Mohawk Industries authorized up to $500 million in share repurchases under a new capital framework that funds internal investment and selective acquisitions before using surplus cash for shareholder returns.
The Form 8-K records board approval on Oct. 26. Mohawk announced the authorization on Oct. 29 and said it took effect immediately. The company set no deadline or minimum purchase amount and can pause or discontinue the program. It may buy shares in market transactions, block trades, private negotiations or through trading plans allowed by federal securities rules.
Mohawk expects baseline capital expenditures of about $375 million annually for at least the next several years and sees little need to expand capacity. Its plan puts internal projects first, followed by selective bolt-on deals assessed for returns and strategic fit; funds left after those uses may go to repurchases. The four stated pillars include outperforming markets, stronger brands through product innovation, more profitable operations and disciplined cash generation.
Mohawk says it may carry net debt of up to twice adjusted EBITDA over the long term, while weighing cyclical risk and maintaining its investment-grade credit ratings. The ratio stood at 0.7 times on Oct. 3.
The new authorization follows a $500 million program approved in July 2025. Mohawk said it repurchased about 7% of its outstanding shares under that plan, at an average price of approximately $119 per share.
For the quarter ended Oct. 3, operating cash flow was $471.2 million, capital expenditures were $80.8 million and free cash flow reached $390.4 million. Adjusted sales volumes declined about 4%, primarily because of weak market demand, the company said.
Chief Executive Officer Paul De Cock said buybacks would use surplus free cash “to create value for shareholders.” For the fourth quarter, Mohawk anticipates weaker flooring conditions than in the prior quarter and projects adjusted EPS of $1.35 to $1.45.
