Mohawk beats quarterly profit estimates on commercial demand

Feb 12 (Reuters) - Mohawk Industries MHK.N posted fourth-quarter profit and revenue above Wall Street estimates on Thursday, as demand for commercial construction offset weakness in its residential segment.

Shares of the Calhoun, Georgia-based company rose 4% in after-hours trading.

"Across our markets, commercial demand remained stable, though continued weakness in housing turnover and sluggish new home construction in the U.S. impacted our volume," said CEO Jeff Lorberbaum.

The company was also helped by benefits from restructuring initiatives, pricier product purchases from customers and lower interest expense.

"We managed the impact of U.S. tariffs, covering the cost as planned," Lorberbaum added.

Mohawk, however, expects markets to remain soft in 2026 and plans to manage the impact of tariffs through continued pricing changes and supply chain optimization.

Its first-quarter profit per share forecast of $1.75 to $1.85 fell short of analysts' estimates of $1.93, according to data compiled by LSEG.

On an adjusted basis, Mohawk reported fourth-quarter earnings per share of $2, beating analysts' estimates of $1.98.

The flooring manufacturer, which operates across North America, Europe, Latin America and Australia, posted net sales of $2.7 billion for the quarter, compared with analysts' average expectations of $2.68 billion.