Mohawk's Q4 Earnings Beat Estimates, Sales Miss, Margins Down Y/Y

Mohawk Industries, Inc. MHK reported mixed fourth-quarter 2025 results, with earnings topping the Zacks Consensus Estimate and net sales marginally missing the same. On a year-over-year basis, both metrics increased.

Shares of MHK stock moved up 1.9% during yesterday’s after-hours trading session.

Mohawk’s quarterly performance reflects a strong market for public and non-residential construction demand, which was partially offset by the sluggish new home construction and weak residential demand. The bottom line also benefited from favorable pricing actions and supply-chain optimization.

MHK is currently focusing on several restructuring actions and operational improvements that have lowered its cost position and are expected to benefit its long-term performance. Despite ongoing tariff uncertainties, the company was able to realize productivity gains during the quarter.

Moving forward in 2026, Mohawk expects its sales and earnings to improve, given the degree to which residential remodeling recovers and economic risks stabilize. Nonetheless, its new product innovations, global footprint and operational excellence are expected to boost growth in the upcoming period.

Inside MHK’s Q4 Numbers

Mohawk reported adjusted earnings per share (EPS) of $2.00, which topped the Zacks Consensus Estimate of $1.98 by 1%. In the year-ago quarter, the company reported an adjusted EPS of $1.95.

Net sales of $2.7 billion marginally missed the consensus mark of $2.72 billion by 0.7%, but grew 2.3% year over year.  On an adjusted basis, net sales declined 3.3% year over year.

Mohawk Industries, Inc. Price, Consensus and EPS Surprise

Mohawk Industries, Inc. price-consensus-eps-surprise-chart | Mohawk Industries, Inc. Quote

Adjusted gross margin contracted 10 basis points (bps) year over year to 24.3%. Adjusted selling, general and administrative expenses (as a percent of net sales) rose 30 bps to 18.7% from the year-ago period. Adjusted operating margin contracted 50 bps to 5.6% from 6.1% a year ago.

Mohawk’s Segmental Details

Global Ceramic: Net sales of the segment totaled $1.07 billion, up 6.1% year over year on a reported basis. On an adjusted basis, sales were down 0.4% from the year-ago level to $1 billion.
 
Adjusted operating income increased to $62.7 million from $53.5 million a year ago. The segment’s adjusted operating margin expanded 60 bps to 5.9% from 5.3% a year ago.

Flooring North America (NA): Net sales of the segment amounted to $892.5 million, down 4.8% year over year on a reported basis. On an adjusted basis, sales were down 6.2% from the year-ago level to $878.8 million.

The segment registered an adjusted operating profit of $39.2 million, down from $53.7 million reported in the prior-year period. Adjusted operating margin was 4.4%, down 130 bps year over year.

Flooring Rest of the World (ROW): Net sales in the segment increased 6.5% year over year on a reported basis to $737.1 million. On an adjusted basis, sales were up 3.5% from the year-ago level to $667.5 million.

Adjusted operating income was $65.1 million, down from $68.9 million reported a year ago. The segment’s adjusted operating margin was 8.8%, down from 10% in the year-ago period.

Mohawk’s 2025 at a Glance

For the full year, Mohawk registered net sales of $10.79 billion, down 0.5% year over year from $10.84 billion. The operating income was $489.8 million, down from $693.5 million reported in 2024.

Adjusted EPS was $8.96, down year over year by 7.6% from $9.70 reported a year ago.

Financial Highlights of MHK

Mohawk ended 2025 with cash and cash equivalents of $856.1 million, up from $666.6 million as of 2024. As of Dec. 31, 2025, long-term debt (less the current portion) was $1.74 billion, up from $1.68 billion as of Dec. 31, 2024.

At the end of 2025, the company generated free cash flow of $621.2 million compared with $679.5 million a year ago.

During 2025, MHK repurchased approximately 1.3 million shares of its stock for about $150 million.

MHK’s Zacks Rank & Recent Consumer Discretionary Releases

Mohawk currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Hyatt Hotels Corporation H has delivered fourth-quarter 2025 results, wherein earnings beat the Zacks Consensus Estimate, but revenues missed the same. Both metrics increased on a year-over-year basis.

Hyatt benefited from managed hotel RevPAR growth outside the United States, with strength from newly opened hotels, solid performance in the Asia Pacific and better results from all-inclusive hotels in Europe. As of Dec. 31, 2025, Hyatt had a pipeline of executed management or franchise contracts for approximately 148,000 rooms, reflecting an increase of 7% year over year. For 2026, net rooms growth is anticipated to be between 6% and 7% year over year, with system-wide RevPAR to rise in the range of 1-3%.

Hilton Worldwide Holdings Inc. HLT reported fourth-quarter 2025 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate. The top and bottom lines increased on a year-over-year basis.

Hilton’s fourth-quarter 2025 results were supported by steady demand trends, year-over-year RevPAR growth and continued expansion of its global footprint. Continued expansion of its luxury and lifestyle portfolio, along with new brand launches such as the Apartment Collection by Hilton, also contributed positively to overall performance. As of Dec. 31, 2025, the pipeline included 3,703 hotels with about 520,500 rooms across 129 countries and territories, 26 of which currently have no Hilton presence.

Hasbro, Inc. HAS reported fourth-quarter fiscal 2025 results, with earnings and revenues beating the Zacks Consensus Estimate. The top and bottom lines increased year over year.

Hasbro’s management highlighted a strong 2025, with it returning to growth on the back of disciplined execution and the “Playing to Win” strategy. Leadership emphasized broader fan engagement, new partnerships and meaningful progress toward becoming a more digital and IP-focused business, setting a confident tone for 2026. From a financial perspective, cost-saving and transformation efforts supported improved performance, with Wizards of the Coast emerging as the key driver, led by record Magic revenues.

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