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Sep 28, 2024
Mohawk Q3 2024 Earnings Report
Mohawk Industries reported a solid Q3 performance amidst soft market conditions, benefiting from sales initiatives, productivity gains, restructuring actions, and lower input costs, partially offset by pricing and mix pressure.
Key Takeaways
Mohawk Industries reported Q3 2024 net sales of $2.7 billion, a decrease of 1.7% as reported and 2.1% on an adjusted basis versus the prior year. Net earnings were $162 million, with EPS of $2.55; adjusted net earnings were $184 million, and adjusted EPS was $2.90. The company generated free cash flow of $204 million in the quarter.
Delivered solid performance in soft market conditions, driven by sales initiatives, productivity, and restructuring actions.
Generated free cash flow of $204 million due to increased earnings and working capital management.
Invested approximately $450 million in capital projects focused on growth, cost reduction, and asset maintenance.
Expect recent interest rate cuts in the U.S., Europe, and Latin America to strengthen housing markets and increase flooring sales next year.
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
The company anticipates fourth quarter adjusted EPS to be between $1.77 and $1.87, excluding any restructuring or other one-time charges. Demand in all of markets improving as interest rates decline and consumer spending in the category accelerates across the world in 2025.
Positive Outlook
- Demand in all of our markets improving as interest rates decline
- Consumer spending in the category accelerates across the world.
- Elevated home equity levels will provide property owners with resources to renovate their residences.
- All of our regions require significant new home construction, and we have grown our participation in this channel.
- Commercial construction and remodeling should also expand as financing becomes more affordable and investment returns increase.
Challenges Ahead
- Global conflicts, political uncertainty and inflation are weighing on consumer confidence and discretionary spending around the world.
- Short-term macroeconomic conditions remain unpredictable, and we do not anticipate an industry improvement this year.
- Demand remains weak, and each of our product categories and markets faces unique economic situations.
- Our mix is impacted by consumers trading down and by new construction outpacing the higher value remodeling channels.
- In some products, we are seeing raw material inflation that will increase our costs in the fourth quarter.
Revenue & Expenses
Visualization of income flow from segment revenue to net income