Mohawk Industries Q1 Net Earnings $117M, Sales Jump 8%, Buybacks $64M
MHK•First quarter net earnings rose to $117 million with EPS of $1.90 on net sales of $2.7 billion, an 8.0% increase reported (down 2.6% adjusted). The company repurchased 607,000 shares for $64 million and projects Q2 adjusted EPS of $2.50–$2.60.
1. Q1 Financial Results
Mohawk Industries reported first-quarter net earnings of $117 million and EPS of $1.90 on net sales of $2.7 billion, up 8.0% as reported and down 2.6% on a constant basis year-over-year. Benefits from productivity and product mix were offset by inflationary pressures and lower volumes.
2. Segment Performance
In the Global Ceramic segment, net sales rose 10.4% reported (down 0.2% adjusted) with a 4.7% operating margin (5.0% adjusted). The Flooring Rest of World segment saw a 12.2% revenue increase reported (−4.4% adjusted) and a 9.4% margin (9.8% adjusted), while Flooring North America sales grew 2.0% reported (−4.1% adjusted) with a 0.4% margin (4.0% adjusted).
3. Share Buyback and Balance Sheet Strength
During the quarter, the company repurchased 607,000 shares for $64 million under its stock buyback authorization, reinforcing a strong balance sheet that management says provides flexibility for strategic investments and operational adjustments.
4. Outlook and Guidance
Mohawk expects second-quarter adjusted EPS between $2.50 and $2.60, excluding one-time charges, and is implementing price increases across product lines. Management is monitoring the Middle East conflict’s impact on energy costs and consumer sentiment while maintaining cost controls and supply chain flexibility.
