Global flooring manufacturer Mohawk Industries, Inc. has reported an increase in second quarter revenue.
According to its latest trading update for Q2 2026, net sales rose 6.8% to $3bn from $2.8bn in 2025. Net earnings resulted at $196m, up from $147m recorded in the previous year.
Net sales in the Flooring North America Segment increased by 3.1% as reported and increased by 4.7% on an adjusted basis versus the prior year. The Segment’s operating margin was 10.0% as reported, or was 11.4% on an adjusted basis due to tariff benefit and productivity gains partially offset by higher input costs.
Net sales in the Flooring Rest of the World Segment increased by 9.7% as reported, or increased by 6.2% adjusted for constant days and exchange rates versus the prior year. The Segment’s operating margin was 9.8% as reported, or 12.0% on an adjusted basis due to pricing benefits compared to the prior year.
Chairman and CEO Jeff Lorberbaum stated: “Our results in the quarter significantly exceeded our expectations as we outperformed our markets. Our performance benefited from volume growth, pricing and product mix. Across our regions, our teams effectively executed our strategies and capitalized on opportunities with new and existing customers.
“We successfully introduced new collections, expanded product placements and improved our mix. In the period, volume benefited from initial stocking of new product placements and limited increases in inventory by some customers ahead of announced price increases. Our second-quarter reported EPS of $3.22 and adjusted EPS of $3.67 included a benefit of approximately $0.63 from tariff refunds, which were not included in our second quarter guidance.
“These refunds represent the reversal of costs that we have absorbed from higher tariffs. As part of our buyback program, we purchased over 600,000 shares during the quarter for approximately $60 million.
“Our second quarter forecast had reflected uncertainty related to the Middle East conflict, but market conditions proved more resilient than we anticipated. Residential channels remained soft during the quarter, and we believe we outpaced the market and gained share in most regions. The commercial sector continued to outperform residential, and our differentiated offering enhanced our mix and margins.
“The new home construction market remains pressured, and existing home sales continue to be affected by affordability challenges. In this softer environment, we are proactively managing the controllable aspects of our business, including enhancing our sales strategies, pricing and operational improvements and managing our inventory levels and costs.
“Across many of our products and geographies, we executed pricing increases in response to higher labor, overhead, material, energy and transportation costs. In the second half of the year, these higher input costs will flow through inventory and impact our margins, and additional price increases may be required this year. We are bringing innovative products to market with differentiated features to strengthen our sales and mix.
“Across the business, our teams are delivering significant productivity gains, and our results are benefiting from our prior restructuring projects. In addition, we have initiated new projects focused on operational simplification, organizational realignment, warehouse consolidation and capacity optimization, all of which will reduce our costs approximately $60 million, with most completed by the end of 2027. These savings will require cash restructuring costs and capital expenditures of approximately $50 million.”
