Mohawk Industries, Inc. is a global leader specializing in the manufacturing, sourcing, distribution, and marketing of diverse flooring solutions. The company serves ...
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Operator: Good day, and welcome to the Mohawk Industries Second Quarter 2026 Earnings Conference Call. Note this event is being recorded. I would now like to turn the conference over to Joe Ahlersmeyer, Vice President, Finance and Investor Relations. Please go ahead. Joe Ahlersmeyer: Thanks, Megan. Good morning, everyone, and welcome to the Mohawk Industries quarterly investor conference call. Joining me on today's call are Jeff Lorberbaum, Chairman and Chief Executive Officer; Paul De Cock, President and Chief Operating Officer; and Nick Manthey, Chief Financial Officer. Today, we'll update you on the company's second quarter performance and provide guidance for the third quarter of 2026. I'd like to remind everyone that our press release and statements that we make during this call may include forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995 and which are subject to various risks and uncertainties, including, but not limited to, those set forth in our press release and our periodic filings with the Securities and Exchange Commission. This call may include discussion of non-GAAP numbers. For a reconciliation of any non-GAAP to GAAP amounts, please refer to our Form 8-K and press release in the Investors section of our website. I'll now turn the call over to Jeff for his opening remarks. Jeff Lorberbaum: Thank you, Joe. Our second quarter results significantly exceeded our expectations as we outperformed our markets. Our net sales were $3 billion, up 6.8% versus the prior year as reported or up 5% on a constant basis. Our performance benefited from volume growth, pricing and product mix. Across our regions, our teams effectively executed our strategies and capitalized on opportunities with new and existing customers. We successfully introduced new collections, expanded product placements and improved our mix. In the period, volume benefited from initial stocking of new product placements and limited increases in inventory by some customers ahead of announced price increases. Our second quarter reported EPS of $3.22 and adjusted EPS was $3.67, including a benefit of approximately $0.63 from tariff refunds, which were not included in our second quarter guidance. These refunds represent the reversal of costs that we have absorbed from higher tariffs. As part of our buyback program, we purchased over 600,000 shares during the quarter for approximately $60 million. Our second quarter forecast had reflected uncertainty related to the Middle East conflict, but market conditions proved more resilient than we anticipated. Residential channels remained soft during the quarter, and we believe we outpaced the market and gained share in most regions. The commercial sector continued to outperform residential, and our differentiated offering enhanced our mix and margins. The new home construction market remains pressured, and existing home sales continue to be affected by affordability challenges. In the softer …
Est. EPS $2.58 · Revenue $2.82B · 9 analysts
| Metric | Latest | YoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength. |
|---|
| Name | Title | Compensation | Gender | Year Born | Status |
|---|---|---|---|---|---|
Jeffrey S. Lorberbaum | Chairman & Chief Executive Officer | USD 2,654,917 | Male | 1955 | Active |
Mauro Vandini | President of Global Ceramic Segment | USD 2,287,281 |
| Male |
| 1957 |
| Active |
Paul F. De Cock | President, COO & Interim President of Flooring Rest of World segment | USD 2,091,193 | Male | 1973 | Active |
Nicholas Manthey | Chief Financial Officer | USD 1,454,621 | Male | 1982 | Active |
Ken Walma | President of Flooring North America segment | USD 1,278,912 | Male | 1978 | Active |
Joseph David Ahlersmeyer | Vice President of Finance & Investor Relations | — | Male | — | Active |
Rodney David Patton | Vice President of Business Strategy, General Counsel & Secretary | — | Male | 1971 | Active |
Claudio Coni | Chief Information Officer | — | Male | 1968 | Active |
Malisa Maynard | Chief Sustainability Officer | — | Female | 1976 | Active |
Clifford C. Suing | Chief Financial Officer of Global Ceramic Segment | — | Male | 1965 | Active |
David Repp | Senior Vice President, Chief Accounting Officer & Corporate Controller | — | Male | 1975 | Active |
Est. EPS $2.56
Est. EPS $9.85 · Revenue $11.16B · 9 analysts
Est. EPS $1.70 · Revenue $2.61B · 9 analysts
| QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes. |
|---|
| RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three). | $10.8B | -0.5% | +9.6% |
| Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day. | $369.9M | -28.5% | +67.5% |
| Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials. | +23.9% | -3.7% | +13.0% |
| Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on). | +4.7% | -26.3% | +107.0% |
| Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales. | +3.4% | -28.2% | +52.8% |
| Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock. | $616.2M | -9.3% | +2825.6% |
| FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine. | +5.7% | -8.9% | +2568.7% |
| Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe. | 29.3% | -15.7% | -8.4% |
| Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking. | 2.19x | +6.6% | -11.3% |
| Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground. | $13.7B | +7.1% | +0.2% |
| Metric | Annual (A vs E) | Annual Surprise | Quarter (A vs E) | Quarter Surprise |
|---|---|---|---|---|
| EPS Surprise | 5.93 vs 8.94 | -33.6% | 3.22 vs 2.58 | +25.0% |
| Revenue Surprise | $10.8B vs $10.8B | +0.2% | $3.0B vs $2.8B | +6.0% |
| Date | Executive | Title | Security | Side | Shares | Price |
|---|---|---|---|---|---|---|
| Aug 14, 2026 | HELEN SUZANNE L | other: Possible Member of Group | Common Stock | D | 1,000 | $139.48 |
| Aug 10, 2026 | Coni Claudio | officer: Chief Information Officer | Common Stock | D | 123 | $135.65 |
| Aug 5, 2026 | Thiers Bernard | director | Common Stock | D | 13,393 | $134.98 |
| Aug 3, 2026 | LORBERBAUM JEFFREY S | director, 10 percent owner, officer: CHIEF EXECUTIVE OFFICER | Common Stock | D | 2,585 | $130.26 |
| Aug 3, 2026 | LORBERBAUM JEFFREY S | director, 10 percent owner, officer: CHIEF EXECUTIVE OFFICER | Common Stock | D | 6,233 | $130.99 |
