MHK NYSE Russell 1000 Earnings call
Mohawk Industries (MHK) · Q2 2026 results and valuation
Share price: $152.58 · 2026-11-11
Results Q2 2026 vs Q1 2026 · previous quarter · published 31 Jul 2026 and 1 May 2026
Net income up 67.5% on the previous quarter. Management sounded upbeat, in its script and in answers to analysts.
Only a basic analysis is available for this company at the moment.
1 · Numbers
+67.5%
Net income vs Q1 2026
Outlook given
Net income 196.1M vs 117.1M
Revenue +9.6%
Against the same quarter last year (Q2 2025) it is +33.9%, so it is not just seasonal.
2 · How management spoke
Upbeat
More upbeat than 76% of company calls
Answers to analysts: upbeat, in line with the script.
Similar to last call.
3 · What stood out
Key theme
MHK reported a second-quarter EPS of $3.22 and adjusted EPS of $3.67, with volume benefiting from initial stocking of new product placements and…
Valuation
Is Mohawk Industries undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At −2.8% growth a year (3-year revenue growth), the model's fair value is $69.49 a share — the stock trades 120% above it. Today's price assumes 6.7% growth a year.
Current price
$152.58
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+6.7% for 10 yrs
Fair value / share
$69.49
Buy below
$52.11
Price vs fair value
Overvalued 120%
Price vs buy-below price
Overvalued 193%
Read between the lines
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Key theme
Sales are expected to dip seasonally from Q2 to Q3, excluding foreign exchange and shipping day impacts.
Source quote
“Operating income was $254 million, and adjusted operating income was $290 million or 9.7% of sales. That's a 70-basis-point improvement versus the prior year. That's an increase of approximately 170 basis points versus the prior year as the benefits of price and mix of $54 million, our restructuring and productivity initiatives of $43 million and higher volumes of $13 million offset...”
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Guidance
The company expects its Q3 tax rate to be approximately 22%, up from the 21.1% adjusted tax rate reported in Q2.
Source quote
“Our adjusted tax rate was 21.1%, and we expect our Q3 tax rate to be approximately 22%.”
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Guidance
MHK expects sales to drop from the second quarter to the third quarter, excluding the impact of FX and shipping days.
Source quote
“We expect our sales to seasonally drop from the second quarter to the third quarter, excluding the impact of FX and shipping days.”
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Figure
Net sales reached $3 billion, up 6.8% versus the prior year as reported or 5% on a constant basis.
Source quote
“Our net sales were $3 billion, up 6.8% versus the prior year as reported or up 5% on a constant...”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“Sales grew as we implemented price increases, improved our mix and grew volumes by expanding placements in key retail channels.”
“And so we really have, with the strong balance sheet we have and the strong cash flow generation, a lot of flexibility to invest in profitable growth opportunities and at...”
“We are focused on delivering profitable sales growth through new product innovation and expanding our competitive advantages.”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-07-04)
| Metric | Q2 2026period end 2026-07-04 | Q1 2026period end 2026-04-04 | Change | Q2 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 2.99B | 2.73B | +9.6% | 2.80B | +6.8% |
| Gross profit | 795.1M | 641.9M | +23.9% | 714.4M | +11.3% |
| Operating income | 253.7M | 111.8M | +126.9% | 188.7M | +34.4% |
| Net income | 196.1M | 117.1M | +67.5% | 146.5M | +33.9% |
| EPS | 3.22 | 1.90 | +69.5% | 2.34 | +37.6% |
| P/E today 16.5 | 15.8 | 14.5 | +1.3 | 14.0 | +1.8 |
Topics
Most discussed now
- In Flooring North America, net sales were $976 million, up 3.1% as reported and up 4.7% on a constant basis.
- In the second half of the year, these higher input costs will flow through inventory and impact Mohawk's margins.
- New New collections and expanded customer placements have positioned the business to accelerate as demand improves.
- Mohawk is leveraging the innovation and technology capabilities of its Italian R&D center to drive product development across the world.
- Mohawk is launching new collections in LVT and laminate to strengthen its position in the premium segment of the market.
Faded since Q1 2026
- Dropped Natural gas prices have been less impacted due to significant domestic production, though oil prices in the U.S.
- Dropped International Trade Commission recently ruled that imported quartz countertops from around the world are harming domestic production, and…
- Dropped On Q2, Mohawk is assuming the present demand trends continue through the second quarter and there is somewhat of a...
- Dropped Mohawk will continue to evaluate different ways to rationalize its cost structure as it goes forward and the environment changes.
Latest announcements
Official filings, newest first.
- Director or officer change; Regulation FD disclosure · SEC 8-K
- Results of operations · SEC 8-K
- Director or officer change; Regulation FD disclosure · SEC 8-K
- Director or officer change; Shareholder vote results · SEC 8-K
- Material agreement; New financial obligation · SEC 8-K
- Results of operations · SEC 8-K
- Results of operations · SEC 8-K
- Director or officer change · SEC 8-K