Global flooring manufacturer Mohawk Industries, Inc. has reported an increase in first quarter revenue.
According to its latest trading update for Q1 2026, net sales rose 8% to $2.7bn from $2.5bn in 2025. Net earnings resulted at $117m, up from $73m recorded in the previous year.
Chairman and CEO Jeff Lorberbaum stated: “Our performance was in line with our expectations despite a challenging environment. Our results include benefits from productivity, restructuring and product mix, offset by inflation and volume.
“Last year was impacted by the system conversion and had four fewer days. Across our regions, the commercial sector continued to outperform residential. New home construction remained soft, and consumers continued to defer home purchases and remodeling projects due to economic uncertainty. We are implementing productivity actions and executing our previously announced restructuring projects to enhance our results.
“During the quarter, we repurchased 607,000 shares of our stock for $64 million as part of our current stock buyback authorization. Our strong balance sheet provides strategic and operational flexibility to take advantages of opportunities that arise.
“At the end of February, the conflict in the Middle East intensified, increasing volatility in global energy markets. Higher gasoline and diesel prices were the fastest and most visible impact of supply disruptions and are contributing to a more cautious consumer outlook. Depending on the duration of the conflict, the economic impact will vary across our markets, with increased inflation reducing consumer sentiment and discretionary spending.
“Energy prices as well as the cost of oil and natural gas derivatives are increasing, which affects the cost of many of our products. We are implementing price increases across many product categories and geographies, and further price increases could be required. The impact of higher cost raw materials will be greater in the second half of the year due to our flow through of inventory.
“We are continuing to launch our new product collections, with industry-leading designs and features to enhance our sales and margins. We are implementing operational strategies that we have used to navigate past disruptions, which prioritize adaptability and cost control.
“We are maintaining flexibility to align with evolving demand, supply availability and volatile costs. We are focused on the controllable parts of our business, including sales initiatives, inventory levels, discretionary spending and capital investments.”
