Mohawk Announces New $500 Million Share Repurchase Authorization
Key Facts
Mohawk Industries announced on October 29 a new authorization to repurchase up to $500 million of shares, effective immediately after completion of the previous authorization for the same amount, according to a company statement via GlobeNewswire. The decision gives the board a new framework for returning capital to shareholders, alongside the company’s announcement of its investment and leverage priorities. The previous authorization was approved in July 2025, and the company announced its completion before the new program began. Mohawk said the previous purchases covered about 7% of outstanding shares, at an average price of approximately $119 per share. The announcement comes as the company places cash generation and capital discipline among the pillars of its strategic framework.
According to the company, share repurchases totaled $261 million in the third quarter of 2026, followed by an additional $34 million in the fourth quarter through the October 29 announcement. These purchases were made under the previous authorization, which had a $500 million limit, not under the new authorization announced that day. Completion of the previous program means the new authorization begins after the earlier purchasing authority was exhausted, according to the company statement. Mohawk put the average purchase price under the previous program at approximately $119 per share and said the repurchased shares represented about 7% of outstanding shares. These figures provide details on the scale of repurchases before the announcement of the new authorization.
The company linked its new strategic framework to four pillars: outperforming markets; innovating products and strengthening brands; improving profitability and operational excellence; and generating cash and maintaining capital discipline. Under its capital allocation criteria, Mohawk expects baseline capital spending of approximately $375 million annually for at least the coming years. It also set a long-term target for net debt to adjusted earnings before interest, taxes, depreciation and amortization of up to 2.0 times. The company said this target takes cyclical risks and credit rating into account. The new authorization thus sits alongside ongoing investment spending and the stated leverage target within a single capital allocation framework.
The company’s prior second-quarter results provide background on the market it faced before the latest announcement. Mohawk reported net sales of $3.0 billion in the second quarter of 2026, up 6.8% on a reported basis and 5.0% after adjusting for working days and foreign exchange rates compared with the previous year. Net earnings for the quarter were $196 million, and earnings per share were $3.22, versus $147 million and $2.34 per share in the second quarter of 2025. In its July earnings statement, the company said the global home resale market remained near its lowest levels in decades and new-home construction remained weak. Those comments provide context for investment and share repurchase decisions, while business performance remained tied to conditions in the flooring and housing markets.
Mohawk’s investor relations page showed the stock closed at $127.78 on October 29, down $4.77, or 3.60%, that day. The company scheduled its third-quarter results call for October 30, 2026, at 11:00 a.m. Eastern time. The call follows the announcement of the new authorization and strategic framework, giving management an opportunity to present these priorities as part of its results discussion. The company has already announced the new repurchase limit, the scale of purchases under the previous program, and its capital spending and leverage benchmarks. The call is scheduled for the day after the company’s announcement, according to its investor relations page.