MHK stock faces margin pressure and softer demand, but restructuring gains, global reach and stable cash position support a hold strategy.
I maintain a hold rating on Mohawk Industries due to market softness, pricing pressure, and declining consumer confidence impacting demand. MHK reported a 5.7% y/y decrease in net sales, with mixed segment performance and a consolidated adj. EBIT margin drop to 4.8%. Persistent pricing pressure and competitive market conditions constrain MHK's margin expansion, despite potential tariff-related price hikes.
Mohawk Industries, Inc. (NYSE:MHK ) Q1 2025 Earnings Conference Call May 2, 2025 11:00 AM ET Company Participants James Brunk - Chief Financial Officer Jeff Lorberbaum - Chairman and Chief Executive Officer Paul De Cock - President and Chief Operating Officer Conference Call Participants John Lovallo - UBS Matthew Bouley - Barclays Investment Bank Rafe Jadrosich - Bank of America Susan Maklari - Goldman Sachs Collin Verron - Deutsche Bank Keith Hughes - Truist Tim Wojs - Baird Adam Baumgarten - Zelman Brian Biros - Thompson Research Group Michael Rehaut - JPMorgan Stephen Kim - Evercore Trevor Allinson - Wolfe Research Phil Ng - Jefferies Laura Champine - Loop Capital Mike Dahl - RBC Capital Markets Operator Good morning, everyone, and welcome to the Mohawk Industries First Quarter 2025 Earnings Conference Call. All participants will be in a listen-only mode.
23 Jul 2025 (48 Days) Date | | - Cons. EPS | - EPS |
23 Apr 2025 Date | | - Cons. EPS | - EPS |
6 Feb 2025 Date | | 1.85 Cons. EPS | 1.95 EPS |
24 Oct 2024 Date | | 2.89 Cons. EPS | 2.9 EPS |
25 Jul 2024 Date | | 2.75 Cons. EPS | 3 EPS |
23 Jul 2025 (48 Days) Date | | - Cons. EPS | - EPS |
23 Apr 2025 Date | | - Cons. EPS | - EPS |
6 Feb 2025 Date | | 1.85 Cons. EPS | 1.95 EPS |
24 Oct 2024 Date | | 2.89 Cons. EPS | 2.9 EPS |
25 Jul 2024 Date | | 2.75 Cons. EPS | 3 EPS |
Furnishings, Fixtures & Appliances Industry | Consumer Cyclical Sector | Mr. Jeffrey S. Lorberbaum CEO | CXA Exchange | US6081901042 ISIN |
US Country | 41,900 Employees | - Last Dividend | 5 Dec 1997 Last Split | 1 Apr 1992 IPO Date |
Mohawk Industries, Inc. is an internationally renowned company that specializes in designing, manufacturing, sourcing, distributing, and marketing an extensive range of flooring products suited for both residential and commercial spaces. The company's operations are expanded across the United States, Europe, Latin America, among other international markets. Mohawk conducts its business through three primary segments: Global Ceramic, Flooring North America, and Flooring Rest of the World. It stands out in the industry for offering diverse product lines under a multitude of well-recognized brands, catering to a wide array of market needs from new construction projects to remodeling endeavors. Established in 1988 and based in Calhoun, Georgia, Mohawk Industries has built a solid reputation for innovation, quality, and service in the flooring industry.
Brand Portfolio: Mohawk sells its products under a plethora of brands such as American Olean, Daltile, Decortiles, Eliane, EmilGroup, KAI, Kerama Marazzi, Marazzi, Ragno, Aladdin Commercial, Durkan, Foss, IVC, Karastan, Mohawk, Mohawk Group, Mohawk Home, Pergo, Portico, Quick-Step, Feltex, GH Commercial, Godfrey Hirst, Hycraft, IVC Commercial, IVC Home, Lentex, Leoline, Moduleo, Redbook, Unilin, and Vitromex. This extensive brand portfolio allows Mohawk to penetrate different market segments effectively, catering to a vast range of consumer preferences and project specifications.
Distribution Channels: Mohawk's distribution strategy encompasses company-owned service centers and stores, company-operated distributors, floor covering retailers, wholesalers, mass merchandisers, department stores, shop at home services, buying groups, ceramic tile specialists, e-commerce platforms, residential builders, independent distributors, commercial contractors, and commercial end users. This wide-reaching distribution network underscores Mohawk's commitment to accessibility and customer service, ensuring that its products are easily obtainable for projects of any scale and scope.