The company’s net profit fell to $42 million, or 68 cents per share, down from $90.2 million a year prior. However, on an adjusted basis, Mohawk delivered $2.00 per share, narrowly edging out the $1.98 consensus among FactSet analysts. Total sales saw a slight uptick to $2.70 billion, surpassing the projected $2.68 billion.

Performance diverged sharply across geographic lines. While the North American flooring segment saw a 4.8% decline in sales, international markets provided a buffer. Sales in global ceramics and other international flooring categories grew by 6.1% and 6.5%, respectively.

Navigating a Global Industry Recession

CEO Jeff Lorberbaum attributed the results to persistent macroeconomic headwinds that have plagued the sector since mid-2022. To counter these pressures, the company is implementing price hikes across most regions and categories while navigating new tariffs. Management aims to mitigate rising labor and energy costs through productivity gains and supply-chain refinements.

Looking ahead, Mohawk issued cautious guidance for the first quarter, projecting adjusted earnings between $1.75 and $1.85 per share, falling short of the $1.93 analysts had anticipated. Lorberbaum noted that the global flooring industry has been in a recession for nearly four years but expressed optimism that lower mortgage rates and increased housing availability will eventually stimulate a recovery.