Mohawk Industries Reports Q1 Decline, Faces Increased Costs from Tariffs

Mohawk Industries announced its first quarter 2025 results, with net sales reaching $2.5 billion, a 5.7% decrease compared to the same period last year. Net earnings for the quarter were $73 million, or $1.15 per share. Adjusted net earnings were $96 million.

Chairman and CEO Jeff Lorberbaum stated that sales were relatively flat on a constant basis, absorbing fewer shipping days and foreign exchange headwinds. He noted that the impact of sales disruption and extraordinary costs related to the new Flooring North America order system was within expectations, with service levels returning to historical rates. Earnings performance was boosted by productivity gains, restructuring actions, and a lower tax rate, partially offsetting pricing pressure and higher input costs.

The company highlighted the increasing uncertainty from recently announced global tariffs, particularly a 145% U.S. tariff on LVT imported from China. Mohawk emphasized that its substantial domestic operations for ceramic tile, carpet, laminate, and LVT position it advantageously amid rising tariffs. The company estimates that current tariff rates will result in an annualized cost of approximately $50 million, which it plans to address through price increases and supply chain adjustments.

Regionally, net sales decreased by 4.9% in the Global Ceramic segment, 8.8% in the Flooring Rest of the World (FROW) segment, and 4.2% in the Flooring North America (FNA) segment. Mohawk anticipates continued pricing pressure across all regions due to low demand and competitive markets. The company is focusing on optimizing sales and reducing operational costs through restructuring initiatives, which are expected to generate approximately $100 million in benefits this year.