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Mar 31
Mohawk Q1 2025 Earnings Report
Mohawk Industries reported its first quarter 2025 financial results, with net earnings of $73 million and adjusted EPS of $1.52.
Key Takeaways
Mohawk Industries announced first quarter 2025 net earnings of $73 million and adjusted net earnings of $96 million. Net sales for the quarter were $2.5 billion, a decrease of 5.7% as reported, but relatively flat on a constant basis when adjusted for constant days and exchange rates. The company's performance benefited from productivity gains, restructuring actions, and a lower tax rate, partially offsetting pricing pressure and higher input costs.
Net sales for Q1 2025 were $2.5258 billion, a decrease of 5.7% as reported compared to the prior year.
Adjusted diluted EPS for Q1 2025 was $1.52, compared to $1.86 in Q1 2024.
The company purchased 225,000 shares of stock for approximately $26 million during the quarter.
Mohawk anticipates second quarter adjusted EPS to be between $2.52 and $2.62.
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 its second quarter adjusted EPS to be between $2.52 and $2.62, excluding restructuring or other one-time charges. The company expects to address the annualized cost of approximately $50 million from tariffs through price increases and supply chain adjustments.
Positive Outlook
- Service for Flooring North America's order system has returned to historical rates.
- Productivity gains and restructuring actions are expected to benefit earnings.
- The company is focusing on optimizing sales and lowering operational costs through restructuring initiatives, aiming for a $100 million benefit this year.
- Global Ceramic and FNA are improving their mix with increased participation in the commercial channel and sales of premium collections.
- The company remains optimistic about the long-term prospects of the flooring category and expects results to improve when industry volumes return to historical levels.
Challenges Ahead
- Conditions in the first quarter weakened sequentially, with residential remodeling being the slowest sector.
- Consumer confidence has fallen due to increasing anxiety about future prospects.
- Global tariffs were announced, elevating uncertainty for businesses and consumers, with the U.S. implementing 145% tariffs on China for LVT.
- Mohawk estimates an annualized cost of approximately $50 million due to current 10% tariff rates.
- Pricing pressure is expected to continue in all regions due to low demand and competitive markets.
Revenue & Expenses
Visualization of income flow from segment revenue to net income