Fri, May 2, 5:28 PM (17 days ago)
**Mohawk Industries, Inc. (MHK) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** $2,525.8 million, down from $2,679.4 million in Q1 2024 due to fewer shipping days, unfavorable foreign exchange rates, and order management system conversion impacts. - **Gross Profit Margin:** 23.1%, down from 24.2% in Q1 2024 due to higher input costs and restructuring expenses. - **Operating Income Margin:** 3.8%, down from 5.5% in Q1 2024 due to higher input costs and restructuring expenses. - **Net Income Margin:** 2.9%, down from 3.9% in Q1 2024 due to lower sales volume and higher expenses. - **Cash Flow from Operations:** $3.7 million, down from $183.7 million in Q1 2024 due to changes in working capital and lower net earnings. **Segment Performance:** - **Global Ceramic:** Revenue down 4.9% to $993.8 million, operating income down 14.4% to $41.8 million. - **Flooring NA:** Revenue down 4.4% to $862.4 million, operating income down 79.3% to $9.3 million due to order management system conversion and higher input costs. - **Flooring ROW:** Revenue down 8.8% to $669.6 million, operating income down 17.2% to $58.7 million. **Trends & Uncertainties:** - Soft consumer demand, inflationary pressures, and fluctuating interest rates continue to impact sales. - Ongoing restructuring actions aim to deliver annual savings of approximately $145 million, with estimated costs of $140 million. - Geopolitical conflicts and tariffs pose risks to supply chains and consumer demand. - The company plans to invest $530 million in capacity expansion and cost-reduction initiatives in 2025. **Future Operations Impact:** - Mohawk expects to complete restructuring projects in 2025 and 2026, delivering annual savings and improving operational performance. - The company plans to reinvest cash held outside the U.S. and maintain a strong balance sheet to finance investments, acquisitions, and debt servicing. - Mohawk continues to monitor geopolitical risks, tariffs, and market conditions to mitigate potential impacts on its business.