Mohawk's Q4 Sales Rose 2.4%, Earnings Down 53%
Calhoun, GA, February 13, 2026-Mohawk reported net sales of $2.7 billion for Q4 2025, an increase of 2.4% from $2.6 billion in the same quarter of 2024.
Net earnings for Q4 2025 were $42 million, a 53% decline compared to $90.2 million in Q4 2024.
For fiscal year 2025, net sales were $10.79 billion, down less than 1% from the prior year’s $10.84 billion.
For the year, earnings were $369.9 million, a 28% decline compared to 514.8 million in the prior year.
Net sales for the global ceramic segment for Q4 2025 was $1.07 billion, a 5.8% increase compared to $1.01 billion the prior year. For the year, global ceramic net sales rose 1.5% from $4.23 billion to $4.29 billion.
For Flooring NA (North America), Q4 2025 sales were $892.5, a decline of 4.8% from $937.2 in the prior year. For the fiscal year, sales were $3.64 billion, a 3.4% decline compared to $3.77 billion the prior year.
Flooring ROW (Rest of World) sales were $2.7 billion in Q4 2025, an increase of 2.4% from the Q4 2024’s $2.64 billion. For the fiscal year, sales rose less than 1% to $2.86 billion from $2.84 billion the prior year.
Commenting on the company’s fourth quarter and full year performance, chairman and CEO Jeff Lorberbaum stated, “Our results for the quarter were in line with our expectations as our earnings benefited from productivity, restructuring initiatives, product mix and lower interest expense, partially offset by market pricing pressures and increased input costs. We managed the impact of U.S. tariffs, covering the cost as planned. Across our markets, commercial demand remained stable, though continued weakness in housing turnover and sluggish new home construction in the U.S. impacted our volume. For the year, we generated free cash flow of approximately $621 million and repurchased approximately 1.3 million shares of our stock for approximately $150 million as part of our current stock buyback authorization. Approximately 55% of our 2025 sales were in the U.S., 30% were in Europe and 15% were in other geographies.
“The fourth quarter reflected a continuation of macroeconomic factors our industry has faced since the second half of 2022. With weak consumer confidence, many large discretionary investments such as home renovations continued to be postponed. Housing turnover in our major regions remains at historical lows due to affordability challenges and economic uncertainty. While 2025 U.S. existing home sales did not improve, sales in December increased over the prior year. Currently, U.S. mortgage rates are at their lowest levels since autumn 2022, and we anticipate that these lower rates combined with potential government actions will benefit housing turnover. In Europe, interest rates are also at their lowest since autumn 2022, and consumers have built record levels of savings, inflation has eased, and employment has remained steady. Across all our markets, housing availability remains constrained as construction levels have not kept pace with household formations since the Great Financial Crisis. In the U.S., builders completed fewer homes in the fourth quarter as they focused on reducing inventories, lowering the supply of new homes. In Europe, completed housing units declined in 2025, though moderate home building recoveries in Southern and Eastern Europe have emerged. Across our regions, the commercial channel outperformed residential throughout the year, and we anticipate that lower interest rates will encourage additional investments in commercial construction and renovation.
“In response to these ongoing conditions, we took actions throughout 2025 to stimulate sales and enhance our mix in soft markets through innovative product introductions, marketing actions and promotional programs. Our premium product launches delivered differentiated design and performance features to incentivize remodeling, and our new commercial collections helped us gain momentum in both new construction and remodeling projects. To partially cover inflation, we took pricing actions in regions and product categories as market conditions allowed. We initiated numerous restructuring actions and operational improvements that lowered our cost position and will benefit our longer term performance, including the fourth quarter write-off of idle assets and the consolidation of inefficient operations and administrative costs. In 2025, our markets did not improve, and, in response, we reduced our capital spending to $435 million, about 30% below our depreciation levels. We continue to take the proper actions to manage the present environment, pursue profitable growth opportunities and strengthen our position when housing markets rebound.”