Mohawk Industries (MHK) investor relations material

Executive summary

• Q1 2026 net sales rose 8% year-over-year to $2.73 billion, with adjusted EPS of $1.90, reflecting strong operational execution and productivity gains despite a challenging environment.

• Net earnings attributable to shareholders increased to $117 million, supported by tax benefits, more shipping days, and favorable FX.

• Productivity, restructuring, and premium product launches improved results, with commercial outperforming residential.

• Share repurchases totaled 607,000 shares for $64 million in Q1 2026, with a $500 million buyback program authorized.

Financial highlights

• Adjusted operating income was $149.5 million (5.5% margin), up from $122.4 million (4.8%) year-over-year.

• Gross margin was 23.5% as reported and 24.8% adjusted, up year-over-year, aided by restructuring/productivity and FX benefits.

• Free cash flow for Q1 was $102.3 million; cash and equivalents at $872 million; net debt to EBITDA ratio at 0.9.

• Adjusted EBITDA for Q1 2026 was $299.8 million (11.0% margin).

• Adjusted tax rate was 19.4% for Q1; effective tax rate was (8.2)% due to one-time benefits.

Outlook and guidance

• Adjusted EPS for Q2 2026 expected between $2.50 and $2.60, excluding restructuring or one-time charges.

• Full impact of price increases and rising input costs expected in Q3; ongoing volatility from Middle East conflict and inflation may require further pricing actions.

• Management expects continued market softness due to low housing turnover, high mortgage rates, and weak consumer confidence, but restructuring actions are expected to deliver $360 million in annualized benefits.