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Net sales in the Global Ceramic Segment decreased 4.9% as reported, or increased 1.2% adjusted for constant days and exchange rates versus the prior year. The Segment’s operating margin was 4.2% as reported, or 4.8% on an adjusted basis due to higher input costs and lower sales volume, partially offset by productivity gains.

Net sales in the Flooring Rest of the World (FROW) Segment decreased by 8.8% as reported, or 2.9% adjusted for constant days and exchange rates versus the prior year. The Segment’s operating margin was 8.8% as reported, or 9.1% on an adjusted basis due to competitive industry pricing and decreased volume.

Net sales in the Flooring North America (FNA) Segment decreased 4.2% versus the prior year as reported, or 1.1% adjusted for constant days. The Segment’s operating margin was 1.1% as reported, or 3.0% on an adjusted basis due to the impact of the order system conversion and higher input costs, partially offset by stronger productivity and cost reduction actions.

With the implementation of tariffs last month, there is more uncertainty with the global economic outlook, and softer conditions are anticipated given higher inflation, lower consumer confidence and reduced business investments. At this point, the tariff amounts and the effect on consumer spending and housing are still evolving. We will take the appropriate actions to manage the impact of tariffs as needed. We are focusing on optimizing our sales and further lowering our operational costs with our restructuring initiatives, which should result in a benefit of approximately $100 million this year. FNA’s service has returned to historical levels while we continue to enhance the functionality and efficiency of the Segment’s new order system. We anticipate pricing pressure will continue in all regions given low demand and competitive markets. Global Ceramic and FNA are improving their mix with increased participation in the commercial channel, sales of premium collections and the performance of recent product introductions. In FROW, European consumer demand for large discretionary purchases such as flooring is at a low level with product demixing, though declining interest rates could stimulate demand. Given these factors, we expect our second quarter adjusted EPS, which excludes any restructuring or other one-time charges, will be between $2.52 and $2.62.

We remain optimistic about the long-term prospects of the flooring category given where we are in the housing cycle. To improve our results, we continue to reduce our cost structures, simplify our operations and product complexity and invest in new product features. When the Great Recession bottomed, our industry rebounded dramatically, growing more than ten percent in the subsequent years. Though we cannot predict the inflection point, we expect our results to significantly improve when industry volumes return to historical levels. As with past economic cycles, we will emerge from this period operationally stronger and ready to provide our customers with superior products and service.”

ABOUT MOHAWK INDUSTRIES
Mohawk Industries is the leading global flooring manufacturer and creates products to enhance residential and commercial spaces around the world. Mohawk’s vertically integrated manufacturing and distribution processes provide competitive advantages in the production of carpet, rugs, ceramic tile, laminate, wood, stone, and vinyl flooring. Our industry leading innovation has yielded products and technologies that differentiate our brands in the marketplace and satisfy all remodeling and new construction requirements. Our brands are among the most recognized in the industry and include American Olean, Daltile, Durkan, Eliane, Elizabeth, Feltex, Godfrey Hirst, Karastan, Marazzi, Mohawk, Mohawk Group, Pergo, Quick-Step, Unilin and Vitromex. During the past two decades, Mohawk has transformed its business from an American carpet manufacturer into the world’s largest flooring company with operations in North America, Europe, South America, Oceania and Asia.

Certain of the statements in the immediately preceding paragraphs, particularly anticipating future performance, business prospects, growth and operating strategies and similar matters and those that include the words “could,” “should,” “believes,” “anticipates,” “expects,” and “estimates,” or similar expressions constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. For those statements, Mohawk claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Management believes that these forward-looking statements are reasonable as and when made; however, caution should be taken not to place undue reliance on any such forward-looking statements because such statements speak only as of the date when made. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. There can be no assurance that the forward-looking statements will be accurate because they are based on many assumptions, which involve risks and uncertainties. Important factors that could cause future results to differ from historical experience and our present expectations or projections include, but are not limited to, the following: changes in economic or industry conditions; the impact of tariffs; competition; inflation and deflation in freight, raw material prices and other input costs; inflation and deflation in consumer markets; currency fluctuations; energy costs and supply; timing and level of capital expenditures; timing and implementation of price increases for the Company’s products; impairment charges; identification and consummation of acquisitions on favorable terms, if at all; integration of acquisitions; international operations; introduction of new products; rationalization of operations; taxes and tax reform; product and other claims; litigation; geopolitical conflict; regulatory and political changes in the jurisdictions in which the Company does business; and other risks identified in Mohawk’s U.S. Securities and Exchange Commission (“SEC”) reports and public announcements.

Conference call Friday, May 2, 2025, at 11:00 AM Eastern Time

To participate in the conference call via the Internet, please visit https://ir.mohawkind.com/events/event-details/mohawk-industries-inc-1st-quarter-2025-earnings-call. To participate in the conference call via telephone, register in advance at https://dpregister.com/sreg/10198186/feca56553a to receive a unique personal identification number. You can also dial 1-833-630-1962 (U.S./Canada) or 1-412-317-1843 (international) on the day of the call for operator assistance. For those unable to listen at the designated time, the call will remain available for replay through June 2, 2025, by dialing 1-877-344-7529 (U.S./Canada) or 1-412-317-0088 (international) and entering Conference ID #3217810. The call will be archived and available for replay under the “Investors” tab of mohawkind.com for one year.

⁽¹⁾Includes accelerated depreciation of $20.5 for Q2 2024, $4.4 for Q3 2024, $5.3 for Q4 2024 and $5.4 for Q1 2025.

The Company supplements its condensed consolidated financial statements, which are prepared and presented in accordance with US GAAP, with certain non-GAAP financial measures. As required by the Securities and Exchange Commission rules, the tables above present a reconciliation of the Company’s non-GAAP financial measures to the most directly comparable US GAAP measure. Each of the non-GAAP measures set forth above should be considered in addition to the comparable US GAAP measure, and may not be comparable to similarly titled measures reported by other companies. The Company believes these non-GAAP measures, when reconciled to the corresponding US GAAP measure, help its investors as follows: Non-GAAP revenue measures that assist in identifying growth trends and in comparisons of revenue with prior and future periods and non-GAAP profitability measures that assist in understanding the long-term profitability trends of the Company's business and in comparisons of its profits with prior and future periods.

The Company excludes certain items from its non-GAAP revenue measures because these items can vary dramatically between periods and can obscure underlying business trends. Items excluded from the Company’s non-GAAP revenue measures include: foreign currency transactions and translation; more or fewer shipping days in a period and the impact of acquisitions.

The Company excludes certain items from its non-GAAP profitability measures because these items may not be indicative of, or are unrelated to, the Company's core operating performance. Items excluded from the Company's non-GAAP profitability measures include: restructuring, acquisition and integration-related and other costs, legal settlements, reserves and fees, impairment of goodwill and indefinite-lived intangibles, acquisition purchase accounting, including inventory step-up from purchase accounting, adjustments of indemnification asset, adjustments of uncertain tax position and European tax restructuring.

Contact: James Brunk, Chief Financial Officer - (706) 624-2239