251.0


(In millions)	October 3, 2026		December 31, 2025
Finished goods	$	1,864.8	1,926.2
Work in process	140.4		129.8
Raw materials	586.4		605.7
Total inventories	$	2,591.6	2,661.7


(In millions)	October 3, 2026		December 31, 2025
Outstanding checks in excess of cash	$	2.8	3.7
Accounts payable, trade	1,198.8		1,088.9
Accrued expenses	870.3		896.7
Product warranties	21.9		22.3
Accrued interest	12.8		19.2


Accrued compensation and benefits	335.9		279.6
Total accounts payable and accrued expenses	$	2,442.5	2,310.4


	October 3, 2026			December 31, 2025

(In millions)	Fair Value		Carrying Value		Fair Value	Carrying Value
1.75% Senior Notes, payable June 12, 2027; interest payable annually	$	556.7	562.7		581.0	587.4
3.625% Senior Notes, payable May 15, 2030; interest payable semi-annually	467.1		500.0		485.0	500.0
5.85% Senior Notes, payable September 18, 2028; interest payable semi-annually	605.8		600.0		624.0	600.0




United States commercial paper	35.0		35.0		155.0	155.0
European commercial paper	–		–		111.6	111.6
Senior Credit Facility, payable May 12, 2031	–		–		–	–



Finance leases and other	89.5		89.5		82.8	82.8
Unamortized debt issuance costs	(4.5)		(4.5)		(6.3)	(6.3)
Total debt	1,749.6		1,782.7		2,033.1	2,030.5
Less: current portion of long-term debt and commercial paper	621.9		621.9		289.3	289.3
Long-term debt, less current portion	$	1,127.7	1,160.8		1,743.8	1,741.2


/s/ Nicholas P. Manthey
Nicholas P. Manthey
Chief Financial Officer


1			The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
2			The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.