The following discussion and analysis of the Company’s financial condition and results of operations from management's perspective should be read in conjunction with the Company’s unaudited condensed consolidated financial statements and related notes included in this report, as well as the Company's audited consolidated financial statements for the year ended December 31, 2025, which are included in the Company's Annual Report on Form 10-K for the year ended December 31, 2025. References to “Mohawk,” “the Company,” “we,” “our” and “us” refer to Mohawk Industries, Inc. and its consolidated subsidiaries as a whole, unless the context otherwise requires. Business Summary Mohawk is a significant supplier of every major flooring category with manufacturing operations in 19 countries and sales in approximately 180 countries. Based on its annual sales, the Company believes it is the world’s largest flooring manufacturer. A majority of the Company’s long-lived assets are located in the United States and Europe, which are also the Company’s primary markets. Additionally, the Company maintains operations in Australia, Brazil, Malaysia, Mexico, New Zealand, Russia and other parts of the world. The Company is a leading provider of flooring for residential and commercial markets and has earned significant recognition for its innovation in design and performance as well as sustainable business practices. Macroeconomic Conditions While commercial demand remained stable through the second quarter of 2026, continued softness in the U.S. and European housing markets, sluggish new home construction and a cautious consumer outlook negatively affected the Company’s markets. Housing turnover in the Company’s major regions remained near historically low levels, driven by affordability challenges, and broader economic uncertainty. The Company believes the ongoing housing shortage across its markets, stable employment conditions and wage growth, and record home equity levels may support greater participation in the housing market as consumer confidence improves, and aging housing stock and evolving family needs may support greater home renovation and remodeling. However, the ongoing impact of soft demand, inflationary pressures and elevated interest rates on the Company’s business, financial condition, results of operations, and prospects cannot be determined at this time. The Company has implemented a number of restructuring actions and operational improvements intended to support sales performance, improve product mix, reduce its cost structure and enhance long‑term competitiveness. Cumulatively, restructuring actions initiated since 2022 are expected to deliver annualized benefits of approximately $360 million. In the second quarter of 2026, the Company announced a new group of restructuring projects across the business focused on strategic operational and administrative realignments, which will reduce the Company’s costs by approximately $60 million once completed. The Company believes these actions reflect its disciplined approach to capital allocation in the current environment. The Company remains focused on effectively managing near‑term market conditions, pursuing profitable growth opportunities, and positioning the Company to benefit when housing activity recovers. Tariffs Update On February 20, 2026, the U.S. Supreme Court ruled that certain tariffs imposed under the International Emergency Economic Powers Act (“IEEPA”) by the executive branch are not lawful. On March 4, 2026, the Court of International Trade (CIT) ordered U.S. Customs and Border Protection (CBP) to begin the refund process for all importers who were subject to IEEPA tariffs. The Company submitted its request on April 21, 2026, for reimbursement in the amount of $70.7 million, reflecting the amount of IEEPA tariffs it determined were paid while such tariffs were in effect. 28 Table of Contents As the nature, timing, and extent of any such refunds were uncertain, the Company elected to account for refunds as gain contingencies, based on the original tariff cost recognition in accordance with ASC 450, Contingencies (“ASC 450”). As of July 4, 2026, the Company has received $65.5 million in reimbursements. During the three and six months ended July 4, 2026, the Company reduced cost of sales by $49.3 million, effectively reversing the IEEPA tariff expense previously recognized in connection with inventory sold to customers since the tariffs were enacted in the first quarter of 2025, and reduced the carrying value of inventory and property, plant and equipment by $12.8 million and $3.4 million, respectively. Notwithstanding the foregoing, uncertainty remains regarding the ultimate outcome and timing of recovery of these refunds, and any anticipated refunds may be delayed, reduced, or denied. The CIT order has been appealed by the U.S. government, and a successful appeal could delay, reduce or deny the funds described above. To the extent the Company is unable to recover tariffs previously paid, its results of operations, cash flows, and financial condition could be adversely affected. The Company will continue to monitor U.S. tariff-related developments and any associated impacts on its consolidated financial statements. Geopolitical Conflicts Due to its global footprint, Mohawk’s business is sensitive to geopolitical conflicts. The ongoing conflicts in the Middle East region have resulted in fluctuating energy prices, including for fuel, oil and natural gas, and have resulted in supply chain disruptions and increased transportation barriers that have adversely impacted the Company’s cost of sales. Higher energy and fuel prices have also negatively affected consumer confidence, contributing to the deferral of discretionary purchases and soft market conditions. In addition, the Company maintains operations in Russia through its Global Ceramic and Flooring ROW reporting segments. The Company continues to face legal, regulatory, financial, operational and reputational risks due to its Russian operations. For more information, please refer to Risk Factors, “The Company faces risks and uncertainties related to its operations in Russia” in Part I, Item 1A of the Company’s Annual Report in Form 10-K for the year ended December 31, 2025. Further escalation or continuation of conflicts in the Middle East, Russia, Ukraine, and elsewhere could result in additional supply chain disruptions, higher energy and raw material prices, increased transportation barriers and decreased market demand. The extent to which these conflicts may affect the Company’s business, financial condition, results of operations and prospects cannot be predicted. More broadly, ongoing military conflicts may result in economic sanctions or embargoes, regional instability, geopolitical shifts, retaliatory actions (including the potential nationalization of foreign‑owned businesses), increased tensions between the U.S. and countries in which the Company operates, and adverse impacts on the global economy, any of which could negatively affect the Company’s business and results of operations. Liquidity and Capital Expenditures Overview The Company believes it is well positioned with a strong balance sheet. Based on its current liquidity and available credit, the Company is in a position to finance internal investments, acquisitions and/or additional stock purchases and pay current debt as it becomes due. For information on risks that could impact the Company’s results, please refer to Risk Factors in Part I, Item 1A of the Company’s Form 10-K for the year ended December 31, 2025. In 2026, the Company plans to invest approximately $460 million in capital expenditures focused on completing capacity expansion projects and targeted initiatives that will drive cost reduction while improving operational performance. For the three months ended July 4, 2026, the net earnings attributable to the Company were $196.1 million compared to the net earnings attributable to the Company of $146.5 million for the three months ended June 28, 2025. The change was primarily attributable to increased productivity; improved price and mix; higher volume, and the favorable net impact of foreign exchange rates, offset by higher input costs, which are inclusive of tariff refunds, driven by the impact of inflation as well as a higher effective tax rate. 29 Table of Contents For the six months ended July 4, 2026, the net earnings attributable to the Company were $313.2 million compared to the net earnings attributable to the Company of $219.0 million for the six months ended June 28, 2025. The change was primarily attributable to increased productivity; improved price and mix, and more shipping days, offset by higher input costs driven by the impact of inflation. 30 Table of Contents Results of Operations Quarter Ended July 4, 2026, as compared with Quarter Ended June 28, 2025 Net sales Net sales for the three months ended July 4, 2026, were $2,991.4 million, reflecting an increase of $189.3 million, or 6.8%, from $2,802.1 million reported for the three months ended June 28, 2025. The increase was primarily attributable to higher sales volume of approximately $78 million; the favorable net impact of price and product mix of approximately $67 million; and the favorable net impact of foreign exchange rates of approximately $61 million, partially offset by fewer shipping days for the quarter ended July 4, 2026, of approximately $13 million. Global Ceramic—Net sales for the three months ended July 4, 2026, were $1,209.7 million, reflecting an increase of $88.8 million, or 7.9%, from $1,120.9 million reported for the three months ended June 28, 2025. The increase was primarily attributable to higher sales volume of approximately $38 million; the favorable net impact of foreign exchange rates of approximately $35 million; and the favorable net impact of price and product mix of approximately $17 million. Flooring NA—Net sales for the three months ended July 4, 2026, were $976.1 million, reflecting an increase of $29.3 million, or 3.1%, from $946.8 million reported for the three months ended June 28, 2025. The increase was primarily attributable to higher sales volume of approximately $40 million, partially offset by fewer shipping days for the quarter ended July 4, 2026, of approximately $15 million. Flooring ROW—Net sales for the three months ended July 4, 2026, were $805.6 million, reflecting an increase of $71.2 million, or 9.7%, from $734.4 million for the three months ended June 28, 2025. The increase was primarily attributable to the favorable net impact of price and product mix of approximately $46 million and the favorable net impact of foreign exchange rates of approximately $26 million. Gross profit Gross profit for the three months ended July 4, 2026, was $795.1 million, an increase of $80.7 million, or 11.3%, compared to gross profit of $714.4 million for the three months ended June 28, 2025. The change was primarily attributable to the favorable net impact of price and product mix of approximately $54 million; productivity gains of approximately $31 million; and higher sales volume of approximately $16 million, partially offset by higher input costs of approximately $19 million which are net of tariff refunds and the unfavorable impact of temporary plant shutdowns of approximately $10 million. Selling, general and administrative expenses Selling, general and administrative expenses for the three months ended July 4, 2026, were $541.4 million, an increase of $15.7 million compared to $525.7 million for the three months ended June 28, 2025. Selling, general and administrative expenses did not significantly change as a percentage of net sales for the three months ended July 4, 2026, compared to the three months ended June 28, 2025. Operating income (loss) Operating income for the three months ended July 4, 2026, was $253.7 million, reflecting an increase of $65.0 million, or 34.4%, compared to operating income of $188.7 million for the three months ended June 28, 2025. The increase in operating income was primarily attributable to the favorable net impact of price and product mix of approximately $54 million; productivity gains of approximately $43 million; and higher sales volume of approximately $13 million, partially offset by higher input costs of approximately $28 million which are net of tariff refunds and the unfavorable impact of temporary plant shutdowns of approximately $10 million. Global Ceramic—Operating income was $94.1 million for the three months ended July 4, 2026, reflecting an increase of $5.9 million compared to operating income of $88.2 million for the three months ended June 28, 2025. The increase in 31 Table of Contents operating income was primarily attributable to productivity gains of approximately $20 million and the favorable net impact of price and product mix of approximately $13 million, partially offset by higher input costs of approximately $20 million which are net of tariff refunds. Flooring NA—Operating income was $97.8 million for the three months ended July 4, 2026, reflecting an increase of $45.3 million compared to operating income of $52.5 million for the three months ended June 28, 2025. The increase in operating income was primarily attributable to productivity gains of approximately $21 million and lower input costs of approximately $18 million which are net of tariff refunds. Flooring ROW—Operating income was $78.7 million for the three months ended July 4, 2026, reflecting an increase of $12.9 million compared to operating income of $65.8 million for the three months ended June 28, 2025. The increase in operating income was primarily attributable to the favorable net impact of price and product mix of approximately $41 million, partially offset by higher input costs of approximately $23 million. Interest expense Interest expense was $4.8 million for the three months ended July 4, 2026, reflecting a decrease of $0.4 million compared to interest expense of $5.2 million for the three months ended June 28, 2025. Interest expense did not significantly change for the three months ended July 4, 2026, from the three months ended June 28, 2025. Other (income) expense, net Other expense, net was $0.4 million for the three months ended July 4, 2026, compared to other expense, net of $3.0 million for the three months ended June 28, 2025. Other income and expense, net did not significantly change for the three months ended July 4, 2026, from the three months ended June 28, 2025. Income tax expense For the three months ended July 4, 2026, the Company recorded income tax expense of $52.3 million on earnings before income taxes of $248.5 million, for an effective tax rate of 21.0%. For the three months ended June 28, 2025, the Company recorded income tax expense of $34.0 million on earnings before income taxes of $180.5 million, for an effective tax rate of 18.8%. The increase in the effective tax rate was primarily attributable to the Company’s geographic dispersion of profits and losses for the respective periods and a non-recurring benefit recorded during the three months ended June 28, 2025 related to a prior period Italian tax benefit. These unfavorable impacts were partially offset by a smaller increase in unrecognized tax benefits during the three months ended July 4, 2026. 32 Table of Contents Six Months Ended July 4, 2026, as compared with Six Months Ended June 28, 2025 Net sales Net sales for the six months ended July 4, 2026, were $5,720.1 million, reflecting an increase of $392.2 million, or 7.4%, from $5,327.9 million reported for the six months ended June 28, 2025. The increase was primarily attributable to the favorable net impact of foreign exchange rates of approximately $188 million; more shipping days for the six months ended July 4, 2026, of approximately $130 million; the favorable net impact of price and product mix of approximately $52 million, and the $50 million favorable current year comparative impact of the order management system conversion, partially offset by lower sales volume of approximately $23 million. Global Ceramic—Net sales for the six months ended July 4, 2026, were $2,307.1 million, reflecting an increase of $192.4 million, or 9.1%, from $2,114.7 million reported for the six months ended June 28, 2025. The increase was primarily attributable to the favorable net impact of foreign exchange rates of approximately $92 million; more shipping days for the six months ended July 4, 2026, of approximately $51 million; higher sales volume of approximately $23 million and the favorable net impact of price and product mix of approximately $34 million. Flooring NA—Net sales for the six months ended July 4, 2026, were $1,856.1 million, reflecting an increase of $46.9 million, or 2.6%, from $1,809.2 million reported for the six months ended June 28, 2025. The increase was primarily attributable to the $50 million favorable current year comparative impact of the order management system conversion and more shipping days for the six months ended July 4, 2026, of approximately $38 million, partially offset by lower sales volume of approximately $23 million and the unfavorable net impact of price and product mix of approximately $21 million. Flooring ROW—Net sales for the six months ended July 4, 2026, were $1,556.9 million, reflecting an increase of $152.9 million, or 10.9%, from $1,404.0 million reported for the six months ended June 28, 2025. The increase was primarily attributable to the favorable net impact of foreign exchange rates of approximately $96 million; more shipping days for the six months ended July 4, 2026, of approximately $41 million; the favorable net impact of price and product mix of approximately $39 million, offset by lower sales volume of approximately $23 million. Gross profit Gross profit for the six months ended July 4, 2026, was $1,437.0 million, an increase of $139.3 million or 10.7%, compared to gross profit of $1,297.7 million for the six months ended June 28, 2025. The increase in gross profit dollars was primarily attributable to productivity gains of approximately $63 million; the favorable net impact of price and product mix of approximately $61 million; more shipping days for the six months ended July 4, 2026, of approximately $32 million; the favorable net impact of foreign exchange rates of approximately $29 million, and the $25 million favorable current year comparative impact of the order management system conversion, partially offset by higher input costs of approximately $48 million which are net of tariff refunds. Selling, general and administrative expenses Selling, general and administrative expenses for the six months ended July 4, 2026, were $1,071.5 million, an increase of $58.6 million compared to $1,012.9 million for the six months ended June 28, 2025. Selling, general and administrative expenses did not significantly change as a percentage of net sales for the six months ended July 4, 2026, compared to the six months ended June 28, 2025. Operating income (loss) Operating income for the six months ended July 4, 2026, was $365.5 million, reflecting an increase of $80.7 million, or 28.3%, compared to operating income of $284.8 million for the six months ended June 28, 2025. The increase in operating income was primarily attributable to productivity gains of approximately $79 million and the favorable net impact of price and product mix of approximately $61 million; the $30 million favorable current year comparative impact of the order management system conversion, and higher sales volume of approximately $14 million; partially offset by higher input costs of 33 Table of Contents approximately $67 million which are net of tariff refunds, and higher restructuring, acquisition and integration-related costs, and other costs of approximately $13 million. Global Ceramic—Operating income was $145.4 million for the six months ended July 4, 2026, reflecting an increase of $15.4 million compared to operating income of $130.0 million for the six months ended June 28, 2025. The increase in operating income was primarily attributable to productivity gains of approximately $41 million; the favorable net impact of price and product mix of approximately $25 million and higher sales volume of approximately $10 million, partially offset by higher input costs of approximately $50 million which are net of tariff refunds. Flooring NA—Operating income was $101.5 million for the six months ended July 4, 2026, reflecting an increase of $39.7 million compared to operating income of $61.8 million for the six months ended June 28, 2025. The increase in operating income was primarily attributable to productivity gains of approximately $27 million, and the $30 million favorable current year comparative impact of the order management system conversion, as well as lower input costs of approximately $10 million which are net of tariff refunds, partially offset by higher restructuring, acquisition and integration-related, and other costs of approximately $12 million, and increased shutdown costs of approximately $7 million. Flooring ROW—Operating income was $149.2 million for the six months ended July 4, 2026, reflecting an increase of $24.7 million compared to operating income of $124.5 million for the six months ended June 28, 2025. The increase in operating income was primarily attributable to the favorable net impact of price and product mix of approximately $36 million; productivity gains of approximately $10 million, partially offset by higher input costs of approximately $17 million. Interest expense Interest expense was $7.1 million for the six months ended July 4, 2026, reflecting a decrease of $4.5 million compared to interest expense of $11.6 million for the six months ended June 28, 2025. The decrease was primarily attributable to cash flow generation, resulting in lower financing needs. Other (income) expense, net Other expense, net was $1.7 million for the six months ended July 4, 2026, reflecting a favorable change of $1.0 million compared to other expense, net of $2.7 million for the six months ended June 28, 2025. Other expense, net did not significantly change for the six months ended July 4, 2026, from the six months ended June 28, 2025. Income tax expense For the six months ended July 4, 2026, the Company recorded income tax expense of $43.4 million on earnings before income taxes of $356.7 million, for an effective tax rate of 12.2%. For the six months ended June 28, 2025, the Company recorded income tax expense of $51.5 million on earnings before income taxes of $270.5 million for an effective tax rate of 19.0%. The decrease in the effective tax rate was primarily attributable to a smaller increase in unrecognized tax benefits during the three months ended July 4, 2026 and tax benefits recognized during the six months ended July 4, 2026, including (i) a one-time tax benefit associated with a legal entity restructuring initiative, (ii) tax credits issued by the Brazilian government related to prior years, and (iii) a foreign tax credit benefit recorded in connection with a U.S. amended return. These favorable impacts were partially offset by the Company’s geographic dispersion of profits and losses for the respective periods. 34 Table of Contents Liquidity and Capital Resources The Company’s primary capital requirements are for working capital, capital expenditures and acquisitions. The Company’s capital needs are met primarily through a combination of internally generated funds, commercial paper, bank credit lines, term and senior notes and credit terms from suppliers. Net cash provided by operating activities in the first six months of 2026 was $426.6 million, compared to net cash provided by operating activities of $210.0 million in the first six months of 2025. The change was primarily attributable to higher net earnings and the changes in accounts receivable, accounts payable, and inventories. Net cash used in investing activities in the first six months of 2026 was $187.3 million compared to net cash used in investing activities of $169.3 million in the first six months of 2025. The change was primarily attributable to the increase in capital expenditures of $21.3 million for the six months ended July 4, 2026, compared to the six months ended June 28, 2025. Net cash used in financing activities in the first six months of 2026 was $247.9 million compared to net cash used in financing activities of $205.1 million in the first six months of 2025. The change was primarily attributable to higher share repurchases of $56.5 million and lower net proceeds on the Senior Credit Facility of $25.9 million as compared to the first six months of 2025, offset by lower net repayments on Commercial Paper of $98.9 million in the first six months of 2026 as compared to net repayments of $144.5 million in the first six months of 2025. As of July 4, 2026, the Company had cash of $849.6 million, of which $289.0 million was in the United States and $560.6 million was in foreign countries, including approximately 35% of the Company’s cash and cash equivalents held in Russia. The Company believes that its cash and cash equivalents on hand, cash generated from operations and availability under its existing credit facilities will be sufficient to meet its capital expenditure, working capital and debt servicing requirements over at least the next twelve months. The Company plans to permanently reinvest the cash held outside the United States. The Company believes that its cash and cash equivalents, cash generated from operations, and availability under its Senior Credit Facility will be sufficient to meet its planned capital expenditures, working capital investments and debt servicing requirements over the next twelve months. The Company continually evaluates its projected needs and may conduct additional debt financings, subject to market conditions, to increase its liquidity and to take advantage of attractive financing opportunities. On July 24, 2025, the Company’s Board of Directors approved a new share repurchase program, authorizing the Company to repurchase up to $500 million of its common stock (the “Share Repurchase Program”). For the three months ended July 4, 2026, the Company purchased $59.4 million of its common stock under the Share Repurchase Program. As of July 4, 2026, there remained $295.6 million authorized under the Share Repurchase Program. See Note 16, Debt, of the notes to the Condensed Consolidated Financial Statements included in Part I, Item 1 of this Form 10-Q for further discussion of the Company’s long-term debt. The Company may continue, from time to time, to retire its outstanding debt through cash purchases in the open market, privately negotiated transactions or otherwise. Such repurchases, if any, will depend on prevailing market conditions, the Company’s liquidity requirements, contractual restrictions and other factors. The amount involved may be material. Contractual Obligations There have been no significant changes to the Company’s contractual obligations as disclosed in the Company’s 2025 Annual Report filed on Form 10-K except as described herein. 35 Table of Contents Critical Accounting Policies and Estimates There have been no significant changes to the Company’s critical accounting policies and estimates during the period. The Company's critical accounting policies are described in its 2025 Annual Report filed on Form 10-K. 36 Table of Contents Impact of Inflation Inflation affects the Company’s manufacturing costs, distribution costs and operating expenses. The Company expects raw material prices, many of which are petroleum-based, to fluctuate based upon worldwide supply and demand for commodities used in the Company’s production processes. Although the Company attempts to pass on increases in raw material, labor, energy and fuel-related costs to its customers, the Company’s ability to do so is dependent upon the rate and magnitude of any increase, competitive pressures and market conditions for the Company’s products. There have been in the past, and may be in the future, periods of time during which increases in these costs cannot be fully recovered. In the past, the Company has often been able to enhance productivity and develop new product innovations to help offset increases in costs resulting from inflation in its operations. Off-Balance Sheet Arrangements The Company did not have any off-balance sheet arrangements as of July 4, 2026. Seasonality The Company is a calendar year-end company. Global Ceramic and Flooring NA typically have higher net sales in the second and third quarters. Flooring ROW typically has higher net sales in the second and fourth quarters. Because periods of economic downturn can affect the seasonality of each segment, sales for any one quarter are not necessarily indicative of the sales that may be achieved for any other quarter or for the full year.