Sasha Jovanovic
4 min read
Mohawk Industries stock jumped 7.3% to about US$139 in Friday trading after posting its Q3 2026 report, a strong move for a cyclical flooring manufacturer that usually trades on housing sentiment rather than headline excitement. The headline this quarter is profit resilience. Net income reached US$163.1m with basic earnings per share of US$2.73, and adjusted EBITDA margin landed in the low teens, even as volumes softened and input costs stayed elevated.
Short term traders saw a relief rally. Longer term investors saw something different: a business that is absorbing inflation, protecting pricing power and still sitting below one discounted cash flow fair value estimate.
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Q3 2026 Earnings Summary
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Revenue (Q3 2026 vs. Q3 2025): US$2,786m vs. US$2,757.9m (up 1.0%)
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Net Income (Excl. Extra Items, Q3 2026 vs. Q3 2025): US$163.1m vs. US$108.8m (up 49.9%)
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Basic EPS (Q3 2026 vs. Q3 2025): US$2.73 vs. US$1.75 (up 55.4%)
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Adjusted EBITDA Margin (Q3 2026): 12.7% (management highlighted margin resilience in spite of softer volumes and higher input costs)
A new CEO just tied Mohawk’s strategy to strict cash discipline. Ask Charlie what Mohawk Industries’ new cash rules really change.
Mohawk’s Bull Story Meets Hard Evidence
Supporters argue Mohawk Industries can upgrade its mix and protect earnings even while flooring demand bumps along.
“Expansion of higher value ceramic offerings, including premium collections, larger porcelain slabs and advanced printing capabilities, is shifting mix toward products with richer design and pricing power, which can support revenue and operating margins.”
Q3 results give that claim some footing. Volumes across the group declined about 4% while price and mix added roughly 4%, and adjusted EBITDA margin held at 12.7%. Ceramic volumes were slightly softer yet still produced 6.5% operating margin, helped by pricing, mix and productivity largely offsetting higher energy and input costs.
One Narrative has put a figure on that disagreement. → See the Narrative with its higher Fair Value, assumptions and all.
Mohawk Bears Focus On Freight And Pricing Fragility
Bears argue Mohawk Industries is one freight spike or failed price hike away from giving back recent margin gains.
