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Jun 29, 2024
Mohawk Q2 2024 Earnings Report
Mohawk Industries reported Q2 2024 results, with adjusted EPS rising due to productivity initiatives, restructuring, and lower costs, offset by pricing pressure and exchange headwinds.
Key Takeaways
Mohawk Industries reported Q2 2024 net sales of $2.8 billion, a decrease of 5.1% as reported and 4.5% on an adjusted basis. Net earnings were $157 million, with an EPS of $2.46; adjusted EPS was $3.00. The company generated free cash flow of approximately $142 million during the quarter.
Adjusted earnings per share rose due to productivity initiatives, restructuring, and lower energy and material costs.
Free cash flow generated was approximately $142 million during the quarter.
The company purchased approximately 755 thousand shares, or 1.2%, of its stock for approximately $90 million.
Additional restructuring actions are being initiated to generate annualized savings of $100 million.
Revenue by Segment
Forward Guidance
The company anticipates present conditions continuing in the third quarter with elevated interest rates, inflation and weak housing sales impacting our markets. Given these factors, the company anticipates third quarter adjusted EPS to be between $2.80 and $2.90, excluding any restructuring or other one-time charges.
Positive Outlook
- Benefit from lower energy and raw material costs.
- Executing plans to optimize revenues and costs.
- Restructuring initiatives will deliver significant savings and enhance performance when markets recover.
- Residential remodeling should lead the recovery as interest rates decline and consumer confidence improves.
- Product investments will enhance participation.
Challenges Ahead
- Elevated interest rates impacting markets.
- Inflation impacting markets.
- Weak housing sales impacting markets.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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