Flooring manufacturer Mohawk Industries (NYSE: MHK) reported Q4 CY2025 results exceeding the market’s revenue expectations, with sales up 2.4% year on year to $2.7 billion. Its non-GAAP profit of $2 per share was 1.1% above analysts’ consensus estimates.
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Mohawk Industries (MHK) Q4 CY2025 Highlights:
- Revenue: $2.7 billion vs analyst estimates of $2.68 billion (2.4% year-on-year growth, 0.9% beat)
- Adjusted EPS: $2 vs analyst estimates of $1.98 (1.1% beat)
- Adjusted EBITDA: $301.2 million vs analyst estimates of $313.4 million (11.2% margin, 3.9% miss)
- Adjusted EPS guidance for Q1 CY2026 is $1.80 at the midpoint, below analyst estimates of $1.92
- Operating Margin: 2.5%, down from 4.6% in the same quarter last year
- Free Cash Flow Margin: 10%, up from 9% in the same quarter last year
- Market Capitalization: $8.34 billion
Commenting on the Company’s fourth quarter and full year performance, Chairman and CEO Jeff Lorberbaum stated, “Our results for the quarter were in line with our expectations as our earnings benefited from productivity, restructuring initiatives, product mix and lower interest expense, partially offset by market pricing pressures and increased input costs. We managed the impact of U.S. tariffs, covering the cost as planned. Across our markets, commercial demand remained stable, though continued weakness in housing turnover and sluggish new home construction in the U.S. impacted our volume. For the year, we generated free cash flow of approximately $621 million and repurchased approximately 1.3 million shares of our stock for approximately $150 million as part of our current stock buyback authorization. Approximately 55% of our 2025 sales were in the U.S., 30% were in Europe and 15% were in other geographies.
Company Overview
Established in 1878, Mohawk Industries (NYSE: MHK) is a leading producer of floor-covering products for both residential and commercial applications.
Revenue Growth
Examining a company’s long-term performance can provide clues about its quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Regrettably, Mohawk Industries’s sales grew at a weak 2.5% compounded annual growth rate over the last five years. This was below our standards and is a poor baseline for our analysis.
We at StockStory place the most emphasis on long-term growth, but within consumer discretionary, a stretched historical view may miss a company riding a successful new product or trend. Mohawk Industries’s performance shows it grew in the past but relinquished its gains over the last two years, as its revenue fell by 1.6% annually. 
This quarter, Mohawk Industries reported modest year-on-year revenue growth of 2.4% but beat Wall Street’s estimates by 0.9%.
Looking ahead, sell-side analysts expect revenue to grow 1.9% over the next 12 months. Although this projection indicates its newer products and services will spur better top-line performance, it is still below average for the sector.
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Operating Margin
Mohawk Industries’s operating margin has been trending down over the last 12 months and averaged 5.5% over the last two years. The company’s profitability was mediocre for a consumer discretionary business and shows it couldn’t pass its higher operating expenses onto its customers.
This quarter, Mohawk Industries generated an operating margin profit margin of 2.5%, down 2.1 percentage points year on year. This contraction shows it was less efficient because its expenses grew faster than its revenue.
Earnings Per Share
Revenue trends explain a company’s historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions.
Mohawk Industries’s flat EPS over the last five years was below its 2.5% annualized revenue growth. This tells us the company became less profitable on a per-share basis as it expanded due to non-fundamental factors such as interest expenses and taxes.
In Q4, Mohawk Industries reported adjusted EPS of $2, up from $1.95 in the same quarter last year. This print beat analysts’ estimates by 1.1%. Over the next 12 months, Wall Street expects Mohawk Industries’s full-year EPS of $8.96 to grow 9.6%.
Key Takeaways from Mohawk Industries’s Q4 Results
It was good to see Mohawk Industries narrowly top analysts’ revenue expectations this quarter. On the other hand, its EPS guidance for next quarter missed and its EBITDA fell short of Wall Street’s estimates. Overall, this was a weaker quarter. The stock traded up 3.1% to $137.54 immediately following the results.
So should you invest in Mohawk Industries right now? What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here (it’s free).
