CALHOUN, Georgia, Aug. 01, 2026 (GLOBE NEWSWIRE) -- Mohawk Industries, Inc. (NYSE: MHK), the world's largest flooring manufacturer, today reported net earnings of $196 million for the second quarter of 2026, with earnings per share ("EPS") of $3.22. Adjusted net earnings were $223 million, with adjusted EPS of $3.67. Net sales for the second quarter of 2026 totaled $3.0 billion, representing an 8.0% increase as reported and a 5.0% increase after adjusting for selling days and exchange rates compared to the prior-year period. For the second quarter of 2025, the Company reported net sales of $2.8 billion, net earnings of $147 million, and EPS of $2.34; adjusted net earnings were $173 million and adjusted EPS was $2.77.

For the six months ending July 4, 2026, net earnings were $313 million and EPS was $5.11; adjusted net earnings were $341 million and adjusted EPS was $5.56. Net sales for the first six months of 2026 amounted to $5.7 billion, representing a 7.4% increase as reported and a 1.4% increase on an adjusted basis compared to the prior year. For the six months ending June 28, 2025, the Company reported net sales of $5.3 billion, net earnings of $219 million, and EPS of $3.49; adjusted net earnings were $269 million and adjusted EPS was $4.29.

Demand for flooring products is closely linked to housing market activity, including new construction, existing home turnover, and renovation and remodeling projects, making industry results sensitive to interest-rate and broader economic cycles.

Commenting on the Company's second quarter results, Chairman and CEO Jeff Lorberbaum stated: "Our results this quarter significantly exceeded our expectations, as we outperformed our competitors. Our results were driven by volume growth, pricing, and product mix. Across all our regions, our teams effectively executed our strategies and capitalized on opportunities with new and existing customers. We successfully introduced new collections, expanded marketing through product placements, and improved our assortment. During this period, volume benefited from the initial stocking of new product placements and from limited inventory build-ups by some customers in anticipation of announced price increases. Our reported second quarter EPS of $3.22 and our adjusted EPS of $3.67 include a benefit of approximately $0.63 from tariff recoveries that were not included in our second quarter forecast. These recoveries represent the reimbursement of costs we had absorbed as a result of higher tariffs. As part of our share repurchase program, we purchased more than 600,000 shares during the quarter for approximately $60 million.

Our second quarter forecast had accounted for uncertainty related to the conflict in the Middle East, but market conditions proved more resilient than we had anticipated. The residential market remained weak this quarter, but we believe we outperformed our competitors and gained market share in most regions. The commercial sector continued to outperform the residential market, and our differentiated offering improved our sales mix and margins. The new housing construction market remains under pressure, and existing home sales continue to be affected by affordability challenges. In this less favorable environment, we are proactively managing the controllable aspects of our operations, including improving our sales strategies, pricing, and operational improvements, and managing our inventory levels and costs. For many of our products and across various regions, we have implemented price increases in response to higher costs for labor, overhead, materials, energy, and transportation. In the second half of the year, these higher input costs will flow through inventory and impact our margins, and further price increases may be necessary this year. We are bringing innovative products with distinctive features to market to strengthen our revenue and product mix. Across the entire company, our teams are achieving significant productivity gains, and our results benefit from prior restructuring projects. Additionally, we have launched new projects focused on operational simplification, organizational restructuring, warehouse consolidation, and capacity optimization, which will reduce our costs by approximately $60 million; most of these will be completed by the end of 2027. These savings will be accompanied by cash restructuring costs and capital expenditures of approximately $50 million."

Turning to second quarter segment results, net sales in the Global Ceramic segment rose 7.9% on a reported basis, or 4.6% after adjusting for selling days and exchange rates compared to the prior year. The segment's operating margin was 7.8% as reported, or 8.2% on an adjusted basis, driven by productivity gains and improved pricing and product mix, partially offset by higher input costs year over year.

Net sales in the Flooring North America segment increased 3.1% as reported and 4.7% on an adjusted basis compared to the prior year. The segment's operating margin was 10.0% as reported, or 11.4% on an adjusted basis, due to benefits from import duties—trade measures on competing flooring products that support domestic manufacturers—and productivity gains, partially offset by higher input costs.

Net sales in the Flooring Rest of the World segment rose 9.7% as reported, or 6.2% on a constant-day and exchange-rate basis compared to the prior year. The segment's reported operating margin was 9.8% as reported, or 12.0% on an adjusted basis, thanks to pricing benefits relative to the prior year.

On June 11, 2026, the Company announced a leadership transition in which Paul De Cock, then Corporate Vice President and Chief Operating Officer, was appointed Chief Executive Officer, succeeding Mr. Lorberbaum, effective September 30, 2026. Mr. Lorberbaum will step down as CEO at that time and remain as Chairman of the Company's Board of Directors.

Commenting on Mohawk's outlook, Mr. De Cock stated: "Looking ahead to the third quarter, we expect flooring market conditions to remain challenging. Globally, the existing home sales market remains near its lowest level in decades, and new housing construction remains weak. We delivered strong results in the second quarter, even though the market has not yet improved. We expect the commercial sector to continue outperforming the residential sector in the third quarter, while our higher-end offerings continue to strengthen our product mix. We expect our revenue to decline seasonally compared to the second quarter, excluding the effect of exchange rates and shipping days. Given our stronger performance in the second quarter, this seasonal pattern may be more pronounced than in previous years. We have one additional shipping day in the third quarter compared to both the prior year and the second quarter of 2026. In the third quarter, we will face higher input costs and continue to benefit from our price increases, and we will continue our productivity efforts. We expect the higher costs to persist into the fourth quarter, and we may need to take additional pricing actions. Given these factors, we expect our adjusted EPS for the third quarter to be between $2.50 and $2.60, excluding restructuring or other one-time charges and including approximately $0.12 in additional tariff recoveries we have already received. Excluding tariff recoveries and any restructuring or other one-time charges, our forecast calls for base EPS between $2.38 and $2.48."

About Mohawk Industries

Over the past twenty years, Mohawk Industries has transformed itself 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 processes provide a competitive advantage in the production of ceramic tile, carpeting, and laminate, wood, vinyl, and hybrid flooring. Mohawk's industry-leading innovations have produced designs and performance improvements that distinguish the Company's collections in the marketplace and meet all new construction and renovation requirements. The Company's brands are among the most recognized 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 relating to future performance, business outlook, growth, business strategies, and similar matters, and statements containing words such as "could," "should," "believes," "expects," "anticipates," 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 these statements, Mohawk claims the protection of the "safe harbor" for forward-looking statements under the Private Securities Litigation Reform Act of 1995. Management believes these forward-looking statements are reasonable as of the date they are made; however, caution should be exercised not to place undue reliance on such forward-looking statements, as they are relevant only as of the date made. The Company is not obligated to publicly update or revise forward-looking statements, whether as a result of new information, future events, or otherwise, unless required by law. There is no guarantee regarding the accuracy of forward-looking statements because they are based on various assumptions that involve risks and uncertainties. Important factors that could cause future results to differ from past experience and current expectations or forecasts include: changing economic or industry conditions; the impact of import duties; competition; inflation and deflation in freight costs, raw material prices, and other input costs; inflation and deflation in consumer markets; currency fluctuations; rising energy costs and changes in energy supply; the timing and level of capital expenditures; the timing and implementation of price increases for the Company's products; impairment charges; the identification and potential completion of acquisitions on favorable terms; the integration of acquisitions; international operations; the introduction of new products; the streamlining of operations; tax and fiscal reforms; product and other claims; litigation; geopolitical conflicts; changes in regulations and politics in the jurisdictions where the Company operates; and other potential risk factors as described in reports Mohawk has filed with the U.S. Securities and Exchange Commission and in public announcements by Mohawk.

Conference Call

A conference call will be held on Friday, July 31, 2026, at 11:00 a.m. Eastern Time.

To participate online, go to To participate by phone, pre-register at to receive a unique personal identification number. On the day of the call, you may also dial 1-833-630-1962 (U.S./Canada) or 1-412-317-1843 (international) for operator assistance. For those unable to listen at the scheduled time, the call will be available until 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 remain available for one year under the "Investors" tab at 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 Reconciliation

The Company supplements its consolidated summary financial statements, prepared in accordance with U.S. Generally Accepted Accounting Principles (US GAAP), with non-GAAP financial performance measures. In accordance with Securities and Exchange Commission regulations, the tables referenced above provide a reconciliation of the Company's non-GAAP measures to the most directly comparable US GAAP measures. Each of the non-GAAP measures referenced above should be considered as a supplement to a comparable US GAAP measure and may not be comparable to similar measures reported by other companies.

The Company believes that these non-GAAP measures, when reconciled to the corresponding US GAAP measures, assist investors as follows: non-GAAP revenue measures that help identify growth trends and compare revenue across prior and future periods, as well as non-GAAP profitability measures that help investors understand the Company's long-term earnings trends and compare earnings across prior and future periods.

The Company excludes certain non-GAAP revenue indicators because they can fluctuate significantly between reporting periods and may obscure underlying business trends. These non-GAAP adjustments include items related to foreign exchange transactions and currency translation, the number of shipping days within a given period, and the effect of acquisitions.

The Company excludes certain items from its non-GAAP profitability measures because they may not be indicative of, or may be unrelated to, the Company's core performance. The following items are excluded from the non-GAAP profitability measures: restructuring, acquisition, integration-related, and other costs; legal settlements, reserves, and commissions; impairments of goodwill and indefinite-lived intangible assets; acquisition accounting, including the fair-value step-up of inventories under acquisition accounting; adjustments to indemnification assets; corrections of uncertain tax positions; and tax restructuring within Europe.