MOHAWK INDUSTRIES INC (MHK)

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 approximat

[Excerpt truncated for page length; source filing is linked above.]

Item 7.Management’s Discussion and Analysis of Financial Condition and Results of Operations

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 Consolidated Financial Statements and related Notes included in this report. The discussion in this Form 10-K includes a comparison of fiscal 2025 to fiscal 2024. This section also discusses fiscal 2024 and fiscal 2023 results, as the Company revised certain fiscal 2024 and fiscal 2023 items to correct for a misstatement in its financial statements discovered during the fourth quarter of fiscal 2025. The revisions ensure comparability across all periods reflected herein. In the aggregate, the correction of these errors impacted the 2023 and 2024 statement of operations by $9.5 million ($4.1 million was recorded to cost of sales and $5.4 million to other (income) and expense, net) and $3.0 million ($1.2 million was recorded to cost of sales and $1.8 million to other (income) and expense, net), respectively, and adjusted the retained earnings balance for the year ended December 31, 2022, by $29.6 million. For additional information, see Note 18, Immaterial Correction of Prior Period Financial Statements of the Notes to the Consolidated Financial Statements included in this report.

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 2025, continued softness in U.S. housing turnover and sluggish new home construction negatively affected the Company's volumes. Weak consumer confidence also contributed to deferred spending on major discretionary projects, including home renovation activities. Housing turnover in the Company's major regions remained near historically low levels, driven by affordability challenges and broader economic uncertainty. In the U.S., existing home sales for 2025 were flat compared to the prior year, although December sales improved year‑over‑year. U.S. mortgage rates have recently declined to their lowest levels since autumn 2022; likewise, interest rates in Europe have declined to their lowest levels since autumn 2022. The Company believes these conditions, along with elevated consumer savings, lower inflation and stable employment, may support greater participation in the housing market as consumer confidence improves. However, the ongoing impact of soft demand, inflationary pressures and elevated interest rates to the Company’s business, financial condition, results of operations, and prospects cannot be determined at this time.

In response to the challenging market conditions described above, the Company undertook a series of actions throughout 2025 designed to support sales performance and improve product mix in softer demand environments. These actions included the introduction of innovative products, targeted marketing initiatives, and promotional programs intended to stimulate activity in both residential and commercial channels. The Company's premium product launches provided differentiated design and performance attributes aimed at encouraging remodeling activity. In addition, the introduction of new commercial collections contributed to increased traction in new construction and commercial remodeling projects. The Company also implemented a number of restructuring actions and operational improvements intended to reduce its cost structure and enhance long‑term competitiveness. Recent initiatives to streamline overhead and exit higher‑cost assets are expected to generate approximately $30 million in annual savings upon completion. Cumulatively, restructuring actions initiated since 2022 are expected to deliver annualized benefits of approximately $365 million. Given the lack of improvement in the Company's end markets during 2025, the Company reduced capital expenditures to $440 million, representing a decline of approximately 30% compared with its depreciation levels. 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

The Company continues to actively monitor trade policy and tariff announcements, including various executive orders issued by the current U.S. presidential administration. The Company has taken steps to mitigate the implemented tariffs through managing inventory of sourced products, adjusting prices as the tariff trade policy evolves and optimizing its supply chain. The Company continues to monitor changing tariff levels and adjust its strategies to mitigate their impact as trade policy evolves. These tariff actions, retaliatory measures, or other trade restrictions could materially and adversely impact the Company’s

28

Table of Contents

Index to Financial Statements

business, financial condition, results of operations, and prospects. For more information, please refer to Risk Factors, “Increased tariffs may increase the Company’s costs of goods sold and/or decrease consumer discretionary spending” in Part I, Item 1A of this Form 10-K.

Geopolitical Conflict

Due to its global footprint, Mohawk’s business is sensitive to geopolitical conflict. 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 this Form 10-K. In addition, escalation of conflict in the Middle East region and elsewhere could result in supply chain disruptions, higher energy and raw material prices, decreased consumer demand for the Company’s products and increased transportation barriers, though the extent of the impact on the Company’s business, financial condition, results of operations, and prospects cannot be predicted. The broader consequences of current ongoing military conflicts, which may include further economic sanctions, embargoes, regional instability, and geopolitical shifts; potential retaliatory actions, including nationalization of foreign-owned businesses; increased tensions between the United States and countries in which the Company operates; and the extent of the conflict’s effect on the Company’s business and results of operations, as well as the global economy, cannot be predicted.

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 risk that could impact the Company’s results, please refer to Risk Factors-Financial and Liquidity Risks in Part I, Item 1A of this Form 10-K.

In 2025, the Company invested approximately $440 million focused on completing capacity expansion projects and targeted initiatives that will drive cost reduction while improving operational performance. In 2026, the Company plans to invest approximately $480 million focused on completing capacity expansion projects and targeted initiatives that will drive cost reduction while improving operational performance.

Net earnings attributable to the Company were $369.9 million for 2025 compared to net earnings of $514.7 million for 2024. The change was primarily attributable to higher input costs; higher restructuring, acquisition and integration-related, and other costs; lower sales volume; the unfavorable impact of temporary plant shutdowns and the impact of the Flooring North America order management system conversion, partially offset by productivity gains.

For the year ended December 31, 2025, the Company generated $1,056.2 million of cash from operating activities. As of December 31, 2025, the Company had cash and cash equivalents of $856.1 million, of which $485.3 million was in the U.S. and $370.8 million was in other countries.

29

Table of Contents

Index to Financial Statements

Results of Operations

[Excerpt truncated for page length; the complete text is on the linked full-MD&A page.]