Mohawk Industries reported third-quarter 2026 results against what it described as a weak demand environment, with sales slightly higher and adjusted earnings per share up about 2% from a year earlier. The flooring and surfaces maker also approved a new $500 million share repurchase program, extending its return of cash to shareholders.
Management said pricing, product mix and productivity helped offset inflation, while strong cash generation supported shareholder returns. It expects demand to remain challenging and costs to stay elevated in the fourth quarter.
Third-quarter results and outlook
- Net sales were $2.8 billion, up approximately 1% year over year. On an adjusted basis, sales were nearly flat. Mohawk cited growth in Global Ceramic and Flooring North America.
- Net earnings were $163 million, equal to 5.9% of sales. Adjusted EBITDA was approximately $353 million, a margin of 12.7%.
- Diluted earnings per share were $2.72; adjusted EPS was also $2.72, up approximately 2% from the prior year.
- Cash from operating activities totaled $471 million, and free cash flow was $390 million. Free cash flow for the first nine months of 2026 reached $626 million, up 78% year over year.
- Mohawk said it returned $261 million to shareholders in the third quarter and another $34 million during the fourth quarter to date. Those returns reduced shares outstanding by approximately 4%.
- The company forecast fourth-quarter adjusted EPS of $1.35 to $1.45.
- CEO Paul De Cock said price increases helped address rising inflation, while price, mix and productivity offset higher costs. He said the company expects demand conditions to remain difficult and costs to stay high.
New share repurchase authorization
- The board approved a program allowing Mohawk to repurchase up to $500 million of its common stock. The approval came on October 26 and was announced three days later.
- Purchases may take place in the open market, through block or privately negotiated transactions, or under a trading plan. The company may use any combination of these methods.
- Mohawk set no deadline for completing the repurchases. It may pause or end the program at any time.
- The timing and amount of purchases will depend on factors including cash balances, credit availability, business conditions, the stock price and alternative investment opportunities.
The authorization sets a ceiling, not a commitment to spend the full $500 million. Any purchases would reduce the number of shares outstanding, but the company has not set a timetable for using the authorization.