Mohawk Industries Inc (MHK)
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The world's largest flooring manufacturer reported an 8.0 percent rise in first-quarter 2026 sales and a 61 percent jump in net earnings. Read the quarterly report down to the explanation and little of the turnaround survives: roughly $143 million of the increase came from additional shipping days, $127 million from exchange rates and $50 million from a year-earlier comparison — while the volume actually sold fell by roughly $100 million. The earnings jump, in turn, rests on an effective tax rate of negative 8.2 percent. Behind all that sits a remarkably solid company: a 60.8 percent equity ratio, interest expense cut to a quarter in two years and a share price below book value. Not investment advice — just the question of how much of this turn the calendar produced.
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Basics
Performance
Valuation
Profitability
Balance Sheet & Safety
Growth
Quality & Screener
AI Rating
Uses AIMohawk Industries beschreibt im Geschäftsbericht 2025 den operativen Einsatz von KI und maschinellem Lernen in Produktionsplanung, vorausschauender Instandhaltung, Qualitätskontrolle und Lieferkettensteuerung; ein KI-Produkt oder eine KI-Umsatzquelle wird in keinem der ausgewerteten Filings genannt.
View the full file — quotes, sources, reviewed filings
„The Company utilizes AI and machine learning technologies in various aspects of its operations, including production planning, predictive maintenance, quality control, and supply chain optimization."
Das Unternehmen setzt KI- und Machine-Learning-Technologien in verschiedenen Bereichen seiner Abläufe ein, unter anderem in der Produktionsplanung, der vorausschauenden Instandhaltung, der Qualitätskontrolle und der Optimierung der Lieferkette.
„The rapid development of new technologies such as artificial intelligence (“AI”) continues to transform the industry and markets within which the Company operates. The Company’s ability to remain competitive depends on its capacity to adapt to rapid technological changes and successfully integrate new technologies into its operations."
Die rasche Entwicklung neuer Technologien wie der künstlichen Intelligenz („KI“) verändert die Branche und die Märkte, in denen das Unternehmen tätig ist, weiterhin. Die Wettbewerbsfähigkeit des Unternehmens hängt von seiner Fähigkeit ab, sich an den raschen technologischen Wandel anzupassen und neue Technologien erfolgreich in seine Abläufe einzubinden.
„In addition, regulatory frameworks governing AI use are evolving rapidly. Future laws or regulations may impose restrictions, increase compliance costs, or limit certain applications of AI in manufacturing."
Darüber hinaus entwickeln sich die Regelwerke für den Einsatz von KI rasch weiter. Künftige Gesetze oder Vorschriften können Beschränkungen auferlegen, die Kosten der Regeleinhaltung erhöhen oder bestimmte Anwendungen von KI in der Fertigung begrenzen.
Filings Reviewed: 10-K 2026-02-24 · 10-K 2025-02-20 · 10-Q 2026-05-01 · 10-Q 2025-10-24 · 10-Q 2025-07-25 · 10-Q 2025-05-02
Rated on July 27, 2026 · How the Rating Is Built
Highlighted are things our editorial team noticed: green = stands out as strong, red = deserves a closer look. No single metric is a verdict on its own — always read it in context.
Quarterly Figures
| Quarter | EPS (Earnings Per Share) | EPS YoY (%) | Sales ($M) | Sales YoY (%) | Net Margin (%) | OCF ($M) | FCF ($M) |
|---|---|---|---|---|---|---|---|
| 2024: Q4 | 1.47 | -32.40 | 2,637 | 1.00 | 3.50 | 397 | 236 |
| 2025: Q1 | 1.15 | -29.60 | 2,526 | -5.70 | 2.90 | 4 | -85 |
| 2025: Q2 | 2.33 | -5.20 | 2,802 | 0.00 | 5.20 | 206 | 126 |
| 2025: Q3 | 1.74 | -31.90 | 2,758 | 1.40 | 3.90 | 387 | 310 |
| 2025: Q4 | 0.68 | -54.00 | 2,700 | 2.40 | 1.60 | 460 | 265 |
| 2026: Q1 | 1.90 | 64.40 | 2,729 | 8.00 | 4.30 | 110 | 8 |
- EPS (Earnings Per Share):
- Quarterly profit divided by the total share count — how much of the profit works out to a single share.
- YoY (Year over Year):
- Change versus the same quarter a year ago — this is how you compare without seasonal distortion (e.g. the holiday shopping season).
- Sales:
- All revenue for the quarter, before any costs are deducted — the top line of the income statement.
- Net Margin:
- What percentage of sales is left over as profit in the end. Negative means the company is posting a loss.
- OCF (Operating Cash Flow):
- The cash that actually flows into the till from the core business during the quarter — harder to dress up than book profit.
- FCF (Free Cash Flow):
- Operating cash flow minus capital expenditures — the money that's genuinely free to use, say for paying down debt, buybacks, or dividends.
Assessment: Opportunities & Risks
At April 4, 2026, $8,379.7 million of equity stands against total assets of $13,791.1 million — an equity ratio of 60.8 percent. Interest expense fell from $77.5 million (2023) through $48.5 million (2024) to $17.8 million (2025). On May 12, 2026 a $1,500 million unsecured facility maturing in 2031 replaced the 2019 agreement; the sole financial covenant is interest coverage of 3.50, and the company runs at roughly 37.
Sales fell three years running: $11,135.1 million (2023), $10,836.9 million (2024), $10,785.4 million (2025). Operating income dropped 29 percent to $489.8 million in 2025, net earnings from $514.7 million to $369.9 million and earnings per share from $8.09 to $5.93. The 2025 net margin was 3.4 percent.
The turnaround checklist scores 6 of 8 points at the July 27, 2026 measurement and rank 34 of 60 hits in the U.S. selection. The two missing points are the most telling ones: the net margin has not turned (4.3 percent in the first quarter of 2026 against 5.2 percent in the second quarter of 2025) and there is no net insider buying (zero purchases against twenty sales over twelve months). The mandatory pillars — a roughly 60 percent gap to the all-time closing high of $284.82 on December 1, 2017 and survival with an Altman Z of 8.49 — are met beyond argument.
Of the $202.9 million sales increase in the first quarter of 2026, the quarterly report attributes roughly $143 million to more shipping days, roughly $127 million to exchange rates and $50 million to a year-earlier comparison; volume fell by roughly $100 million. The jump in net earnings to $117.1 million rests on an effective tax rate of negative 8.2 percent — at the 21.1 percent full-year 2025 rate, roughly $85 million would remain.
Flooring North America turned $880.0 million of first-quarter 2026 sales into just $3.8 million of operating income — a margin of 0.4 percent after 1.1 percent a year earlier. Across full-year 2025 the segment result nearly halved from $237.3 million to $113.6 million. Global Ceramic (4.7 percent) and Flooring Rest of the World (9.4 percent) carry the group.
At roughly $6.9 billion of market value (data as of July 27, 2026) the stock trades at a price-to-book of roughly 0.82, below book value of roughly $137 per share, and at an enterprise value to EBITDA of roughly 7.2. There is no dividend, but a $500 million repurchase program of which $64.3 million was deployed in the first quarter of 2026 alone and $355.0 million remains available.
Mohawk Industries is exceptionally solid financially and has not yet turned operationally. The balance sheet carries 60.8 percent equity, interest expense has been cut to a quarter in two years to $17.8 million, $1,056.2 million of operating cash came in during a poor year, and the stock trades below its own book value. Against that stands a quarterly increase that the filing itself explains three quarters of with shipping days, exchange rates and a year-earlier comparison, while volume fell by roughly $100 million and the earnings jump came from an effective tax rate of negative 8.2 percent. The leverage sits with the housing market and with Flooring North America, which managed an operating margin of just 0.4 percent in the first quarter of 2026. Not investment advice.
- Hook: rank 34 of 60 hits in our in-house turnaround scanner with the U.S. market filter, 6 of 8 points on the checklist, Altman Z of 8.49. The scanner page shows only the 25 strongest hits — Mohawk is not among them. Measured July 27, 2026, underlying scanner run of July 26, 2026; the lists are recalculated daily.
- Data basis: Form 10-K for fiscal 2025 (filed February 24, 2026), Form 10-Q for the quarter ended April 4, 2026 (filed May 1, 2026), current reports 8-K of April 30, May 13 and June 11, 2026, proxy statement DEF 14A of April 3, 2026; valuation metrics and analyst votes as of July 27, 2026.
- On the gap to the all-time high: our data set carries negative 58.19 percent, while the price history gives roughly negative 60 percent (all-time closing high $284.82 on December 1, 2017 against $113.27 on July 24, 2026). Both clear the scanner threshold of at least 50 percent; the article uses the figure we measured ourselves.
- Risk of confusion: the 2023 and 2024 figures here are stated as revised in the 2025 annual report after a correction of intercompany receivables (2023 net earnings −$449.0 million instead of −$439.5 million, 2024 $514.7 million instead of $517.7 million). Older data sets may still show the pre-revision values.
- Mind the calendar: Mohawk's quarters end on a Saturday. The first quarter of 2026 ran through April 4, 2026 while the prior-year quarter ended March 29, 2025 — six extra shipping days that the filing puts at roughly $143 million of sales.
About the Company
Mohawk Industries, Inc. entwirft, fertigt, bezieht, vertreibt und vermarktet Bodenbelagsprodukte für die Wohn- und Gewerberenovierung sowie für den Neubau in den USA, Europa, Lateinamerika und international.
| Employees | 40,500 |
|---|---|
| Headquarters | Calhoun, GA |
| Website | mohawkind.com |
| IPO Date | 1. Apr 1992 |
| Next Earnings | 23. Jul 2026 |
Management
| Name | Title | Birth Year |
|---|---|---|
| Jeffrey S. Lorberbaum | CEO & Chairman | 1955 |
| Paul F. De Cock | President, COO & Interim President of Flooring Rest of World segment | 1973 |
| Mauro Vandini | President of Global Ceramic Segment | 1957 |
| Ken Walma | President of Flooring North America segment | 1978 |
| Nicholas P. Manthey | Chief Financial Officer | 1982 |
| David L. Repp | Senior Vice President, Chief Accounting Officer & Corporate Controller | 1975 |
| Claudio Coni | Chief Information Officer | 1968 |
| Rodney David Patton | VP of Business Strategy, General Counsel & Secretary | 1971 |
| Clifford C. Suing | CFO of Global Ceramic Segment | 1965 |
| Malisa M. Maynard | Chief Sustainability Officer | 1976 |
Executives per the latest required filings; titles kept in their original language. Source: fundamental data.
Chart
Interactive price chart (TradingView).
Data as of: July 24, 2026 · Source: fundamental data & SEC filings (annual and quarterly reports, 10-K/10-Q)
Note: pure fact-based analysis, not investment advice and not a solicitation to buy or sell. All figures without guarantee.