Mohawk Industries reported third-quarter 2026 results against what it described as a weak demand environment, with sales edging higher and adjusted earnings per share rising about 2%. The flooring maker also highlighted strong cash generation and shareholder returns, and its board approved a new authorization to repurchase up to $500 million of common stock.
- Sales and earnings: Net sales were $2.8 billion, up about 1% from a year earlier; adjusted sales were nearly flat. Growth in Global Ceramic and Flooring North America supported results. Net earnings were $163 million, equal to 5.9% of sales. Adjusted EBITDA was about $353 million, with a 12.7% margin.
- Per-share results: Diluted earnings per share were $2.72. Adjusted EPS was also $2.72, up about 2% year over year.
- Cash flow: Cash from operating activities was $471 million, and free cash flow was $390 million for the quarter. Year-to-date free cash flow through the third quarter reached $626 million, up 78% from the comparable period.
- Shareholder returns: Mohawk said it returned $261 million to shareholders in the third quarter and another $34 million in the fourth quarter, reducing shares outstanding by about 4%.
- New buyback authorization: Approved by the board on Oct. 26, the program allows repurchases of up to $500 million of common stock. Mohawk may buy shares in the open market or through block, privately negotiated or planned transactions. The company set no completion deadline and may suspend or end the program at any time. The amount and timing of purchases will depend on factors including cash, credit availability, business conditions, the share price and alternative uses for capital.
- Fourth-quarter outlook: Mohawk expects adjusted EPS of $1.35 to $1.45. CEO Paul De Cock said the company expects demand to remain challenging and higher costs to persist, while emphasizing pricing, product mix and productivity as ways to offset inflation.
The new authorization gives Mohawk additional capacity to return capital through repurchases, but it does not require the company to buy the full amount or follow a set timetable. The company’s results also point to a contrast between subdued demand and substantial cash generation, alongside ongoing cost pressures.