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Apr 01, 2023
Mohawk Q1 2023 Earnings Report
Mohawk Industries reported a decrease in net sales but exceeded earnings expectations due to higher pricing and stronger mix.
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
Revenue by Segment
Global Ceramic Revenue
CapyFin.comFlooring North America Revenue
CapyFin.comFlooring Rest of World Revenue
CapyFin.com 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