Mohawk Industries, Inc. (NYSE: MHK) today announced net income of $117 million and earnings per share (EPS) of $1.90 for the first quarter 2026; the adjusted net income was $117 million and adjusted EPS of $1.90. Net sales for the first quarter 2026 were $2.7287 billion, up 8.0% on the basis of the disclosed data and down 2.6% on a currency-adjusted, days-constant basis versus the prior year. In the first quarter 2025, the company had net sales of $2.5 billion, net income of $73 million and EPS of $1.15; adjusted net income was $96 million and adjusted EPS $1.52.
Commenting on the company’s results for the quarter, President and CEO Jeff Lorberbaum said: “Our performance was in line with our expectations, despite a challenging environment. The results reflect the benefits of productivity, restructuring and product mix, offset by inflation and volumes. Last year was influenced by the transition to the new system and had four fewer days. Across all regions, the commercial/contract channel continued to perform better than residential. The activity of new home construction remained weak and consumers continued to defer home purchases and renovation projects due to economic uncertainty. We are taking actions to improve productivity and continuing with the previously announced restructuring initiatives to improve our results. During the quarter, we repurchased 607,000 shares of our stock for $64 million under the current share repurchase program. Our balance sheet strength provides the strategic and operational flexibility needed to seize opportunities as they arise."
By the end of February, the conflict in the Middle East intensified, increasing volatility in global energy markets. The rise in gasoline and
diesel prices has been the most immediate and tangible effect of supply interruptions and is contributing to a more cautious consumer outlook. Depending on the duration of the conflict, the economic impact on our markets will vary, with higher inflation weighing on consumer confidence and discretionary spending. Energy prices, as well as the cost of crude oil and natural gas derivatives, are rising, which affects the cost of many of our products. We are implementing price increases in many product categories and geographic areas, and further increases may be required. The impact of higher raw material costs is expected to be more pronounced in the second half of the year due to inventory turnover. We are continuing to roll out new product collections characterized by leading-edge design and functionality in the flooring industry, with the goal of increasing sales and margins. We are executing operational strategies already used in the past to overcome challenges, focusing on adaptability and cost control. We are maintaining the flexibility to adjust to evolving demand, supply availability and cost volatility. We are focusing on controllable aspects of our business, including sales initiatives, inventory levels, discretionary spending and capital investments.
Regarding quarterly results by segment, Global Ceramic net sales increased 10.4% on a disclosed basis, or declined 0.2% on a currency-adjusted, days-constant basis versus the prior year. The segment operating margin was 4.7%, or 5.0% on an adjusted basis, due to higher input costs versus the year-ago period and lower sales volume, partially offset by productivity gains and an improved pricing mix.
In Flooring NA, net sales rose 2.0% and declined 4.1% on a currency-adjusted basis versus the prior year. The segment operating margin was 0.4% on a reported basis, or 4.0% on an adjusted basis, due to productivity gains offset by higher production costs and competitive pricing pressures.
As we move into the second quarter, we continue to adjust our business to the changes caused by the Middle East conflict. So far we have announced price increases across much of our portfolio due to inflation, and our order book remains solid and growing. In all regions, the commercial channel remains strong, while the residential renovation and residential construction sectors could be affected by lower consumer confidence. Our high-end product offerings are performing positively in the market and our new products are enriching our assortment. We are optimizing our flexibility to respond to changes in our supply chain, operating costs and market demand. We are containing costs, redesigning products and limiting investments. It will not be possible to fully assess the impact of our price actions and cost increases before the third quarter. The magnitude of the impact the Middle East conflict will have on our markets will depend on the duration of the disruptions and inflationary pressure. Taking these factors and one fewer shipping day into account for the second quarter, we expect adjusted EPS to be between $2.50 and $2.60, net of any restructuring charges or other extraordinary items.
We are managing all the controllable aspects of the business and responding to market changes as they arise. In the past, Mohawk has demonstrated the ability to adapt to both cyclical fluctuations and market turmoil, while strengthening the business for the long term. The increase in new home construction is needed to meet the growing number of households, and we expect renovation work on the aging housing stock in our regions will drive a meaningful increase in demand for flooring. Given the current environment, we are ready to capitalize on the rebound expected in our sector."
ABOUT MOHAWK Mohawk Industries has, over the last twenty years, transformed itself into the world’s largest flooring company with prominent operations in North America, Europe, South America and Oceania. Mohawk’s vertically integrated manufacturing and distribution processes provide competitive advantages in ceramic tile, carpet and laminate, wood, vinyl and hybrid flooring products. Mohawk’s brands include American Olean, Daltile, Durkan, Eliane, Elizabeth, Feltex, Godfrey Hirst, Karastan, Marazzi, Mohawk, Mohawk Group, Pergo, Quick-Step, Unilin and Vitromex.
Some forward-looking statements in the above paragraphs, especially those about future performance, outlook, growth and operating strategies, and those containing terms such as “could,” “should,” “believe,” “expect,” “anticipate” or similar expressions, constitute “forward-looking statements” under the Private Securities Litigation Reform Act of 1995. The company asserts protection under the safe harbor for forward-looking statements. Management believes these statements are reasonable as of the date issued; however, it is important not to rely too heavily on them since they relate to events that are subject to risks and uncertainties. The company does not undertake any obligation to publicly update or revise forward-looking statements, except as required by law.
Conference call information: Friday, May 1, 2026 at 11:00 a.m. (Eastern Time). To participate via the Internet, visit https://ir.mohawkind.com/events/event-details/mohawk-industries-inc-1st-quarter-2026-earnings-call. To participate by phone, you must pre-register at https://dpregister.com/sreg/10207491/103969d29fe to receive a unique PIN. You may also dial 1-833-630-1962 (U.S./Canada) or 1-412-317-1843 (rest of world) on the day of the call. The call will be archived for replay until May 29, 2026 at 1-855-669-9658 (U.S./Canada) or 1-412-317-0088 (rest of world) and by entering conference ID 7435080 on the mohawkind.com site in the Investors section for one year.
About Mohawk – Contact: Nicholas P. Manthey, Chief Financial Officer - (706) 624-2288
