Mohawk Industries reported fourth-quarter 2024 earnings that exceeded expectations, despite ongoing challenges in the housing market and soft residential demand.

The company reported net earnings of $93 million, or $1.48 per share, for the fourth quarter ended December 31, 2024. Adjusted earnings were $123 million, or $1.95 per share. Net sales for the quarter reached $2.6 billion, representing a 1.0% increase as reported, though declining 1.0% on an adjusted basis compared to the previous year.

Commenting on the company’s fourth quarter and full year, Chairman and CEO Jeff Lorberbaum stated, “Our fourth quarter results exceeded our expectations as sales actions, restructuring initiatives and productivity improvements benefited our performance. Additionally, the negative sales impact from U.S. hurricanes was limited to approximately $10 million. While residential demand remained soft in our markets, our product introductions last year and our marketing initiatives contributed to our sales performance around the globe."

For the full year 2024, Mohawk recorded net sales of $10.8 billion, down 2.7% from 2023. Annual net earnings were $518 million, or $8.14 per share, while adjusted earnings per share reached $9.70, representing a roughly 6% increase from the previous year.

Looking ahead, Mohawk expects continued market softness in the first quarter of 2025, complicated by a recent order management system implementation issue in its Flooring North America segment. The company is also restructuring its Mexican ceramic business to improve operational performance, which will save approximately $20 million per year.

"Historically, cyclical downturns in our industry are followed by strong rebounds as flooring demand returns to historical levels," Lorberbaum said. "All of our regions need increased home construction to address growing household formations, and aging homes will require significant updating after several years of postponed remodeling. As the economy strengthens, business investment will increase in commercial channels. As the world's largest flooring manufacturer, we are uniquely positioned due to our geographic scope, leading innovation, comprehensive product portfolio and financial strengths. When the industry recovers, higher volumes will leverage our manufacturing and overhead costs to enhance our results. Additionally, our mix will improve, pricing will strengthen and margins will expand. We are well prepared to manage through the short term and maximize our results as the category recovers.”