CALHOUN, Georgia, July 31, 2026 (GLOBE NEWSWIRE) -- Mohawk Industries, Inc. (NYSE: MHK) today announced net income of USD 196 million and earnings per share (EPS) of USD 3.22 for the second quarter of 2026. Adjusted net income was USD 223 million, and adjusted EPS was USD 3.67. Net sales for the second quarter of 2026 reached USD 3.0 billion, representing an increase of 6.8% as reported and 5.0% on a constant-days and currency-adjusted basis compared with the prior-year period. In the second quarter of 2025, the Company reported net sales of USD 2.8 billion, net income of USD 147 million, and EPS of USD 2.34; adjusted net income was USD 173 million and adjusted EPS was USD 2.77. As the world's largest flooring company, Mohawk's quarterly performance is widely tracked as a barometer for building products demand and housing-related discretionary spending.

For the semester ended July 4, 2026, net income and EPS were USD 313 million and USD 5.11, respectively. Adjusted net income was USD 341 million and adjusted EPS was USD 5.56. Net sales for the first half of 2026 totaled USD 5.7 billion, an increase of 7.4% as reported and 1.4% on an adjusted basis versus the prior year. For the six months ended June 28, 2025, the Company reported net sales of USD 5.3 billion, net income of USD 219 million, and EPS of USD 3.49; adjusted net income was USD 269 million and adjusted EPS was USD 4.29.

Commenting on the Company's second-quarter performance, Chairman and CEO Jeff Lorberbaum stated: "Our results for the quarter significantly exceeded our expectations, as we outperformed our markets. Our performance benefited from growth in volume, pricing, and product mix. Across all our regions, our teams executed our strategies effectively and capitalized on opportunities with both new and existing customers. We successfully launched new collections, expanded product placement, and improved our mix. During the period, volume benefited from initial stocking of new product introductions and limited inventory increases by some customers ahead of announced price increases. Our reported second-quarter EPS of USD 3.22 and adjusted EPS of USD 3.67 included a benefit of approximately USD 0.63 from tariff rebates, which were not included in our guidance for the second quarter. These rebates represent the reversal of costs we had absorbed due to increased tariffs. As part of our share repurchase program, we acquired more than 600,000 shares during the quarter for approximately USD 60 million.

Our forecast for the second quarter reflected uncertainty related to the conflict in the Middle East, but market conditions proved more resilient than we had anticipated. Residential channels remained weak during the quarter, and we believe we outperformed the market and gained share in most regions. The commercial sector continued to outperform residential, and our differentiated offering improved our mix and margins. The new-home construction market remains under pressure, and existing-home sales continue to be affected by affordability challenges. Flooring demand is closely tied to housing turnover, and the persistent weakness in residential resale activity has weighed on remodeling and replacement spending across the industry. In this weaker environment, we are proactively managing the controllable aspects of our business, including strengthening our sales strategies, pricing, operational improvements, and managing our inventory levels and costs. Across many of our products and regions, we implemented price increases in response to rising labor, overhead, material, energy, and transportation costs. In the second half of the year, these higher input costs will be reflected in inventory and will impact our margins, so additional price increases may be necessary this year. We are bringing innovative products to market with differentiated features to strengthen our sales and mix. Across the company, our teams are achieving significant productivity improvements, and our results are benefiting from previously implemented restructuring projects. Additionally, we have launched new initiatives focused on operational simplification, organizational realignment, warehouse consolidation, and capacity optimization, which will reduce our costs by approximately USD 60 million, with the majority completed by the end of 2027. These savings will require cash restructuring costs and capital expenditures of approximately USD 50 million."

Reviewing second-quarter results by segment, net sales in the Global Ceramic Segment increased 7.9% as reported, or 4.6% on a constant-days and currency-adjusted basis versus the prior year. Segment operating margin was 7.8% as reported, or 8.2% on an adjusted basis, driven by productivity improvements and better pricing and mix, offset by higher input costs compared with the prior year.

Net sales in the Flooring North America Segment increased 3.1% as reported and 4.7% on an adjusted basis versus the prior year. Segment operating margin was 10.0% as reported, or 11.4% on an adjusted basis, due to benefits from tariffs and productivity improvements, partially offset by higher input costs.

Net sales in the Flooring Rest of the World Segment increased 9.7% as reported, or 6.2% on a constant-days and currency-adjusted basis versus the prior year. Segment operating margin was 9.8% as reported, or 12.0% on an adjusted basis, due to pricing benefits compared with the prior year.

On June 11, 2026, the Company announced a leadership transition under which Paul De Cock, President and Chief Operating Officer of the Company, was appointed Chief Executive Officer to succeed Mr. Lorberbaum, effective September 30, 2026. Mr. Lorberbaum will retire as Chief Executive Officer on that date and will remain as Chairman of the Board. The transition comes as the company navigates a prolonged downturn in residential demand while implementing new cost reduction initiatives.

Commenting on Mohawk's outlook, Mr. De Cock stated: "Looking ahead to the third quarter, we anticipate that flooring market conditions will remain challenging. Globally, the residential resale market remains near multi-decade lows, and new-home construction continues to be weak. We delivered solid results in the second quarter even though the market has not yet improved. We expect the commercial segment to continue outperforming residential during the third quarter, while our high-end offering will continue to improve our mix. We foresee our sales declining seasonally from the second quarter, excluding the impact of currency and shipping days. Given our strong second-quarter performance, this seasonal pattern could be more pronounced than in previous 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 experience higher input costs and greater benefits from our price increases, and we will continue our productivity efforts. We expect higher costs to persist into the fourth quarter, necessitating additional pricing actions. Given these factors, we expect third-quarter adjusted EPS, excluding any restructuring or other extraordinary charges, to be between USD 2.50 and USD 2.60, including approximately USD 0.12 from additional tariff rebates we have already received. Excluding tariff rebates and any restructuring or other extraordinary charges, our outlook contemplates a base EPS of between USD 2.38 and USD 2.48."

About Mohawk Industries

Over the past two decades, Mohawk Industries has transformed its business into the world's largest flooring company, with leadership 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, laminate, and wood, vinyl, and hybrid flooring. Mohawk's industry-leading innovation has produced designs and performance enhancements that differentiate its collections in the marketplace and meet all remodeling and new construction needs for both residential and commercial applications. 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.

Forward-Looking Statements

Certain statements in the preceding paragraphs, particularly those anticipating future performance, business prospects, operational and growth strategies, and similar matters, and including 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 provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Management believes these forward-looking statements are reasonable as and when issued; however, caution should be exercised not to place undue reliance on any forward-looking statement, as such statements are valid only as of the date issued. The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise, except as required by law. There can be no assurance that forward-looking statements will prove accurate, as they are based on various assumptions involving risks and uncertainties. Important factors that could cause future results to differ from historical experience and current expectations and projections include, among others: changes in economic or industry conditions; the impact of tariffs; competition; inflation and deflation in freight, raw material, and other input costs; inflation and deflation in consumer markets; currency fluctuations; rising energy costs and changes in supply levels; timing and level of capital expenditures; timing and implementation of the Company's product price increases; impairment charges; identification and completion 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 conflicts; regulatory and political changes in jurisdictions where the Company does business; and other risks identified in Mohawk's reports filed with the United States Securities and Exchange Commission (SEC) and in public announcements.

Conference Call

Friday, July 31, 2026, at 11:00 a.m. Eastern Time (ET)

To participate in the conference call via the Internet, visit:

To participate in the conference call by telephone, register in advance at to obtain 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 to the live conference, the call will be available for replay until August 28, 2026, by calling 1-855-669-9658 (U.S./Canada) or 1-412-317-0088 (international) and entering conference ID number 9372095. The call will be archived and available for replay for one year in the "Investors" section 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 USD 16.4 for the third quarter of 2025, USD 25.9 for the fourth quarter of 2025, USD 30.0 for the first quarter of 2026, and USD 10.0 for the second quarter of 2026.

Presentation of US GAAP and Non-GAAP Measures

The Company supplements its consolidated financial statements, which are prepared and presented in accordance with United States Generally Accepted Accounting Principles (US GAAP), with certain non-GAAP financial measures. As required by SEC regulations, the preceding tables present the reconciliation of the Company's non-GAAP financial measures to the most directly comparable US GAAP measures. Each of the non-GAAP measures included should be considered alongside the corresponding US GAAP measure and may not be comparable to similarly named measures reported by other companies.

The Company believes these non-GAAP measures, when reconciled to the corresponding GAAP measures, assist investors in the following ways: non-GAAP revenue measures help identify growth trends and facilitate comparisons of revenue across prior and future periods, and non-GAAP profitability measures help understand the Company's long-term profitability trends and facilitate comparisons of earnings across prior and future periods.

The Company excludes certain items from its non-GAAP revenue measures because those items can vary significantly between periods and may 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 those items may not be indicative of, or have no relationship to, the Company's underlying operating performance. Items excluded from the Company's non-GAAP profitability measures include: restructuring, acquisition, integration, and other related costs; legal settlement and reserves and charges; impairment of goodwill and indefinite-lived intangibles; acquisition purchase accounting, including inventory purchase accounting step-up; indemnification asset adjustments; uncertain tax position adjustments; and European tax restructuring.