Mohawk's Q3 Sales Up 1.4%, Earnings Down 32.7%

Calhoun, GA, October 23, 2025-Mohawk Industries announced Q3 2025 net sales were $2.8 billion, up 1.4% from net sales of $2.7 billion in the same period last year. For Q3 2025, net earnings were $109 million, a decline of 32.7% compared with net earnings of $162 million in Q3 2024.

Net sales for the first nine months of 2025 were $8.1 billion, a decrease of 1.4% versus the prior year from $8.2 billion in the first nine months of 2024. For the nine months of 2025, net earnings were $328 million, compared to net earnings of $425 million in the same period last year, a 22.8% decline.

Net sales in the Global Ceramic Segment increased by 4.4% to $1.10 billion in Q3 2025 from $1.06 billion in the same period last year.

Net sales in the Flooring North America were $936.8 million in Q3 2025, down 3.8% from $974 million last year’s third quarter.

Net sales in the Flooring Rest of World Segment rose 4.3% to $716.4 million, versus the prior year’s $678 million.

Commenting on the company’s third quarter, chairman and CEO Jeff Lorberbaum stated, “Our net sales in the quarter were in line with our expectations, slightly ahead of prior year as reported. Though economic conditions across our regions weakened more than anticipated compared to the prior quarter, we believe we outperformed our markets. Our sales and product mix continued to benefit from the success of our premium residential and commercial offering and collections introduced during the past two years. Our results reflected benefits from ongoing productivity and restructuring initiatives as well as the impact of favorable currency exchange and lower interest expense, offset by higher input costs and temporary plant shutdowns. Across our markets, material and energy expenses are now improving from peak levels, though higher costs from earlier in the year will continue to impact our fourth quarter earnings.

“With our markets remaining challenged, we are executing targeted actions across the organization to drive performance, such as operational enhancements, administrative process improvements and technology advancements. We are lowering our cost structure without impacting our long-term growth potential when the market recovers. We have identified additional restructuring opportunities to rationalize less efficient assets and streamline logistics operations and administrative functions across our segments. These new actions will result in annualized savings of approximately $32 million at a net cash cost of approximately $20 million after asset sales. Combined with our previously announced restructuring actions, we anticipate delivering $110 million in savings this year.

“During the quarter, we continued to focus on our working capital management and generated approximately $310 million in free cash flow. We repurchased 315,000 shares in the quarter for approximately $40 million as part of our current stock buyback authorization. Year to date, we have purchased $108 million of our outstanding shares.

“Our industry is currently at various stages of passing through the impact of higher tariffs on imported products and should compensate for the increased product cost over time. As previously stated, we continue to address the situation by optimizing our supply chain and implementing price adjustments on affected product categories. Ocean freight costs have been declining and are partially offsetting the tariff impact for U.S. importers. Based on recent changes, engineered wood and laminate imports will now be subject to reciprocal tariffs like other flooring categories, which should benefit domestically produced products. Because the evolving tariff situation will require some time to reach equilibrium, we will continue to adjust our strategies with changing rates and market conditions.”