With a combined revenue of $21 trillion and $2.1 trillion in profits, the 2026 Fortune 500 is the definitive list of America's largest companies.

Fortune 500

Almost $20 trillion in revenue—and a record-breaking $1.87 trillion in profits. Introducing the 2025 Fortune 500, the definitive list of the biggest companies in America.

The 300 companies on this year’s list brought in over $12.6 trillion in revenue for the latest 12 months, with the median revenue figure at $22 billion.

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Industries included in the sector are home equipment and furnishings and household and personal products.

Fortune Sector Leaders: Household Products

The Fortune 500, in its 70th year in 2024, ranks the biggest U.S. companies by revenue.

The Fortune 500, in its 69th year in 2023, ranks the biggest U.S. companies by revenue.

This year’s Fortune 500 marks the 68th running of the list.

This year’s Fortune 500 marks the 67th running of the list.

Founded in 1878, this flooring company now offers products worldwide for residential and commercial use.

This year's Fortune 500 marks the 66th running of the list.

F500-2020_321_Mohawk-Industries

The Georgia-based manufacturer of residential and commercial flooring makes carpet, ceramic tile, wood, stone and laminate flooring and rugs.

This year's Fortune 500 marks the 65th running of the list.

This year's Fortune 500 marks the 64th running of the list.

Here are the World's Most Admired Companies for 2017 as ranked in their industries. See who made the list.

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This year's Fortune 500 marks the 63rd running of the list.

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Wal-Mart stayed on top as its sales crept closer to half-a-trillion dollars. Apple moved into the top five. And UnitedHealth Group continued its steady climb. 

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Mohawk Industries is the largest flooring manufacturer in the world, employing over 40,000 people. The company supports residential construction, residential replacement, and commercial buildings. Products include ceramic tiling, luxury vinyl tile, wood flooring, and insulation. The company’s integrated approach has operations across design, material sourcing, manufacturing, and distribution. Mohawk Industries is one of the biggest suppliers of flooring, carpets, rugs, and tiling in North America. Manufacturing across 19 countries and selling in 180, the company has had 32 acquisitions since 2013.

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Mohawk Industries (MHK): Company Profile, Stock Price, News, Rankings

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Mohawk Industries

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Good morning, everyone, and welcome to the Mohawk Industries First Quarter twenty twenty five Earnings Conference Call. All participants will be in a listen only mode. After today's presentation, there will be an opportunity to ask questions. Please note this event is being recorded. At this time, I'd like to turn the conference call over to Mr.

James Brunk, Chief Financial Officer. Sir, please go ahead.

Thanks, Jamie. Good morning, everyone, and welcome to Mohawk Industries quarterly investor conference call. Joining me on the call are Jeff Lohrerbaum, Chairman and Chief Executive Officer and Paul DeCock, President and Chief Operating Officer. Today, we'll update you on the company's first quarter performance and provide guidance for the second quarter of twenty twenty five. I'd like to remind everyone that our press release and statements that we make during this call may include forward looking statements as defined in the Private Securities Litigation Reform Act of 1995, which are subject to various risks and uncertainties, including, but not limited to, those set forth in our press release and periodic filings with the Securities and Exchange Commission.

This call may include the discussion of non GAAP numbers. For a reconciliation of any non GAAP to GAAP amounts, please refer to our Form eight ks and press release in the Investors section of our website. I'll now turn over the call to Jeff for his opening remarks.

Thank you, Jim. In the first quarter, our reported sales were $2,500,000,000 a decrease of 5.7% as reported or about flat on a constant basis, absorbing two fewer shipping days and year over year foreign exchange headwinds.

Even with soft market conditions, our premium collections and differentiated products we launched in 2024 generated above market results. We recorded earnings per share of $1.52 with our performance primarily benefiting from productivity gains, restructuring actions and a lower tax rate, which offset pricing pressure and higher input costs. The impact of missed sales and extraordinary costs from our new Flooring North America order system was within the expected range and services returned to historical rates. We are enhancing the system to improve our efficiencies and provide greater functionality and capabilities. During the quarter, we purchased 225,000 shares of our stock for approximately $26,000,000 Last month, global tariffs were announced, which elevated uncertainty for businesses and consumers.

In response to the retaliatory tariffs, The U. S. Also implemented tariffs of 145% on China, which supplies a significant part of LVT sold in The U. S. Mohawk is a substantial domestic operation to produce ceramic tile, carpet, laminate, sheet vinyl, LVT and quartz countertops, which is more advantageous as tariffs increase.

To offer our customers a wider variety of options, we supplement our ceramic tile and LVT manufactured in The U. S. With imported products. Most of the ceramic tile and some of the LVT we import is produced in our own facilities in Mexico and is not subject to tariffs under the USMCA agreement. We increased our inventory levels in preparation of tariffs being implemented.

At the current 10% rate, we expect estimate Mohawk will incur annualized costs of approximately $50,000,000 which we expect to address through price increases and supply chain adjustments as needed. In addition to the direct impact, the tariffs are likely influence consumer and new construction and business spending in both The U. S. And abroad, though the extent is unpredictable at this time. Another impact of the tariffs is a weakening of the U.

S. Dollar, which could benefit our domestic manufacturing and translated results this year. Across our markets, conditions in the first quarter weakened sequentially with the residential remodeling remaining the lowest sector. Even before the tariff announcements, consumer confidence had been falling as individuals have grown increasingly anxious about their future prospects. In The U.

S, concerns over inflation have prevented the Fed from reducing rates, though most are now predicting the Fed will make multiple rate cuts during 2025. So far this year, more U. S. Homes are being offered for sale as available housing inventory continues to rise. After multiple years of deferring purchases, some consumers are reentering the real estate market to meet their current family needs.

Others are staying in their homes longer than planned and will initiate remodeling projects to maintain their properties and accommodate family changes. As the spring selling season begins, the outlook for U. S. Homebuilders remains cautious with March results showing significant variation by region. Due to economic uncertainty and the war in Ukraine, consumer confidence in Europe has also declined leading to postponed home sales and remodeling activities.

As inflation nears their target, the European Central Bank cut central rates to 2.25% in April to stimulate the economy as well as the housing market. As defense and infrastructure spending increases, European economies, particularly Germany could see improvement. Now Jim will review our financial details for the quarter.

Thank you, Jeff. Sales for the quarter were just over $2,500,000,000 that's 5.7% decrease as reported or 0.7% on a constant basis, including absorbing two less shipping days, unfavorable year over year foreign exchange and the previously disclosed impact of the Flooring North America system conversion.

These headwinds were partially offset by favorable price mix in the quarter primarily in our Global Ceramic and Flooring North America segments. Gross margin for the quarter was 23.1% as reported and excluding charges was 24.1 in line with the prior year. SG and A expense as a percentage of sales was 19.2% on an adjusted basis, again relatively in line with the prior year. Operating income as reported was $96,000,000 or 3.8%. During the quarter, we had charges of $26,000,000 primarily related to our previously announced restructuring actions across the enterprise, which will generate approximately $100,000,000 of savings this year.

That gave us an operating margin from an adjusted basis of 4.8%, a 130 basis point decrease versus the prior year due to higher input costs of $41,000,000 the impact of the Flooring North America order management system conversion of approximately $30,000,000 which was in line with our expectations, volume of $11,000,000 partially offset by improvement in productivity of $51,000,000 Interest expense for the quarter was $6,000,000 a decrease versus the prior year due to lower overall debt and the benefit of interest income reflecting the strength of our balance sheet. Based on our current outlook, we anticipate our interest expense to be in the range of $25,000,000 to $30,000,000 for the full year. Our GAAP our non GAAP tax rate was approximately 18% versus 21.8% in the prior year. We're forecasting a Q2 tax rate of approximately 21 and for the full year to be approximately 20%. It gave us an earnings per share for the quarter on a reported basis of $1.15 and adjusted earnings per share of $1.52 Turning to the segments.

Global ceramic had sales of just over $990,000,000 that's a 4.9% decrease as reported and an increase of 1.2% on a constant basis, driven by an improvement in our product and channel mix across the segment, partially offset by lower sales volume. Our operating income on adjusted basis was $48,000,000 or 4.8%, that's only 20 basis points below the prior year as higher input costs of $18,000,000 lower sales volume of $10,000,000 offset gains in productivity versus the prior year of $21,000,000 driven by an improvement in our year over year results in The U. S, Brazil and Europe. In Flooring North America, our sales were $862,000,000 that is a decrease of 4.2% as reported or 1.1% on a constant basis as the segment had improvement in price and mix, especially in the resilient laminate and commercial soft business units offset by the negative impact of the order management system conversion, which was approximately $50,000,000 most of that being on volume. It gave us an operating income on an adjusted basis of $26,000,000 or 3% excluding charges, a decline of two thirty basis points versus the prior year as the year over year improvement in productivity of $27,000,000 was offset by higher input costs of 19,000,000 and the impact of the system conversion of approximately $30,000,000 In Flooring Rest of the World, we had sales of $670,000,000 that's an 8.8% decrease as reported and 2.9% on an adjusted basis, driven by lower sales volume and unfavorable price mix, primarily in our laminate insulation and sheet vinyl business units.

Operating income on an adjusted basis was 9.1%, that's a decline of 100 basis points versus the prior year due to unfavorable price mix of approximately $8,000,000 and lower sales volume only partially offset by stronger productivity as the improvement in our LVT business was offset by the weakness in insulation and laminate. Corporate eliminations for the quarter were $12,000,000 in line with the prior year, and we anticipate the full year expenses to be approximately $50,000,000 Turning to the balance sheet. Cash and cash equivalents were just over $700,000,000 In Q1, our free cash flow was a use of approximately $85,000,000 primarily due to timing with the delayed invoicing in Flooring North America and an increase in imported goods ahead of U. S. Tariff rollout.

We still forecast a strong overall year in free cash flow. Inventories were just over $2,600,000,000 Our inventory grew by approximately $80,000,000 versus the prior year, primarily due to the increase of imported goods, again, ahead of the recently announced U. S. Tariffs. Property, plant and equipment were just over $4,600,000,000 Our Q1 CapEx was $89,000,000 with D and A at approximately $150,000,000 The company plans to invest approximately $530,000,000 in 2025 with D and A of approximately 600,000,000 focusing on cost reduction and product innovation projects.

And lastly, overall, the balance sheet and cash flow outlook remained very strong with current net debt of $1,700,000,000 and a leverage of 1.2 times. And with that, I will turn it over to Paul to review our Q1 operational performance.

Thank you, Jim. In our Global Ceramic segment, our strategy is to grow our market share in a difficult environment. We believe we outperformed the markets in most of our regions, while optimizing our mix and reducing costs. With low demand, we are leveraging our extensive offering, superior service and reliability to improve our position with existing customers, while pursuing new opportunities. Pricing pressure remains a challenge due to low capacity utilization across the industry in all of our geographies and we are taking selective pricing actions where feasible.

Our restructuring projects are on schedule and we are evaluating additional initiatives to lower our costs. In The U. S, we delivered solid results in both residential and commercial as we focused on ceramic tile contractors, kitchen and bath dealers and commercial projects. Given the rising input costs, we implemented targeted pricing increases on our higher value products. Most of our U.

S. Floor and wall tile portfolio is manufactured in The U. S. And Mexico, which should advantage our business given tariffs on imported products. Our domestically produced quartz countertops should also benefit since more than half of that market is using imported alternatives.

In Europe, our results benefited from our premium collections, innovative product introductions and growing participation in the commercial channel, which is outperforming residential. Sales of our porcelain slabs are growing significantly due to our advanced visuals, capacity expansion and improved costs. Natural gas prices in Europe have recently declined and will help offset other inflation. In Brazil, our results benefited from strength in exports throughout South America, pricing actions and enhanced mix. The Mexican market remains challenging and we are expanding our porcelain offering to grow our distribution and improve our mix.

Our restructuring projects in Mexico are on track and will lower our costs and increase our competitive position. In our Flooring Rest of the World segment, we are responding to challenging market conditions through strategies to expand sales in parts of Europe with stronger economies, introducing new products to satisfy regional preferences and focusing on greater export opportunities around the world. To offset higher input costs, we are taking selective pricing actions where possible, while also pursuing productivity gains and cost reductions. We are controlling inventory and managing operations to align with lower demand in the region. In our flooring business, our transition from flexible to rigid LVT has helped increase volumes and we have improved our manufacturing performance.

In Europe, we are experiencing increased pricing and mix pressures in our flooring categories as retailers shift their product assortments to lower price points to align with consumers trading down. To increase sales of our Quick Step premium flooring, we are expanding distribution in Southern And Eastern Europe. In the quarter, we started a new laminate press that can deliver the next generation of product features and is more efficient than the line we retired. Our panels mix benefited from the growth of our premium collections and higher value decorative panels despite ongoing pressure on our commodity panels business. Our installation performance improved in The UK and sales of flat roof products for commercial projects increased.

We're expanding insulation sales into Eastern Europe to support a new facility in Poland that will be operational in 2027 when we expect more favorable market conditions. In both the panels and insulation business, we have announced selective price increases given inflation. Our Flooring North America segment performed in line with expectations as our shipments recovered from the disruption caused by the order system conversion. Residential remodeling remains under pressure due to low housing turnover, elevated interest rates and weakening consumer confidence. In 2025, we launched many new products to better position us for a recovery of the category.

At the recent national trade show, our new Karsten Black Label Luxury Carpet Collection was chosen by dealers as the best product for style and design. During the quarter, we also benefited from strong sales performance in LVT as we have expanded our portfolio across all price points. Our East And West Coast LVT production strategy is improving our service and optimizing our logistics costs. The acceptance of our premium waterproof laminate as an alternative to LVT is progressing in both residential remodeling and new construction. It provides superior aesthetics and scratch resistant and the more dependable supply.

We're further increasing our domestic laminates capacity to support the increasing demand. We have expanded our relationships with homebuilders across the country in both carpet and hard surfaces, which are yielding higher sales. In commercial, activity is good in all categories as we benefited from accelerated product launches. Our restructuring actions in the segment are on track and delivering the expected savings. We are working to offset higher input costs through additional process improvements and cost reduction actions.

I will now return the call to Jeff for his closing remarks.

Thank you, Paul. With the implementation of the tariffs last month, there is more uncertainty with the global economic outlook and softer conditions are anticipated given higher inflation, lower consumer confidence and reduced business investments. At this point, the tariff amounts and the effect on consumer spending and housing are still evolving. We will take the appropriate actions to manage the impact of tariffs as needed. We're focusing on optimizing our sales and further lowering our operational costs with our restructuring initiatives this year, which should result in a benefit of approximately $100,000,000 Our Flooring North America segment service has returned to historical levels, while we continue to enhance the functionality and efficiency of the system's new order system.

We expect increased cost from inflation will be partially mitigated through productivity gains, cost containment and strategic pricing actions. We anticipate pricing pressure will continue in all regions given low demand and competitive markets. Global ceramics and flooring North America are improving their mix with increased participation in the commercial channel, sales of premium collections and performance of recent product introductions. In the Rest of World segment, European consumer demand for large discretionary purchases such as flooring is at a low level with product de mixing, though declining interest rates could stimulate demand. Given these factors, we expect our second quarter adjusted EPS will be between 2.52 and $2.62 excluding any restructuring or other onetime charges.

We remain optimistic about the long term prospects of the flooring category given where we are in the housing cycle. To improve our results, we continue to reduce our cost structures, simplify our operations and product complexity and invest in new product features. When the Great Recession bottomed out, our industry rebounded dramatically growing more than 10% in subsequent years. Though we cannot predict the inflection point, we expect our results to significantly improve when the industry volumes return to historical levels. As with past economic cycles, we will emerge from this period operationally stronger and ready to provide our customers with superior products and service.

We'll now be glad to take your questions.

Ladies and gentlemen, at this time, we'll begin that question and answer session. Our first question today comes from John Laval from UBS. Please go ahead with your question.

Good morning, guys. Thank you for taking my questions. Maybe starting with the tariffs, you guys talked about an annualized cost impact of $50,000,000 I mean, should we sort of think about the timing of that coming through in 2025? I mean, is there anything embedded in 2Q or just more kind of a second half? And then you sort of mentioned your intentions to offset the impact with pricing actions and supply chain adjustments.

Mean, additional color there between the split of those buckets, particularly considering that the pricing environment right now is fairly challenging?

Well, let me start, John, on your first question on timing. Obviously, as you know, we're on a FIFO accounting system, which means that as we start to purchase material that has tariff on it, it would take somewhere between four and five months to kind of turn through the inventory. So this would be certainly more of a late third quarter, fourth quarter impact, giving us sufficient time to get pricing and other actions aligned. We've started announcing increases. We're going to continue assessing the timing of when we're going to announce the rest of them.

We think that we've stopped importing product from China at this point already, and we're moving product between different suppliers and regions as we think is appropriate for what's going on. We'll continue adjusting as we need to.

Understood. And then the second question would be, if I remember correctly, about 40% of LVT came in from China last year. To the extent that the tariffs actually raised some of those import prices, I mean, how do you guys think about using your domestic capacity to either take some share or raise prices along with the rest of the industry? How do you sort of think about the balance there?

Well, our East And West Coast production capacity is obviously improving our service and logistics cost and position in The U. S. Market. We have a very good manufacturing footprint, which should advantage us with the increase in tariffs. And so going forward, we'll use a balance of sourced and manufactured goods to optimize our results and we'll continue on focusing filling our existing capacity.

Our next question comes from Matthew Bouley from Barclays Investment Bank. Please go ahead with your question.

Hey, morning, everyone. Thanks for taking the questions. I guess sticking on that same topic of pricing power. Yes, just wanted to press a little bit on kind of balancing that the environment that promotional right when you have slower demand in the industry. And you mentioned at the top sort of potential for more pricing pressure across geographies and then at the same time you're announcing price increases going forward.

So how do you think about that balance there? Is there a mix impact that can happen in that scenario? Or maybe are there different categories, that may see better pricing power relative to others? Just any more color on that. Thank you.

We think that the market is going to pass through the tariffs in our category with pricing actions. It's just starting to happen and it's still evolving as we're going through at this point. We have announced price increases and we are assessing the timing of the rest of them to pass it through. We think that the tariffs will increase our competitive position given all the local products that we make. There could be some movements between product categories within it as LVT in general goes up more than the other product categories.

And it could benefit our alternatives like laminate, which is an easy alternative for it. Ceramic as well as even carpet may benefit as the costs go up and people try to manage it.

for that, Jeff. And then secondly, back on the $50,000,000 of higher cost, I just wanted to get a little more detail. I guess that implies maybe you import sort of $500,000,000 from other countries besides China. So just any color on what specifically you do import, which countries that may be, because obviously we just want to understand what can happen given what may change with each individual country's tariffs? Thank you.

Yes. So you're correct. The EUR 500,000,000 is obviously a whole different scala of different products, majoritarily LVT, but we import many other products. And then we are optimizing our supply chain continuously to minimize the duties and maximize our buying power across the world, across the EUR 500,000,000.

Our next question comes from Rafe Jutsch from Bank of America. Please go ahead with your question.

Hey, good morning. Thanks for taking my question. I think last quarter, you guys spoke about sort of hoping to be able to grow EPS year over year, obviously excluding the impact of the ERP issue in the first quarter. With the $50,000,000 tariff hit, how do you think about that playing out? And then what are the puts and takes there?

As you know, it's going to be dependent on the market conditions which are really unpredictable at this point. We think that the tariffs will be covered by price increases as we've said, and we think we'll get enough to cover the present tariffs. We'll have to see what happens after that. We're taking actions that we've gone through to mitigate the inflation by cutting our costs and restructuring, taking other costs out. Our flooring results this year will really depend on the activity level of the global economies, the interest rates, consumer spending and housing around the world.

And Rafe, it's key, as Jeff said, is that our plan is to offset that, $50,000,000 through pricing and other supply chain, initiatives. And if you exclude the system conversion, given the current conditions, if the economy does stabilize, tariffs remain at the present level and you should get some maybe potential interest rate falls, we could still exceed last year's results. Obviously, the alternative is the economies weaken and investments in housing discretionary spending fall, our results would then certainly be under pressure.

That's helpful. And then just on the price cost outlook from here, think it was a $40,000,000 headwind in the first quarter. You've spoken about some price increases here and it looks like some of the input costs have declined more recently. Just how do we think about the price cost as we go through the year?

Well, material and energy costs increased towards the end of last year. And as I said about on the tariffs, that will begin to flow through really our results a little bit this quarter, but even into Q2 and Q3. We also have to absorb the increased cost of labor and benefits across the business. Now the cost of natural gas, you're correct, in The U. S.

And Europe recently has decreased and that should benefit us as it flows through the inventory, but it will be later in the year. We are increasing prices selectively actions to really further reduce our costs and we'll adjust as required though competitive markets do are making it more difficult and more challenging for increases.

Our next question comes from Susan Maklari from Goldman Sachs. Please go ahead with your question.

Good morning. My first question is maybe just building on the outlook for 2025. Can you talk a bit more on how you're thinking of the sequential lift from first quarter to second quarter for both the top line and the margins? And then as we do think to the back half of the year, any thoughts on the margin expectations there, especially as you think about Flooring North America and some of the various factors around some of the new products gaining momentum, the productivity initiatives relative to some of those headwinds that you've spoken about?

As you look for the rest of the year, the government policies are slowing the economy and reducing consumer confidence, which is lowering the housing and remodeling activity. As we said, we've begun price increases and expect to compensate for the present tariff levels and we'll have to adjust if they change. We'll benefit from the restructuring savings of more than $70,000,000 left for the balance of the year. We are driving additional productivity to reduce our cost structure to help offset it. We anticipate some tailwinds in the fourth quarter from lower energy.

Our interest costs this year will also be lower given that we've reduced our debt and the interest income is higher. And then we still see a potential that central banks are reducing rates and could stimulate growth which could help our category in Europe. Rates should be getting low enough to help if the consumer confidence will help it a little bit. Flexible and will continue to adjust to the changing environment.

Okay. That's helpful, Jeff. And then it was good to hear and see that you bought back some stock again this quarter. Can you talk a bit to your thoughts on capital allocation in this environment? And maybe with that too, Mohawk's ability to continue to generate really strong free cash flows even in a tougher macro?

Yes, Susan. We still forecast even with the use of cash in the first quarter strong free cash flow for the total year. I mentioned that CapEx forecast is about $530,000,000 but we may reduce that depending on as conditions materialize for the balance of the year. We did buy back about $26,000,000 and we'll continue to use that as part of our overall capital allocation strategy.

Okay, thank you. Good luck with everything.

Thank you. Our next question comes from Colin Braun from Deutsche Bank. Please go ahead with your question.

Good morning. Thank you for taking my question. Fluorine North America sales, they were down modestly in the quarter, but when you start to parse out sort of the system conversion impact, looks like sales could have been up to low single digits. I guess first, is that the right way to think about it? And if

talk about what's driving an improvement either by end markets or product categories? And do you think you saw any pull forward just as customers got ahead of some tariffs here?

Yes. So in Flooring North America, our performance was in line with expectations as our shipments recovered well from the disruption that was caused by the order system conversion. Although, as I mentioned, remodeling is at low levels because of low housing turnover, elevated interest rates and weakening consumer confidence, we performed well in the market. We are capturing volume share with differentiated products and promotions And also our commercial business performed quite well. In North America, in the Flooring North America segment and in the Dow tile business, we have a larger exposure to commercial than in our other businesses.

And so commercial is holding up well and pricing is more resilient and we are increasing investments in that segment.

Great. That's helpful color. And I guess just following up on that, how sustainable are those trends in commercial just given sort of the uncertain backdrop? Have you seen any changes sort of in customer behavior as you look out into sort of projects that might hit in the back half

it still pretty strong relative to the other end markets? Thank you.

Yes, you're correct that we are of course still benefiting from projects that were started last year. But at this time, we don't see the incoming orders on commercial project tapering down. And so we are hopeful for the remainder of the year that this continues.

Our next question comes from Keith Hughes from Truist. Please go ahead with your question.

Thank you. I think in the prepared statement you said that price mix was up in both ceramic and flooring North America. I think that's the first time in a couple years that we've seen that. Can you talk about what's going on in those sectors driving that up?

Well, in, Florida North America and in global ceramic, are seeing the premium first of all, you're seeing the premium product, do well, both, on the higher end, versus carpet, laminate, porcelain slab in Europe. And then also you have that mix of channel that Paul just described where commercial, which is a larger piece of foreign North America and global ceramic compared to foreign rest of the world has done well, so far this year, which is also helping their mix. So Keith, it's really a combination of a little bit of product mix and a little bit of channel mix.

Second question. As you look in North America, specifically on LVT, the vast majority is imported in The United States. Somewhat asked earlier. When do you think the price issue the price result of everything that's going on, how long is that going to take to hit the industry?

Well, we and market participants have already increased prices to compensate for these tariffs. And as the tariffs change, the industry will highly likely push those through with more price increase.

The announcements are just going out on a pricing with different pieces and the implementation will go through. We think you're going to see it as we go through the second quarter. We're going to see more and more of it getting into the marketplace.

Is there enough inventory out there to carry through the second quarter before the impact or are we going to say it before then?

In us, he said it was probably going to be somewhere in the third quarter before we flow through the inventory.

Our next question comes from Tim Wuz from Baird. Please go ahead with your question.

Hey, everybody. Good morning. Maybe just to kind of hop on a Keith's question. Just is there a way that you could kind of give us some color on just what those competitive price increases are in terms of percentages or dollars and kind of what you're thinking various kind of import competitors are going to have to raise prices? I mean, there a way that you can just kind of frame how much imports might have to go up in terms of price relative to domestically manufactured product?

It's really too early to tell. They're just getting out there. The announced increases of some of them are somewhere around 8% at the moment, but that's only for a portion of it. We'll have to see how they average out and what they're going to end up with at the end. The first announcements are just rough directions of where it's going, then they get to the individual product prices don't come out until later.

Okay. And would you raise price by less and focus on volume? I mean, is there would there be a real opportunity for you to pick up placements and pick up share, especially retail? We're

really going to have to see how the announcements come out, when they are, what the amounts are. And again, we also have to make sure that whatever is going to happen with inflation in The U. S. Also, so we're going take all those into account and it will solidify probably over the next thirty, forty five days.

Tim, the good news is we really focus back on the fact that our domestic capacity, as Jeff had previously said.

Mohawk Industries (MHK) Q1 2025 Earnings Call Transcript

Company Participants