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Q2 2025 Ways We Win mohawkind.com NYSE: MHK
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MOHAWK INDUSTRIESMOHAWK INDUSTRIES Forward-looking Statements & Non-GAAP Numbers Certain of the statements in this presentation, particularly those 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 o f 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 obligatio n 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 reports and public announcements. This presentation may include discussion of non-GAAP numbers. For a reconciliation of any non-GAAP to GAAP amounts, please refer to the reconciliation tables at the end of this presentation. 1
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Select a Section Mohawk At-A-Glance Mohawk At-A-Glance Investment Thesis Investment Thesis QuarterlyPerspective Quarterly Perspective Appendix Appendix 2
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3 Mohawk Industries At-A-Glance
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MOHAWK INDUSTRIESMOHAWK INDUSTRIES World’s Largest Flooring Company $10.8B 2024 Net Sales Leading Brands on Four Continents ~41,900 Employees1 19 Countries where Mohawk Manufactures1 ~180 Countries where Mohawk Sells1 4 3 Reporting Segments 2024 Net Sales Distribution 39% Global Ceramic 35% Flooring North America 26% Flooring Rest of the World Unmatched Scale & Scope 1As of December 31, 2024
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MOHAWK INDUSTRIESMOHAWK INDUSTRIES Comprehensive Product Portfolio Ceramic Tile & Countertops Carpet & Rugs Laminate & Wood Flooring Panels Insulation 5 Resilient Flooring
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6 Mohawk Industries Investment Thesis
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MOHAWK INDUSTRIESMOHAWK INDUSTRIES Product Innovation Ways We Win Geographic Reach Operational Excellence Strong Financial Position Long-Term Building Trends Business strengths position Mohawk to manage current market conditions and capture pent–up demand when housing markets and consumer confidence rebound. 7
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MOHAWK INDUSTRIESMOHAWK INDUSTRIES Ways We Win Long-Term Building Trends Mohawk is well positioned to capitalize on favorable industry fundamentals: • Family formation outpacing home construction • Remodeling helps preserve value and comfort of aging housing stock • Record home equity • Locked-in lower mortgage rates incentivize owners to remodel rather than move • Build-to-rent channel growing • Commercial construction and remodeling has historically grown as interest rates drop 8
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MOHAWK INDUSTRIESMOHAWK INDUSTRIES Ways We Win Long-Term Industry Trends 9 An industry track record of emerging stronger from downturns $10 $15 $20 $25 $30 $35 $40 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Total U.S. Flooring Sales: 2004 to 2023 (in billions) 15.3% CAGR Post Recession Recovery 2010 – 2014 Source: Floor Covering Weekly
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MOHAWK INDUSTRIESMOHAWK INDUSTRIES Ways We Win Geographic Reach Multiple opportunities for market development and penetration • Business model combines operational and R&D advantages of global scale with superior local service and market insight • Leadership across multiple flooring categories in key regional markets • Leading brands that enjoy strong equity • Opportunities to grow in existing markets through new products and channel expansion • Opportunities to extend sales into new geographic markets 10 Expand sales with existing customers Innovative new products enhance existing offerings Enter new sales channels New Marazzi Rome showroom serves A&D community
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MOHAWK INDUSTRIESMOHAWK INDUSTRIES Ways We Win Geographic Reach Leading market positions in North America, Europe, South America and Oceania through differentiated products aligned with local preferences U.S. • Ceramic • Carpet • LVT • Sheet Vinyl • Laminate • Accessories • Carpet Tile • Rugs/Mats • Countertops Mexico • Ceramic • LVT Brazil • Ceramic • Laminate Oceania • Carpet • Hard Surface Distribution Malaysia • Wood Europe • Ceramic • Porcelain Panels • Laminate • LVT • Sheet Vinyl • Carpet Tile • Panels • Insulation 11 55% U.S.29% Europe 7% LatAm 9% Other Sales by Geography1 1For the year ended December 31, 2024
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MOHAWK INDUSTRIESMOHAWK INDUSTRIES Ways We Win Operational Excellence Vertical integration optimizes process controls and helps ensure product quality and business agility • Maximizing productivity • ~$100M restructuring savings estimated in 2025 • Ongoing cost-reduction initiatives • Streamlining manufacturing complexities • Simplifying product offering • Conserving materials, energy and water • Investing in assets that increase speed and efficiency • Leveraging advanced technology to drive better decision making • Embracing product circularity and enhancing product formulations to incorporate more recycled/reclaimed content 12
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MOHAWK INDUSTRIESMOHAWK INDUSTRIES Ways We Win Product Innovation Delivering competitive advantages through product differentiation • Patented, proprietary products and processes • Worldwide innovation leadership • Three global R&D Centers benefit all markets • Italy – Ceramic • U.S. – Carpet • Belgium – Laminate • Long history of industrializing new technologies • Proven track record: • Category-changing introductions • PVC-free resilient alternatives with greater stability • Wood-look ceramic tile planks • Waterproof laminate with ultra realistic visuals • Super-soft stain-resistant carpet • Premium products with recycled content • Durable products for long-term functionality 13
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MOHAWK INDUSTRIESMOHAWK INDUSTRIES Ways We Win Recent Category Innovations Resilient SolidTech R , a PVC-free alternative, combines waterproof performance with ultra-realistic visuals and superior durability Ceramic Tile Three-dimensional surface digital printing realistically captures texture and visuals of stone or wood Laminate Exclusive SigNATURE process creates ultra-realistic visuals through highest-resolution digital printing Carpet Pet Premier collections provide superior stain and soil protection and added softness Panels Master Oak delivers high- performance, budget-friendly alternative to solid wood for commercial projects 14
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MOHAWK INDUSTRIESMOHAWK INDUSTRIES Ways We Win Strong Financial Position 15 $716 $680 500 600 700 2023 2024 Free Cash Flow (In millions, as of December 31) Cash & Liquidity Position (In millions) 2023 2024 Net Debt/Adjusted EBITDA 1.5x 1.1x Selected Financial Ratios (As of December 31) 12/31/2024 Total Revolver Availability $1,585.0 Revolver Borrowing and Other Adjustments $ (536.2) Cash and Cash Equivalents $ 666.6 Other Adjustments $ (89.5) Total Liquidity $1,625.9 Share Repurchases Since 2020 • ~$1.6B in total purchases • ~15% of outstanding shares • ~$68M purchased 2025 YTD • $500M share buyback program announced (July 24, 2025)
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MOHAWK INDUSTRIESMOHAWK INDUSTRIES Reinvest in the Business Focus on • Sales optimization • Mix improvements • Cost reduction Pursue Acquisitions Target strong companies that are synergistic to existing businesses Maintain Investment Grade Credit Rating Current net debt to adjusted EBITDA ratio: 1.2x 1 Return Capital to Shareholders Repurchased 15% of outstanding shares for $1.6B since 2020 16 Leveraging Strengths into an Effective Capital Allocation Strategy 1Trailing twelve months as of June 28, 2025
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MOHAWK INDUSTRIESMOHAWK INDUSTRIES 17 Sustained Internal Investment Launched LVT manufacturing facility in northwest Mexico to supplement U.S. production and enhance speed of service Enhanced production technology in U.S. and Belgium to more efficiently create next-generation waterproof laminate flooring Expanded Italian porcelain slab manufacturing to replicate look of natural marble through sophisticated ink-jet printing Investing in capacity expansion and leading-edge technology in growth product categories in key regions
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MOHAWK INDUSTRIESMOHAWK INDUSTRIES Three decades of successful acquisitions and integration opened new geographic markets, product categories and distribution capabilities 57 strategic and bolt-on acquisitions since 1992 18 Business Expansion Through Acquisition Strategic Criteria • Attractively priced • Synergies with existing capabilities, channels and customers • Large market • Moderate to high growth rates • Alignment with secular trends • Fragmented competition if market leader not available • Favorable channel structure • Accretive and sustainable margins Transformational: Geographic/Product Expansion Ceramic: Insulation: Panels: Carpet: Sheet Vinyl:
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MOHAWK INDUSTRIESMOHAWK INDUSTRIES 19 Q2 2025 Performance & Perspective
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MOHAWK INDUSTRIESMOHAWK INDUSTRIES • Evolving U.S. tariff program adding new layers of uncertainty • Mohawk’s U.S. manufacturing footprint advantageous in current global trade environment • Consumer confidence cautious due to macroeconomic concerns • Low housing turnover continues to impact residential remodeling investments • Homebuilder outlook remains cautious • U.S. Fed holding interest rates steady; ECB lowered rates to 2% in June 2025 • Commercial sector expected to slow; still outperforming residential • Pricing pressure persists in competitive markets • Mohawk premium products benefiting mix Current Market Dynamics 20
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MOHAWK INDUSTRIESMOHAWK INDUSTRIES Net Sales $2.8B Adjusted Diluted EPS $2.77 Adjusted OI $223M Adjusted EBITDA $371M Quarterly Performance Overview 21 (In millions, except per share data) Q2 2024 Q2 2025 Net Sales $2,801.3 $2,802.1 % Change — 0.0% % Change (Adjusted Basis) — -0.8% Adjusted EBITDA $ 405.8 $ 371.4 Adjusted EBITDA Margin 14.5% 13.3% Adjusted Operating Income $ 256.7 $ 223.0 Adjusted Operating Margin 9.2% 8.0% Adjusted Diluted EPS $ 3.00 $ 2.77
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MOHAWK INDUSTRIESMOHAWK INDUSTRIES Q2 2025 Performance Highlights • Results reflect impact of • Operational improvements • Cost containment actions • Market development initiatives • Top line essentially flat as reported and on constant days and currency basis • Benefited from productivity gains, restructuring actions, favorable FX impact and lower interest expense, partially offset by pricing pressure and higher input costs • Free cash flow of ~$126M • Lowered 2025 CapEx projection to ~$500M • Repurchased ~393,000 shares for ~$42M • Announced new $500M share repurchase program 22
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MOHAWK INDUSTRIESMOHAWK INDUSTRIES 23 Quarter Highlights • Margins positively impacted by favorable pricing and product mix and productivity gains, partially offset by higher input costs • Mix benefited from higher sales of premium products and commercial project participation • Collections from last 24 months performing well • Sales of porcelain slabs grew in Europe; quartz countertop sales increased in U.S. • Productivity initiatives include improving manufacturing processes, product reformulations and supply chain optimization Global Ceramic Segment Metric Q2 2024 Performance ($ in millions) Q2 2025 Performance ($ in millions) Sales $1,115.6 $1,120.9 Adjusted Operating Income $ 94.8 $ 90.3 Adjusted Operating Income Margin 8.5% 8.1%
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MOHAWK INDUSTRIESMOHAWK INDUSTRIES 24 Quarter Highlights • Margins positively impacted by productivity gains, partially offset by competitive industry pricing • Balancing sales actions with promotions to optimize top line • Responding to soft market conditions by pursuing sales opportunities in stronger geographies • High-end decorative panels improving mix; panels distribution extending to new geographies • Expanding insulation distribution in central Europe • Productivity gains outpaced input cost increases Flooring Rest of the World Segment Metric Q2 2024 Performance ($ in millions) Q2 2025 Performance ($ in millions) Sales $727.2 $734.4 Adjusted Operating Income $ 91.4 $ 76.4 Adjusted Operating Income Margin 12.6% 10.4%
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MOHAWK INDUSTRIESMOHAWK INDUSTRIES 25 Quarter Highlights • Margins unfavorably impacted by higher input costs and temporary plant shutdowns, partially offset by stronger productivity gains • Strong performance from hard surface categories across channels • Mix improved; pricing pressure remains strong • Residential and commercial product launches from past two years benefiting sales • Many productivity initiatives lowering cost position • Restructuring actions delivering expected savings Flooring North America Segment Metric Q2 2024 Performance ($ in millions) Q2 2025 Performance ($ in millions) Sales $958.5 $946.8 Adjusted Operating Income $ 82.0 $ 69.2 Adjusted Operating Income Margin 7.3% 8.6%
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MOHAWK INDUSTRIESMOHAWK INDUSTRIES 26 • Evolving tariffs adding to economic uncertainty • Initiated price adjustments and supply chain optimization to counter impact of initial tariff rates • Continuing to monitor tariff changes; will adjust strategies as needed • Due to inflation and cautious consumer outlook, market conditions remain soft • Commercial continues to outperform residential • Products launched last 24 months performing well • Improved product & channel mix benefiting results • Pricing pressure remains elevated • Higher input costs will continue, peaking in Q3 • 2025 CapEx reduced to ~$500M • Restructuring actions expected to lower costs by ~$100M in 2025 • Q3 2025 Guidance: $2.56 to $2.66 (July 24, 2025) Near-Term Outlook
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MOHAWK INDUSTRIESMOHAWK INDUSTRIES Long-Term Outlook Industry rebounded 10+% annually in years after trough of Great Recession Domestic U.S. manufacturing provides advantage against import- driven competition While inflection point is unpredictable, industry volumes expected to return to historical levels Reduced cost structures and streamlined operations should support profitable growth Significant future demand from housing deficit and aging homes across regions 27
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MOHAWK INDUSTRIESMOHAWK INDUSTRIES 28 Appendix and Reconciliation Tables
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MOHAWK INDUSTRIESMOHAWK INDUSTRIES Annual Earnings Summary (In millions,except per share data) 2022 2023 2024 Net Sales $11,737.1 $11,135.1 $10,836.9 % change 4.8% -5.1% -2.7% Adjusted EBITDA $ 1,649.7 $ 1,416.5 $ 1,427.1 % Adjusted EBITDA Margin 14.1% 12.7% 13.2% Adjusted Operating Income $ 1,083.0 $ 814.4 $ 820.1 % Adjusted Operating Margin 9.2% 7.3% 7.6% Adjusted Net Earnings $ 823.1 $ 587.0 $ 617.2 % change -19.9% -28.7% 5.1% Adjusted Diluted EPS $ 12.85 $ 9.19 $ 9.70 % change -13.5% -28.5% 5.5% 29
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MOHAWK INDUSTRIESMOHAWK INDUSTRIES Annual Results by Segment (In millions,except per share data) 2022 2023 2024 GLOBAL CERAMIC Sales $4,307.7 $4,300.1 $4,226.6 % change 10.0% -0.2% -1.7% Adjusted Operating Income $ 456.9 $ 301.6 $ 291.8 % Adjusted Operating Margin 10.6% 7.0% 6.9% FLOORING NA Sales $4,207.1 $3,829.4 $3,769.9 % change 2.2% -9.0% -1.6% Adjusted Operating Income $ 282.1 $ 206.4 $ 272.4 % Adjusted Operating Margin 6.7% 5.4% 7.2% FLOORING ROW Sales $3,222.3 $3,005.6 $2,840.4 % change 1.8% -6.7% -5.5% Adjusted Operating Income $ 380.7 $ 348.4 $ 306.1 % Adjusted Operating Margin 11.8% 11.6% 10.8% 30
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MOHAWK INDUSTRIESMOHAWK INDUSTRIES Reconciliationof Non-GAAP Measures 31 (In millions) Q2 2025 Net Sales 2,802.1$ Adjustment for constant shipping days 12.0 Adjustment for constant exchange rates (34.4) Adjustment for acquisition volume - Adjusted net sales 2,779.7$ Net Sales 1,120.9$ Adjustment for constant shipping days 12.0 Adjustment for constant exchange rates (5.0) Adjusted net sales 1,127.9 Net Sales 734.4$ Adjustment for constant exchange rates (29.4) Adjusted net sales 705.0 FLOORING ROW RECONCILIATION OF NET SALES TO ADJUSTED NET SALES CONSOLIDATED GLOBAL CERAMIC
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MOHAWK INDUSTRIESMOHAWK INDUSTRIES RECONCILIATION OF NON-GAAP MEASURES Adjusted Operating Income 32 (In millions) Q2 2024 Q2 2025 CONSOLIDATED Operating income 214.0$ 188.7$ Adjustments to operating income: Restructuring, acquisition and integration-related and other costs 41.4 29.4 Legal settlement, reserves and fees 1.3 4.9 Adjusted operating income 256.7$ 223.0$ Adjusted operating income as a percent of net sales 9.2% 8.0% GLOBAL CERAMIC Operating income 83.1$ 88.2$ Adjustments to segment operating income: Restructuring, acquisition and integration-related and other costs 11.7 2.1 Adjusted segment operating income 94.8$ 90.3$ Adjusted segment operating income as a percent of net sales 8.5% 8.1% FLOORING NA Operating income 78.3$ 52.5$ Adjustments to segment operating income: Restructuring, acquisition and integration-related and other costs - 16.7 Legal settlement and reserves 3.7 - Adjusted segment operating income 82.0$ 69.2$ Adjusted segment operating income as a percent of net sales 8.6% 7.3% FLOORING ROW Operating income 65.6$ 65.8$ Adjustments to segment operating income: Restructuring, acquisition and integration-related and other costs 25.8 10.6 Adjusted segment operating income 91.4$ 76.4$ Adjusted segment operating income as a percent of net sales 12.6% 10.4% CORPORATE AND INTERSEGMENT ELIMINATIONS Operating (loss) (13.0)$ (17.8)$ Adjustments to segment operating (loss): Restructuring, acquisition and integration-related and other costs 0.2 - Legal settlements, reserves and fees 1.3 4.9 Adjusted segment operating (loss) (11.5)$ (12.9)$
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MOHAWK INDUSTRIESMOHAWK INDUSTRIES RECONCILIATION OF NON-GAAP MEASURES Adjusted Operating Income Adjusted EBITDA *As a result of a decrease in the Company’s market capitalization, a higher WACC and macroeconomic conditions, the Company per formed interim impairment tests of its goodwill and indefinite -lived intangible assets, which resulted in the impairment charges of $695.8 ($685.6 net of tax) and $8.2 ($6.3 net of tax) in 2023 and 2024, respectively. **Includes accelerated depreciation of $33.1 for 2023 and $32.6 for 2024 and $19.2 for TTM Q2 2025. 33 (In millions) 2023 2024 TTM Q2 2025 Net earnings (loss) including noncontrolling interests (439.4)$ 517.7 474.3 Interest expense 77.5 48.5 32.6 Income tax expense 84.9 128.2 109.6 Net income attributable to non-controlling interest (0.1) (0.1) - Depreciation and amortization** 630.3 638.3 618.6 EBITDA 353.2 1,332.6 1,235.1 Restructuring, acquisition and integration-related and other costs 96.2 61.7 81.5 Software implementation cost write-off - 12.9 12.5 Inventory step-up from purchase accounting 4.5 - - Impairment of goodwill and indefinite-lived intangibles* 877.7 8.2 8.2 Legal settlement, reserves and fees 87.8 9.9 5.3 Adjustments of indemnification asset (2.9) 1.8 (0.5) Adjusted EBITDA 1,416.5$ 1,427.1 1,342.1 Adjusted EBITDA as a percent of net sales 12.7% 13.2% 12.6% Net Debt less Short-term Investments to adjusted EBITDA 1.5 1.1 1.2 (In millions) 2023 2024 TTM Q2 2025 Operating income (loss) (287.8)$ 694.7 618.8 Adjustments to operating income (loss): Restructuring, acquisition and integration-related and other costs 132.2 94.4 100.7 Software implementation cost write-off - 12.9 12.5 Inventory step-up from purchase accounting 4.5 - - Impairment of goodwill and indefinite-lived intangibles* 877.7 8.2 8.2 Legal settlements, reserves and fees 87.8 9.9 5.3 Adjusted operating income 814.4$ 820.1 745.5 Adjusted operating income as a percent of net sales 7.3% 7.6% 7.0%
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MOHAWK INDUSTRIESMOHAWK INDUSTRIES RECONCILIATION OF NON-GAAP MEASURES Adjusted EBITDA Adjusted Net Earnings *Includes accelerated depreciation of $20.5 for Q2 2024 and $4.1 for Q2 2025. 34 (In millions) Q2 2024 Q2 2025 Net earnings (loss) including noncontrolling interests 157.5$ 146.5 Interest expense 12.6 5.2 Income tax expense 42.3 34.0 Net (earnings)/loss attributable to non-controlling interest (0.1) - Depreciation and amortization* 171.5 155.6 EBITDA 383.8 341.3 Restructuring, acquisition and integration-related and other costs 20.9 25.3 Legal settlement, reserves and fees 1.3 4.9 Adjustments of indemnification asset (0.2) (0.1) Adjusted EBITDA 405.8$ 371.4 Adjusted EBITDA as a percent of net sales 14.5% 13.3% (In millions, except per share data) Q2 2024 Q2 2025 Net earnings (loss) attributable to Mohawk Industries, Inc. 157.4$ 146.5 Adjusting items: Restructuring, acquisition, integration-related and other costs 41.4 29.4 Legal settlements, reserves and fees 1.3 4.9 Adjustments of indemnification asset (0.2) (0.1) Income taxes - adjustments of uncertain tax position 0.2 0.1 Income tax effect of adjusting items (8.6) (7.5) Adjusted net earnings attributable to Mohawk Industries, Inc. 191.5$ 173.3 Adjusted diluted earnings per share attributable to Mohawk Industries, Inc. $3.00 2.77 Weighted-average common shares outstanding - diluted 63.9 62.6
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MOHAWK INDUSTRIESMOHAWK INDUSTRIES RECONCILIATION OF NON-GAAP MEASURES Adjusted Operating Income (Loss) (In millions) 2023 2024 GLOBALCERAMIC Operatingincome(loss) $(166.4) 249.5 Adjustmentsto segmentoperatingincome(loss): Restructuring, acquisitionand integration-relatedand othercosts 37.0 29.0 Inventorystep-up from purchaseaccounting 4.1 — Impairmentof goodwilland indefinite-livedintangibles 426.9 8.2 Softwareimplementationcost write-off — 5.1 Adjustedsegmentoperatingincome $ 301.6 291.8 Adjustedoperatingincomeas a percentofnetsales 7.0% 6.9% FLOORINGNA Operatingincome(loss) $ (57.2) 238.5 Adjustmentsto segmentoperatingincome(loss): Restructuring, acquisitionand integration-relatedand othercosts 51.7 24.2 Softwareimplementationcost write-off — 7.8 Impairmentof goodwilland indefinite-livedintangibles 215.8 — Legalsettlement,reservesand fees (3.9) 1.9 Adjustedsegmentoperatingincome $ 206.4 272.4 Adjustedoperatingincomeas a percentofnetsales 5.4% 7.2% FLOORINGROW Operatingincome $ 69.7 265.2 Adjustmentsto segmentoperatingincome: Restructuring, acquisitionand integration-relatedand othercosts 43.2 40.9 Inventorystep-up from purchaseaccounting 0.4 — Impairmentof goodwilland indefinite-livedintangibles 235.1 — Adjustedsegmentoperatingincome $ 348.4 306.1 Adjustedoperatingincomeas a percentofnetsales 11.6% 10.8% CORPORATEAND INTERSEGMENTELIMINATIONS Operating(loss) $ (133.9) (58.5) Adjustmentsto segmentoperating(loss): Restructuring, acquisitionand integration-relatedand othercosts 0.2 0.3 Legalsettlements, reservesand fees 91.7 8.0 Adjustedsegmentoperating(loss) $ (42.0) (50.2) 35
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MOHAWK INDUSTRIESMOHAWK INDUSTRIES RECONCILIATION OF NON-GAAP MEASURES Adjusted Net Earnings (In millions) 2023 2024 Net earnings (loss) attributable to Mohawk Industries, Inc. $(439.5) 517.7 Adjusting items: Restructuring, acquisition, integration-related and other costs 129.3 94.4 Software implementation cost write-off — 12.9 Inventorystep-up from purchase accounting 4.5 — Impairment of goodwill and indefinite-lived intangibles* 877.7 8.2 Legal settlements, reserves and fees 87.8 9.9 Adjustments of indemnification asset (3.0) 1.8 Income taxes - adjustments of uncertain tax position 3.0 (1.8) Income taxes - impairment of goodwill and indefinite-lived intangibles* (12.8) (1.9) Income tax effect of foreign tax regulation change (10.0) 2.9 Income tax effect of adjusting items (50.0) (26.9) Adjusted net earnings attributable to Mohawk Industries, Inc. $ 587.0 617.2 Adjusted diluted earnings per share attributable to Mohawk Industries,Inc. $ 9.19 $ 9.70 Weighted-average common shares outstanding - diluted 63.9 63.6 *As a result of a decrease in the Company’s market capitalization, a higher WACC and macroeconomic conditions, the Company pe rformed interim impairment tests of its goodwill and indefinite-lived intangible assets, which resulted in the impairment charges of $695.8 ($685.6 net of tax) and $8.2 ($6.3 ne t of tax) in 2023 and 2024, respectively. 36
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MOHAWK INDUSTRIESMOHAWK INDUSTRIES RECONCILIATION OF NON-GAAP MEASURES Net Debt 37 Free Cash Flow (In millions) 2023 2024 Net cash provided by operating activities $1,329.2 1,133.9 Less: Capital Expenditures 612.9 454.4 Free cash flow $ 716.3 679.5 (In millions) 2023Q4 2024Q4 2025Q2 Current portion of long-term debt and commercial paper 1,001.7$ 559.4 458.8 Long-term debt, less current portion 1,701.8 1,677.4 1,742.2 Total debt 2,703.5 2,236.8 2,201.0 Less: cash and cash equivalents 642.5 666.6 546.7 Net debt 2,061.0 1,570.2 1,654.3 Less: short-term investments - - - Net debt less short-term investments 2,061.0$ 1,570.2 1,654.3
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