Tear Sheet: Mohawk Industries Inc. Will Likely Maintain Stable Credit Metrics Amid Another Year Of Soft Flooring Demand

This report does not constitute a rating action. We forecast the company will return to revenue growth in 2026. Mohawk Industries Inc.'s pricing actions and a favorable product mix will likely drive growth despite continued pressure on volumes due to macroeconomic uncertainty. In 2026 first quarter, Mohawk increased its revenue 8% year over year, but adjusting for shipping days and foreign exchange it declined 2.6%. We anticipate its commercial business will outperform its residential business due to soft new home construction and deferred consumer spending. We project overall revenue growth of about 3% in 2026. Mohawk will likely maintain adjusted leverage between 1.0x-1.5x over the next 12 months. As of April 4, 2026, S&P Global Ratings-adjusted debt to EBITDA was

...(Editor's Note: S&P Global Ratings believes there is a high degree of unpredictability around the duration and scale of the Middle East war and its potential effect on commodity prices, supply chains, economies, and credit conditions. As a result, our baseline forecasts carry a significant amount of uncertainty. As situations evolve, we will gauge the macro and credit materiality of potential shifts and reassess our guidance accordingly.)...

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