CALHOUN, Ga., July 28, 2022 — Mohawk Industries, Inc. (NYSE: MHK) has released its financial results for the second quarter of 2022, reporting net earnings of $280 million and diluted earnings per share (EPS) of $4.40. Adjusted net earnings stood at $281 million, with an EPS of $4.41, excluding charges related to restructuring and acquisitions. The company achieved net sales of $3.2 billion for Q2 2022, marking a 6.7% increase as reported and an 11.1% rise on a constant basis. In comparison, net sales for the second quarter of 2021 were approximately $3.0 billion, with net earnings of $336 million and an EPS of $4.82.

For the six-month period ending July 2, 2022, net earnings totaled $526 million, yielding an EPS of $8.17. Net sales for this period were $6.2 billion, reflecting a 9.7% increase compared to the prior year.

Jeffrey S. Lorberbaum, Chairman and CEO, remarked:
“Sales grew across all segments in the quarter, benefiting from price increases, improved product mix, and enhancements in commercial operations, coupled with contributions from recent acquisitions. However, the global economic landscape has become increasingly challenging. We have implemented various strategies to support our performance, resulting in operating income aligning with our expectations, despite inflationary pressures on materials, energy, and transportation costs.”

Lorberbaum highlighted that Mohawk has encountered significant inflation over the past 18 months, necessitating multiple price increases to offset rising costs. The housing market in the U.S. has been affected more than in other regions due to rising mortgage rates, although the overall demand for housing remains high. In Europe, consumer discretionary spending is under pressure from inflation, though investments in commercial construction continue to be robust.

Financial Segment Highlights:

Global Ceramic Segment: Net sales reached $1.2 billion, an increase of 11.5% as reported, with an operating margin of 13.3%.
Flooring Rest of World Segment: Net sales of $0.9 billion represented a 7.4% increase as reported, with an operating margin of 13.9%.
Flooring North America Segment: Net sales were $1.1 billion, an increase of 1.7%, and the operating margin was 9.1%.
As Mohawk Industries navigates the current economic landscape, it is taking proactive steps to reduce costs through restructuring and efficiency improvements, which are projected to save the company $35 to $40 million annually.

Despite the challenges, the company remains optimistic about its future growth potential, underpinned by a strong balance sheet and ongoing investments in new products and markets. Mohawk continues to seek strategic acquisitions to enhance its offerings and expand its market presence.

About Mohawk Industries:
Mohawk Industries is the leading global flooring manufacturer, producing a range of products for residential and commercial spaces. With a commitment to innovation and a diversified portfolio of well-known brands, Mohawk operates across multiple regions, positioning itself for long-term growth in the flooring industry.

Forward-Looking Statements:
Certain statements in this report may constitute forward-looking statements that involve risks and uncertainties. Mohawk cautions that actual results may differ due to various factors including economic conditions, competition, and changes in consumer demand.