Mohawk Industries’ fourth quarter reflected a mix of stable commercial demand and continued challenges in residential flooring, with management noting that housing turnover and new home construction in the U.S. remained subdued. CEO Jeffrey Lorberbaum emphasized that productivity improvements, restructuring actions, and a focus on higher-value product mix helped offset competitive pricing pressures and rising input costs. The company experienced softness in residential remodeling but saw gains in international markets and the commercial sector, particularly in healthcare and hospitality. Lorberbaum also noted, “Remodeling activity that did take place was primarily driven by more affluent customers or those addressing essential needs.”
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Mohawk Industries (MHK) Q4 CY2025 Highlights:
- Revenue: $2.7 billion vs analyst estimates of $2.68 billion (2.4% year-on-year growth, 0.9% beat)
- Adjusted EPS: $2 vs analyst estimates of $1.98 (1.1% beat)
- Adjusted EBITDA: $301.2 million vs analyst estimates of $313.4 million (11.2% margin, 3.9% miss)
- Adjusted EPS guidance for Q1 CY2026 is $1.80 at the midpoint, below analyst estimates of $1.91
- Operating Margin: 2.5%, down from 4.6% in the same quarter last year
- Market Capitalization: $8.10 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Mohawk Industries’s Q4 Earnings Call
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Eric Bosshard (Cleveland Research) pressed for details on price and product mix assumptions for 2026. CEO Jeffrey Lorberbaum explained that price increases are being implemented but “market conditions are pressured,” and some actions may be delayed depending on competition.
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Philip H. Ng (Jefferies) asked about inventory management and optimism in the channel. Lorberbaum responded that most excess inventory has been cleared and noted “surprising optimism” among customers for potential demand recovery, especially in residential.
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Susan Marie Maklari (Goldman Sachs) inquired about share gains in home centers and hard surface flooring. President Paul De Cock cited differentiated products and the success of waterproof laminates and hybrid alternatives as key drivers.
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Keith Brian Hughes (Truist) asked about the primary sources of inflation. CFO James Brunk ranked wage and benefit increases as the top driver, followed by energy, tariffs, and materials, noting regional differences in cost trends.
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Collin Verron (Deutsche Bank) sought clarification on pricing stabilization in the Flooring Rest of World segment. Management indicated that targeted price increases are starting to stick, leading to expectations for a slightly positive price effect through the year.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will focus on (1) evidence of increased housing turnover or remodeling activity as a sign of demand recovery, (2) the sustainability of recent price increases and the company’s ability to offset inflationary pressures, and (3) the impact of new product launches and restructuring on profitability. Monitoring input cost trends and competitive responses will also be important for assessing Mohawk’s margin trajectory.
Mohawk Industries currently trades at $132.90, in line with $133.48 just before the earnings. Is there an opportunity in the stock?Find out in our full research report (it’s free).
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