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Q4 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 2025 Net Sales Leading Brands on Four Continents ~40,500 Employees1 19 Countries where Mohawk Manufactures1 ~180 Countries where Mohawk Sells1 4 3 Reporting Segments 2025 Net Sales Distribution 40% Global Ceramic 34% Flooring North America 26% Flooring Rest of the World Unmatched Scale & Scope 1As of December 31, 2025
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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 Trends Mohawk is well positioned to capitalize on favorable fundamentals: • Declining mortgage rates should encourage increased housing turnover o More U.S. mortgages now above 6% than below 3% • Household formation outpacing home construction in most markets • Remodeling preserves value and comfort of aging housing stock • Record home equity o 40% of U.S. homeowners own property outright • 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 2024 Total U.S. Flooring Sales: 2004 to 2024 (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 product placements and channel expansion • Opportunities to extend sales into new geographies 10 Expand sales with existing customers Innovative new products enhance existing offerings Enter new sales channels Rome Marazzi 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 • Rubber Flooring • 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 54% U.S.31% Europe 7% LatAm 8% Other Sales by Geography1 1For the year ended December 31, 2025
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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 & operational efficiency • ~$365M cumulative annualized restructuring savings from actions since 2022 • 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 processes and proprietary products • 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 • 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 surfaces through highest-resolution digital printing and embossing in register Carpet Pet Premier collections provide superior stain and soil protection and added softness Panels Master Oak decorative panels deliver a high-performance, cost-effective alternative to solid wood 14
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MOHAWK INDUSTRIESMOHAWK INDUSTRIES Ways We Win Strong Financial Position 15 Cash & Liquidity Position (In millions, as of December 31, 2025) 2024 2025 Net Debt/Adjusted EBITDA 1.1x 0.9x Leverage Ratio (As of December 31) Total Revolver Availability $1,585.0 Revolver Borrowing and Other Adjustments $ (267.5) Cash and Cash Equivalents $ 856.1 Other Adjustments $ (82.7) Total Liquidity $2,090.9 Share Repurchases Since 2020 • ~$1.7B in total purchases • ~18% of outstanding shares • ~$149M purchased in 2025 • $500M share buyback program announced (July 24, 2025) 2025 Free Cash Flow $616M Free Cash Flow 1 Please refer to appendix for 2020-2025 free cash flow table and calculation. • Free cash flow avg. ~$680M/year since 2020
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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: 0.9x 1 Return Capital to Shareholders Repurchased ~18% of outstanding shares for ~$1.7B since 2020 16 Leveraging Strengths into an Effective Capital Allocation Strategy 1Trailing twelve months as of December 31, 2025
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MOHAWK INDUSTRIESMOHAWK INDUSTRIES 17 Sustained Targeted 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 58 strategic and bolt-on acquisitions since 1992 18 Business Expansion Through Acquisition Strategic Criteria • Attractively priced • Synergies with existing capabilities, channels and customers • Moderate to high growth rates • Alignment with secular trends • Favorable channel structure • Accretive and sustainable margins Transformational: Geographic/Product Expansion Ceramic Carpet Panels Rubber Flooring Insulation “Nike Grind®” is a registered trademark of the Nike Corporation.
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MOHAWK INDUSTRIESMOHAWK INDUSTRIES 19 Q4 2025 Performance & Perspective
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MOHAWK INDUSTRIESMOHAWK INDUSTRIES • U.S. Fed lowered interest rates 3x in 2025; follows cuts from other central banks • Consumer confidence remains low; spending on large discretionary items constrained due to macroeconomic concerns • Weak housing turnover continues to impact residential remodeling investments • Home construction soft; builders offering incentives to move inventory • Commercial sector still outperforming residential • Pricing pressure persists in competitive markets • Mohawk premium products benefiting mix • U.S. market adapting to evolving tariffs • Mohawk’s U.S. manufacturing footprint advantageous in current trade environment Current Market Dynamics 20
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MOHAWK INDUSTRIESMOHAWK INDUSTRIES Net Sales $2.7B Adjusted Diluted EPS $2.00 Adjusted OI $152M Adjusted EBITDA $301M Quarterly Performance Overview 21 (In millions, except per share data) Q4 2024 Q4 2025 Net Sales $2,637.2 $2,699.6 % Change — 2.4% % Change (Adjusted Basis) — -3.3% Adjusted EBITDA $ 310.4 $ 301.2 Adjusted EBITDA Margin 11.8% 11.2% Adjusted Operating Income $ 159.8 $ 152.0 Adjusted Operating Margin 6.1% 5.6% Adjusted Diluted EPS $ 1.95 $ 2.00 1 Please refer to appendix for reconciliation tables of fourth quarter 2025 GAAP to non-GAAP measures. 1 1 1 1
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MOHAWK INDUSTRIESMOHAWK INDUSTRIES Q4 2025 Performance Highlights • Industry demand softened sequentially; believe Mohawk outperformed in most markets o Commercial continues to outperform residential o U.S. new home construction weakened o U.S. retail focused on reducing pre-buy inventory build-up that followed tariff announcement o Southern and Eastern Europe recovering faster than Western Europe • Results reflect impact of o Restructuring actions o Productivity initiatives o Market development activities o Success with new and premium collections • Top line rose as reported, with price mix and FX up and volume down • New restructuring actions announced with annualized savings of ~$31M at a net cash cost of ~$20M after asset sales • Generated free cash flow of ~$265M • Repurchased ~$40M in shares 22
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MOHAWK INDUSTRIESMOHAWK INDUSTRIES 23 Fourth Quarter • Net sales increased 6.1% as reported • Margins negatively impacted by higher input costs and lower sales volume, partially offset by productivity gains and improved price/mix • Commercial business is larger than other segments, benefiting sales and margins • Higher end products in larger formats and decorative surfaces performing well and benefiting mix • Expanding customer base across channels through product offering and service advantages • Porcelain slab sales grew in Europe; countertop sales increased in U.S.; new quartz production ramping up Global Ceramic Segment Metric Q4 2024 Performance ($ in millions) Q4 2025 Performance ($ in millions) Sales $1,008.2 $1,070.0 Adjusted Operating Income $ 53.5 $ 62.7 Adjusted Operating Income Margin 5.3% 5.9%
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MOHAWK INDUSTRIESMOHAWK INDUSTRIES 24 Fourth Quarter • Net sales rose 6.5% as reported • Margins negatively impacted by pressure from competitive industry pricing • Panels and insulation businesses delivered improved sales and margins • Responding to flooring market conditions by pursuing opportunities in stronger channels and geographies • Executing sales actions and promotions to stimulate demand • Productivity gains and restructuring actions improved our results Flooring Rest of the World Segment Metric Q4 2024 Performance ($ in millions) Q4 2025 Performance ($ in millions) Sales $691.8 $737.1 Adjusted Operating Income $ 68.9 $ 65.1 Adjusted Operating Income Margin 10.0% 8.8%
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MOHAWK INDUSTRIESMOHAWK INDUSTRIES 25 Fourth Quarter • Net sales declined 4.8% as reported • Margins favorably impacted by productivity gains, partially offset by higher input costs and pressure from competitive industry pricing • Commercial continues to outperform residential • Relative strength in hard surface categories (laminate, LVT, hybrid) and accessories across channels • Price increases announced on imported goods affected by tariffs as well as residential carpet and select commercial products • Restructuring actions benefited operational efficiencies and results Flooring North America Segment Metric Q4 2024 Performance ($ in millions) Q4 2025 Performance ($ in millions) Sales $937.2 $892.5 Adjusted Operating Income $ 53.7 $ 39.2 Adjusted Operating Income Margin 5.7% 4.4%
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MOHAWK INDUSTRIESMOHAWK INDUSTRIES 26 • Thus far, Q1 market conditions similar to Q4 • Limited housing turnover and low consumer confidence constraining residential sales • Commercial order backlog has stayed stable • Pricing pressure remains elevated across regions; offsetting with improved mix, pricing actions, productivity gains and cost cutting initiatives • Recent restructuring initiatives expected to generate ~$60-70M in savings this year • Managing tariffs with pricing actions and supply chain optimization; will adjust strategies if needed • Q1 seasonally slowest quarter; 4 additional shipping days vs prior year • Q1 2026 Guidance: $1.75 to $1.85 (issued Feb. 12) • Expect FY 2026 sales and earnings growth YOY due to sales initiatives, product innovation and operational improvements Near-Term Outlook
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MOHAWK INDUSTRIESMOHAWK INDUSTRIES Long-Term Outlook Industry rebounded 10+% annually in years after trough of Great Financial Crisis Domestic U.S. manufacturing provides advantage against import- driven competition While inflection point is unpredictable, industry volumes expected to return to historical levels with 2026 as a transitional year Reduced cost structures and streamlined operations should support profitable growth Significant future demand from housing deficit, aging homes and projects deferred during this cycle 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) 2023 2024 2025 Net Sales $11,135.1 $10,836.9 $10,785.4 % change -5.1% -2.7% -0.5% Adjusted EBITDA $ 1,416.5 $ 1,427.1 $ 1,299.9 % Adjusted EBITDA Margin 12.7% 13.2% 12.1% Adjusted Operating Income $ 814.4 $ 820.1 $ 703.1 % Adjusted Operating Margin 7.3% 7.6% 6.5% Adjusted Net Earnings $ 587.0 $ 617.2 $ 559.3 % change -28.7% 5.1% -9.4% Adjusted Diluted EPS $ 9.19 $ 9.70 $ 8.96 % change -28.5% 5.5% -7.7% 29
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MOHAWK INDUSTRIESMOHAWK INDUSTRIES Annual Results by Segment (In millions,except per share data) 2023 2024 2025 GLOBAL CERAMIC Sales $4,300.1 $4,226.6 $4,289.6 % change -0.2% -1.7% 1.5% Adjusted Operating Income $ 301.6 $ 291.8 $ 291.0 % Adjusted Operating Margin 7.0% 6.9% 6.8% FLOORING NA Sales $3,829.4 $3,769.9 $3,638.5 % change -9.0% -1.6% -3.5% Adjusted Operating Income $ 206.4 $ 272.4 $ 201.8 % Adjusted Operating Margin 5.4% 7.2% 5.5% FLOORING ROW Sales $3,005.6 $2,840.4 $2,857.5 % change -6.7% -5.5% 0.6% Adjusted Operating Income $ 348.4 $ 306.1 $ 261.8 % Adjusted Operating Margin 11.6% 10.8% 9.2% 30
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MOHAWK INDUSTRIESMOHAWK INDUSTRIES Reconciliationof Non-GAAP Measures 31 (In millions) Q4 2025 CONSOLIDATED Net Sales $ 2,699.6 Adjustment for constant shipping days (47.6) Adjustment for constant exchange rates (102.0) Adjusted net sales $ 2,550.0 GLOBAL CERAMIC Net Sales $ 1,070.0 Adjustment for constant shipping days (13.1) Adjustment for constant exchange rates (53.1) Adjusted net sales $ 1,003.8 FLOORING NA Net Sales $ 892.5 Adjustment for acquisition volume - Adjustment for constant shipping days (13.7) Adjusted net sales $ 878.8 FLOORING ROW Net Sales $ 737.1 Adjustment for constant shipping days (20.7) Adjustment for constant exchange rates (48.9) Adjusted net sales $ 667.5
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MOHAWK INDUSTRIESMOHAWK INDUSTRIES RECONCILIATION OF NON-GAAP MEASURES Adjusted Operating Income 32 (In millions) Q4 2024 Q4 2025 Operating income 120.6$ 68.3$ Adjustments to operating income: Restructuring, acquisition and integration-related and other costs 25.6 51.4 Inventory capitalization - (6.2) Software implementation cost write-off 5.1 - Asset sale - (5.1) Inventory step-up from purchase accounting 1.2 - Impairment of goodwill and indefinite-lived intangibles 8.2 19.9 Legal settlement, reserves and fees (0.9) 23.8 Adjusted operating income 159.8$ 152.1$ Adjusted operating income as a percent of net sales 6.1% 5.6% Operating income 34.2$ 65.1$ Adjustments to segment operating income: Restructuring, acquisition and integration-related and other costs 6.0 3.8 Software implementation cost write-off 5.1 - Impairment of goodwill and indefinite-lived intangibles 8.2 - Inventory capitalization - (6.2) Adjusted segment operating income 53.5$ 62.7$ Adjusted segment operating income as a percent of net sales 5.3% 5.9% Operating income 41.0$ (2.7)$ Adjustments to segment operating income: Restructuring, acquisition and integration-related and other costs 11.5 41.9 Acquisitions purchase accounting, including inventory step-up 1.2 - Adjusted segment operating income 53.7$ 39.2$ Adjusted segment operating income as a percent of net sales 5.7% 4.4% Operating income 60.9$ 44.6$ Adjustments to segment operating income: Restructuring, acquisition and integration-related and other costs 8.0 5.7 Asset sale - (5.1) Impairment of goodwill and indefinite-lived intangibles - 19.9 Adjusted segment operating income 68.9$ 65.1$ Adjusted segment operating income as a percent of net sales 10.0% 8.8% Operating (loss) (15.5)$ (38.7)$ Adjustments to segment operating (loss): Restructuring, acquisition and integration-related and other costs 0.1 - Legal settlements, reserves and fees (0.9) 23.8 Adjusted segment operating (loss) (16.3)$ (14.9)$ CONSOLIDATED GLOBAL CERAMIC FLOORING NA FLOORING ROW CORPORATE AND INTERSEGMENT ELIMINATIONS
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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 impairment tests of its goodwill and indefinite-lived intangible assets, which resulted in the impairment charges of $877 ($864.9 net of tax), $8.2 ($6.3 net of tax) and $19.9 ($14.9 net of tax) in 2023, 2024 and 2025, respectively. **Includes accelerated depreciation of $33.1 for 2023 and $32.6 for 2024 and $ 51.7 for 2025. 33 (In millions) 2023 2024 2025 Operating income (loss) (291.9)$ 693.5 489.8 Adjustments to operating income (loss): Restructuring, acquisition and integration-related and other costs 132.2 94.4 154.2 Inventory Capitalization - - (6.2) Software implementation cost write-off - 12.9 (0.4) Asset Sale - - (5.1) Inventory step-up from purchase accounting 4.5 - - Impairment of goodwill and indefinite-lived intangibles* 877.7 8.2 19.9 Legal settlements, reserves and fees 87.8 9.9 50.9 Adjusted operating income 810.3$ 820.1 703.1 Adjusted operating income as a percent of net sales 7.3% 7.6% 6.5% (In millions) 2023 2024 2025 Net earnings (loss) including noncontrolling interests (439.4)$ 517.7 369.9 Interest expense 77.5 48.5 17.8 Income tax expense 84.9 128.2 98.8 Net income attributable to non-controlling interest (0.1) (0.1) - Depreciation and amortization** 630.3 638.3 652.6 EBITDA 353.2 1,332.6 1,139.1 Restructuring, acquisition and integration-related and other costs 96.2 61.7 102.4 Software implementation cost write-off - 12.9 (0.4) Assets sale - - (5.1) Inventory capitalization - - (6.2) Inventory step-up from purchase accounting 4.5 - - Impairment of goodwill and indefinite-lived intangibles* 877.7 8.2 19.9 Legal settlement, reserves and fees 87.8 9.9 50.9 Adjustments of indemnification asset (2.9) 1.8 (0.7) Adjusted EBITDA 1,416.5$ 1,427.1 1,299.9 Adjusted EBITDA as a percent of net sales 12.7% 13.2% 12.1% Net Debt less Short-term Investments to adjusted EBITDA 1.5 1.1 0.9
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MOHAWK INDUSTRIESMOHAWK INDUSTRIES RECONCILIATION OF NON-GAAP MEASURES Adjusted EBITDA Adjusted Net Earnings *Includes accelerated depreciation of $5.4 for Q4 2024 and $ 25.9 for Q4 2025. 34 (In millions) Q4 2024 Q4 2025 Net earnings (loss) including noncontrolling interests $ 90.2 42.0 Interest expense 9.8 1.2 Income tax expense 18.3 24.0 Depreciation and amortization* 156.2 176.3 EBITDA 274.5 243.5 Restructuring, acquisition and integration-related and other costs 15.1 25.6 Software implementation cost write-off 7.8 - Assets sale - (5.1) Inventory capitalization - (6.2) Impairment of goodwill and indefinite-lived intangibles 19.9 Legal settlement, reserves and fees 0.7 23.8 Adjustments of indemnification asset (0.4) (0.3) Resolution of foreign non-income tax contingencies - - Adjusted EBITDA $ 297.7 301.2 Adjusted EBITDA as a percent of net sales 10.9% 10.9% (In millions, except per share data) Q4 2024 Q4 2025 Net earnings (loss) attributable to Mohawk Industries, Inc. $ 90.2 42.0 Adjusting items: Restructuring, acquisition, integration-related and other costs 19.5 51.4 Software implementation cost write-off 7.8 - Impairment of goodwill and indefinite-lived intangibles* 8.2 19.9 Assets sale - (5.1) Inventory capitalization - (6.2) Legal settlements, reserves and fees 0.7 23.8 Adjustments of indemnification asset (0.4) (0.3) Income taxes - adjustments of uncertain tax position 0.4 0.3 Income taxes - impairment of goodwill and indefinite-lived intangibles (1.9) (5.0) Income tax effect of foreign tax regulation change 2.9 - Income tax effect of adjusting items (8.9) 3.1 Adjusted net earnings attributable to Mohawk Industries, Inc. $ 118.5 123.9 Adjusted diluted earnings per share attributable to Mohawk Industries, Inc. $1.87 2.00 Weighted-average common shares outstanding - diluted 63.4 61.9
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MOHAWK INDUSTRIESMOHAWK INDUSTRIES RECONCILIATION OF NON-GAAP MEASURES Adjusted Operating Income (Loss) 35 (In millions) 2024 2025 GLOBAL CERAMIC Operating income (loss) $ 249.5 266.7 Adjustments to segment operating income (loss): Restructuring, acquisition and integration-related and other costs 29.0 30.9 Impairment of goodwill and indefinite-lived intangibles 8.2 - Software implementation cost write-off 5.1 (0.4) Inventory capitalization - (6.2) Adjusted segment operating income $ 291.8 291.0 Adjusted operating income as a percent of net sales 6.9% 6.8% FLOORING NA Operating income (loss) $ 238.5 113.5 Adjustments to segment operating income (loss): Restructuring, acquisition and integration-related and other costs 24.2 88.3 Software implementation cost write-off 7.8 - Legal settlement, reserves and fees 1.9 - Adjusted segment operating income $ 272.4 201.8 Adjusted operating income as a percent of net sales 7.2% 5.5% FLOORING ROW Operating income $ 265.2 212.9 Adjustments to segment operating income: Restructuring, acquisition and integration-related and other costs 40.9 34.1 Asset sale - (5.1) Impairment of goodwill and indefinite-lived intangibles - 19.9 Adjusted segment operating income $ 306.1 261.8 Adjusted operating income as a percent of net sales 10.8% 9.2% CORPORATE AND INTERSEGMENT ELIMINATIONS Operating (loss) $ (58.5) (103.4) Adjustments to segment operating (loss): Restructuring, acquisition and integration-related and other costs 0.3 22.6 Legal settlements, reserves and fees 8 29.3 Adjusted segment operating (loss) $ (50.2) (51.5)
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MOHAWK INDUSTRIESMOHAWK INDUSTRIES RECONCILIATION OF NON-GAAP MEASURES Adjusted Net Earnings *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 $8.2 ($6.3 net of tax) and $19.9 ($14.9 net of tax) in 2024 and 2025, respectively. 36 (In millions) 2024 2025 Net earnings (loss) attributable to Mohawk Industries, Inc. $ 514.7 $ 369.9 Adjusting items: Restructuring acquisition, integration-related and other costs 94.4 154.2 Software implementation cost write-off 12.9 (0.4) Impairment of goodwill and indefinite-lived intangibles* 8.2 19.9 Assets sale - (5.1) Inventory capitalization - (6.2) Legal settlements, reserves and fees 9.9 50.9 Adjustments of indemnification 1.8 (0.7) Income taxes - adjustments of uncertain tax position (1.8) 0.7 Income taxes - impairment of goodwill and indefinite-lived intangibles* (1.9) (5.0) Accounts receivable write-off 3.0 - Income tax effect of foreign tax regulation change 2.9 - Income tax effect of adjusting items (26.9) (18.9) Adjusted net earnings attributable to Mohawk Industries, Inc. $ 617.2 559.3 Adjusted diluted earnings per Share attributable to Mohawk Industries, Inc $ 9.70 $ 8.96 Weighted-average common shares outstanding- diluted 63.6 62.4
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MOHAWK INDUSTRIESMOHAWK INDUSTRIES RECONCILIATION OF NON-GAAP MEASURES Net Debt 37 (In millions) 2023Q4 2024Q4 2025Q4 Current portion of long-term debt and commercial paper $ 1,001.7 559.4 289.3 Long-term debt, less current portion 1,701.8 1,677.4 1,741.2 Total debt 2,703.5 2,236.8 2,030.5 Less: cash and cash equivalents 642.5 666.6 856.1 Net debt 2,061.0 1,570.2 1,174.4 Less: short-term investments - - - Net debt less short-term investments $ 2,061.0 1,570.2 1,174.4 Historical Free Cash Flow (In millions) 2020 2021 2022 2023 2024 2025 Average Net cash provided by operating activities $ 1,769.8 1309.1 669.2 1,329.2 1,133.9 1,056.2 1,211.2 Less: Capital Expenditures 425.6 676.1 580.7 612.9 454.4 440.0 531.6 Free cash flow $ 1,344.3 633.0 88.4 716.3 679.5 616.2 679.6
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