Results
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%
1Q3 2026 Diluted EPS of $2.72, adjusted EPS of $2.72, up approximately 2%
2Q3 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 Adjuste d EPS of $1.35 to $1.45
Calhoun, Georgia, October 29, 2026 — Mohawk Industries, Inc. (NYSE: MHK), the world’s largest flooring and design surfaces company, today announced earnings for the third quarter of 2026.
Commenting on the Company’s 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.
3An 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 Company’s guidance assumptions.
SEGMENT RESULTS
Global Ceramic: Net sales were $1.1 billion, up approximately 2% and up approximately 1% on an adjusted basis.
4Currency 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.
5Global 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.
6An 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.
7Flooring 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%.
8Adjusted 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 Company’s 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.
Assumpt ions included in the Company’s 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
Over the past two decades, Mohawk Industries has transformed its business into the world’s largest flooring and design surfaces company with leading positions in North America, Europe, South America and Oceania.
Mohawk’s 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.
Mohawk’s 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 Company’s 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.
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 Company’s 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 Mohawk’s United States Securities and Exchange Commission reports and public announcements.
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.
VP, Finance & Investor Relations
(1) Includes a one-time U.S. tax benefit associated with a legal entity restructuring initiative, tax credits issued by the Brazilian government related to prior years and a non-recurring tax benefit related to a U.S. tax election.
Reconciliation of Total Debt to Net Debt
Short-term debt and current portion of long-term debt$621.9
Long-term debt, less current portion1,160.8
Total debt1,782.7
Less: Cash and cash equivalents816.8
Net debt$965.9
(1) Includes accelerated depreciation of $25.9 for Q4 2025, $30.0 for Q1 2026, $10.0 for Q2 2026 and $1.8 for Q3 2026.
Reconciliation of Net Sales to Adjusted Net Sales
Three Months EndedNine Months Ended
Mohawk Consolidated
Net sales$2,786.08,506.1
Adjustment for constant shipping days(37.5)(167.5)
Adjustment for constant exchange rates(2.1)(190.1)
Adjusted net sales$2,746.48,148.5
Three Months Ended
October 3, 2026
Global Ceramic
Net sales$1,128.6
Adjustment for constant shipping days(11.5)
Adjustment for constant exchange rates(5.4)
Adjusted net sales$1,111.7
Flooring NA
Net sales$949.9
Adjustment for constant shipping days(14.9)
Adjusted net sales$935.0
Flooring ROW
Net sales$707.5
Adjustment for constant shipping days(11.1)
Adjustment for constant exchange rates3.2
Adjusted net sales$699.6
Reconciliation of Gross Profit to Adjusted Gross Profit
Three Months Ended
Gross Profit$709.7654.9
Adjustments to gross profit:
Restructuring, acquisition and integration-related and other costs10.444.1
Adjusted gross profit$720.1699.0
Reconciliation of Selling, General and Administrative Expenses to Adjusted Selling, General and Administrative Expenses
Three Months Ended
Selling, general and administrative expenses$522.0518.2
Adjustments to selling, general and administrative expenses:
Restructuring, acquisition and integration-related and other costs(2.0)(3.1)
Legal settlements, reserves and fees(21.6)
Adjusted selling, general and administrative expenses$520.0493.5
Reconciliation of Operating Income to Adjusted Operating Income
Three Months Ended
Mohawk Consolidated
Operating income$187.7136.7
Adjustments to operating income:
Restructuring, acquisition and integration-related and other costs12.447.2
Legal settlements, reserves and fees21.6
Adjusted operating income$200.1205.5
Global Ceramic
Operating income$65.671.6
Adjustments to segment operating income:
Restructuring, acquisition and integration-related and other costs7.918.2
Adjusted segment operating income$73.589.8
Flooring NA
Operating income$71.954.4
Adjustments to segment operating income:
Restructuring, acquisition and integration-related and other costs4.913.5
Adjusted segment operating income$76.867.9
Three Months Ended
October 3, 2026September 27, 2025
Flooring ROW
Operating income$66.043.8
Adjustments to segment operating income:
Restructuring, acquisition and integration-related and other costs(0.4)15.5
Adjusted segment operating income$65.659.3
Corporate and intersegment eliminations
Operating (loss)$(15.8)(33.1)
Adjustments to segment operating (loss):
Legal settlements, reserves and fees21.6
Adjusted segment operating (loss)$(15.8)(11.5)
Reconciliation of Earnings Before Income Taxes to Adjusted Earnings Before Income Taxes
Three Months Ended
Earnings before income taxes$183.3132.1
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