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Image source: The Motley Fool. Friday, July 31, 2026 at 11:00 a.m. ET Vice President, Finance and Investor Relations - Joe Ahlersmeyer Chairman and Chief Executive Officer - Jeff Lorberbaum President and Chief Operating Officer - Paul De Cock Chief Financial Officer - Nicholas Manthey Operator: Good day, and welcome to the Mohawk Industries Second Quarter 2026 Earnings Conference Call. Note this event is being recorded. I would now like to turn the conference over to Joe Ahlersmeyer, Vice President, Finance and Investor Relations. Please go ahead. Joe Ahlersmeyer: Thanks, Megan. Good morning, everyone, and welcome to the Mohawk Industries quarterly investor conference call. Joining me on today's call are Jeff Lorberbaum, Chairman and Chief Executive Officer; Paul De Cock, President and Chief Operating Officer; and Nick Manthey, Chief Financial Officer. Today, we'll update you on the company's second quarter performance and provide guidance for the third quarter of 2026. I'd like to remind everyone that our press release and statements that we make during this call may include forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995 and which are subject to various risks and uncertainties, including, but not limited to, those set forth in our press release and our periodic filings with the Securities and Exchange Commission. This call may include discussion of non-GAAP numbers. For a reconciliation of any non-GAAP to GAAP amounts, please refer to our Form 8-K and press release in the Investors section of our website. I'll now turn the call over to Jeff for his opening remarks. Jeff Lorberbaum: Thank you, Joe. Our second quarter results significantly exceeded our expectations as we outperformed our markets. Our net sales were $3 billion, up 6.8% versus the prior year as reported or up 5% on a constant basis. Our performance benefited from volume growth, pricing and product mix. Across our regions, our teams effectively executed our strategies and capitalized on opportunities with new and existing customers. We successfully introduced new collections, expanded product placements and improved our mix. In the period, volume benefited from initial stocking of new product placements and limited increases in inventory by some customers ahead of announced price increases. Our second quarter reported EPS of $3.22 and adjusted EPS was $3.67, including a benefit of approximately $0.63 from tariff refunds, which were not included in our second quarter guidance. These refunds represent the reversal of costs that we have absorbed from higher tariffs. As part of our buyback program, we purchased over 600,000 shares during the quarter for approximately $60 million. Our second quarter forecast had reflected uncertainty related to the Middle East conflict, but market conditions proved more resilient than we anticipated. Residential channels remained soft during the quarter, and we believe we outpaced the market and gained share in most regions. The commercial sector continued to outperform residential, and our differentiated offering enhanced our mix and margins. The new home construction market remains pressured, and existing home sales continue to be affected by affordability challenges. In the softer environment, we're proactively managing the controllable aspects of our business, including enhancing our sales strategy, pricing, operational improvements and managing our inventory levels and costs. Across many of our products and geographies, we executed price increases in response to higher materials, energy and transportation costs. In the second half of the year, these higher input costs will flow through inventory and impact our margins. With continued uncertainty, additional price increases may be required this year. We are bringing innovative products to the market with differentiated features to strengthen our sales and mix. Across the business, our teams are delivering significant productivity gains, and our results are benefiting from our prior restructuring projects. In addition, we've initiated new projects focused on operational simplification, organizational realignment, warehouse consolidation and capacity optimization, which will reduce our cost approximately $60 million, with most completed by the end of 2027. These segments will require cash restructuring costs of approximately $50 million. We recently released our 17th annual impact report, which highlights the successful completion of our 2025 sustainability goals, which lowered our emissions intensity by 31%, waste-to-landfill intensity by 55% and water intensity by 50% from our base year. To read the report and see all of our accomplishments, visit the Sustainability section of our website. On a personal note, we announced that I would be retiring as CEO and will be turning over the reins to Paul. With 25 years as Mohawk's CEO, I've taken great pride in watching our talented organization transform Mohawk into the world's largest flooring manufacturer. Together, we've established leading market positions on four continents, growing our operations to 19 countries and built a product portfolio encompassing every major flooring category as well as expanding into other product adjacencies. I truly believe that Mohawk's best days are ahead, and the actions we have taken over the past years will strengthen our offering, streamline our operations and enhance our competitive advantage. I worked closely with Paul for over two decades, and I'm confident that he will lead Mohawk to new heights. I look forward to continuing to support him as Chairman of the Board. I want to also express my gratitude to all those at Mohawk as well as our customers, suppliers, analysts and investors. Your trust, partnership and unwavering commitment have been integral to Mohawk's success and all that we've accomplished together. With that, I'll turn the call over to Paul. Paul De Cock: Thank you, Jeff. Congratulations on your career with Mohawk and your retirement. It's been a privilege to work with you, and I could not be more optimistic about our future. I'm confident with our strong foundation that we can grow profitably and enhance our shareholder returns. Now I'll take you through our operational performance in the quarter. In Global Ceramic, net sales were $1.2 billion, up 7.9% as reported and up 4.6% on a constant basis. In the U.S., we gained momentum with new premium tile and countertop placements. In our Latin America businesses, we grew volumes and improved our market positioning. We are leveraging the innovation and technology capabilities of our Italian R&D center to drive product development across the world. New collections and expanded customer placements have positioned the business to accelerate as demand improves. In Flooring North America, net sales were $976 million, up 3.1% as reported and up 4.7% on a constant basis. We estimate that our market share has increased in both hard and soft surfaces. Soft surfaces benefited from new product introductions and in hard surfaces, we expanded our presence in key channels. We're also strengthening our position in retail and our laminate products continue to provide a compelling solution to homebuilders. In Flooring Rest of the World, net sales were $806 million, up 9.7% as reported and up 6.2% on a constant basis. We are launching new collections in LVT and laminate to strengthen our position in the premium segment of the market. Our insulation and panels businesses delivered strong results through disciplined pricing and cost management in a challenging environment. Across all three segments, our teams delivered meaningful productivity gains and our results are benefiting from our previously announced restructuring projects. We have initiated new projects that will deliver incremental annual savings once complete. These are permanent structural improvements to our cost base, not temporary measures, and they will support our earnings power when our markets turn supportive. Importantly, this operational excellence is generating consistent cash flow. Cash generation is one of the strengths of this business, and it underpins our ability to both invest for growth and return capital to shareholders. We are focused on delivering profitable sales growth through new product innovation and expanding our competitive advantages. Our higher-end residential and commercial collections continue to perform well and enhance our mix, and the collections we have launched this year have quickly gained traction in the market. We are increasing our share with our customers, which will benefit us when the market improves. We are committed to returning capital to shareholders, and we continue to purchase shares during the quarter. We will continue to focus on generating cash flow to fund investments in growth and drive enhanced returns through capital discipline. With that, I will turn the call over to Nick to review our financial results in more detail. Nicholas Manthey: Thanks, Paul. Looking at our Q2 2026 financial results. Net sales for the quarter were $3 billion, up 6.8% as reported and up 5% on a constant basis with growth across all three segments. Sales grew as we implemented price increases, improved our mix and grew volumes by expanding placements in key retail channels. Gross margin was 26.6% as reported and 27.4% on an adjusted basis, up 100 basis points from the prior year as the benefits of tariff refunds, pricing and productivity offset the impact of higher inflation. SG&A expenses were 18.1% of net sales as reported and 17.7% on an adjusted basis. That's a 70-basis-point improvement versus the prior year. Operating income was $254 million, and adjusted operating income was $290 million or 9.7% of sales. That's an increase of approximately 170 basis points versus the prior year as the benefits of price and mix of $54 million, our restructuring and productivity initiatives of $43 million and higher volumes of $13 million offset inflation. Net inflation for the quarter was $28 million, inclusive of the tariff refunds, with underlying inflation of $77 million. Net interest expense was $5 million, consistent with the prior year. Our adjusted tax rate was 21.1%, and we expect our Q3 tax rate to be approximately 22%. Our earnings per share for the second quarter was $3.22 as reported or $3.67 on an adjusted basis. Now turning to the segments. Global Ceramic had net sales of $1.2 billion. That's a 7.9% increase as reported and a 4.6% increase on a constant basis. The ceramic segment delivered approximately 3% volume growth, led by strength in the U.S. and Europe as well as improved price and mix. Adjusted operating income was $99 million or 8.2% of net sales, including the benefit of tariff refunds. The underlying results were driven by productivity initiatives of $20 million and positive price/mix of $13 million, which were offset by the underlying inflation of $35 million. Flooring North America net sales were $976 million, a 3.1% increase as reported or a 4.7% increase on a constant basis. Sales growth was led by volume strength in retail channels, with price and mix improving sequentially. Adjusted operating income was $111 million, and adjusted operating margin was 11.4%. Adjusted operating income increased $42 million, including the benefit of tariff refunds. The underlying improvement in our adjusted operating income was partially driven by productivity of $21 million, offset by underlying inflation of $16 million. Flooring Rest of World net sales were $806 million. That's a 9.7% increase as reported or an increase of 6.2% on a constant basis. Sales growth was driven by the pricing actions we implemented to address higher energy and material costs, along with a modest mix improvement. Adjusted operating margin was $97 million or 12% of sales, an improvement of approximately 160 basis points compared to the prior year as price and mix of $41 million more than offset increased input costs of $23 million. Corporate expenses and eliminations were $17 million in the quarter, and we estimate the full year 2026 expenses to be approximately $55 million. Turning to cash flow. Year-to-date, we have generated free cash flow of $236 million, and we expect strong free cash flow generation in the second half of the year. Capital expenditures in the quarter were $88 million, and we now plan to invest approximately $460 million in 2026, focused primarily on cost reduction initiatives, product innovation and maintenance. The balance sheet remains in a very strong position with net debt just under $1.1 billion and a net debt-to-EBITDA ratio of 0.8x. Our second quarter results reflect strong execution by our teams in a dynamic environment, and our business continues to generate strong free cash flow. I will now turn the call back over to Paul, who will cover our outlook in greater detail. Paul De Cock: Thank you, Nick. We delivered strong second quarter results, even though the market has not yet improved. Across the world, the home resale market remains near multi-decade lows and new home construction remains soft. Looking ahead to the third quarter, we anticipate flooring market conditions will remain challenging. We expect commercial to keep outperforming residential, and our high-end offerings will continue to improve our mix. We expect our sales to seasonally drop from the second quarter to the third quarter, excluding the impact of FX and shipping days. Given our stronger performance in the second quarter, the seasonal pattern could be more pronounced than in past years. We will have one additional shipping day in the third quarter compared with both the prior year period and the second quarter of 2026. In the third quarter, we will see higher input costs and further benefits from our price increases, and we will continue our productivity efforts. We expect higher costs to persist into the fourth quarter, and we may need to take additional pricing actions. Given these factors, we expect our third quarter adjusted earnings per share excluding any restructuring or other one-time charges to be between $2.50 and $2.60, including approximately $0.12 from additional tariff refunds we have already received. Excluding these tariff refunds and any restructuring or other one-time charges, our outlook contemplates a baseline EPS range of between $2.38 and $2.48. Since the announcement that I would become CEO, I have been engaging with employees around the globe to build on our strong foundation. Our operational excellence, leading market position and financial profile will drive long-term value creation. With our strong balance sheet and robust cash generation, we have the flexibility to invest in growth initiatives while at the same time returning capital to shareholders. And with that, we are happy to take your questions. Operator: The first question comes from Susan Maklari with Goldman Sachs. Susan Maklari: Jeff and Paul, congrats to both of you on your moves here. Jeff, certainly well deserved, and Paul as well, and I look forward to working with you more, Paul. So my first question is the share gains are really impressive, right? And when we think back to NeoCon and the buzz that was clearly evident in the showroom in Chicago, can you talk a bit more about the product categories that are leading some of these gains? And maybe the end markets as well as you think about residential versus commercial customers and where you're seeing a lot of this coming from? Jeff Lorberbaum: Yes. Thank you, Susan. It was indeed good to see you at NeoCon. That's our main U.S. commercial showcase of our products, and we can show our products in an integrated way, soft surfaces, hard surfaces and our innovations were on full display there, as you've seen. We also showed our new Hero rubber flooring product that is made with recycled Nike regrind, and that product won three Best of NeoCon awards. And so this is just a testament of our innovation capabilities in the company. And those same capabilities exist also in our residential business. And like you alluded to, we've seen the benefit of that in all the new product placements that we got from our customers in the second quarter. Susan Maklari: Okay. That's helpful. And then, Paul, you mentioned that you are engaging with the teams globally. As you look to transition into the CEO role, I guess, can you talk a bit about what you're hearing from the team and how that's motivating you? And any initial areas of focus? Paul De Cock: So we're going to definitely continue on the strong foundations that Mohawk has. We have a very strong operational excellence culture. We are serving our customers very well. We're very focused on product innovation, and we have all our leading market positions across the world. And so we're going to continue focusing on those strengths. And then combined with our financial strength, those will be very powerful drivers of future value creation. And so we really have, with the strong balance sheet we have and the strong cash flow generation, a lot of flexibility to invest in profitable growth opportunities and at the same time also return capital to shareholders. Susan Maklari: Okay. All right. And good luck with the quarter. Operator: Next question comes from John Lovallo with UBS. John Lovallo: The first one is just in relation to the seasonal sales decline in the third quarter being a little bit more pronounced perhaps than in prior years. I'm curious what's driving that? I mean the second quarter was strong, but was that strength driven by pull forward ahead of the price increases and the initial stocking? In other words, why wouldn't that strength in the second quarter continue into the third to some extent? Jeff Lorberbaum: Yes. Thank you for your question, John. Well, we saw some limited prebuying. We cannot precisely quantify that. But in many of our businesses, we control the distribution between Mohawk and our customers. And so we really believe the prebuy impact is limited. Our volume mainly benefited from initial stocking positions of new product placements, and those will obviously benefit us as the business moves forward. And our third quarter is seasonally slower, and so any prebuying effect that there could be is factored into our outlook. John Lovallo: Okay. Understood. And then in terms of potentially taking additional pricing actions later this year, I mean, how are you guys kind of thinking about that as we sit today? I mean, things are a little bit softer than most people had hoped, I think. And I'm curious the ability of, or the thoughts on the ability to take more pricing. And along those same lines, have you seen substantial product mix shifts across the portfolio following the pricing actions that have been taken? Paul De Cock: Well, with costs rising as much as they have, the whole industry really needs to take pricing to cover them. And the realization so far has been in line with our expectations, and the teams have executed well. We have many increases going in different products in different geographies, with some products lagging and some products leading. And we still expect inflation to step up as we move through the second half year. And so all these efforts for the year, we think that the combination of price, mix and productivity should suffice to offset inflation. Operator: The next question comes from Trevor Allinson with Wells Fargo. Trevor Allinson: Can you talk about what drove the surge in Flooring Rest of World revenue growth? I think your core revenue went from down 4% to up 6% on a similar comp. So was that incremental pricing ahead of inflation? Or what drove the acceleration? And would you expect similar levels of core growth rates in Flooring Rest of World as we step into the third quarter? Jeff Lorberbaum: So the markets have been showing improvement earlier in the year following the rate cuts that we saw in Europe, but after the start of the war, consumer confidence declined somewhat and also inflation affected discretionary income. And also in Europe, inflation is running well ahead of other regions in the world. And so we had to manage with price, and we also have to manage with the productivity. But that being said, our teams are executing very well and our new product introductions have done very well. And so we have premium LVT and laminate collections going into the market, and those are gaining momentum and also allowing us to improve our mix, and also our panels and insulation volumes outperformed in a difficult market. And so I would say that we've executed very well in a challenging market. Nicholas Manthey: And Trevor, I would just add that in Q2, sales, as Paul mentioned, really grew with positive price and mix as the team implemented the price increases, also benefited us in the first half. Given the current rates, we don't expect those benefits to continue in the second half. And then just as we move into Q3, the positive price and mix should continue going forward. Trevor Allinson: Okay. That was very helpful. And then second question, maybe just following up on the price cost commentary within your answer to the previous question. Sounds like you are still anticipating offsetting the inflation headwind in the back half of the year. If you think about 3Q specifically, do you expect that to be the case in each of your segments? And then you mentioned maybe having to take additional price. As we step into 4Q, will you need that incremental price, you think, to also offset the inflation in 4Q as well? Nicholas Manthey: So from a price/cost perspective, in Q2, price mix and productivity exceeded our underlying inflation headwinds. Excluding the tariff benefits, we saw underlying inflation step up by about $35 million from Q1 to Q2, and we'll see a similar step-up from Q2 to Q3. Based on what we know today, we think that price mix and productivity should offset that underlying inflation for Q3 and the year. And then to your last question, obviously, the cost environment remains dynamic. And so more pricing may be required to offset if there's further inflation. Operator: The next question comes from Adam Baumgarten with Vertical Research Partners. Adam Baumgarten: Just curious if you're seeing any shift back to wood or tile from maybe LVT or even laminate broadly in the market at this point? Jeff Lorberbaum: We haven't really seen any large product category shifts recently. Now of course, most recently, LVT demand has trended more in line with the overall flooring industry given that LVT is becoming a more mature category, but besides that relative market shares of different categories are relatively stable at this moment. Adam Baumgarten: Okay. Got it. And then just on the sort of new placements that you said drove a good amount of volume growth. Any way to size the impact there in the quarter? Jeff Lorberbaum: Well, those new product placements are obviously helping us to get new positions with our customers. And so they're driving the volumes in our business. And so as we get reorders on those new placements, they will also give us additional benefits in the periods to come. And a large part of our performance in the second quarter really was the success of these placements. Operator: The next question comes from Phil Ng with Jefferies. Philip Ng: Congrats on a strong quarter. And then Jeff, appreciate all the help over the years, and Paul, looking forward to working more with you going forward. I guess on the following up on the question right before on the share gains in placement. Paul, any color in terms of what categories, channels or markets where you picked up share? I know you called out quartz countertop perhaps gaining momentum in retail. I believe there's some dumping duties for imports. Is that like an opportunity for you as a local producer to take share at a meditative price? Just give us a little color in terms of where you're gaining share and seeing momentum in the business. Jeff Lorberbaum: Yes. So even with the flooring market down, we saw volume growth across many of our categories and many of our channels. And so we're focused on delivering these innovative products and an industry-leading service to the market. And we really saw strength across the world in many products, in many categories, in many geographies. And so on top of that, our strong brands are preferred by the customers, the professional customers, retail customers, consumers and also in the commercial channel. And so we've really seen strong performance across the board. As far as your question on countertops, you're correct. The International Trade Commission has proposed minimum tariffs of 25% to protect the domestic industry. We're waiting on the final decision by the President, but it's expected soon. And so we just expanded a second line of U.S. domestic manufacturing and countertops. And so we expect that line to ramp up quickly now. Philip Ng: Okay. Super. And in the prepared remarks, I couldn't help notice you guys highlighting the cash flow generation of the business and then perhaps return more cash to shareholders. Paul, any subtle shifts in terms of your approach in terms of capital deployment priorities? And how do you assess where you want to put capital to work, call it, in the medium term? Paul De Cock: Yes. So strong balance sheet provides lots of flexibility and a lot of opportunity. And our capital allocation framework remains the same. First, we will continue to, first and foremost, invest in our business. We drive the innovation we just talked about, enhance our product mix, improve our productivity. We'll also continue to evaluate profitable growth opportunities. They obviously have to meet our strategic priorities, the strategic fit to the company and the strategy, and then also they need to achieve our financial return criteria. And then share repurchases will remain also a very important part of our capital allocation policy going forward. Philip Ng: Will the buyback approach be more opportunistic? Or it's going to be more regimented in terms of your philosophy? Certainly, it's going to be tied to free cash flow generation. But any more color to expand on that front? Paul De Cock: No, I would just say that the share repurchases will remain an important part of our capital allocation policy. Operator: Next question comes from Stephen Kim with Evercore ISI. Stephen Kim: Appreciate all the color so far. Yes, Jeff, we're going to miss you. Best of luck in all your future endeavors. Paul and Nick, I guess I wanted to talk about a little bit more on this comment that you made that the outsized strength you saw in 2Q may not transmit entirely into 3Q. You said prebuy really wasn't a big impact. It was really more from the initial stocking of the new products. And you said you've had a lot of success with those placements. So I just wanted to press on that a little bit. Have you seen these placements show up in increased sell-through yet? And why wouldn't the strength transmit into 3Q if these placements put you in such a good position? Why is it that we wouldn't expect to see at least some of this strength transmit into 3Q? Yes. So that's the first question. Nicholas Manthey: Yes. Thanks, Stephen. So our adjusted EPS came in about $1 ahead of our guidance in Q2. The tariff refunds weren't included in that guidance, and that is about $0.63. Our teams, particularly in Flooring Rest of World, did a good job of navigating the cost environment and executing well on price increases. So that contributed to the Q2 results. And then, of course, volume growth was a bit stronger than expected across many of our categories and channels. Looking at moving to 3Q, we expect the current demand trends to continue with the soft market conditions. And so we typically see normal seasonality from Q2 to Q3. And then the items that Paul mentioned earlier contributed to maybe more pronounced seasonality, and then at the EPS line, the big driver there is input cost headwinds will ramp up into the third quarter, really similar in magnitude to the underlying inflation we saw a ramp-up from Q1 to Q2. So that's the key drivers. And as far as your product placement question, it's a normal pattern, right? You get the initial inventory when you get the placement for the product, and then as the product gains success in the market, you get reorders in the subsequent periods. And so we've seen the initial feedback on these product introductions to be very strong, and so we expect them also to significantly contribute in the next quarter. Stephen Kim: Yes. Okay. I know that you talked a little bit about the seasonality, the typical seasonal drop from 2Q to 3Q. And that all makes sense. If we go back and look over the last five years, it looks like you've had an average reduction of about 4.5%. And as you move from 2Q to 3Q in terms of sales, are you messaging that you think that the drop in sales in 3Q will be greater than that sequential quarter-on-quarter 4.5%? Jeff Lorberbaum: Yes. I mean we're not going to find the exact amount, but I think Q2 was stronger than anticipated given those new stocking positions Paul mentioned. And then Q2 is typically our strongest quarter. And so those two contribute to the sequential movement maybe being a little more pronounced than normal. Stephen Kim: Okay. All right. Fair enough, guys. Operator: The next question comes from Timothy Wojs with Baird. Timothy Wojs: Hey, everybody. Jeff, Nick, good luck. I guess maybe just on the refunds, I guess, how do you anticipate the market kind of handling and absorbing the refunds? Do you expect kind of your customer base to ask for some of that back in terms of reinvestment? Are there any specific product categories that kind of applied to? Maybe just kind of how you think about the market kind of digesting and absorbing these refunds from you, and I assume others. Nicholas Manthey: Well, tariff refunds offset the costs that we previously incurred. And so for years, we have absorbed these higher costs, and our pricing has not fully covered these costs. And we also really see continued additional inflation flowing to all of our costs. And so I think you have to see the tariff refunds in that environment. Timothy Wojs: Okay. Okay. I guess, second question just on the commercial market, how did that kind of track sequentially Q1 to Q2? Is it relatively stable, getting a little better? Or just kind of any sort of data points of color you can provide there would be great. Jeff Lorberbaum: Yes. So around the world, the commercial market continues to outpace the residential market and our commercial performance across all of our segments, broadly speaking, across all the products and all the geographies we are active in, it was stable-ish when you look at quarter-over-quarter sales performance in commercial. Operator: The next question comes from Sam Reid with Wells Fargo. Sam Reid: I wanted to ask another pricing question here. So just give me a sense as to the market's appetite for additional pricing. I believe you indicated you might need to take additional pricing later in the year in order to offset inflation. And do you need that pricing in order for normal Q3 to Q4 seasonality? Jeff Lorberbaum: Well, in the second half, we expect the market conditions to remain soft, and so we're not really counting on a near-term recovery. And so we're driving our own results. We're expanding these new product placements, and then we're implementing the price. And so with the conflict escalating and with the current volatile environment and news filtering through every day, costs could rise further. And if that's the case, we have to probably take more additional pricing actions. And so what we're also doing is, given the difficult environment we are in, we're also driving our productivity and our restructuring actions to manage through this difficult environment, and our teams are also executing very well on those. And then lastly, like Nick said, for the whole year, we expect the combination of price/mix and productivity to offset the inflation. Sam Reid: That helps. And maybe let me ask a quick modeling question here. You mentioned you got an extra day in the third quarter. Any sense as to how much that's impacting earnings, incremental margins from that we should be assuming? And then any day count noise in the fourth quarter we should be aware of? Nicholas Manthey: Yes. So it's one extra shipping day in Q3. And so similar to Q2, we had one day variation. The bigger impact, Sam, is really we have four less shipping days in Q4. And so that will be probably bigger in magnitude than what we've been adjusted to in Q3. Operator: The next question comes from Mike Dahl with RBC Capital Markets. Michael Dahl: My questions. Jeff, congrats to you, too. Sorry, one more follow-up on the inflationary dynamic. Appreciate that it sounds like the 3Q guide assumes another kind of $35 million-ish sequential step-up as costs sit today. As far as you can see them, what does that mean in terms of 4Q? Would you still see another sequential step higher in inflation if current costs hold? Or any color you can give us on kind of the cadence, assuming current input costs were to persist? Nicholas Manthey: Yes. Thanks, Mike. You're correct in how you're thinking about it from Q2 to Q3. Obviously, there's some more uncertainty in Q4 given energy prices are still fluctuating. But based on what we know today, we would expect Q4 to remain elevated. It might be slightly higher on a year-over-year basis, but we don't expect the same level of step-up that we saw from Q2 to Q3. And again, obviously, things can change in this environment pretty quickly. Michael Dahl: Okay. Yes, of course. That's still helpful for context. And then just shifting gears, one of the retailers reported last night, and it sounds like they're seeing pressure in laminate and vinyl and talking about excess capacity and maybe making it harder on pricing in those categories. Can you speak to, I know you have some different channels and positions within those markets, but can you speak more specifically to that and what you're seeing from your ability to push through price and price cost dynamics in those categories? Paul De Cock: Yes, in those categories, we're really focused on the execution of our strategy, and that means we're bringing the best quality to the market, the best service, and like we said before, our new innovations in those two categories are being very well adopted by the market. And so the product placements that we've gotten is a testimony that our strategy is working. And so we're really focused on the execution of our strategy there. Specifically in laminate, we see very strong adoption in the new home construction channel. And then in LVT, we have built out our portfolio in LVT, in WPC and also in hybrid products, which is a very fast-growing subcategory of the LVT market. And so we really have a very broad product portfolio that can serve any market and any price point. And so that's what we're focused on in those two categories. Operator: The next question comes from Keith Hughes with Truist. Keith Hughes: My congratulations, Jeff. It's been a tremendous run. I know the last couple of years have been tough on the macro, but the Mohawk today is so different than when you took over. So again, congratulations. Just a quick question on Flooring North America. Can you talk about the products within this 5-ish percent growth? Which products or markets were above or below the average? Jeff Lorberbaum: So in residential carpet, we are focused on the mid- to high price points. And so we're adding new features, and one of the products that we've been very successful with is an anti-allergen carpet product, and that product is off to a strong start since the launch. And then as I mentioned before, on the laminate side, we see very strong adoption in the new builder construction channel, and the products that we bring to market there, our laminate products, offer a superior value proposition versus all the alternative choices that are currently being offered in that channel. And so that were some of the highlights for the quarter. Keith Hughes: I assume commercial was still better than average in the segment. Is that correct? Nicholas Manthey: Yes. Commercial is performing better. We have a large exposure in our ceramic segment to the commercial market. And then also in our Flooring North America segment, we have a large commercial exposure, and we were happy with our performance. And like you say, commercial was performing more or less in line also with prior quarter. Keith Hughes: And final question on this, was carpet still, you obviously got some wins here, carpet still below the average and hard surface growing faster than that in Flooring North America? Nicholas Manthey: Yes. I mean I think, Keith, we gained share in both categories. The longer-term trend has been a shift to hard surfaces. So I think we're more or less in line with that. Operator: The next question comes from Matthew Bouley with Barclays. Matthew Bouley: Congratulations and best of luck to Jeff and to Paul as well. So one more on the prebuy. I know you said it wasn't as large and it's hard to really quantify it. My question is really if there's any kind of finer point you can kind of put on that, just sort of any estimations around what you may have seen, which type of customers you may have seen that? And if you could sort of characterize inventories across the channel as a result. Paul De Cock: No. Like we said, look, we control the distribution in a lot of our markets. And so we really hold the inventory for the customer to service the customer. And so that's why the impact of prebuying with us is limited. And also, our customers have limited capability to store all the goods. And so that's why we thought it was a limited impact. It's not easy to quantify it because we have no visibility on the inventory position of our customers, but we think the impact was limited. Matthew Bouley: Okay. I appreciate that. And then secondly, just maybe one focus point in terms of the input costs with European natural gas, given that fairly important cost for you. I guess, number one, if you could maybe remind us how your hedging program has changed. Obviously, years ago, you used to not hedge it. And I guess, if we kind of look forward, you spoke about the incremental input cost impacts in Q3 and Q4. How would you think about perhaps spreading out that input cost increase? And would any more kind of carry over into 2027 as a result? Paul De Cock: Natural gas has been less affected in North and South America compared to Europe. And so European gas markets are under more pressure. And we have purchased a portion of our near-term requirements. And we really do that to limit the impact of the volatility of the input costs, and we will continue to do so. We'll continue to buy forward as conditions change and as we see opportunities to hedge our volatility. Operator: The next question comes from Rafe Jadrosich with Bank of America. Rafe Jadrosich: Can you talk about the cadence of the market performance and your share gain through the quarter? It seems like the improvement might have come after you gave the second quarter guidance at the end of April. So you can just talk about sort of maybe the monthly trend? And then maybe you could touch on the exit rate into July as well. Paul De Cock: Yes, we entered the quarter assuming the conflict and inflation would soften demand, but our results ultimately exceeded our expectations as we outperformed in many markets and as we got the volume lift from these initial stocking positions in these new product placements. And so we see the continued benefit of that in our current sales, and we haven't really seen a very large volatility across the different months recently. Nicholas Manthey: Yes. And Rafe, if I would just add that obviously, all the segments are managing through a challenging environment. And in the near term, we don't expect the market demand to improve. And so we're focused on managing what we can control, which is all the actions that Paul has highlighted in terms of pricing and mix and new placements and productivity. Rafe Jadrosich: The improvement you saw relative to expectations through the quarter, did the market trend change? Or did the share gain, like the outlook, change? If you can sort of just sort of break those apart and how it went through the quarter? Jeff Lorberbaum: Yes. Look, our expectations changed from the initial expectations or the impact of the conflict on the market. We felt there was more resilience in the market and that the market was less affected by the conflict. And then secondly, we also outperformed on our new product placements. I mean the new innovation that we are currently putting into the market is just a testament to the capability of this company. In many geographies, in many product categories, we have really leading innovation going into the market, and the customers are really taking that on, and we see some very good initial response to all that innovation going into the market. Rafe Jadrosich: And then Paul, maybe if you could just talk, because you're coming into the CEO role, a little bit about your background. I think you initially came into Mohawk and the sort of the breadth of your experience across the different businesses, I think, would be helpful. Paul De Cock: Yes. So I was acquired by Mohawk in 2005 when Jeff acquired Unilin, and so after Jeff acquired Unilin, I moved to the U.S., and out of our Dallas office, I was managing the Unilin business in the U.S. And after that, I went back to Europe to manage our European flooring business. And then seven, eight years ago, I came back to run the Flooring North America segment. And then last year, as in preparation for this transition, I took the COO role. And now I've been working with Jeff on the transition, and it's really going great. I have a good knowledge of our business around the globe, given these experiences. And I have also a good contact with all our leaders around the world. And so I've been focused on talking to them recently, hearing their ideas, and that's been very exciting and motivating. And so together with our teams, we'll focus on actions to improve our business as we go forward. Operator: The next question comes from Brian Biros with TRG. Brian Biros: So it's been talked about a lot, Q2 significantly outbeat expectations. It sounds like a large part of that was the success of the new product placements that you mentioned. Can you talk about the initial expectations you had for the product placements and kind of what drove the outperformance relative to what you thought was going to happen on the product placements? Jeff Lorberbaum: Given the volatile market circumstances and given the volatility in the market, it's not so easy to kind of predict what the initial success is going to be under the current market circumstances. But as we said, and that's really across the world, the market didn't seem to be that affected by the war, and people that needed flooring, they continue to buy flooring and they continue to adopt and take our new innovations in their stores. And so it has exceeded our expectations. That's really what we have to say. Nicholas Manthey: And Brian, just to be clear on your question, a lot of the new product placements were contemplated in our guide. And so when we're talking about it, that drives a lot of the year-over-year growth. And then as Paul mentioned, the guidance is really about our expectations of the market as well as just general momentum across our geographies and channels. Brian Biros: Okay. And then secondly, I guess, can you just talk about what you're seeing in the market from competitors kind of in this challenging backdrop that has been for a while and likely will persist for a little bit more? Are you seeing any outsized irrational behavior and how you're kind of just reacting to the battle that always happens between margin versus market share? Jeff Lorberbaum: With costs rising as much as they do, the whole industry really needs to put the pricing through to cover them. And now we're active in a lot of geographies and all products and a lot of channels. And so there's always very specific color to each of those. But in general, our realization of the price increases has been in line with our expectations. And so although it is a very competitive environment, chasing volume, given the slow end markets, we think our teams are executing well in this environment. And so we'll continue to monitor the situation. And if inflation continues to rise, we will take additional pricing actions, and we'll continue to manage the business when circumstances change. Operator: This concludes our question-and-answer session. I would like to turn the conference back over to Paul De Cock for any closing remarks. Paul De Cock: Thank you, Megan. We're excited about Mohawk's future. We are proud of how our teams are executing, and Mohawk is positioned well to outperform and create long-term value. Thank you for joining us today. Operator: The conference has now concluded. Thank you for attending today's presentation. You may now disconnect. 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This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Mohawk Industries (MHK) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Mohawk Industries, Inc. MHK delivered a sizable second-quarter earnings beat as pricing, productivity and product execution improved despite weak residential flooring markets.The next test is whether wider margins can persist without the same level of tariff-refund support. Higher input costs and seasonal sales pressure make the third-quarter outlook especially important. Adjusted earnings rose 32.5% year over year to $3.67 per share and exceeded the Zacks Consensus Estimate by 42.8%. Net sales increased 6.8% to $2.99 billion and topped the consensus mark by 5.8%. Mohawk Industries, Inc. price-consensus-chart | Mohawk Industries, Inc. Quote Higher volumes, favorable product mix, pricing and tariff refunds supported the quarter. The refunds contributed about 63 cents per share, making it necessary to separate operating improvement from benefits that may not recur at the same level. Adjusted gross margin increased 100 basis points to 27.4%, while adjusted operating margin expanded to 9.7% from 8% a year earlier. Adjusted selling, general and administrative expenses also declined as a percentage of sales.Flooring North America posted the largest improvement. Its adjusted operating margin rose to 11.4% from 7.3%, while Global Ceramic and Flooring Rest of the World also delivered year-over-year margin gains. Restructuring and productivity contributed $43 million to adjusted operating income during the quarter and helped offset underlying inflation. Programs initiated since 2022 are expected to generate about $360 million in annualized benefits.Additional projects could lower annual costs by about $60 million after completion, with most actions scheduled by the end of 2027. Operational simplification, warehouse consolidation and capacity optimization provide a more durable source of support than tariff refunds.Floor & Decor Holdings, Inc. FND offers a useful demand comparison as a specialty retailer of hard-surface flooring. Its second-quarter comparable-store sales declined 2.1%, showing that stronger company execution can coexist with uneven spending on larger flooring projects. Tariff refunds materially lifted second-quarter earnings and partly offset $77 million of underlying inflation. The company received about $49 million of tariff-refund benefits during the period.Only about 12 cents per share of tariff-refund support is included in the third-quarter outlook. Investors should therefore focus on pricing, mix and productivity when judging whether the latest margin improvement represents sustainable earnings power.Interface, Inc. TILE, a global producer of carpet tile and resilient flooring, provides another relevant industry reference. Its broader commercial exposure illustrates why demand conditions can differ across flooring categories even when manufacturers face similar cost and pricing pressures. Management expects third-quarter adjusted earnings of $2.50-$2.60 per share. Excluding tariff refunds, the outlook falls to $2.38-$2.48 per share.Sales are expected to decline seasonally from the second quarter, while higher labor, material, energy and transportation costs may pressure profitability. Pricing and productivity are expected to offset inflation under current conditions, but competitive markets could delay price realization. The bottom line is that Mohawk showed genuine operating progress, but temporary refund benefits amplified the quarter. The third quarter should provide a cleaner test of whether restructuring, pricing and mix can protect margins as sales soften and costs rise.MHK currently carries a Zacks Rank #3 (Hold). It also has a VGM Score of A, with a Value Score of B, Growth Score of B and Momentum Score of C. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.The favorable VGM, Value and Growth readings support investors who emphasize those characteristics. Still, Style Scores complement the Zacks Rank, and the Hold designation reflects a measured near-term stance. The Momentum Score of C reinforces the case for distinguishing structural operating gains from one-time earnings support. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Mohawk Industries, Inc. (MHK) : Free Stock Analysis Report Interface, Inc. (TILE) : Free Stock Analysis Report Floor & Decor Holdings, Inc. (FND) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Mohawk Industries, Inc. MHK presents investors with a clear trade-off between improving profitability and a still-challenging housing cycle.Better execution, cash generation and restructuring benefits support the recovery case. A higher valuation and uncertain residential demand make the stock less compelling as an outright buy. Mohawk’s second-quarter 2026 adjusted earnings increased 32.5% year over year to $3.67 per share and exceeded the Zacks Consensus Estimate by 42.8%. Adjusted operating income rose across all three business segments, supported by volume growth, pricing, favorable product mix, productivity and tariff refunds. Mohawk Industries, Inc. price-consensus-chart | Mohawk Industries, Inc. Quote The Zacks Consensus Estimate calls for earnings of $9.78 per share in 2026 and $10.70 in 2027. That projected increase suggests the earnings recovery can extend beyond the latest quarter, though the pace will depend on demand and Mohawk’s ability to offset inflation. Mohawk continues to simplify operations, realign its organization, consolidate warehouses and optimize capacity. Restructuring programs initiated since 2022 are expected to generate about $360 million in annualized benefits.Additional projects announced in the second quarter could lower annual costs by another $60 million after completion, with most actions scheduled by the end of 2027. These permanent reductions should support profitability during weak demand periods and provide stronger operating leverage when residential markets recover. Free cash flow reached $236 million during the first six months of 2026, up from $41 million a year earlier. Net debt was about $1.07 billion, while net debt-to-adjusted EBITDA stood at 0.8X at the end of the second quarter.The company repurchased about $125 million of shares during the first half and plans roughly $460 million of capital spending in 2026. Most of that spending is directed toward cost reduction, innovation and maintenance, giving Mohawk room to invest without stretching its balance sheet. Home resale activity remained near multi-decade lows in the second quarter, while new construction and residential remodeling stayed soft. Management expects flooring conditions to remain difficult in the third quarter, with commercial demand outperforming residential activity.Floor & Decor Holdings, Inc. FND reported a 2.1% decline in second-quarter comparable-store sales and said demand for larger discretionary flooring projects remained uneven. That performance supports Mohawk’s cautious view of residential spending.Interface, Inc. TILE offers a contrasting industry signal. The commercial flooring producer reported 6.8% currency-neutral sales growth in the first quarter, led by corporate office and health care demand, illustrating why commercial exposure may provide more support than residential markets. MHK trades at 14.4X forward 12-month earnings, close to the sub-industry multiple of 14.5X but above its five-year median of 10.8X. The current price also sits near the $140 price target from the Aug. 3 closing level of $132.99.That valuation reflects improving execution but leaves less room for error. If inflation persists, pricing becomes harder to realize or housing weakness lasts longer than expected, the stock could struggle to deliver meaningful upside. MHK currently carries a Zacks Rank #3 (Hold). It also has a VGM Score of A, with a Value Score of B, Growth Score of B and Momentum Score of C. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.The VGM, Value and Growth readings support the longer-term recovery case. Still, Style Scores are designed to complement the Zacks Rank, and the Hold designation argues for patience rather than aggressive buying.A 0.4% decline in the current-year earnings estimate over the past four weeks and the Momentum Score of C add to the case for waiting. Existing shareholders may have reasons to stay invested, but new investors may want clearer evidence of durable demand improvement before building a position. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Mohawk Industries, Inc. (MHK) : Free Stock Analysis Report Interface, Inc. (TILE) : Free Stock Analysis Report Floor & Decor Holdings, Inc. (FND) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Performance significantly exceeded expectations due to successful execution of new product collections and expanded placements that outpaced soft residential markets. Volume growth was primarily driven by initial stocking of new product placements and limited customer inventory builds ahead of announced price increases. Management attributed market share gains in most regions to a differentiated product offering that enhanced mix and margins despite multi-decade lows in home resales. The commercial sector continues to outperform the residential channel globally, providing a stabilizing effect on the overall portfolio. Operational results benefited from prior restructuring projects and significant productivity gains across all three business segments. Management noted that market conditions proved more resilient than anticipated, particularly regarding the potential impact of Middle East conflicts on consumer demand. A strategic transition in leadership was announced, with Paul De Cock succeeding Jeff Lorberbaum as CEO to focus on leveraging the company's strong financial foundation for future growth. Third quarter guidance assumes a seasonal sales decline from Q2 that may be more pronounced than historical patterns due to the strength of recent stocking cycles. Management expects higher input costs for materials, energy, and transportation to flow through inventory in the second half of the year, potentially requiring additional price increases. New restructuring projects focused on operational simplification and warehouse consolidation are expected to yield $60 million in annual savings by the end of 2027. Capital expenditure for 2026 is planned at $460 million, prioritized toward cost reduction initiatives, product innovation, and essential maintenance. The company anticipates that price, mix, and productivity efforts will be sufficient to offset underlying inflation for the full year 2026. Second quarter results included a $0.63 EPS benefit from tariff refunds, which represent a reversal of previously absorbed costs and were not in original guidance. The company faces a $50 million cash restructuring charge related to new projects aimed at organizational realignment and capacity optimization. Potential regulatory tailwinds are expected in the countertop business following proposed minimum tariffs of 25% on imports by the International Trade Commission. Energy volatility remains a primary risk factor, particularly in Europe, where the company utilizes forward purchasing to hedge against natural gas price fluctuations. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management highlighted that innovation in both commercial and residential sectors, such as the award-winning Hero rubber flooring, is driving customer adoption. Share gains were noted across both hard and soft surfaces, with laminate showing particular strength in the new home construction channel. Management clarified that while some prebuying occurred ahead of price increases, the impact was limited because Mohawk controls much of its own distribution. The expected Q3 dip is largely a normalization following the outsized volume from initial stocking of new product lines in Q2. The primary focus remains investing in internal innovation and productivity, followed by evaluating M&A that meets strict financial return criteria. Share repurchases are confirmed as a consistent and important pillar of the capital allocation policy, supported by strong free cash flow. Management stated that the entire industry needs to implement pricing to cover rising costs, and realization has been in line with expectations so far. They emphasized that they will not chase volume at the expense of margin and will take further pricing actions if inflation persists.

Interested in Mohawk Industries, Inc.? Here are five stocks we like better. Mohawk exceeded its Q2 expectations: Net sales rose 6.8% year over year to $3 billion, while adjusted EPS reached $3.67, including approximately $0.63 per share from tariff refunds. Margins improved across all three segments: Adjusted operating margin increased to 9.7% as pricing, product mix, productivity and higher volumes offset inflation, with sales growth reported in Global Ceramic, Flooring North America and Flooring Rest of World. Management expects seasonal Q3 softness and adjusted EPS of $2.50-$2.60, including tariff refunds. CEO Jeff Lorberbaum will retire after 25 years, with COO Paul De Cock succeeding him while Lorberbaum remains chairman. Falling Inflation Sparks Optimism for These 3 Home Builder Stocks Mohawk Industries (NYSE:MHK) reported second-quarter 2026 results that exceeded its expectations, citing volume growth, pricing actions, improved product mix and productivity initiatives despite continued softness in residential flooring markets. Net sales rose 6.8% year over year to $3 billion, or 5% on a constant-currency basis, with growth across the company’s Global Ceramic, Flooring North America and Flooring Rest of World segments. Reported earnings per share were $3.22, while adjusted earnings per share were $3.67. Adjusted results included approximately $0.63 per share from tariff refunds that were not included in the company’s prior guidance. → Why SK hynix Could Be the Best AI Chip Stock to Buy Now Tip The Risk / Reward Scale In your Favor With These 3 Names Chairman and Chief Executive Officer Jeff Lorberbaum said the tariff refunds represented reversals of costs Mohawk had previously absorbed due to higher tariffs. The company also repurchased more than 600,000 shares for approximately $60 million during the quarter. Chief Financial Officer Nick Manthey said adjusted gross margin was 27.4%, an increase of 100 basis points from a year earlier. Adjusted operating income reached $290 million, or 9.7% of sales, representing an approximately 170-basis-point improvement from the prior-year period. → Microsoft Just Flipped the AI Spending Narrative Overnight Manthey attributed the operating-income improvement to $54 million from price and mix, $43 million from restructuring and productivity efforts, and $13 million from higher volumes. Those gains offset inflationary pressures. Net inflation totaled $28 million during the quarter, including tariff refunds, while underlying inflation was $77 million. Mohawk said it implemented price increases across numerous products and geographies in response to higher materials, energy and transportation costs. Management expects higher input costs to continue flowing through inventory during the second half of the year and said additional pricing actions may be needed if inflation rises further. → Carrier Earnings Could Send the Stock to a New All-Time High The company generated $236 million in free cash flow year to date. Capital expenditures totaled $88 million in the second quarter, and Mohawk now expects to invest about $460 million in 2026, primarily in cost reduction, product innovation and maintenance. Net debt was just under $1.1 billion, with a net debt-to-EBITDA ratio of 0.8 times. Global Ceramic: Net sales increased 7.9% as reported to $1.2 billion, or 4.6% in constant currency. The segment recorded about 3% volume growth, led by the U.S. and Europe, along with improved price and mix. Adjusted operating income was $99 million, or 8.2% of sales. Flooring North America: Net sales rose 3.1% as reported to $976 million, or 4.7% in constant currency. Mohawk said retail-channel volume growth and improving price and mix supported the segment. Adjusted operating income was $111 million, with an adjusted operating margin of 11.4%. Flooring Rest of World: Net sales increased 9.7% as reported to $806 million, or 6.2% in constant currency. Pricing actions, modest mix improvement, and performance in panels and insulation contributed to growth. Adjusted operating income was $97 million, or 12% of sales. President and Chief Operating Officer Paul De Cock said Mohawk estimates it gained share in both hard- and soft-surface flooring in North America. The company cited new product placements, premium tile and countertop offerings, new soft-surface products, and expanded retail and commercial-channel positions. De Cock also said commercial markets continued to outperform residential markets globally. Residential demand remained pressured by low home resale activity, affordability constraints and soft new-home construction, according to management. Mohawk said it has begun additional projects involving operational simplification, organizational realignment, warehouse consolidation and capacity optimization. The projects are expected to reduce costs by about $60 million, with most completed by the end of 2027. The company expects associated cash restructuring costs of approximately $50 million. Management said new collections in luxury vinyl tile, laminate, ceramic, carpet and countertops helped secure customer placements and initial inventory stocking during the quarter. De Cock said the company expects reorders from those placements to contribute in later periods, although he noted that the third quarter is seasonally slower than the second quarter. During the call, De Cock highlighted Mohawk’s commercial product introductions, including its Hero rubber flooring product made with recycled Nike Grind. He said the product received three Best of NeoCon awards. For the third quarter, Mohawk expects adjusted earnings per share of $2.50 to $2.60, excluding restructuring and other one-time charges. The outlook includes about $0.12 per share from additional tariff refunds already received. Excluding those refunds, the company’s baseline adjusted EPS outlook is $2.38 to $2.48. Management expects sales to decline seasonally from the second quarter, excluding foreign exchange and shipping-day effects. The third quarter will include one additional shipping day compared with both the prior-year period and the second quarter. Mohawk also noted that the fourth quarter will have four fewer shipping days. Lorberbaum announced that he will retire as chief executive officer after 25 years in the role, with De Cock set to succeed him. Lorberbaum will continue as chairman of the board. De Cock, who previously led Mohawk’s European flooring business and Flooring North America segment before becoming COO, said the company would continue to prioritize innovation, operational execution, profitable growth investments and share repurchases. Mohawk Industries, Inc is a global flooring manufacturer that designs, produces and distributes a broad range of floor covering products for both residential and commercial applications. Headquartered in Calhoun, Georgia, the company traces its roots to 1878 and has expanded through a series of strategic acquisitions and organic growth initiatives. Over the decades, Mohawk has built a vertically integrated platform encompassing yarn manufacturing, fiber production, wood and laminate finishing, and ceramic tile fabrication, enabling tight control over product quality and supply chain efficiency. The company's product portfolio includes residential and commercial carpet, ceramic and porcelain tile, laminate, wood and natural stone flooring, luxury vinyl, and innovative surface solutions. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Mohawk Industries Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

This article first appeared on GuruFocus. Net Sales: $3 billion, up 6.8% as reported and 5% on a constant basis. Reported EPS: $3.22; adjusted EPS of $3.67, including a $0.63 benefit from tariff refunds. Gross Margin: 26.6% as reported; 27.4% on an adjusted basis, up 100 basis points year-over-year. SG&A Expenses: 18.1% of net sales as reported; 17.7% on an adjusted basis, a 70 basis point improvement versus the prior year. Operating Income: $254 million reported; adjusted operating income of $290 million, or 9.7% of sales, up approximately 170 basis points year-over-year. Global Ceramic Segment Sales: $1.2 billion, up 7.9% as reported and 4.6% on a constant basis; adjusted operating income of $99 million, or 8.2% of net sales. Flooring North America Segment Sales: $976 million, up 3.1% as reported and 4.7% on a constant basis; adjusted operating income of $111 million, with an adjusted operating margin of 11.4%. Flooring Rest of World Segment Sales: $806 million, up 9.7% as reported and 6.2% on a constant basis; adjusted operating income of $97 million, or 12% of sales. Free Cash Flow: $236 million year-to-date. Capital Expenditures: $88 million in the quarter; full-year 2026 investment plan of approximately $460 million. Net Debt: Just under $1.1 billion, with a net debt-to-EBITDA ratio of 0.8 times. Share Repurchases: Over 600,000 shares purchased during the quarter for approximately $60 million. Third Quarter 2026 Guidance: Adjusted EPS expected between $2.50 and $2.60, including approximately $0.12 from additional tariff refunds; baseline EPS range of $2.38 to $2.48 excluding tariff refunds and restructuring charges. Warning! GuruFocus has detected 6 Warning Signs with MHK. Is MHK fairly valued? Test your thesis with our free DCF calculator. Release Date: July 31, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Mohawk Industries Inc (NYSE:MHK) delivered strong Q2 results, with net sales up 6.8% as reported and adjusted EPS of $3.67, significantly exceeding expectations. The company gained market share across most regions and product categories, driven by successful new product placements and innovations like the anti-allergen carpet and Hero rubber flooring. Operational excellence and restructuring initiatives delivered $43 million in productivity benefits during the quarter, with new projects expected to yield $60 million in annual savings by 2027. The balance sheet remains robust with net debt-to-EBITDA of 0.8x, supporting strong free cash flow generation of $236 million year-to-date and continued share repurchases. Commercial segment continues to outperform residential, and the company is well-positioned to benefit from potential US countertop tariffs with expanded domestic manufacturing capacity. Residential flooring markets remain soft, with existing home sales near multi-decade lows and new home construction pressured by affordability challenges. Underlying inflation is rising, with a $77 million impact in Q2 (excluding tariff refunds), and higher input costs are expected to persist into Q3 and Q4, potentially requiring additional price increases. Q3 guidance of $2.50-$2.60 adjusted EPS implies a sequential decline from Q2, partly due to more pronounced seasonality and the absence of one-time tariff refund benefits. The Middle East conflict and elevated European energy costs create ongoing uncertainty, potentially dampening consumer confidence and discretionary spending. The company faces competitive pressure in laminate and vinyl categories, with excess industry capacity potentially limiting pricing power despite strong product innovation. Q: Can you elaborate on the product categories and end markets driving the impressive share gains, particularly in commercial versus residential?A: Jeff Lorberbaum (CEO) highlighted that the company's innovation capabilities, showcased at NeoCon, are driving gains across both commercial and residential. New products like the Hero rubber flooring (made with recycled Nike regrind), which won three Best of NeoCon awards, are testament to this. These innovations have led to significant new product placements with customers in the second quarter, benefiting both soft and hard surface categories. Q: What drove the surge in Flooring Rest of World revenue growth, and should we expect similar levels in Q3?A: Jeff Lorberbaum (CEO) explained that European markets showed improvement earlier in the year following rate cuts, but consumer confidence declined after the start of the war. The team managed price and productivity effectively, with new premium LVT and laminate collections gaining momentum and improving mix. Nick Manthey (CFO) added that Q2 sales grew with positive price and mix from implemented price increases, and these benefits are expected to continue into Q3. Q: Can you provide more color on the drivers of the Q2 outperformance and why the strength may not fully transmit into Q3?A: Nick Manthey (CFO) noted that adjusted EPS came in about $1 ahead of guidance, with $0.63 from tariff refunds not included in the original guidance. Strong execution on price increases, particularly in Flooring Rest of World, and stronger-than-expected volume growth contributed. For Q3, the company expects normal seasonality, but input cost headwinds will ramp up significantly, similar to the step-up seen from Q1 to Q2, which will impact the EPS line. Q: Regarding the seasonal sales decline in Q3 being more pronounced, what is driving that, and was Q2 strength due to pull-forward ahead of price increases?A: Jeff Lorberbaum (CEO) stated that prebuying impact was limited as the company controls distribution in many markets. The volume mainly benefited from initial stocking of new product placements. Since Q3 is seasonally slower, any prebuying effect is factored into the outlook. The combination of a stronger-than-anticipated Q2 and typical seasonality contributes to the more pronounced sequential decline. Q: How are you thinking about additional pricing actions later this year, and have you seen product mix shifts following the pricing actions taken?A: Paul De Cock (President & COO) explained that with costs rising significantly, the entire industry needs to take pricing to cover them. Realization so far has been in line with expectations, with increases going in across different products and geographies. Inflation is expected to step up in the second half, and the combination of price, mix, and productivity should suffice to offset inflation for the year. Additional pricing may be required if costs rise further. Q: Can you discuss the capital deployment priorities and whether the buyback approach will be more opportunistic or regimented?A: Paul De Cock (President & COO) confirmed the capital allocation framework remains the same: first, invest in the business for innovation and productivity; second, evaluate profitable growth opportunities that meet strategic and financial criteria; and third, share repurchases will remain an important part of the policy. He did not provide specific details on the buyback approach but emphasized its continued importance. Q: Are you seeing any shift back to wood or tile from LVT or laminate broadly in the market?A: Jeff Lorberbaum (CEO) indicated that there haven't been any large product category shifts recently. LVT demand has trended more in line with the overall flooring industry as it becomes a more mature category, but relative market shares of different categories are relatively stable at this moment. Q: Can you talk about the cadence of market performance and share gains through the quarter, and the exit rate into July?A: Joe Ahlersmeyer (VP, Finance & IR) noted the company entered the quarter assuming the conflict and inflation would soften demand, but results exceeded expectations due to volume lifts from initial stocking positions. Jeff Lorberbaum (CEO) added that the market showed more resilience than expected, and the company outperformed on new product placements across many geographies and categories, with strong initial customer response. Q: What is the market's appetite for additional pricing, and do you need that pricing to offset normal Q3 to Q4 seasonality?A: Jeff Lorberbaum (CEO) stated that with the conflict escalating and volatile environment, costs could rise further, potentially requiring additional pricing actions. The company is driving productivity and restructuring actions to manage the difficult environment. Nick Manthey (CFO) added that based on what is known today, price mix and productivity should offset underlying inflation for Q3 and the year, but more pricing may be required if there is further inflation. Q: Can you provide color on the inflationary dynamic for Q4, assuming current input costs persist?A: Nick Manthey (CFO) explained that Q4 inflation is expected to remain elevated, possibly slightly higher on a year-over-year basis, but not at the same level of step-up seen from Q2 to Q3. There is more uncertainty in Q4 given fluctuating energy prices, and things can change quickly in this environment. Q: Can you discuss the performance of Flooring North America by product, and whether carpet is still below the average?A: Jeff Lorberbaum (CEO) highlighted success in residential carpet with new features like anti-allergen products, and strong adoption of laminate in the new builder construction channel. Nick Manthey (CFO) confirmed the company gained share in both hard and soft surfaces, with commercial performing better than residential. The longer-term trend of shift to hard surfaces continues, and the company is in line with that trend. Q: Can you provide any finer point on the prebuy impact and characterize inventories across the channel?A: Paul De Cock (President & COO) reiterated that the company controls distribution in many markets and holds inventory for customers, limiting the impact of prebuying. Customers have limited storage capability, so the impact was limited, though it's not easy to quantify as the company has no visibility into customer inventory positions. Q: How has your hedging program for European natural gas changed, and will input cost increases carry over into For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Mohawk Industries (MHK) came out with quarterly earnings of $3.67 per share, beating the Zacks Consensus Estimate of $2.57 per share. This compares to earnings of $2.77 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +42.80%. A quarter ago, it was expected that this flooring maker would post earnings of $1.8 per share when it actually produced earnings of $1.9, delivering a surprise of +5.56%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Mohawk Industries, which belongs to the Zacks Textile - Home Furnishing industry, posted revenues of $2.99 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 5.83%. This compares to year-ago revenues of $2.8 billion. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Mohawk Industries shares have added about 3.7% since the beginning of the year versus the S&P 500's gain of 6.9%. While Mohawk Industries has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Mohawk Industries was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $2.37 on $2.85 billion in revenues for the coming quarter and $8.67 on $11.08 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Textile - Home Furnishing is currently in the top 27% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Interface (TILE), another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 7. This carpet tile company is expected to post quarterly earnings of $0.63 per share in its upcoming report, which represents a year-over-year change of +5%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Interface's revenues are expected to be $390 million, up 3.9% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Mohawk Industries, Inc. (MHK) : Free Stock Analysis Report Interface, Inc. (TILE) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

CALHOUN, Ga., July 30, 2026 (GLOBE NEWSWIRE) -- Mohawk Industries, Inc. (NYSE: MHK) today announced second quarter 2026 net earnings of $196 million and earnings per share (“EPS”) of $3.22; adjusted net earnings were $223 million, and adjusted EPS was $3.67. Net sales for the second quarter of 2026 were $3.0 billion, up 6.8% as reported and up 5.0% adjusted for constant days and exchange rates versus the prior year. During the second quarter of 2025, the Company reported net sales of $2.8 billion, net earnings of $147 million and earnings per share of $2.34; adjusted net earnings were $173 million, and adjusted EPS was $2.77. For the six months ended July 4, 2026, net earnings and EPS were $313 million and $5.11, respectively; adjusted net earnings were $341 million, and adjusted EPS was $5.56. Net sales for the first six months of 2026 were $5.7 billion, an increase of 7.4% as reported and up 1.4% on an adjusted basis versus the prior year. For the six months ended June 28, 2025, the Company reported net sales of $5.3 billion, net earnings of $219 million and earnings per share of $3.49; adjusted net earnings were $269 million and adjusted EPS was $4.29. Commenting on the Company’s second quarter performance, Chairman and CEO Jeff Lorberbaum stated, “Our results in the quarter significantly exceeded our expectations as we outperformed our markets. Our performance benefited from volume growth, pricing and product mix. Across our regions, our teams effectively executed our strategies and capitalized on opportunities with new and existing customers. We successfully introduced new collections, expanded product placements and improved our mix. In the period, volume benefited from initial stocking of new product placements and limited increases in inventory by some customers ahead of announced price increases. Our second-quarter reported EPS of $3.22 and adjusted EPS of $3.67 included a benefit of approximately $0.63 from tariff refunds, which were not included in our second quarter guidance. These refunds represent the reversal of costs that we have absorbed from higher tariffs. As part of our buyback program, we purchased over 600,000 shares during the quarter for approximately $60 million. Our second quarter forecast had reflected uncertainty related to the Middle East conflict, but market conditions proved more resilient than we anticipated. Residential channels remained soft during the quarter, and we believe we outpaced the market and gained share in most regions. The commercial sector continued to outperform residential, and our differentiated offering enhanced our mix and margins. The new home construction market remains pressured, and existing home sales continue to be affected by affordability challenges. In this softer environment, we are proactively managing the controllable aspects of our business, including enhancing our sales strategies, pricing and operational improvements and managing our inventory levels and costs. Across many of our products and geographies, we executed pricing increases in response to higher labor, overhead, material, energy and transportation costs. In the second half of the year, these higher input costs will flow through inventory and impact our margins, and additional price increases may be required this year. We are bringing innovative products to market with differentiated features to strengthen our sales and mix. Across the business, our teams are delivering significant productivity gains, and our results are benefiting from our prior restructuring projects. In addition, we have initiated new projects focused on operational simplification, organizational realignment, warehouse consolidation and capacity optimization, all of which will reduce our costs approximately $60 million, with most completed by the end of 2027. These savings will require cash restructuring costs and capital expenditures of approximately $50 million.” Reviewing second quarter results by segment, net sales in the Global Ceramic Segment increased by 7.9% as reported, or increased by 4.6% adjusted for constant days and exchange rates versus the prior year. The Segment’s operating margin was 7.8% as reported, or 8.2% on an adjusted basis due to productivity gains and improved price and mix offset by higher input costs versus the prior year. Net sales in the Flooring North America Segment increased by 3.1% as reported and increased by 4.7% on an adjusted basis versus the prior year. The Segment’s operating margin was 10.0% as reported, or was 11.4% on an adjusted basis due to tariff benefit and productivity gains partially offset by higher input costs. Net sales in the Flooring Rest of the World Segment increased by 9.7% as reported, or increased by 6.2% adjusted for constant days and exchange rates versus the prior year. The Segment’s operating margin was 9.8% as reported, or 12.0% on an adjusted basis due to pricing benefits compared to the prior year. On June 11, 2026, the Company announced a leadership transition with Paul De Cock, the Company’s President and Chief Operating Officer, appointed Chief Executive Officer to succeed Mr. Lorberbaum, effective September 30, 2026. Mr. Lorberbaum will retire as CEO at that time and remain Chairman of the Company’s Board of Directors. Commenting on Mohawk’s outlook, Mr. De Cock stated, “Looking ahead to the third quarter, we anticipate flooring market conditions will remain challenging. Across the world, the home resale market remains near multi-decade lows, and new home construction remains soft. We delivered strong second-quarter results even though the market has not yet improved. We expect commercial to keep outperforming residential in the third quarter, while our higher-end offerings continue to enhance our mix. We expect our sales to seasonally drop from the second quarter, excluding the impact of currency exchange and shipping days. Given our stronger performance in the second quarter, this seasonal pattern could be more pronounced than in past years. We will have one additional shipping day in the third quarter compared with both the prior year and the second quarter of 2026. In the third quarter, we will see higher input costs and further benefits from our price increases, and we will continue our productivity efforts. We expect higher costs to persist into the fourth quarter, and we may need to take additional pricing actions. Given these factors, we expect our third quarter adjusted earnings per share, excluding any restructuring or other one-time charges, to be between $2.50 and $2.60, including approximately $0.12 from additional tariff refunds we have already received. Excluding tariff refunds and any restructuring or other one-time charges, our outlook contemplates a baseline EPS range of between $2.38 and $2.48.” ABOUT MOHAWK INDUSTRIESOver the past two decades, Mohawk Industries has transformed its business into the world’s largest flooring 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. Certain of the statements in the immediately preceding paragraphs, particularly 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 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; the impact of tariffs; competition; inflation and deflation in freight, raw material prices and other input costs; inflation and deflation in consumer markets; currency fluctuations; rising energy costs and changes in the level of supply thereof; 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; taxes and tax reform; product and other claims; litigation; geopolitical conflict; regulatory and political changes in the jurisdictions in which the Company does business; and other risks identified in Mohawk’s U.S. Securities and Exchange Commission reports and public announcements. Conference call Friday, July 31, 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-2nd-quarter-2026-earnings-call. To participate in the conference call via telephone, register in advance at https://dpregister.com/sreg/10209987/10448bdd21c 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 August 28, 2026, by dialing 1-855-669-9658 (U.S./Canada) or 1-412-317-0088 (international) and entering Conference ID # 9372095. The call will be archived and available for replay for one year under the “Investors” tab of mohawkind.com. (1) A one-time U.S. tax benefit associated with a legal entity restructuring initiative and tax credits issued by the Brazilian government related to prior years. (1)Includes accelerated depreciation of $16.4 for Q3 2025, $25.9 for Q4 2025, $30.0 for Q1 2026, and $10.0 for Q2 2026. US GAAP to non-GAAP presentation The Company supplements its condensed consolidated financial statements, which are prepared and presented in accordance with US GAAP, with certain non-GAAP financial measures. As required by the Securities and Exchange Commission rules, the tables above present a reconciliation of the Company’s non-GAAP financial measures to the most directly comparable US GAAP measure.  Each of the non-GAAP measures set forth above should be considered in addition to the comparable US GAAP measure, and may not be comparable to similarly titled measures reported by other companies. The Company believes these non-GAAP measures, when reconciled to the corresponding US GAAP measure, help its investors as follows: Non-GAAP revenue measures that assist in identifying growth trends and in comparisons of revenue with prior and future periods and non-GAAP profitability measures that assist in understanding the long-term profitability trends of the Company's business and in comparisons of its profits with prior and future periods. The Company excludes certain items from its non-GAAP revenue measures because these items can vary dramatically between periods and can obscure underlying business trends. Items excluded from the Company’s non-GAAP revenue measures include: foreign currency transactions and translation; more or fewer shipping days in a period and the impact of acquisitions. The Company excludes certain items from its non-GAAP profitability measures because these items may not be indicative of, or are unrelated to, the Company's core operating performance. Items excluded from the Company's non-GAAP profitability measures include: restructuring, acquisition and integration-related and other costs, legal settlements, reserves and fees, impairment of goodwill and indefinite-lived intangibles, acquisition purchase accounting, including inventory step-up from purchase accounting, adjustments of indemnification asset, adjustments of uncertain tax position and European tax restructuring.

For the quarter ended June 2026, Mohawk Industries (MHK) reported revenue of $2.99 billion, up 6.8% over the same period last year. EPS came in at $3.67, compared to $2.77 in the year-ago quarter. The reported revenue compares to the Zacks Consensus Estimate of $2.83 billion, representing a surprise of +5.83%. The company delivered an EPS surprise of +42.8%, with the consensus EPS estimate being $2.57. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance. Here is how Mohawk Industries performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Net Sales- Global Ceramic: $1.21 billion versus $1.12 billion estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +7.9% change. Net Sales- Flooring ROW: $805.6 million versus $745.37 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +9.7% change. Net Sales- Flooring NA: $976.1 million versus the two-analyst average estimate of $965.78 million. The reported number represents a year-over-year change of +3.1%. Adjusted Operating Income- Global Ceramic: $99.2 million versus $79.02 million estimated by two analysts on average. Adjusted Operating Income- Corporate and intersegment eliminations: $-16.9 million versus the two-analyst average estimate of $-14.58 million. Adjusted Operating Income- Flooring ROW: $96.5 million versus the two-analyst average estimate of $79.82 million. Adjusted Operating Income- Flooring NA: $111.3 million versus the two-analyst average estimate of $57.37 million. View all Key Company Metrics for Mohawk Industries here>>> Shares of Mohawk Industries have returned -5.4% over the past month versus the Zacks S&P 500 composite's -1.5% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Mohawk Industries, Inc. (MHK) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research