Mohawk Industries (Calhoun, Ga.) reported third-quarter net earnings of $163.1 million, or $2.72 per diluted share, down from $196 million in the second quarter, or $3.22 per diluted share. Net earnings were up from $108.8 million, or $1.75 per share, in the third quarter of 2025. The 50% increase largely reflected the absence of roughly $69 million for “legal settlements, reserves and fees” and “restructuring, acquisition and integration-related and other costs” for Q3 2025, according to the company’s report.
Net sales were $2.8 billion, up about 1% as reported and roughly flat on an adjusted basis. Price and mix gains of about 4% offset a 4% decline in volume that the company attributed to soft market demand.
Flooring North America, which includes the company's wood, laminate, vinyl and carpet lines, posted net sales of $950 million, up about 1%, but remained flat when adjusted. Excluding an extra shipping day, segment volumes fell about 3%. Operating income rose $18 million to $72 million on productivity gains and pricing.
“We delivered a solid third quarter in a weak demand environment,” said CEO Paul De Cock. “Although we expect demand conditions to remain challenging and higher costs to persist, our teams are focused on serving our customers and delivering solid fourth quarter results.”
Mohawk expects flooring market conditions to soften further in the fourth quarter, with low single-digit adjusted sales growth and adjusted EPS of $1.35 to $1.45. The company anticipates a similar inflation-and-pricing dynamic in the first quarter of 2027.
Read the full report here.
