Mohawk Industries, Inc. (MHK)

Mohawk Industries reported second quarter 2026 net sales of $3.0 billion on 30 July, up 6.8 percent from a year earlier 3. Net earnings were $196 million, or $3.22 a share, and that included a benefit of about $0.63 a share from tariff refunds 3.

The refunds return money the company paid under tariffs that the U.S. Supreme Court ruled unlawful on 20 February 2026 2. Mohawk asked for $70.7 million back on 21 April and had received $65.5 million by 4 July 2.

The company warns that the government has appealed the court order, so the refunds could still be delayed, reduced or denied 2.

Management says home resales remain near multi-decade lows and new building is soft, so the demand flooring depends on has not recovered 3. Commercial customers keep buying more than home owners do 3.

Paul De Cock was appointed chief executive effective 30 September 2026, succeeding Jeff Lorberbaum, who continues as chairman 6. The open question is whether the new chief executive changes the company's course 13.

Mohawk says it grew over two decades from an American carpet manufacturer into the world's largest flooring company, with operations on five continents 1.

Jeff Lorberbaum has led it as chief executive since January 2001 and as chairman since May 2004 6. Growth came by buying companies, among them Aladdin in 1994 and the Belgian laminate maker Unilin in 2005 56.

In 2023 it bought Elizabeth Revestimentos, a Brazilian tile maker, and Vitromex, a Mexican one with four plants 1.

Sales slid slowly as housing turnover stayed low: $11,135.1 million in 2023, $10,836.9 million in 2024 and $10,785.4 million in 2025 1.

In 2023 the company wrote down goodwill and other intangible assets by $877.7 million, which turned operating income into a loss of $291.9 million 1. It tied the charge to a higher cost of capital and weak economic conditions 1.

Since 2022 it has rationalized facilities, products and assets and cut jobs to lower costs 1. The company expects those actions to deliver annualized benefits of about $365 million 1.

Net earnings recovered to $514.7 million in 2024, then fell to $369.9 million in 2025 1. The 2025 drop came mainly from higher input costs, higher restructuring costs and lower sales volume, partly offset by productivity gains 1.

Lower volume cost about $184 million of 2025 sales, while currency added about $141 million and price and product mix about $100 million 1.

Investor lawsuits filed in April 2021 over the company's disclosures ended with settlements and a court dismissal on 15 December 2025 1.

Ceramic tile and stone

Global Ceramic makes ceramic, porcelain and natural stone tile for floors and walls, plus porcelain slabs, quartz countertops and installation materials 1. Its brands include Daltile, American Olean, Marazzi, Ragno, Eliane and Vitromex 1.

It had 2025 net sales of $4,289.4 million, up from $4,226.6 million, helped by price and product mix of about $125 million and currency of about $50 million 1. That was 40 percent of the company's revenue 1.

The company believes it is the largest tile maker in Europe, Russia and the United States, and it faces pressure from imported ceramic 1. In the second quarter of 2026 segment sales rose 7.9 percent and the operating margin was 7.8 percent 3.

Carpet, rugs and wood in North America

Flooring North America sells broadloom carpet, carpet tile, rugs, carpet pad, laminate, wood, luxury vinyl tile and sheet vinyl under names such as Mohawk, Karastan, Durkan and Pergo 1. Its customers are floor covering retailers, home centers, builders and contractors 1.

Its 2025 net sales were $3,638.5 million, down from $3,769.9 million, as lower volume cost about $109 million 1. In the second quarter of 2026 sales rose 3.1 percent with a 10.0 percent operating margin 3.

Floor Daily reported on 30 March 2026 that Mohawk would raise prices up to 8 percent on residential and mainstream commercial carpet, carpet tile and pad from 27 April, citing oil and energy costs 10.

Flooring outside North America

Flooring Rest of the World makes laminate, vinyl, wood and carpet for homes and offices, and roofing panels, insulation boards and decorative panels for Europe 1. Brands include Quick-Step, Moduleo, Unilin and Godfrey Hirst 1.

Its 2025 net sales were $2,857.5 million against $2,840.4 million, and second quarter 2026 sales rose 9.7 percent with a 9.8 percent operating margin 13.

An Nuyttens, a former Solvay executive, was named president of the segment effective mid-October 2026, taking over from De Cock, who had led it on an interim basis 7.

Plants, people and rivals

The company reports 78 manufacturing sites and 71 distribution sites, and owns its headquarters in Calhoun, Georgia 1. It employs about 40,500 people, and manufacturing runs in 19 countries 12.

The United States floor covering industry had $33.2 billion in sales in 2024, spread among many small and large makers, and Mohawk names no single rival 1.

At the 21 May 2026 annual meeting, Lorberbaum won re-election as a director with 51,075,758 votes for and 1,334,971 against 9.

Current problems

Mohawk is a defendant in suits in Georgia, Alabama and South Carolina over carpet that allegedly contained PFAS, the so-called forever chemicals 1. It also faces about 400 silica dust claims 1.

Atlanta News First reported on 13 November 2025 that Mohawk sued 3M, DuPont, Chemours and Daikin America, saying they hid the risks, and that it has paid over $100 million to settle water lawsuits 11.

The company also operates in Russia, and about 35 percent of its cash was held there on 4 July 2026 2.

The umbrella, in words

The brands include Daltile and American Olean in tile, Mohawk, Karastan and Durkan in carpet, Pergo and Quick-Step in laminate, Marazzi in Europe and Elizabeth in Brazil 1.

Exhibit 21 lists subsidiaries such as Dal-Tile, Unilin, Marazzi Group, Godfrey Hirst, Feltex Carpets and Vitromex, and says certain subsidiaries are omitted 4. It also lists Kerama Marazzi OOO, a Russian unit, and mining units in Bulgaria and Brazil 4.

The headquarters is owned in Calhoun, Georgia, and the company owns service centers and stores in Canada, the United States and Russia 1.

On 27 March 2026 Lorberbaum owned 10,078,475 shares, 16.5 percent, including 8,132,685 held by Aladdin Partners, L.P., 13.3 percent 5. BlackRock reported 6,071,097 shares, 9.9 percent, and Dimensional Fund Advisors 3,138,557, 5.1 percent 5.

Under a 1994 merger agreement the company must nominate one person chosen by the former Aladdin stockholders, and Lorberbaum is that designee 5.

Chief executive De Cock said on 30 July 2026 that the company expects third quarter adjusted earnings of $2.50 to $2.60 a share, including about $0.12 from further tariff refunds 3.

Without the refunds, the company expects a baseline of $2.38 to $2.48 3. It expects higher costs to continue into the fourth quarter and said it may take more pricing actions 3.

A new group of restructuring projects should cut costs by about $60 million, with most finished by the end of 2027 3. The company expects them to need about $50 million in cash costs and capital spending 3.

For 2026 the company plans capital spending of about $460 million, aimed at finishing capacity projects and cost cuts 2.

A share repurchase program of up to $500 million approved on 24 July 2025 had $295.6 million left on 4 July 2026 2.

On 12 May 2026 it signed a revolving credit agreement of up to $1.5 billion, due 12 May 2031 8.

The Atlanta Journal-Constitution reported on 10 February 2026 that House Bill 211, which could shield north Georgia carpet makers from PFAS lawsuits, passed a Georgia House committee 12.