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.

"All of our markets face a shortage of available housing as supply has failed to keep pace with household formation. To meet growing demand, new home construction and remodeling must expand, which will also lower housing inflation pressures. Most central banks have shifted from prioritizing inflation reduction to stimulating economic growth. Declining interest rates in the U.S. and around the world should gradually encourage increased home sales and remodeling. While we believe these actions will benefit the housing market over time, we remain focused on optimizing the controllable aspects of our business, including our sales strategies, product innovation and operational productivity. Our previously announced restructuring initiatives continue to benefit our results by streamlining our operations and reducing our cost structure. We are leveraging the scope of our product portfolio, distribution advantages and industry-leading brands to expand our relationships with current and new customers. Our product mix continues to benefit from our premium collections and commercial sales, which is mitigating some of the pricing pressures in our markets. We are managing the impact of tariffs on our U.S. imported product offering through pricing actions and supply chain optimization, and we are reinforcing the value of our domestic manufacturing. Based on current trends in our regions, we believe that market volume should remain soft through the end of the year. Given these factors, we expect our fourth quarter adjusted EPS will be between $1.90 and $2.00 with one additional shipping day and excluding any restructuring or other one-time charges."