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Margin contraction and pricing pressure continued amid lower volumes and rising input costs.
Mohawk Industries, Inc. (MHK - Free Report) reported second-quarter 2025 results, with earnings and net sales beating the Zacks Consensus Estimate. On a year-over-year basis, the top line remained flat, while the bottom line decreased.
Shares of this leading global flooring manufacturer gained 1.1% in yesterday’s after-hours trading session.
The quarterly results reflect the impact of Mohawk’s ongoing efforts in operations, cost control and market development. Performance was supported by new premium residential and commercial product collections launched over the past two years. The company benefited from restructuring actions such as shutting high-cost sites, removing inefficient assets, and improving distribution and administration through technology.
Mohawk continued to focus on reducing costs. The company worked on enhancing equipment use, saving energy, improving supply-chain processes and redesigning products. Pricing pressure from weaker market volumes remained, but the company aimed to offset this through a better product and channel mix.
With rising tariffs, Mohawk highlighted the advantage of its manufacturing base in North America. The company took steps such as adjusting prices and optimizing supply chains. The U.S. government has set a new deadline for trade negotiations and the company is closely tracking developments to adjust its strategy.
Inside MHK’s Q2 Numbers
Mohawk reported adjusted earnings per share (EPS) of $2.77, which beat the Zacks Consensus Estimate of $2.62 by 5.7%. In the year-ago quarter, the company reported an adjusted EPS of $3.
Net sales of $2.8 billion beat the consensus estimate of $2.79 billion by 0.4% and remained essentially flat year over year. On an adjusted basis, net sales were down 0.8% year over year.
Mohawk Industries, Inc. Price, Consensus and EPS Surprise
Adjusted gross margin contracted 70 basis points (bps) year over year to 26.4%. Adjusted selling, general and administrative expenses, as a percent of net sales, rose 60 bps to 18.5% from the year-ago period. Adjusted operating margin contracted 120 bps to 8% from 9.2% a year ago.
Mohawk’s Segmental Details
Global Ceramic: Sales in the segment totaled $1.12 billion, up 0.5% year over year on a reported basis. On an adjusted basis, sales were up 1.1% from the year-ago level to $1.13 billion.
Adjusted operating income decreased to $90.3 million from $94.8 million a year ago. The segment’s adjusted operating margin contracted to 8.1% from 8.5% a year ago.
Flooring North America: Net sales of the segment amounted to $946.8 million, down 1.2% year over year on a reported basis.
The segment registered an adjusted operating profit of $69.2 million, down from $82 million reported in the prior-year period. Adjusted operating margin was 7.3%, down from 8.6% a year ago.
Flooring Rest of the World: Net sales in the segment increased 1% year over year on a reported basis to $734.4 million. On an adjusted basis, sales were down 3% from the year-ago level to $705 million.
Adjusted operating income was $76.4 million, down from $91.4 million reported a year ago. The segment’s adjusted operating margin was 10.4%, down from 12.6% in the year-ago period.
Financial Highlights of MHK
As of June 28, 2025, it had cash and cash equivalents of $546.7 million compared with $497.4 million on June 29, 2024. The long-term debt, less the current portion, was $1.74 billion compared with $1.69 billion at the end of second-quarter 2024.
At the end of the second quarter, the company generated free cash flow of $126.1 million compared with $142.2 million a year ago.
Focus on Operational Discipline Amid Market Uncertainty
The company is focusing on market development, operational efficiency and cost control to navigate current industry challenges. Ongoing inflation and weak consumer confidence are affecting overall sales. The timing of a recovery remains uncertain.
To support sales growth, the company is using its brand strength, product range and service to expand with existing and new customers. While pricing pressure stays high, the company is improving its mix with premium products, commercial sales and recent launches. Input cost pressure is expected to peak in the third quarter as higher costs pass through inventory.
Productivity measures are being implemented across operations to offset rising costs. Restructuring efforts are expected to result in about $100 million in savings this year. Most U.S. sales come from North America’s production, which may help the company under changing trade policies.
MHK’s Q3 View
MHK expects adjusted EPS in the range of $2.56-$2.66, excluding restructuring and other charges, compared with the year-ago figure of $2.9. The guidance does not reflect potential new tariffs, which are yet to be finalized.
Hilton Worldwide Holdings Inc. (HLT - Free Report) reported second-quarter 2025 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate. The top and bottom lines increased on a year-over-year basis.
Hilton delivered strong bottom-line performance in the quarter, underscoring the strength and resilience of its business model. However, top-line results were modestly impacted by unfavorable holiday and calendar shifts, reduced government spending, softer international inbound travel and broader economic uncertainty.
Hasbro, Inc. (HAS - Free Report) reported second-quarter fiscal 2025 results, with earnings and revenues beating the Zacks Consensus Estimate. The top line declined year over year while the bottom line increased from the prior-year's quarter figure. The downside was mainly due to weaker contributions from the Consumer Products and Entertainment segments.
Nonetheless, Hasbro raised its full-year revenue and adjusted EBITDA guidance. The update was supported by strong performance in the Wizards segment, along with steady contributions from the games portfolio, licensing partnerships and digital initiatives. Despite ongoing macroeconomic challenges, Hasbro expects cost efficiency measures and business diversification to support its growth plans for 2025 and beyond.
Mattel, Inc. (MAT - Free Report) reported second-quarter 2025 results, with earnings beating the Zacks Consensus Estimate and revenues missing the same. The top line fell year over year, while the bottom line came in line with the prior-year quarter’s figure.
Mattel delivered a resilient second-quarter performance, underscoring its focus on operational execution amid a challenging macroeconomic backdrop. The company achieved significant gross margin expansion, international growth and continued momentum in its entertainment slate. While global trade dynamics and shifts in retailer ordering patterns weighed on its U.S. business, adjusted EPS held steady year over year.
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Mohawk's Q2 Earnings & Revenues Beat Estimates, Stock Up
Key Takeaways
Mohawk Industries, Inc. (MHK - Free Report) reported second-quarter 2025 results, with earnings and net sales beating the Zacks Consensus Estimate. On a year-over-year basis, the top line remained flat, while the bottom line decreased.
Shares of this leading global flooring manufacturer gained 1.1% in yesterday’s after-hours trading session.
The quarterly results reflect the impact of Mohawk’s ongoing efforts in operations, cost control and market development. Performance was supported by new premium residential and commercial product collections launched over the past two years. The company benefited from restructuring actions such as shutting high-cost sites, removing inefficient assets, and improving distribution and administration through technology.
Mohawk continued to focus on reducing costs. The company worked on enhancing equipment use, saving energy, improving supply-chain processes and redesigning products. Pricing pressure from weaker market volumes remained, but the company aimed to offset this through a better product and channel mix.
With rising tariffs, Mohawk highlighted the advantage of its manufacturing base in North America. The company took steps such as adjusting prices and optimizing supply chains. The U.S. government has set a new deadline for trade negotiations and the company is closely tracking developments to adjust its strategy.
Inside MHK’s Q2 Numbers
Mohawk reported adjusted earnings per share (EPS) of $2.77, which beat the Zacks Consensus Estimate of $2.62 by 5.7%. In the year-ago quarter, the company reported an adjusted EPS of $3.
Net sales of $2.8 billion beat the consensus estimate of $2.79 billion by 0.4% and remained essentially flat year over year. On an adjusted basis, net sales were down 0.8% year over year.
Mohawk Industries, Inc. Price, Consensus and EPS Surprise
Mohawk Industries, Inc. price-consensus-eps-surprise-chart | Mohawk Industries, Inc. Quote
Adjusted gross margin contracted 70 basis points (bps) year over year to 26.4%. Adjusted selling, general and administrative expenses, as a percent of net sales, rose 60 bps to 18.5% from the year-ago period. Adjusted operating margin contracted 120 bps to 8% from 9.2% a year ago.
Mohawk’s Segmental Details
Global Ceramic: Sales in the segment totaled $1.12 billion, up 0.5% year over year on a reported basis. On an adjusted basis, sales were up 1.1% from the year-ago level to $1.13 billion.
Adjusted operating income decreased to $90.3 million from $94.8 million a year ago. The segment’s adjusted operating margin contracted to 8.1% from 8.5% a year ago.
Flooring North America: Net sales of the segment amounted to $946.8 million, down 1.2% year over year on a reported basis.
The segment registered an adjusted operating profit of $69.2 million, down from $82 million reported in the prior-year period. Adjusted operating margin was 7.3%, down from 8.6% a year ago.
Flooring Rest of the World: Net sales in the segment increased 1% year over year on a reported basis to $734.4 million. On an adjusted basis, sales were down 3% from the year-ago level to $705 million.
Adjusted operating income was $76.4 million, down from $91.4 million reported a year ago. The segment’s adjusted operating margin was 10.4%, down from 12.6% in the year-ago period.
Financial Highlights of MHK
As of June 28, 2025, it had cash and cash equivalents of $546.7 million compared with $497.4 million on June 29, 2024. The long-term debt, less the current portion, was $1.74 billion compared with $1.69 billion at the end of second-quarter 2024.
At the end of the second quarter, the company generated free cash flow of $126.1 million compared with $142.2 million a year ago.
Focus on Operational Discipline Amid Market Uncertainty
The company is focusing on market development, operational efficiency and cost control to navigate current industry challenges. Ongoing inflation and weak consumer confidence are affecting overall sales. The timing of a recovery remains uncertain.
To support sales growth, the company is using its brand strength, product range and service to expand with existing and new customers. While pricing pressure stays high, the company is improving its mix with premium products, commercial sales and recent launches. Input cost pressure is expected to peak in the third quarter as higher costs pass through inventory.
Productivity measures are being implemented across operations to offset rising costs. Restructuring efforts are expected to result in about $100 million in savings this year. Most U.S. sales come from North America’s production, which may help the company under changing trade policies.
MHK’s Q3 View
MHK expects adjusted EPS in the range of $2.56-$2.66, excluding restructuring and other charges, compared with the year-ago figure of $2.9. The guidance does not reflect potential new tariffs, which are yet to be finalized.
MHK’s Zacks Rank & Recent Consumer Discretionary Releases
Mohawk currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Hilton Worldwide Holdings Inc. (HLT - Free Report) reported second-quarter 2025 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate. The top and bottom lines increased on a year-over-year basis.
Hilton delivered strong bottom-line performance in the quarter, underscoring the strength and resilience of its business model. However, top-line results were modestly impacted by unfavorable holiday and calendar shifts, reduced government spending, softer international inbound travel and broader economic uncertainty.
Hasbro, Inc. (HAS - Free Report) reported second-quarter fiscal 2025 results, with earnings and revenues beating the Zacks Consensus Estimate. The top line declined year over year while the bottom line increased from the prior-year's quarter figure. The downside was mainly due to weaker contributions from the Consumer Products and Entertainment segments.
Nonetheless, Hasbro raised its full-year revenue and adjusted EBITDA guidance. The update was supported by strong performance in the Wizards segment, along with steady contributions from the games portfolio, licensing partnerships and digital initiatives. Despite ongoing macroeconomic challenges, Hasbro expects cost efficiency measures and business diversification to support its growth plans for 2025 and beyond.
Mattel, Inc. (MAT - Free Report) reported second-quarter 2025 results, with earnings beating the Zacks Consensus Estimate and revenues missing the same. The top line fell year over year, while the bottom line came in line with the prior-year quarter’s figure.
Mattel delivered a resilient second-quarter performance, underscoring its focus on operational execution amid a challenging macroeconomic backdrop. The company achieved significant gross margin expansion, international growth and continued momentum in its entertainment slate. While global trade dynamics and shifts in retailer ordering patterns weighed on its U.S. business, adjusted EPS held steady year over year.