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Mohawk Industries: The Housing Slowdown Is Pressuring Volumes Despite Stable Revenue Base

Mohawk Industries reported fourth-quarter 2025 net sales of approximately $2.7 billion, marking a 2.4% increase on a reported basis but a 3.3% decline on a constant currency basis compared to the prior year, aligning with company expectations. Full-year 2025 sales remained flat at roughly $10.8 billion. The company’s adjusted earnings per share (EPS) rose slightly by about 3% in the quarter to $2 but declined 7.5% over the full year to $8.96. Operational challenges in housing turnover and subdued home construction in the U.S. continued to pressure volume, particularly in residential markets, resulting in a sluggish industry environment since mid-2022. Geographically, approximately 55% of sales occurred in the U.S., 30% in Europe, and 15% in other regions. The commercial sector performed relatively better than residential, supported by steady demand from healthcare, education, and hospitality sectors. Pricing actions helped offset increasing input costs, with tariffs in the U.S.