Research Update: Mohawk Industries Inc. Outlook Revised To Stable From Negative On Strong Operating Performance, Ratings Affirmed

Georgia-based Mohawk Industries Inc.'s earnings and cash flow should maintain its strength through 2021 and into 2022 as demand remains steady and pricing initiatives mitigate cost inflation. Leverage should hold below our 2x adjusted-debt-to-EBITDA threshold in 2021 and 2022, with stronger profits and liquidity. We revised our rating outlook on Mohawk to stable from negative and affirmed all our ratings, including our 'BBB+' issuer credit rating on the company. The stable outlook reflects our expectation that the company's EBITDA generation will promote continued strong cash flows and maintain leverage below 2x over the next year, barring any unforeseen circumstances. We expect Mohawk to resume modest growth through 2021 and into 2022, driven by the repair and remodeling market, U.S. residential

...- Georgia-based Mohawk Industries Inc.'s earnings and cash flow should maintain its strength through 2021 and into 2022 as demand remains steady and pricing initiatives mitigate cost inflation. - Leverage should hold below our 2x adjusted-debt-to-EBITDA threshold in 2021 and 2022, with stronger profits and liquidity. - We revised our rating outlook on Mohawk to stable from negative and affirmed all our ratings, including our '###+' issuer credit rating on the company. - The stable outlook reflects our expectation that the company's EBITDA generation will promote continued strong cash flows and maintain leverage below 2x over the next year, barring any unforeseen circumstances. We expect Mohawk to resume modest growth through 2021 and into 2022, driven by the repair and remodeling market, U.S. residential construction, and its international markets over the next two years....

Research Update