10-Q · May 1, 2026
Mohawk Industries posted a strong Q1 2026 with net sales of $2.73 billion, increasing 8.0% year-over-year, while EPS rose to $1.90, exceeding expectations. The company reported improvements in gross profit and operating…
Earnings analysis · 10-Q
MHK earnings analysis
Filed October 30, 2026 · Our reading of the company's report
The latest report
Mohawk delivered Q3 revenue of $2.786 billion and diluted EPS of $2.72, with EPS up substantially year over year but revenue down sequentially. Free cash flow strengthened to $390.4 million, supporting $261.3 million of…
Read full summary
Mohawk delivered Q3 revenue of $2.786 billion and diluted EPS of $2.72, with EPS up substantially year over year but revenue down sequentially. Free cash flow strengthened to $390.4 million, supporting $261.3 million of quarterly share repurchases and a new $500 million authorization. The outlook remains cautious, with Q4 adjusted EPS guidance of $1.35-$1.45 and low single-digit adjusted sales growth, while the filing reports no material changes to its prior risk factors.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $2.72
What stood out
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Year-over-year revenue edged higher
Revenue was $2.786 billion, up approximately $26 million, or 0.9%, from $2.76 billion in Q3 2025, but down approximately $204 million, or 6.8%, from $2.99 billion in Q2 2026.
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EPS improved year over year
Diluted EPS was $2.72, up $0.97, or 55%, from $1.75 in Q3 2025, although it declined $0.50, or 15.5%, from $3.22 in Q2 2026.
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Strong free cash flow generation
Free cash flow was $390.4 million, an increase of $80.4 million from $310 million in Q3 2025 and $162.4 million from $228 million in Q2 2026.
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Meaningful share repurchases
The company repurchased $261.3 million of common stock during the quarter, including 2.0 million shares at an average price of $130.2 per share.
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Q4 outlook remains positive
Management's associated Q4 outlook calls for adjusted EPS of $1.35-$1.45 and low single-digit year-over-year adjusted net sales growth.
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Limited floating-rate exposure
Market-rate exposure appears limited: 98% of debt was fixed rate and 2% was floating rate as of October 3, 2026; a 1.0 percentage-point rate increase would have raised quarterly interest expense by $0.3 million.
What to watch
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Sequential slowdown and modest outlook
Revenue declined $204 million, or 6.8%, sequentially from $2.99 billion in Q2 2026, while diluted EPS fell from $3.22 to $2.72. The associated outlook also anticipates only low single-digit adjusted net sales growth in Q4.
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Aggressive capital return
The company had only $34.4 million remaining under the 2025 repurchase authorization as of October 3, 2026, and that authorization was exhausted on October 20, 2026. Although a new $500 million program was approved on October 26, 2026, continued repurchases could compete with other uses of cash.
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No new risk-factor changes
The 10-Q states that there were no material changes to the risk factors disclosed in the 2025 Form 10-K. However, 2% of the debt portfolio was floating rate, with a 1.0 percentage-point increase implying $0.3 million of additional quarterly interest expense.
Management's outlook
The associated earnings release provided Q4 adjusted EPS guidance of $1.35-$1.45 and expected adjusted net sales growth at a low single-digit rate year over year. The 10-Q does not provide a prior numerical outlook for comparison.
Earlier filings 4
10-K · February 24, 2026
Mohawk reported annual net sales of $10.8 billion in 2025 with a geographic mix of 54% U.S. and 46% international and a three-segment mix of Global Ceramic (40%), Flooring North America (34%) and Flooring Rest of the…
10-Q · July 25, 2025
Mohawk reported quarterly net sales of $2,802.1 million and diluted EPS of $2.34 for the three months ended June 28, 2025. Revenue was essentially flat versus the comparable prior-year quarter while gross profit,…
10-K · February 20, 2025
Mohawk’s 10-K describes a strategy centered on vertical integration, product innovation (LVT, proprietary technologies) and operational excellence, with 2024 net sales of $10.8 billion and a three-segment structure…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.