MHKMEDIUM SIGNALFINANCIAL10-K

MHK experienced meaningful declines in profitability with operating income down 29.5% and net income down 28.5%, while interest expense increased substantially.

The simultaneous decline in operating performance and rising interest costs suggests operational headwinds are being compounded by higher financing expenses. However, the company maintained a strong balance sheet with increased cash reserves and growing stockholders' equity, providing financial flexibility during this challenging period.

Comparing 2026-02-24 vs 2025-02-20View on EDGAR →
FINANCIAL ANALYSIS

MHK's financial performance shows a mixed picture with significant profitability pressures offset by balance sheet strength. Operating income declined 29.5% to $489.8M and net income fell 28.5% to $369.9M, while interest expense increased 49.2% to $77.5M, indicating both operational challenges and higher financing costs. The balance sheet remained robust with cash increasing 28.4% to $856.1M and stockholders' equity growing 10.9% to $8.4B, suggesting the company has adequate liquidity to navigate current headwinds.

FINANCIAL STATEMENT CHANGES
Interest Expense
P&L
+49.2%
$51.9M$77.5M

Interest expense surged 49.2% — significant debt increase or rising rates materially impacting earnings.

Operating Income
P&L
-29.5%
$694.7M$489.8M

Operating profitability softening — costs rising faster than revenue, watch for margin recovery plan.

Net Income
P&L
-28.5%
$517.7M$369.9M

Net income declined 28.5% — review whether driven by operations, interest costs, or non-recurring items.

Cash & Equivalents
Balance Sheet
+28.4%
$666.6M$856.1M

Cash grew 28.4% — improving liquidity position supports investment and shareholder returns.

Stockholders Equity
Balance Sheet
+10.9%
$7.6B$8.4B

Equity base grew 10.9% — retained earnings accumulation or equity issuance strengthening the balance sheet.

LANGUAGE CHANGES
NEW — 2026-02-24
PRIOR — 2025-02-20
ADDED
Approximately 54% of this amount was generated by sales in the United States, and approximately 46% was generated by sales outside the United States.
The Company has three reporting segments: Global Ceramic, Flooring North America ( Flooring NA ) and Flooring Rest of the World ( Flooring ROW ) with their 2025 net sales representing 40%, 34% and 26%, respectively, of the Company s total revenue.
In 2024 and 2025, the Company announced further restructuring actions to take advantage of additional opportunities related to the activities described above .
In ceramic, this includes proprietary Sublime Sync and 3D Ink technologies that create more realistic visuals and textures to mimic the appearance of other surfaces, such as long planks with the visuals and texture of natural wood as well as tiles that mimic natural stone, cement, textiles and other alternatives.
The Company manufactures large-scale porcelain slabs that can replicate the look of natural stone but are harder and more durable.
In the growing polyester carpet category, the Company s patented Continuum process adds bulk and softness to polyester fiber made from recycled plastic bottles, differentiating the Company s products in the market.
The Company has recently introduced two PVC-free water-proof hybrid flooring alternative options: PureTech , a sustainable alternative that incorporates 70% recycled content and Solid Tech R , which is made with a core comprised of stone and ten recycled plastic bottles per square foot to create a durable, high-performance product.
Mohawk continues to receive recognition from leading media platforms, including accolades for its positive work environment from Newsweek , Forbes and Fortune and its professional and leadership development programs from Training Magazine .
In Europe, the Company has been formally designated as a Top Employer tm for multiple years.
Corporate Stewardship and Sustainability Mohawk s approach to responsible business practices brings together a commitment to people, environmental stewardship and strong, transparent governance.
REMOVED
Securities and Exchange Commission ("SEC") reports and public announcements.
Approximately 55% of this amount was generated by sales in the United States, and approximately 45% was generated by sales outside the United States.
The Company has three reporting segments: Global Ceramic, Flooring North America ( Flooring NA ) and Flooring Rest of the World ( Flooring ROW ) with their 2024 net sales representing 39%, 35% and 26%, respectively, of the Company s total revenue.
In 2024, the Company announced further restructuring actions to take advantage of additional opportunities related to the activities described above .
In ceramic, this includes proprietary Reveal Imaging printing that replicates the appearance of other surfaces, such as long planks with the visuals and texture of natural wood as well as tiles that mimic natural stone, cement, textiles and other alternatives.
Given the frequent use of ceramic tile in kitchens and baths, the Company has also introduced numerous collections featuring antimicrobial treatment that becomes a permanent part of the product.
In the fast-growing polyester carpet category, the Company s patented Continuum process adds bulk and softness to polyester fiber, differentiating the Company s products in the market.
The Company has also launched an innovative carpet backing called Recover that is hypoallergenic, latex and VOC free and is easier to install and seam.
The Company has recently introduced two PVC-free water-proof flooring options: PureTech , a sustainable alternative that incorporates 70% recycled content and Solid Tech R , which utilizes ten recycled plastic bottles per square foot.
Forbes has designated Mohawk as one of the Best Large United States Employers and Training Magazine ranked the Company s training and development programs among the best for more than fifteen years.
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