Mohawk Industries reported a modest year-over-year revenue decline in QQ4 2024, with a sequential decrease driven by ongoing macro weakness and product mix effects. Revenue stood at $2.637 billion, down 3.01% QoQ and 1.57% YoY, while gross profit reached $621.8 million for a gross margin of 23.58%. EBITDA was $277.8 million (EBITDA margin 10.53%), and operating income was $121.8 million (operating margin 4.62%). Net income totaled $93.2 million, delivering an EPS of $1.48, down 10.3% YoY and 42.4% QoQ. The quarter highlighted continued margin discipline amidst a backdrop of disciplined cost management, with SG&A of $491.8 million and depreciation & amortization of $156.4 million supporting a solid EBITDA profile despite top-line pressure.
Cash flow remained a standout feature. Cash from operations was $397.0 million, capital expenditures were $160.8 million, resulting in free cash flow of $236.2 million. The company ended the period with $666.6 million in cash and cash equivalents and net debt of approximately $1.9617 billion. Balance sheet metrics remained healthy: current ratio 2.06, quick ratio 1.12, debt to capital 0.258, and interest coverage of 14.84x. These dynamics underpin a robust liquidity position and provide flexibility for deleveraging or strategic investments.
Management commentary is not embedded in the provided transcripts, so explicit forward-looking guidance from the QQ4 2024 earnings call is not available in this dataset. Based on the reported results, the investment thesis centers on improving profitability through pricing discipline and cost controls, continued working capital efficiency, and the potential for further deleveraging supported by strong operating cash flow. Investors should monitor macro demand in residential remodeling, input cost volatility, and the pace of margin recovery through mix optimization and pricing actions.