A maker of carpets, ceramic and porcelain tile, laminate, wood, and luxury vinyl, Mohawk is one of the world's largest flooring companies, selling through home centers, retailers, and builders across the globe. It traces its roots to 1878, when four Shuttleworth brothers opened a carpet mill beside the Mohawk River in Amsterdam, New York—the source of its name—before growing through acquisitions like Dal-Tile and Unilin. A fun twist: its EverStrand carpet is spun from recycled plastic bottles, giving billions of single-use bottles a second life underfoot.
Q2 2026 operating income rose 34.4% to $253.7M on productivity and $49.3M tariff refunds
Mohawk's Q2 rose 34.4% from a year earlier, the largest quarterly gain in two years. rose 6.8% to $2,991.4M and rose 37.6% to $3.22 as productivity gains and $49.3M in lifted 1.1 points to 26.6%. The company returned to broad-based profit growth, with down 33.7% and $355M still available under its .
Key takeaways
rose 34.4% to $253.7M, led by Flooring NA's $45.3M gain from productivity and lower input costs, with Global Ceramic and Flooring ROW also improving.
The company recognized $49.3M in in cost of sales and received $65.5M of $70.7M requested from IEEPA tariffs ruled unlawful, with an appeal pending.
rose 6.8% to $2,991.4M, driven by higher volume (~$78M), favorable price/mix (~$67M), and FX (~$61M), partly offset by fewer shipping days.
Section summaries
Management's Discussion and Analysis
Q2 2026 net sales rose 6.8% to $2.99B, driven by volume, price/mix, and FX; operating income up 34.4% on productivity and tariff refunds.
⌄
Consolidated increased 6.8% to $2,991.4 million, with higher volume (~$78M), favorable price/mix (~$67M), and FX (~$61M) partly offset by fewer shipping days.
rose 1.1 points to 26.6% as grew 11.3% to $795.1M on price/mix (~$54M) and productivity (~$31M); input costs net of rose ~$19M.
Six-month more than doubled to $426.6M and the company announced a new $60M , with ~$360M in annualized benefits expected from actions since 2022.
fell 33.7% to $1,155.1M and was 9% of the portfolio, down from 35% a year earlier, with a 1-point rate rise adding $0.8M to quarterly interest.
What changed
Q2 2025 flagged whether price/mix would hold favorable: Q2 2026 showed favorable price/mix of ~$67M, continuing the first favorable year seen in FY2025.
FY2025 flagged Flooring NA trajectory after income more than halved to $113.6M: Q2 2026 Flooring NA rose $45.3M on productivity and lower input costs.
FY2025 flagged pace of the $500M : Q1 2026 repurchased $64.3M with $355.0M remaining; no Q2 repurchase amount stated.
FY2025 flagged ~$30M new restructuring savings and further : Q2 2026 announced a new $60M ; no or tradename impairment disclosed this quarter.
Q1 2026 flagged whether Flooring NA price/mix would revert: Q2 2026 consolidated price/mix was favorable ~$67M, but -level Flooring NA price/mix not separately stated.
What to watch
Whether the new $60M delivers savings and at what cost, against ~$460M full-year .
Resolution of the IEEPA tariff appeal and receipt of the remaining $5.2M of the $70.7M requested.
Pace of the remaining $355.0M against H2 2026 .
Q3 2026 price/mix after ~$67M favorable in Q2, to confirm the favorable trend holds.
grew 11.3% to $795.1 million, helped by price/mix (~$54M), productivity (~$31M), and volume, while input costs net of tariff refunds rose ~$19M.
jumped 34.4% to $253.7 million, led by 's $45.3M gain on productivity and lower input costs; and also improved.
The company recognized $49.3M in tariff refunds in cost of sales and received $65.5M of $70.7M requested from IEEPA tariffs ruled unlawful, with an appeal pending.
Six-month more than doubled to $426.6M; rose to $187.3M, and the company plans ~$460M in full-year capex for capacity and cost projects.
Restructuring actions since 2022 are expected to deliver ~$360M in annualized benefits, with a new $60M cost-reduction program announced in Q2 2026.
Quantitative and Qualitative Disclosures About Market Risk
As of July 4, 2026, approximately 91% of the Company’s debt portfolio was comprised of fixed-rate debt and 9% was floating-rate debt. A 1.0 percentage point increase in the interest rate of the floating-rate debt would have resulted in an increase in interest expense of $0.8 mil…
⌄
As of July 4, 2026, approximately 91% of the Company’s debt portfolio was comprised of fixed-rate debt and 9% was floating-rate debt. A 1.0 percentage point increase in the interest rate of the floating-rate debt would have resulted in an increase in interest expense of $0.8 million for the three months ended July 4, 2026.
There have been no significant changes to the Company’s exposure to market risk as disclosed in the Company’s 2025 Annual Report filed on Form 10-K.
37
Table of Contents
The Company is involved in various lawsuits, claims, investigations and other legal matters from time to time in the regular course of its business. Except as noted elsewhere in this report, there are no material legal proceedings pending or known by the Company to be contemplat…
⌄
The Company is involved in various lawsuits, claims, investigations and other legal matters from time to time in the regular course of its business. Except as noted elsewhere in this report, there are no material legal proceedings pending or known by the Company to be contemplated to which the Company is a party or to which any of its property is subject.
See Note 15, Commitments and Contingencies, of the notes to the Condensed Consolidated Financial Statements included in Part I, Item 1 of this Form 10-Q for a discussion of the Company’s legal proceedings.
There have been no material changes in the Company’s risk factors from those disclosed in Part I, Item 1A to the Company’s Annual Report on Form 10-K for the year ended December 31, 2025. The risk factors disclosed in these reports, in addition to the other information set forth…
⌄
There have been no material changes in the Company’s risk factors from those disclosed in Part I, Item 1A to the Company’s Annual Report on Form 10-K for the year ended December 31, 2025. The risk factors disclosed in these reports, in addition to the other information set forth in this report, could materially affect the Company's business, financial condition or results.