Latest news with #MHK
Yahoo
5 days ago
- Business
- Yahoo
Mohawk Industries Second Quarter 2025 Earnings: Revenues Beat Expectations, EPS Lags
Mohawk Industries (NYSE:MHK) Second Quarter 2025 Results Key Financial Results Revenue: US$2.80b (flat on 2Q 2024). Net income: US$146.5m (down 6.9% from 2Q 2024). Profit margin: 5.2% (down from 5.6% in 2Q 2024). EPS: US$2.35 (down from US$2.48 in 2Q 2024). This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. All figures shown in the chart above are for the trailing 12 month (TTM) period Mohawk Industries Revenues Beat Expectations, EPS Falls Short Revenue exceeded analyst estimates by 1.6%. Earnings per share (EPS) missed analyst estimates by 7.7%. Looking ahead, revenue is forecast to grow 2.5% p.a. on average during the next 3 years, compared to a 4.1% growth forecast for the Consumer Durables industry in the US. Performance of the American Consumer Durables industry. The company's shares are up 8.8% from a week ago. Balance Sheet Analysis While it's very important to consider the profit and loss statement, you can also learn a lot about a company by looking at its balance sheet. See our latest analysis on Mohawk Industries' balance sheet health. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
6 days ago
- Business
- Yahoo
Mohawk Industries Inc (MHK) Q2 2025 Earnings Call Highlights: Stability Amid Market Challenges
Net Sales: $2.8 billion, flat as reported and on a constant basis. Adjusted Earnings Per Share (EPS): $2.77. Free Cash Flow: Approximately $125 million. Share Repurchase: About 393,000 shares for approximately $42 million. Gross Margin: 25.5% as reported; 26.4% excluding charges. Operating Income (Adjusted): $223 million or 8% of sales. Interest Expense: $5 million. Non-GAAP Tax Rate: 19.3% for Q2. Global Ceramic Sales: Just over $1.1 billion, a 0.5% increase as reported. Flooring North America Sales: $947 million, a 1.2% decrease. Flooring Rest of the World Sales: $734 million, a 1% increase as reported. Cash and Cash Equivalents: $547 million. Inventories: Increased to just above $2.7 billion. Capital Expenditures (CapEx): $80 million for Q2. Net Debt: $1.7 billion with leverage at 1.2 times. Warning! GuruFocus has detected 5 Warning Signs with MHK. Release Date: July 25, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Mohawk Industries Inc (NYSE:MHK) reported net sales of $2.8 billion for the second quarter, maintaining stability despite challenging market conditions. The company generated approximately $125 million in free cash flow and repurchased about 393,000 shares for $42 million, with a new authorization to acquire $500 million of outstanding stock. Operational improvements and restructuring actions are on track, expected to deliver $100 million in annual cost savings by 2025. The commercial channel continues to outperform residential, with strong performance in the education and hospitality sectors. Mohawk Industries Inc (NYSE:MHK) is leveraging its strong domestic manufacturing footprint, with 85% of its US business produced in North America, to mitigate the impact of tariffs. Negative Points The company faces ongoing pricing pressure due to lower market volumes and increased input costs, impacting profitability. Residential remodeling and new construction demand remain weak, affected by geopolitical events, inflation, and low housing turnover. Higher input costs and plant shutdowns have negatively impacted gross margins, which decreased by approximately 70 basis points year-over-year. The European flooring market remains difficult with low demand and price pressures, requiring promotional activities to maximize volumes. Tariff uncertainties continue to pose a risk, with potential impacts on costs and pricing strategies yet to be fully determined. Q & A Highlights Q: Can you explain the pricing environment in Flooring North America and how it impacted your results? A: Paul De Cock, President of Flooring North America, explained that while segment sales were flat, hard surface categories performed well. Residential remodeling was slow, but commercial outperformed. Productivity initiatives and restructuring actions helped manage costs despite price pressure and inflation. James Brunk, CFO, added that favorable mix should minimize pricing pressures in the second half of the year. Q: How are the new tariffs expected to impact your business? A: CEO Jeffrey Lorberbaum noted that initial tariffs were about 10%, with potential increases up to 50%. The impact will depend on final negotiations, and any effects will likely be minimal in the short term. The company plans to adjust strategies as needed once tariffs are finalized. Q: Are you seeing competitive pricing pressures in the US market, and how are you responding? A: Paul De Cock stated that Mohawk has announced 8% price increases to counteract tariffs. The company is also optimizing its supply chain to mitigate tariff impacts. Competitive pricing pressures are being managed through strategic price adjustments and operational efficiencies. Q: How are your new product collections performing, and what impact do you expect them to have? A: Jeffrey Lorberbaum highlighted that new product introductions, including advanced digital printing in ceramics and new LVT and laminate offerings, are entering the market and positioning the company for recovery. These innovations are expected to drive share gains and enhance results in upcoming quarters. Q: What is your outlook for profitability in the second half of the year? A: Lorberbaum anticipates challenging conditions to persist, with no immediate market improvement. However, restructuring actions and productivity initiatives are expected to yield $100 million in benefits this year. The company expects fourth-quarter results to improve over the previous year, assuming no significant changes in current trends. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
Yahoo
6 days ago
- Business
- Yahoo
First Hawaiian Inc (FHB) Q2 2025 Earnings Call Highlights: Strong Net Income Growth and ...
Net Income: Increased over 23% compared to the prior quarter. Net Interest Income: $163.6 million, $3.1 million higher than the prior quarter. Net Interest Margin (NIM): 3.11%, up 3 basis points from the prior quarter. Total Loans: Increased by $59 million or 0.4% from the prior quarter. Total Deposits: Increased slightly, with public deposits up by $166 million. Non-Interest Income: $54 million for the quarter. Expenses: Expected to be around $506 million for the full year. Provision for Credit Losses: $4.5 million in the second quarter. Allowance for Credit Losses (ACL): $167.8 million, with coverage at 1.17% of total loans and leases. Net Charge-Offs: $3.3 million for the quarter, 9 basis points. Non-Performing Assets: 23 basis points of total loans and leases, up 6 basis points from the prior quarter. Warning! GuruFocus has detected 5 Warning Signs with MHK. Release Date: July 25, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points First Hawaiian Inc (NASDAQ:FHB) reported a strong second quarter with net income increasing over 23% compared to the prior quarter. The company experienced broad-based improvements driven by higher net interest and non-interest income, good expense control, and lower provision expense. Total loans increased by $59 million, with significant growth in the C&I portfolio due to a $125 million increase in dealer floor plan balances. The balance sheet remains solid with ample liquidity, and the company is well-capitalized. First Hawaiian Inc (NASDAQ:FHB) repurchased about 1 million shares at a total cost of $25 million, with $50 million of remaining authorization under the 2025 stock repurchase plan. Negative Points Retail and commercial deposits declined by $23 million and $127 million respectively, due to normal operational fluctuations. Non-performing assets and loans 90 days or more past due increased by 6 basis points from the prior quarter. The company adjusted its full-year loan growth guidance from low to mid-single digits to low single digits. There is uncertainty in the market due to tariffs, affecting car dealers and potentially impacting future balances. The consumer at the lower end is experiencing financial strain, with savings accumulated during COVID-19 diminishing. Q & A Highlights Q: How is the pipeline in terms of C&I, and is that the largest contributor to growth? Are we seeing increasing demand from CRE borrowers? A: Most C&I growth came from dealer floor plans, which have normalized. The balance was $786 million at the end of the quarter, up $125 million. Car sales have slowed, and there's uncertainty with tariffs. In CRE, some construction loans were expected to extend into mini perms but didn't, indicating good credit quality. We adjusted our guidance to low single digits for full-year growth. Q: How have tariffs impacted tourism spend on the islands? A: Tariffs mainly create uncertainty for car dealers, with little impact on tourism. Japanese and Canadian tourism is down due to economic factors and exchange rates, but US mainland arrivals have been strong, leading to increased arrivals and spending. Q: What are your capital priorities moving into the back half of the year? A: Our capital priorities remain focused on organic growth, maintaining a stable dividend, and share repurchases. We plan to deploy more of our repurchase authority in the latter half of the year. Q: How does your capital position influence your M&A strategy? A: We are open to M&A opportunities but are not actively pursuing any. Our capital levels are higher than past guidance, and we anticipate a rotation from securities to lending, which will utilize capital. Q: What impacted loan yields in the second quarter, and what are the expectations for the third quarter? A: The mix of loans impacted yields, with higher-margin construction loans being replaced by lower-margin C&I loans. We expect the NIM to increase slightly in the third quarter as fixed-rate cash flows are replaced by higher-yielding assets. Q: Can you provide an updated outlook on your tax rate following the recent tax law change? A: The effective tax rate for the rest of the year is expected to be 23.2%, which is fairly immaterial compared to previous guidance. Q: How are you managing deposit costs, and what are your expectations for deposit betas with future rate cuts? A: We have managed to reduce deposit costs effectively. We anticipate deposit betas to decline slightly with future rate cuts, maintaining a strong ability to pass through cuts to rate-sensitive customers. Q: What factors could drive increased loan activity among your client base? A: The outlook is influenced by economic conditions. Construction loans are being taken out by institutional buyers, and dealer floor plans are nearing pre-COVID levels. We are optimistic about the commercial pipeline but cautious about making long-term forecasts. Q: What is driving the increase in residential mortgage non-performers, and is there concern about consumer credit? A: The increase is due to consumers at the lower end being stretched as COVID savings diminish. However, the portfolio is performing as expected, and we are not concerned about significant losses. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Yahoo
6 days ago
- Business
- Yahoo
Mohawk's Q2 Earnings & Revenues Beat Estimates, Stock Up
Mohawk Industries, Inc. MHK reported second-quarter 2025 results, with earnings and net sales beating the Zacks Consensus Estimate. On a year-over-year basis, the top line remained flat, while the bottom line of this leading global flooring manufacturer gained 1.1% in yesterday's after-hours trading quarterly results reflect the impact of Mohawk's ongoing efforts in operations, cost control and market development. Performance was supported by new premium residential and commercial product collections launched over the past two years. The company benefited from restructuring actions such as shutting high-cost sites, removing inefficient assets, and improving distribution and administration through continued to focus on reducing costs. The company worked on enhancing equipment use, saving energy, improving supply-chain processes and redesigning products. Pricing pressure from weaker market volumes remained, but the company aimed to offset this through a better product and channel rising tariffs, Mohawk highlighted the advantage of its manufacturing base in North America. The company took steps such as adjusting prices and optimizing supply chains. The U.S. government has set a new deadline for trade negotiations and the company is closely tracking developments to adjust its strategy. Inside MHK's Q2 Numbers Mohawk reported adjusted earnings per share (EPS) of $2.77, which beat the Zacks Consensus Estimate of $2.62 by 5.7%. In the year-ago quarter, the company reported an adjusted EPS of $3. Net sales of $2.8 billion beat the consensus estimate of $2.79 billion by 0.4% and remained essentially flat year over year. On an adjusted basis, net sales were down 0.8% year over year. Mohawk Industries, Inc. Price, Consensus and EPS Surprise Mohawk Industries, Inc. price-consensus-eps-surprise-chart | Mohawk Industries, Inc. Quote Adjusted gross margin contracted 70 basis points (bps) year over year to 26.4%. Adjusted selling, general and administrative expenses, as a percent of net sales, rose 60 bps to 18.5% from the year-ago period. Adjusted operating margin contracted 120 bps to 8% from 9.2% a year ago. Mohawk's Segmental Details Global Ceramic: Sales in the segment totaled $1.12 billion, up 0.5% year over year on a reported basis. On an adjusted basis, sales were up 1.1% from the year-ago level to $1.13 billion. Adjusted operating income decreased to $90.3 million from $94.8 million a year ago. The segment's adjusted operating margin contracted to 8.1% from 8.5% a year North America: Net sales of the segment amounted to $946.8 million, down 1.2% year over year on a reported basis. The segment registered an adjusted operating profit of $69.2 million, down from $82 million reported in the prior-year period. Adjusted operating margin was 7.3%, down from 8.6% a year Rest of the World: Net sales in the segment increased 1% year over year on a reported basis to $734.4 million. On an adjusted basis, sales were down 3% from the year-ago level to $705 million. Adjusted operating income was $76.4 million, down from $91.4 million reported a year ago. The segment's adjusted operating margin was 10.4%, down from 12.6% in the year-ago period. Financial Highlights of MHK As of June 28, 2025, it had cash and cash equivalents of $546.7 million compared with $497.4 million on June 29, 2024. The long-term debt, less the current portion, was $1.74 billion compared with $1.69 billion at the end of second-quarter the end of the second quarter, the company generated free cash flow of $126.1 million compared with $142.2 million a year ago. Focus on Operational Discipline Amid Market Uncertainty The company is focusing on market development, operational efficiency and cost control to navigate current industry challenges. Ongoing inflation and weak consumer confidence are affecting overall sales. The timing of a recovery remains support sales growth, the company is using its brand strength, product range and service to expand with existing and new customers. While pricing pressure stays high, the company is improving its mix with premium products, commercial sales and recent launches. Input cost pressure is expected to peak in the third quarter as higher costs pass through measures are being implemented across operations to offset rising costs. Restructuring efforts are expected to result in about $100 million in savings this year. Most U.S. sales come from North America's production, which may help the company under changing trade policies. MHK's Q3 View MHK expects adjusted EPS in the range of $2.56-$2.66, excluding restructuring and other charges, compared with the year-ago figure of $2.9. The guidance does not reflect potential new tariffs, which are yet to be finalized. MHK's Zacks Rank & Recent Consumer Discretionary Releases Mohawk currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks Worldwide Holdings Inc. HLT reported second-quarter 2025 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate. The top and bottom lines increased on a year-over-year delivered strong bottom-line performance in the quarter, underscoring the strength and resilience of its business model. However, top-line results were modestly impacted by unfavorable holiday and calendar shifts, reduced government spending, softer international inbound travel and broader economic uncertainty. Hasbro, Inc. HAS reported second-quarter fiscal 2025 results, with earnings and revenues beating the Zacks Consensus Estimate. The top line declined year over year while the bottom line increased from the prior-year's quarter figure. The downside was mainly due to weaker contributions from the Consumer Products and Entertainment Hasbro raised its full-year revenue and adjusted EBITDA guidance. The update was supported by strong performance in the Wizards segment, along with steady contributions from the games portfolio, licensing partnerships and digital initiatives. Despite ongoing macroeconomic challenges, Hasbro expects cost efficiency measures and business diversification to support its growth plans for 2025 and Inc. MAT reported second-quarter 2025 results, with earnings beating the Zacks Consensus Estimate and revenues missing the same. The top line fell year over year, while the bottom line came in line with the prior-year quarter's delivered a resilient second-quarter performance, underscoring its focus on operational execution amid a challenging macroeconomic backdrop. The company achieved significant gross margin expansion, international growth and continued momentum in its entertainment slate. While global trade dynamics and shifts in retailer ordering patterns weighed on its U.S. business, adjusted EPS held steady year over year. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Hasbro, Inc. (HAS) : Free Stock Analysis Report Mattel, Inc. (MAT) : Free Stock Analysis Report Mohawk Industries, Inc. (MHK) : Free Stock Analysis Report Hilton Worldwide Holdings Inc. (HLT) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
ITV News
7 days ago
- Politics
- ITV News
Isle of man chief minister expresses 'mounting concern' over humanitarian crisis in Gaza
The Chief Minister of the Isle of Man has written to the UK Government to express the island's growing concern over the "worsening humanitarian crisis" causing "tragic suffering" in Gaza. In a letter to MP Shabana Mahmood, Chief Minister Alfred Cannan MHK said that the "deprivation of humanitarian assistance is unacceptable under the obligations of international humanitarian law." He said many residents who live on the island are watching the Israel-Hamas conflict with growing alarm for the Palestinian people and called for urgent relief and a ceasefire. Tynwald says it fully supports a joint statement from 29 countries, including the UK, which calls for an immediate end to the war in Gaza and states the Israeli government's aid delivery "deprives Gazans of human dignity". In the letter, the Chief Minister said: "I wish to convey that the human impact of the escalating conflict on the population of Gaza is being viewed with mounting concern by many in the Isle of Man who uphold a commitment to both our national values and a longstanding commitment to international humanitarian principles." He added: "Respecting fully our constitutional relationship and the complexities of the situation across the Middle East, we consider it an imperative for medical and food aid to be delivered and distributed safely. "We support the United Kingdom's call that humanitarian relief must get through urgently to the civilian population and a ceasefire agreed. "We respectfully add our voices to the many calls for influence and the imperative for action in order to bring about an end to the tragic suffering amongst the population of Gaza." The letter comes as the head of the UN's relief agency Unwra said parents in Gaza are "too hungry to care for their children" and families are struggling to survive. In a statement issued on Thursday, Unwra Commissioner General Philippe Lazzarini said a colleague had told him on Thursday morning: 'People in Gaza are neither dead nor alive, they are walking corpses'. Lazzarini said Unwra's latest findings showed one in five children in Gaza City is now malnourished and cases are increasing every day.
