Mohawk Industries, Inc. · NYSE:MHK
Mohawk Industries — Q3 2025 Earnings Presentation
39 slides from Mohawk Industries's earnings presentation, 2025
Slide 1: Ways We Win
Q3 2025 Ways We Win mohawkind.com NYSE: MHK
Slide 2: Forward-looking Statements & Non-GAAP Numbers
Forward-looking Statements & Non-GAAP Numbers Certain of the statements in this presentation, particularly those anticipating future performance, business prospects, growth and operating strategies and similar matters and those that include the words “could,” “should,” “believes,” “anticipates,” “ex
Slide 3: Select a Section
Select a Section Mohawk At-A-Glance Investment Thesis Perspective Quarterly Appendix Mohawk Investment Quarterly Appendix At-A-Glance Thesis Perspective 2
Slide 4: Mohawk Industries At-A-Glance
Mohawk Industries At-A-Glance 3
Slide 5: World's Largest Flooring Company
World’s Largest Flooring Company Unmatched Scale & Scope $10.8B ~41,900 19 ~180 2024 Net Sales Employees1 Countries where Countries where Mohawk Manufactures1 Mohawk Sells1 Leading Brands 3 Reporting Segments on Four Continents 2024 Net Sales Distribution 26% Flooring Rest 39% of the World Global Ce
Slide 6: Comprehensive Product Portfolio
Comprehensive Product Portfolio Ceramic Tile & Carpet & Countertops Rugs Resilient Laminate & Flooring Wood Flooring Panels Insulation MOHAWK INDUSTRIES 5
Slide 7: Mohawk Industries Investment Thesis
Mohawk Industries Investment Thesis 6
Slide 8: Ways We Win
Ways We Win Business strengths position Mohawk to manage current market conditions and capture pent–up demand when housing markets and consumer confidence rebound. Geographic Product Reach Innovation Long-Term Operational Strong Financial Building Trends Excellence Position MOHAWK INDUSTRIES 7
Slide 9: Long-Term Building Trends
Ways We Win Long-Term Building Trends Mohawk is well positioned to capitalize on favorable fundamentals: • Family formation outpacing home construction • Remodeling helps preserve value and comfort of aging housing stock • Record home equity • Locked-in lower mortgage rates incentivize owners to rem
Slide 10: Long-Term Industry Trends
Ways We Win Long-Term Industry Trends An industry track record of emerging stronger from downturns Total U.S. Flooring Sales: 2004 to 2024 (in billions) $40 $35 $30 $25 $20 15.3% CAGR $15 Post Recession Recovery 2010 – 2014 $10 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 20
Slide 11: Geographic Reach
Ways We Win Geographic Reach Multiple opportunities for market development and penetration • Business model combines operational and R&D advantages of global scale with superior local service and market insight • Leadership across multiple flooring categories in key regional markets • Leading brands
Slide 12: Geographic Reach
Ways We Win Geographic Reach Leading market positions in North America, Europe, South America and Oceania through differentiated products aligned with local preferences Sales by Geography1 9% Other 7% LatAm 55% 29% U.S. Europe Mexico • Ceramic • LVT U.S. • Ceramic • Carpet Europe Malaysia • LVT • Ce
Slide 13: Operational Excellence
Ways We Win Operational Excellence Vertical integration optimizes process controls and helps ensure product quality and business agility • Maximizing productivity • ~$110M restructuring savings estimated in 2025 • Ongoing cost-reduction initiatives • Streamlining manufacturing complexities • Simplif
Slide 14: Product Innovation
Ways We Win Product Innovation Delivering competitive advantages through product differentiation • Patented processes and proprietary products • Worldwide innovation leadership • Three global R&D Centers benefit all markets • Italy – Ceramic • U.S. – Carpet • Belgium – Laminate • Long history of ind
Slide 15: Recent Category Innovations
Ways We Win Recent Category Innovations Ceramic Tile Carpet Three-dimensional Pet Premier surface digital collections provide printing realistically superior stain and captures texture soil protection and and visuals of added softness stone or wood Resilient Laminate Panels SolidTech R , Exclusive M
Slide 16: Strong Financial Position
Ways We Win Strong Financial Position Free Cash Flow Share Repurchases Since 2020 (In millions, as of December 31) • ~$1.7B in total purchases $716 700 $680 • ~16% of outstanding shares 600 • ~$108M purchased 2025 YTD 500 • $500M share buyback program announced (July 24, 2025) 2023 2024 Cash & Liqui
Slide 17: Leveraging Strengths into an Effective Capital Allocation Strategy
Leveraging Strengths into an Effective Capital Allocation Strategy Maintain Investment Return Capital to Grade Credit Rating Shareholders Current net debt to Repurchased 16% adjusted EBITDA ratio: of outstanding 1.1x1 shares for $1.7B since 2020 Reinvest in Pursue the Business Acquisitions Focus on
Slide 18: Sustained Internal Investment
Sustained Internal Investment Investing in capacity expansion and leading-edge technology in growth product categories in key regions Expanded Italian porcelain Enhanced production technology Launched LVT manufacturing slab manufacturing to in U.S. and Belgium to more facility in northwest Mexico to
Slide 19: Business Expansion Through Acquisition
Business Expansion Through Acquisition Strategic Criteria Three decades of successful acquisitions and integration opened new geographic markets, • Attractively priced product categories and distribution capabilities • Synergies with existing capabilities, 57 strategic and bolt-on acquisitions since
Slide 20: Q3 2025 Performance & Perspective
Q3 2025 Performance & Perspective MOHAWK INDUSTRIES 19
Slide 21: Current Market Dynamics
Current Market Dynamics • U.S. Fed lowering interest rates; follows cuts from other central banks • Consumers remaining cautious due to macroeconomic concerns • Low housing turnover continues to impact residential remodeling investments • Homebuilders offering incentives to sell inventory • Commerci
Slide 22: Quarterly Performance Overview
Quarterly Performance Overview Net Sales Adjusted EBITDA Adjusted OI Adjusted Diluted EPS $2.8B $359M $206M $2.67 (In millions, except per share data) Q3 2024 Q3 2025 Net Sales $2,719.0 $2,757.9 % Change — 1.4% % Change (Adjusted Basis) — -0.4% Adjusted EBITDA $ 392.4 $ 359.4 Adjusted EBITDA Margin
Slide 23: Q3 2025 Performance Highlights
Q3 2025 Performance Highlights • Industry demand weakened sequentially more than anticipated; believe Mohawk outperformed in most markets • Results reflect impact of • Operational improvements • Cost containment actions • Market development initiatives • Success with new and premium collections • To
Slide 24: Global Ceramic Segment
Global Ceramic Segment Quarter Highlights • Net sales rose 4.4% as reported • Margins negatively impacted by higher input costs, partially offset by productivity gains • Premium offering, commercial collections and products introduced the past two years performing well • Sales of porcelain slabs gre
Slide 25: Flooring Rest of the World Segment
Flooring Rest of the World Segment Quarter Highlights • Net sales rose 4.3% as reported • Margins negatively impacted by competitive industry pricing • Balancing sales actions with promotions to optimize top line • Responding to market conditions by pursuing opportunities in stronger channels and ge
Slide 26: Flooring North America Segment
Flooring North America Segment Quarter Highlights • Net sales declined 3.8% as reported • Margins unfavorably impacted by higher input costs and competitive industry pricing, partially offset by productivity gains • Strong performance from hard surface categories across channels • Residential and co
Slide 27: Near-Term Outlook
Near-Term Outlook • Expect market conditions to remain soft in Q4, with lower volumes compared to the prior year • Interest rates, limited housing turnover and low consumer confidence constraining the industry • Commercial continues to outperform residential • Pricing pressure remains elevated acros
Slide 28: Long-Term Outlook
Long-Term Outlook Domestic U.S. Reduced cost manufacturing structures and provides streamlined advantage operations should against import- support profitable driven growth competition Industry While inflection Significant future rebounded point is demand from 10+% annually unpredictable, housing def
Slide 29: Appendix and Reconciliation Tables
Appendix and Reconciliation Tables MOHAWK INDUSTRIES 28
Slide 30: Annual Earnings Summary
Annual Earnings Summary (In millions, except per share data) 2022 2023 2024 Net Sales $11,737.1 $11,135.1 $10,836.9 % change 4.8% -5.1% -2.7% Adjusted EBITDA $ 1,649.7 $ 1,416.5 $ 1,427.1 % Adjusted EBITDA Margin 14.1% 12.7% 13.2% Adjusted Operating Income $ 1,083.0 $ 814.4 $ 820.1 % Adjusted Operat
Slide 31: Annual Results by Segment
Annual Results by Segment (In millions, except per share data) 2022 2023 2024 GLOBAL CERAMIC Sales $4,307.7 $4,300.1 $4,226.6 % change 10.0% -0.2% -1.7% Adjusted Operating Income $ 456.9 $ 301.6 $ 291.8 % Adjusted Operating Margin 10.6% 7.0% 6.9% FLOORING NA Sales $4,207.1 $3,829.4 $3,769.9 % change
Slide 32: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures RECONCILIATION OF NET SALES TO ADJUSTED NET SALES (In millions) Q3 2025 CONSOLIDATED Net Sales $ 2,757.9 Adjustment for constant shipping days 10.8 constant exchange Adjustment for acquisition volume rates (61.2) - Adjusted net sales $ 2,707.5 GLOBAL CERAMIC Net S
Slide 33: Reconciliation of Non-GAAP Measures
RECONCILIATION OF NON-GAAP MEASURES Adjusted Operating Income (In millions) Q3 2024 Q3 2025 CONSOLIDATED Operating income $ 212.3 $ 136.7 Adjustments to operating income: Restructuring, acquisition and integration-related and other costs 19.5 47.2 Software implementation cost write-off 7.8 - Legal s
Slide 34: Reconciliation of Non-GAAP Measures
RECONCILIATION OF NON-GAAP MEASURES Adjusted Operating Income TTM Q3 (In millions) 2023 2024 2025 Operating income (loss) $ (287.8) 694.7 543.1 Adjustments to operating income (loss): Restructuring, acquisition and integration-related and other costs 132.2 94.4 128.4 Software implementation cost wri
Slide 35: Reconciliation of Non-GAAP Measures
RECONCILIATION OF NON-GAAP MEASURES Adjusted EBITDA (In millions) Q3 2024 Q3 2025 Net earnings (loss) including noncontrolling interests $ 162.0 108.8 Interest expense 11.2 5.0 Income tax expense 39.8 23.3 Net (earnings)/loss attributable to non-controlling interest - - Depreciation and amortization
Slide 36: Reconciliation of Non-GAAP Measures
RECONCILIATION OF NON-GAAP MEASURES Adjusted Operating Income (Loss) (In millions) 2023 2024 GLOBAL CERAMIC Operating income (loss) $(166.4) 249.5 Adjustments to segment operating income (loss): Restructuring, acquisition and integration-related and other costs 37.0 29.0 Inventory step-up from purch
Slide 37: Reconciliation of Non-GAAP Measures
RECONCILIATION OF NON-GAAP MEASURES Adjusted Net Earnings (In millions) 2023 2024 Net earnings (loss) attributable to Mohawk Industries, Inc. $ (439.5) $ 517.7 Adjusting items: Restructuring, acquisition, integration-related and other costs 129.3 94.4 Software implementation cost write-off — 12.9 In
Slide 38: Reconciliation of Non-GAAP Measures
RECONCILIATION OF NON-GAAP MEASURES Net Debt (In millions) 2023Q4 2024Q4 2025Q3 Current portion of long-term debt and commercial paper $ 1,001.7 559.4 175.6 Long-term debt, less current portion 1,701.8 1,677.4 1,743.3 Total debt 2,703.5 2,236.8 1,918.9 Less: cash and cash equivalents 642.5 666.6 516
Slide 39: For additional information, please visit mohawkind.com
For additional information, please visit mohawkind.com