second quarter 2026
Filed Jul 30, 2026MOHAWK INDUSTRIES REPORTS Q2 2026 RESULTS
Second-quarter net sales increased 6.8% as reported, GAAP net earnings were $196 million, and adjusted EPS was $3.67. Management stated that results significantly exceeded expectations, supported by volume growth, pricing, product mix, productivity gains and tariff refunds.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net salesGAAP | $2,991.4 million | – | 6.8% as reported |
| Net sales adjusted for constant days and exchange ratesother | $3.0 billion | – | 5.0% |
| Cost of salesGAAP | $2,196.3 million | – | – |
| Gross profitGAAP | $795.1 million | – | – |
| Selling, general and administrative expensesGAAP | $541.4 million | – | – |
| Operating incomeGAAP | $253.7 million | – | – |
| Interest expenseGAAP | $4.8 million | – | – |
| Other (income) and expense, netGAAP | $0.4 million | – | – |
| Earnings before income taxesGAAP | $248.5 million | – | – |
| Income tax expense (benefit)GAAP | $52.3 million | – | – |
| Net earnings including noncontrolling interestsGAAP | $196.2 million | – | – |
| Net earningsGAAP | $196 million | – | – |
| Earnings per shareGAAP | $3.22 | – | – |
| Adjusted net earningsnon-GAAP | $223 million | – | – |
| Adjusted earnings per sharenon-GAAP | $3.67 | – | – |
| Global Ceramic Segment net sales growthGAAP | 7.9% as reported | – | 7.9% as reported |
| Global Ceramic Segment net sales growth adjusted for constant days and exchange ratesother | 4.6% | – | 4.6% |
| Global Ceramic Segment operating marginGAAP | 7.8% | – | – |
| Global Ceramic Segment adjusted operating marginnon-GAAP | 8.2% | – | – |
| Flooring North America Segment net sales growthGAAP | 3.1% as reported | – | 3.1% as reported |
| Flooring North America Segment net sales growth adjusted for constant days and exchange ratesother | 4.7% | – | 4.7% |
| Flooring North America Segment operating marginGAAP | 10.0% | – | – |
| Flooring North America Segment adjusted operating marginnon-GAAP | 11.4% | – | – |
| Flooring Rest of the World Segment net sales growthGAAP | 9.7% as reported | – | 9.7% as reported |
| Flooring Rest of the World Segment net sales growth adjusted for constant days and exchange ratesother | 6.2% | – | 6.2% |
| Flooring Rest of the World Segment operating marginGAAP | 9.8% | – | – |
| Flooring Rest of the World Segment adjusted operating marginnon-GAAP | 12.0% | – | – |
| Six-month net salesGAAP | $5,720.1 million | – | 7.4% as reported |
| Six-month net sales adjusted for constant days and exchange ratesother | $5.7 billion | – | 1.4% |
| Six-month gross profitGAAP | $1,437.0 million | – | – |
| Six-month operating incomeGAAP | $365.5 million | – | – |
| Six-month net earnings including noncontrolling interestsGAAP | $313.3 million | – | – |
| Six-month net earningsGAAP | $313 million | – | – |
| Six-month earnings per shareGAAP | $5.11 | – | – |
| Six-month adjusted net earningsnon-GAAP | $341 million | – | – |
| Six-month adjusted earnings per sharenon-GAAP | $5.56 | – | – |
third quarter outlook
- NoteAdjusted earnings per share, excluding any restructuring or other one-time charges, between $2.50 and $2.60
- NoteApproximately $0.12 from additional tariff refunds already received
- NoteBaseline EPS range, excluding tariff refunds and any restructuring or other one-time charges, between $2.38 and $2.48
- NoteOne additional shipping day in the third quarter compared with both the prior year and the second quarter of 2026
Capital returns
- Purchased over 600,000 shares during the quarter for approximately $60 million.
What drove it
- Performance benefited from volume growth, pricing and product mix.
- Volume benefited from initial stocking of new product placements and limited increases in inventory by some customers ahead of announced price increases.
- Commercial outperformed residential, while differentiated higher-end offerings enhanced mix and margins.
- Global Ceramic adjusted operating margin benefited from productivity gains and improved price and mix, partly offset by higher input costs.
- Flooring North America adjusted operating margin benefited from tariff refunds and productivity gains, partly offset by higher input costs.
- Flooring Rest of the World adjusted operating margin benefited from pricing benefits compared to the prior year.
- Second-quarter EPS included a benefit of approximately $0.63 from tariff refunds.
Concerns
- Residential channels remained soft during the quarter.
- The new home construction market remains pressured, and existing home sales continue to be affected by affordability challenges.
- Higher labor, overhead, material, energy and transportation costs are expected to flow through inventory and impact margins in the second half of the year.
- Management expects higher costs to persist into the fourth quarter and may need to take additional pricing actions.
- Management expects sales to seasonally drop from the second quarter, excluding currency exchange and shipping days, and stated that the pattern could be more pronounced than in past years.
What to watch
- Third-quarter adjusted EPS guidance of between $2.50 and $2.60, including approximately $0.12 from additional tariff refunds.
- Whether pricing actions and productivity efforts offset higher input costs in the third quarter and into the fourth quarter.
- Commercial demand relative to residential demand and the impact of higher-end offerings on product mix.
- Execution of operational simplification, organizational realignment, warehouse consolidation and capacity optimization projects.
- Paul De Cock's appointment as Chief Executive Officer effective September 30, 2026, as Jeff Lorberbaum retires as CEO and remains Chairman.
Balance sheet and cash flow
- New projects will reduce costs approximately $60 million, with most completed by the end of 2027.
- Savings will require cash restructuring costs and capital expenditures of approximately $50 million.
Analysis
Mohawk reported a strong second quarter, with net sales of $2,991.4 million versus $2,802.1 million in the prior-year quarter and reported growth of 6.8%. Sales increased 5.0% adjusted for constant days and exchange rates. GAAP net earnings were $196 million and GAAP EPS was $3.22, while adjusted net earnings were $223 million and adjusted EPS was $3.67. Management stated that results significantly exceeded its expectations and attributed the performance to volume growth, pricing and product mix.
The segment commentary points to broad-based sales growth, although segment revenue dollars were not included in the provided filing text. Global Ceramic sales increased 7.9% as reported and 4.6% on an adjusted basis, with a 7.8% reported operating margin and an 8.2% adjusted operating margin. Flooring North America sales increased 3.1% as reported and 4.7% adjusted, while its 10.0% reported operating margin and 11.4% adjusted operating margin reflected tariff benefits and productivity gains. Flooring Rest of the World delivered the highest reported segment sales growth at 9.7%, with a 9.8% reported operating margin and a 12.0% adjusted operating margin.
Mix, pricing and productivity supported profitability, but tariff refunds were a material contributor to EPS. Reported EPS of $3.22 and adjusted EPS of $3.67 included approximately $0.63 from tariff refunds that had not been included in second-quarter guidance. Management also cited commercial outperformance versus residential and stronger higher-end offerings. Residential channels remained soft, new home construction remained pressured, and existing-home sales continued to be affected by affordability challenges.
Capital allocation included purchases of over 600,000 shares for approximately $60 million during the quarter. Management also initiated operational simplification, organizational realignment, warehouse consolidation and capacity optimization projects intended to reduce costs approximately $60 million, with most completed by the end of 2027. These projects are expected to require cash restructuring costs and capital expenditures of approximately $50 million.
For the third quarter, management expects challenging flooring market conditions and a seasonal sales decline from the second quarter excluding currency exchange and shipping days, despite one additional shipping day. The company guided to adjusted EPS of between $2.50 and $2.60, including approximately $0.12 of additional tariff refunds already received. Excluding tariff refunds and restructuring or other one-time charges, the baseline EPS outlook is between $2.38 and $2.48. Higher input costs are expected in the third quarter and to persist into the fourth quarter, making pricing realization and productivity execution central factors to monitor.
Management, verbatim
Our results in the quarter significantly exceeded our expectations as we outperformed our markets. Our performance benefited from volume growth, pricing and product mix.
Jeff Lorberbaum, Chairman and CEO
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.
Jeff Lorberbaum, Chairman and CEO
Looking ahead to the third quarter, we anticipate flooring market conditions will remain challenging.
Paul De Cock, President and Chief Operating Officer
Not in the filing
stated, not guessed- Segment revenue amounts for Global Ceramic, Flooring North America and Flooring Rest of the World were not included in the provided filing text.
- Total consolidated gross margin was not reported.
- Total consolidated operating margin was not reported.
- Quarterly operating cash flow was not reported.
- Quarterly free cash flow was not reported.
- Cash balance was not reported.
- Debt balance was not reported.
- Dividend information was not reported.
- Prior-quarter figures for reported metrics were not included.
- Prior outlook was not provided, so a comparison of actual results versus prior guidance cannot be made.
- The provided financial-statement text is truncated after the line beginning "Less: Net earnings attributable to no"; net earnings attributable to Mohawk Industries, Inc., diluted share count, and subsequent statement line items were not available in the provided text.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.