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, Ga., Oct. 29, 2026 (GLOBE NEWSWIRE) — Mohawk Industries, Inc. (NYSE: MHK), the worlds largest flooring and design surfaces company, today announced earnings for the third quarter of 2026. Commenting on the Companys 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 Companys 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 Companys 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 Companys 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 worlds largest flooring and design surfaces company with leading positions in North America, Europe, South America and Oceania. Mohawks 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. Mohawks 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 Companys 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 Companys 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 Mohawks 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

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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