Mohawk Industries pairs soft volumes with strong Q3 cash flow
Mohawk beat adjusted EPS expectations, generated $390 million of quarterly free cash flow and guided fourth-quarter adjusted EPS to $1.35–$1.45.
Mohawk Industries reported third-quarter 2026 net sales of approximately $2.8 billion, up about 1% year over year, while adjusted sales were nearly flat. Adjusted diluted EPS was $2.72, up about 2% from a year earlier and roughly $0.14 above the commonly cited consensus of $2.58; revenue was modestly below estimates near $2.82 billion, although published estimates varied.
The flooring maker generated $471 million of operating cash flow and $390 million of free cash flow in the quarter, with year-to-date free cash flow reaching $626 million, up 78% year over year. Cash and equivalents were approximately $816.8 million at October 3, versus $856.1 million at December 31, 2025.
Capital deployment was significant: Mohawk said it returned $261 million to shareholders during the quarter and reduced shares outstanding by approximately 4% through repurchases. It expects fourth-quarter adjusted EPS of $1.35–$1.45, while warning that demand remains weak and costs elevated.
Sources
Quarterly revenue, Mohawk Industries
Margins by quarter
Twelve quarters of figures
| Quarter | Q3 '23 | Q4 '23 | Q1 '24 | Q2 '24 | Q3 '24 | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $2.8B | $2.6B | $2.7B | $2.8B | $2.7B | $2.6B | $2.5B | $2.8B | $2.8B | $2.7B | $2.7B | $3.0B |
| Revenue growth | −5.2% | −1.5% | −4.5% | −5.1% | −1.7% | 1.0% | −5.7% | 0.0% | 1.4% | 2.4% | 8.0% | 6.8% |
| Gross margin | 25.0% | 24.4% | 24.2% | 25.8% | 25.5% | 23.5% | 23.1% | 25.5% | 23.8% | 23.1% | 23.5% | 26.6% |
| Operating margin | −26.5% | 6.2% | 5.5% | 7.6% | 7.8% | 4.6% | 3.8% | 6.7% | 5.0% | 2.5% | 4.1% | 8.5% |
| Net income | −$760M | $130M | $105M | $157M | $162M | $90.2M | $72.6M | $147M | $109M | $42.0M | $117M | $196M |
| Diluted EPS | −$11.94 | $2.05 | $1.64 | $2.46 | $2.55 | $1.43 | $1.15 | $2.34 | $1.75 | $0.69 | $1.90 | $3.22 |
| Cash from operations | $512M | $296M | $184M | $234M | $320M | $397M | $3.7M | $206M | $387M | $460M | $110M | $317M |
| Capital expenditure | $127M | $240M | $86.8M | $91.4M | $115M | $161M | $89.1M | $80.2M | $76.3M | $194M | $102M | $88.3M |
| Free cash flow | $385M | $56.0M | $96.9M | $142M | $204M | $236M | −$85.4M | $126M | $310M | $265M | $7.8M | $228M |
| Dividends and buybacks | $0.0M | $0.0M | $0.0M | $87.8M | $0.1M | $74.9M | $25.5M | $42.6M | $40.6M | $41.1M | $64.7M | $59.9M |
This story describes figures the company has published. It is for information only and is not investment advice or a recommendation to buy, sell or hold any security. Check the original filings before relying on any figure. Stoqly is not affiliated with the SEC or Mohawk Industries.
