Mohawk Q1 2023 Earnings Report
Key Takeaways
Mohawk Industries reported Q1 2023 results with net sales of $2.8 billion, a decrease of 6.9% as reported. Net earnings were $80 million, and diluted EPS was $1.26. The company exceeded earnings expectations due to maintaining higher pricing and a stronger mix of products. Free cash flow generation was $129 million.
Net sales decreased by 6.9% year-over-year to $2.8 billion.
Diluted EPS was reported as $1.26, while adjusted EPS was $1.75.
Free cash flow generated in the quarter was $129 million.
The commercial channel performed stronger than residential.
Mohawk
Mohawk
Mohawk Revenue by Segment
Forward Guidance
Mohawk anticipates second quarter adjusted EPS to be between $2.56 and $2.66, excluding any restructuring, acquisition and other charges.
Positive Outlook
- Seasonal improvement in demand
- Reduced energy costs
- Reduced material costs
- Focusing on better performing channels
- Introducing differentiated products
Challenges Ahead
- Industry volume will remain under pressure
- Pricing will remain under pressure
- Higher interest rates could affect business investments
- Tighter lending requirements could affect business investments
- Central banks are raising interest rates to slow economies
Revenue & Expenses
Visualization of income flow from segment revenue to net income