Mohawk Industries reports Q4 adjusted EPS $1.96, consensus $1.86

Reports Q4 revenue $2.61B, consensus $2.57B. Commenting on the results, CEO Jeff Lorberbaum stated, “Our fourth quarter results were ahead of our expectations, with benefits from cost containment, productivity and lower input costs. The industry reduced selling prices and we passed through declining costs in energy and raw materials. Under these conditions, we focused on optimizing our revenues and reducing our costs through restructuring actions and manufacturing enhancements. We aggressively managed inventory levels, which reduced our working capital compared to prior year by more than $300M, excluding acquisitions. We also have invested in sales resources, merchandising and new products with innovative features to inspire consumers to purchase flooring. We closed the year with a net debt to adjusted EBITDA ratio of 1.5 times, free cash flow of $716M and available liquidity of $1.9B, and we are retiring a higher interest rate term loan of approximately $900M in the first quarter of 2024. We are well positioned to manage current conditions and emerge stronger from this economic cycle when the rebound occurs.”