Mohawk Industries reported Q1 2025 results with a revenue decline and a continued focus on gross margin preservation and operating efficiency. Revenue came in at $2.526 billion, down 5.73% year over year (YoY) and 4.22% quarter over quarter (QoQ), while gross profit was $583.3 million for a gross margin of 23.09%. Operating income stood at $96.0 million (3.80% margin), and net income reached $72.6 million (2.87% net margin) with earnings per share (EPS) of $1.16. EBITDA was $246.9 million, yielding an EBITDA margin of 9.78%. The quarter reflected a combination of volume weakness and mix effects, alongside ongoing cost discipline that helped partially offset revenue headwinds.
Cash flow remained modest relative to revenue, with cash provided by operating activities of $3.7 million and an implied free cash flow of $3.7 million in the period. The company invested approximately $89.1 million in property, plant and equipment, signaling ongoing capital allocation toward capacity and efficiency. Financing actions included debt repayments of $127.5 million and common stock repurchases of $25.5 million, contributing to a net cash inflow from financing activities of $90.8 million and a modest currency impact of $30.5 million from foreign exchange. The cash balance rose to $702.5 million, with total debt of $1.0901 billion and net debt of $387.6 million, supporting a solid liquidity position (current ratio 2.01, quick ratio 1.13).
While there is no formal quarterly guidance provided in the QQ1 2025 release, the operating framework remains centered on sustaining gross margins, managing working capital, and deploying capital toward growth opportunities in North America and strategic markets, while navigating a volatile housing cycle and input costs. Investors should monitor housing demand, end-market mix, and any further adjustments to manufacturing and sourcing strategies as drivers of the upcoming quarters.