Mohawk Posts $2.8 Billion in Third-Quarter Sales, With Limited Growth of About 1%
Key Facts
Mohawk Industries said on October 29 that net sales reached $2.8 billion in the third quarter of 2026, up about 1% year over year, while adjusted sales were nearly unchanged from the same period a year earlier. The company said in its statement that growth came as sales increased in its Global Ceramic and Flooring North America segments. Net income was $163 million, equal to 5.9% of sales. Diluted and adjusted earnings per share were both $2.72, while adjusted earnings per share rose about 2% year over year. Adjusted earnings before interest, taxes, depreciation and amortization were about $353 million, with a margin of 12.7%.
The figures show a contrast between limited revenue growth and earnings per share rising at a slightly faster pace, while net sales were below the $3.0 billion recorded in the second quarter of 2026. Second-quarter sales had risen 6.8% year over year, or 5.0% on an adjusted basis reflecting constant shipping days and exchange rates. The company then reported net income of $196 million, compared with $147 million in the second quarter of 2025, and adjusted earnings per share of $3.67 versus $2.77. In its second-quarter report, Mohawk said residential demand channels remained weak and the commercial segment continued to outperform residential. It also described new-home construction as facing pressure and existing-home sales as affected by affordability challenges.
On liquidity, net cash from operating activities was $471 million in the third quarter, and free cash flow reached $390 million for the period. From the start of 2026 through the end of the third quarter, free cash flow was $626 million, up 78% year over year. These figures put cash generation alongside limited sales growth in the quarter's results, without the company attributing this performance to any particular segment in its statement. Mohawk said in its second-quarter report that higher input costs were expected to flow through inventory and pressure margins in the second half of 2026. It added at the time that further price increases might be needed during the year.
The company returned $261 million of capital to shareholders during the third quarter, then announced a further $34 million during the fourth quarter, while shares outstanding fell about 4%, according to the statement. This total differs from the new $500 million buyback authorization the company announced separately on October 29. The authorization was part of a strategic framework and capital allocation plan Mohawk announced that day. The disclosures provide a clearer picture of shareholder returns than a general reference to an ongoing buyback program, distinguishing amounts actually returned from the new authorization. The statement cited here did not specify how much of the authorization would be executed or when.
In its second-quarter report, the company said its results benefited from growth in volume, pricing and product mix. It said some of the volume increase was linked to initial stocking for new product launches and limited inventory increases ahead of price hikes. It also reported that reported and adjusted second-quarter earnings per share included a benefit of about $0.63 per share from tariff refunds, which had not been included in that quarter's guidance. For the third quarter, its prior guidance had projected adjusted earnings per share of between $2.50 and $2.60, including about $0.12 from additional refunds received by the company. The base range excluding tariff refunds and one-time items was between $2.38 and $2.48 per share.
Mohawk expects adjusted earnings per share of between $1.35 and $1.45 in the fourth quarter of 2026, below adjusted earnings per share of $2.72 in the third quarter. The guidance follows the company's warning in the second quarter that input costs would affect margins in the second half of the year, while it said additional pricing might be necessary. The company's shares, listed under the ticker MHK, closed at $127.78 on October 28, the latest closing price included in the data. Mohawk is scheduled to hold its third-quarter earnings call on October 30, 2026, at 11:00 a.m. Eastern Time. The call will provide an opportunity to present results and discuss fourth-quarter guidance, according to the schedule announced by investor relations.