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Sep 30, 2023
Mohawk Q3 2023 Earnings Report
Mohawk Industries reported a net loss due to non-cash impairment charges, but adjusted earnings were positive, though sales decreased compared to the prior year.
Key Takeaways
Mohawk Industries reported a net loss of $760 million for Q3 2023, impacted by $876 million in non-cash impairment charges. Adjusted net earnings were $174 million, with adjusted EPS at $2.72. Net sales were $2.8 billion, a 5.2% decrease as reported and 8.1% on a legacy and constant currency basis.
Net sales decreased by 5.2% year-over-year to $2.8 billion.
The company faced pressures across all regions due to constrained residential investments and consumer spending.
Generated strong free cash flow of $385 million in the quarter.
Anticipates fourth quarter adjusted EPS to be between $1.80 to $1.90.
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 Industries anticipates its fourth quarter adjusted EPS to be between $1.80 to $1.90, excluding any non-recurring charges, leading to a full-year adjusted EPS exceeding $9.00.
Positive Outlook
- The company's business fundamentals remain strong.
- There is significant pent-up demand expected when the industry rebounds.
- A large percentage of homeowners plan renovation projects in the near term.
- Substantial new home building will be required for many years.
- Commercial activity will expand as the economic outlook improves.
Challenges Ahead
- Elevated interest rates and persistent inflation are restricting consumer discretionary spending.
- Remodeling projects and new home purchases have been postponed.
- Similar pressures are beginning to reduce commercial investments.
- Competition for sales to utilize plant capacity is increasing.
- Foreign exchange rates are expected to continue to be an earnings headwind.
Revenue & Expenses
Visualization of income flow from segment revenue to net income