Highlights

  • Second quarter 2026 net sales were $2,991.4 million, compared with $2,802.1 million, and operating income was $253.7 million, compared with $188.7 million.
  • Diluted earnings per share attributable to Mohawk were $3.22, compared with $2.34, and net earnings attributable to the company were $196.1 million.
  • Cost of sales was reduced by $49.3 million for IEEPA tariff refunds, and the company had received $65.5 million in reimbursements.
  • Management guided third quarter 2026 adjusted EPS of $2.50 to $2.60 on its call, including approximately $0.12 from tariff refunds.

Mohawk Industries (NYSE: MHK) shares were trading at USD 123.93 on October 27, 2026, up 0.47%, with a relative volume at time of 2.33. The flooring manufacturer submitted a request for IEEPA tariff refunds on April 21, 2026, and filed its quarterly report for the second quarter ended July 4, 2026 on July 31, 2026.

Mohawk Industries is incorporated in Delaware and lists its principal executive offices in Calhoun, Georgia. It supplies every major flooring category, with manufacturing operations in 19 countries and sales in approximately 180 countries. The company reports three segments, Global Ceramic, Flooring NA and Flooring ROW, serving residential and commercial markets, primarily in the United States and Europe. Mohawk is a calendar year-end company.

Second Quarter Results

Net sales for the three months ended July 4, 2026 were $2,991.4 million, an increase of $189.3 million, or 6.8%, from $2,802.1 million. The company attributed the increase to higher sales volume of approximately $78 million, price and product mix of approximately $67 million and foreign exchange of approximately $61 million, partially offset by fewer shipping days of approximately $13 million.

Segment net sales were $1,209.7 million for Global Ceramic, $976.1 million for Flooring NA and $805.6 million for Flooring ROW. Gross profit was $795.1 million, compared with $714.4 million. Operating income was $253.7 million, compared with $188.7 million.

Income tax expense was $52.3 million, for an effective tax rate of 21.0%, compared with 18.8%. Net earnings attributable to Mohawk were $196.1 million, compared with $146.5 million. Diluted earnings per share were $3.22, compared with $2.34. For the six months, net sales were $5,720.1 million, net earnings attributable to the company were $313.2 million, and diluted earnings per share were $5.11, compared with $3.49.

Tariff Refunds and Geopolitical Risks

On February 20, 2026, the U.S. Supreme Court ruled that certain tariffs imposed under the International Emergency Economic Powers Act were not lawful. The company requested reimbursement of $70.7 million on April 21, 2026, and had received $65.5 million as of July 4, 2026. It reduced cost of sales by $49.3 million. The company said the U.S. government has appealed the Court of International Trade order, and that a successful appeal could delay, reduce or deny the funds.

The filing states that Middle East conflicts have adversely impacted cost of sales and that the company faces legal, regulatory, financial, operational and reputational risks from its operations in Russia. About 35% of its cash and cash equivalents is held in Russia.

Cash Flow and Capital

At July 4, 2026, the company had cash of $849.6 million, of which $289.0 million was in the United States and $560.6 million was in foreign countries. Net cash provided by operating activities for the six months was $426.6 million, compared with $210.0 million. Net cash used in financing activities was $247.9 million.

Under its $500 million share repurchase program, the company purchased $59.4 million of its common stock in the quarter, and $295.6 million remained authorized at July 4, 2026.

Outlook

The filing states that the company plans to invest approximately $460 million in capital expenditures in 2026. On the earnings call, management gave third quarter 2026 adjusted EPS guidance of $2.50 to $2.60, including approximately $0.12 from tariff refunds already received. It also gave $2.38 to $2.48 excluding tariff refunds and one-time restructuring charges. Management said it expects one additional shipping day in the third quarter compared with the prior year and the second quarter. It said new restructuring projects are expected to deliver $60 million of annual savings, with most completed by the end of 2027, and projected $50 million of restructuring cash costs.