MHK

Mohawk Industries is the world's largest flooring manufacturer, with operations in 19 countries and sales in ~180, and the stock is a textbook cyclical-trough value situation. FY2025 was weak: revenue was roughly flat at $10.8B (-0.5%), operating income fell 29.4% to $490M, net income dropped 28.1% to $370M, and diluted EPS fell 26.7% to $5.93, with margins compressed to 23.9% gross / 4.5% operating / 4.4% ROE. Management attributes the softness directly to historically low U.S. housing turnover, sluggish new-home construction and weak consumer confidence deferring discretionary remodel spending — cyclical, not structural, headwinds. The earnings history shows the volatility: $1.03B net income in FY2021, near-zero in FY2022, a $449M loss in FY2023, then $515M and $370M in FY2024-FY2025.

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