MOHAWK INDUSTRIES INC
For the period ended Jun 28, 2025. Filed Jul 25, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 28, 2025 · Filed Jul 25, 2025
MHK$150.52-0.2%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-29; filed 2025-05-02.
0000851968-25-000097
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-28; filed 2025-07-25.
0000851968-25-000114
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 57 previous paragraphs and 79 current paragraphs.
30 unchanged; 24 reworded; 22 added; 3 removed; 0 previous and 3 current paragraphs rearranged.
Tables are not compared: 0 previous and 0 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (22)
Current report
The Company continues to be impacted by soft demand across its markets, as inflationary pressures, elevated interest rates, shifting trade policy and geopolitical events are contributing to consumer uncertainty that has led to general deferrals of large discretionary purchases. In addition, mortgage rates remain elevated in most markets, contributing to a stagnant housing market in many regions and impacting the demand for the Company’s products for residential remodeling projects. Commercial channels continue to outperform residential in most of the Company’s markets, as many commercial construction and remodeling projects were planned and approved prior to rising interest rates. Based on historical industry cycles, the Company believes demand in its markets will accelerate when interest rates decline due to pent-up demand in the residential and commercial remodeling and construction markets. However, the ongoing impact of soft demand, inflationary pressures and elevated interest rates to the Company’s business, financial condition, results of operations, and prospects cannot be determined at this time.
Current report
Tariffs Update
Current report
For the six months ended June 28, 2025, the net earnings attributable to the Company was $219.0 million compared to the net earnings attributable to the Company of $262.4 million for the six months ended June 29, 2024. The change was primarily attributable to higher input costs; the unfavorable impact of temporary plant shutdowns, lower sales volume and order management system conversion, partially offset by productivity gains and lower income tax expenses. The Company believes that a number of circumstances may influence trends in 2025, including the impact of inflation and material availability due to disruptions in the global supply chain, but the extent and duration of such impact cannot be predicted.
Current report
Flooring NA—Net sales for the three months ended June 28, 2025, were $946.8 million compared to net sales of $958.5 million for the three months ended June 29, 2024. The change was primarily attributable to lower sales volume of approximately $25 million, partially offset by the favorable net impact of price and product mix of approximately $14 million.
Current report
Flooring ROW—Net sales for the three months ended June 28, 2025, were $734.4 million compared to net sales of $727.2 million for the three months ended June 29, 2024. The change was primarily attributable to the favorable net impact of foreign exchange rates of approximately $29 million, partially offset by the unfavorable net impact of price and product mix of approximately $20 million.
Current report
Gross profit for the three months ended June 28, 2025, was $714.4 million compared to gross profit of $723.8 million for the three months ended June 29, 2024. The change was primarily attributable to higher input costs of approximately $44 million; lower sales volume of approximately $22 million and the unfavorable impact of temporary plant shutdowns of approximately $18 million, partially offset by productivity gains of approximately $47 million; the favorable net impact of foreign exchange rates of approximately $15 million and lower restructuring, acquisition and integration-related, and other costs of approximately $9 million.
Current report
Operating income
Current report
Flooring NA—Operating income was $52.5 million for the three months ended June 28, 2025, compared to operating income of $78.3 million for the three months ended June 29, 2024. The change was primarily attributable to higher input costs of approximately $23 million; higher restructuring, acquisition and integration-related, and other costs of approximately $13 million; the unfavorable impact of temporary plant shutdowns of approximately $10 million and the unfavorable net impact of price and product mix of approximately $9 million, partially offset by productivity gains of approximately $32 million.
Current report
Six Months Ended June 28, 2025, as compared with Six Months Ended June 29, 2024
Current report
Net sales
Current report
Net sales for the six months ended June 28, 2025, were $5,327.9 million compared to net sales of $5,480.7 million for the six months ended June 29, 2024. The change was primarily attributable to the impact of fewer shipping days for the six months ended June 28, 2025 of approximately $90 million; lower sales volume of approximately $55 million; the impact of the order management system conversion of approximately $50 million and the unfavorable net impact of foreign exchange rates of approximately $23 million, partially offset by the favorable net impact of price and product mix of approximately $67 million.
Current report
Global Ceramic—Net sales for the six months ended June 28, 2025, were $2,114.7 million compared to net sales of $2,160.4 million for the six months ended June 29, 2024. The change was primarily attributable to lower sales volume of approximately $41 million; the impact of fewer shipping days for the six months ended June 28, 2025 of approximately $40 million and the unfavorable net impact of foreign exchange rates of approximately $30 million, partially offset by the favorable net impact of price and product mix of approximately $65 million.
Current report
Gross profit
Current report
Selling, general and administrative expenses
Current report
Operating income
Current report
Operating income for the six months ended June 28, 2025, was $284.8 million compared to operating income of $360.6 million for the six months ended June 29, 2024. The change was primarily attributable to higher input costs of approximately $104 million and the unfavorable impact of temporary plant shutdowns of approximately $31 million, lower sales volume of approximately $32 million and order management system conversion of approximately $30 million, partially offset by productivity gains of approximately $107 million.
Current report
Global Ceramic—Operating income was $130.0 million for the six months ended June 28, 2025, compared to operating income of $131.9 million for the six months ended June 29, 2024. The change was primarily attributable to higher input costs of approximately $54 million; lower sales volume of approximately $26 million and the unfavorable impact of temporary plant shutdowns of approximately $11 million, partially offset by productivity gains of approximately $38 million; the favorable net impact of price and product mix of approximately $32 million and the favorable net impact of foreign exchange rates of approximately $15 million.
Current report
Flooring ROW—Operating income was $124.5 million for the six months ended June 28, 2025 compared to operating income of $136.5 million for the six months ended June 29, 2024. The change was primarily attributable to the unfavorable net impact of price and product mix of approximately $27 million, partially offset by lower restructuring, acquisition and integration-related, and other costs of approximately $16 million.
Current report
Interest expense
Current report
Other income and expense, net
Current report
Other income and expense, net was an expense of $2.7 million for the six months ended June 28, 2025, compared to other expense of $0.5 million for the six months ended June 29, 2024. Other income and expense, net did not significantly change for the six months ended June 28, 2025, from the six months ended June 29, 2024.
Current report
Income tax expense
Removed paragraphs (3)
Previous report
The Company continues to be impacted by soft consumer demand, inflationary pressures and fluctuating interest rates. Persistent inflation continues to hinder consumer discretionary spending, which has caused consumers to postpone large purchases of durable goods such as flooring. The Company derives a majority of its sales from residential and commercial construction and remodeling, with residential remodeling being the primary sales driver of flooring products. Typically, residential flooring is replaced before a home is listed for sale or just after a home purchase is completed. In recent years, the combination of high interest rates and inflation has made mortgages less affordable and has increased the cost of home improvement projects, impacting the demand for the Company’s products. Although the U.S. Federal Reserve and the European Central Bank cut interest rates in 2024, home mortgage rates remain elevated globally, “locking in” current homeowners and suppressing housing turnover rates. Due to low housing availability, aging stock and greater household formation, the Company believes demand in its markets will accelerate when interest rates decline. However, the ongoing impact of soft global demand, inflationary pressures and fluctuating interest rates to the Company’s business, financial condition, results of operations, and prospects cannot be determined at this time.
Previous report
Tariffs Exposure
Previous report
Operating income (loss)
Reworded paragraphs (24)
Previous wording
The Company has, to some extent, offset the impact of a soft housing market and decreased renovation activity through cost containment, productivity and lower input costs. During 2022 and 2023, the Company implemented a number of restructuring actions, productivity initiatives and manufacturing enhancements focused on reducing costs to enhance future performance, including certain facility, asset and product rationalizations and workforce reductions. The Company anticipates that when completed these projects will deliver annual savings of approximately $150 million, with an estimated cost of approximately $215 million. In 2024, the Company announced further restructuring actions, including additional facility, assets and product rationalizations and workforce reductions to further reduce costs and improve the business for the future. The Company anticipates that when completed, these projects will deliver annual savings of approximately $145 million, with an estimated cost of approximately $140 million. Execution timelines will vary by project, with some savings extending into 2026.
Current wording
Over the last several quarters, the Company has, to some extent, offset the impact of lower volume from reduced demand, pricing pressures in competitive markets and higher input costs through productivity gains and benefits from restructuring initiatives. During 2022 and 2023, the Company implemented a number of restructuring actions, productivity initiatives and manufacturing enhancements focused on reducing costs to enhance future performance, including certain facility, asset and product rationalizations and workforce reductions. The Company anticipates that when completed these projects will deliver annual savings of approximately $150 million, with an estimated cost of approximately $215 million. In 2024, the Company announced further restructuring actions, including additional facility, assets and product rationalizations and workforce reductions to further reduce costs and improve the business for the future. The Company anticipates that when completed, these projects will deliver annual savings of approximately $140 million, with an estimated cost of approximately $145 million. In 2025, the Company announced additional restructuring actions, including assets and product rationalizations and workforce reductions to further reduce costs and streamline the business for the future. The Company anticipates that when completed, these projects will deliver annual savings of approximately $10 million, with an estimated cost of approximately $20 million. Execution timelines will vary by project, with some initiatives extending into 2026.
Previous wording
The Company is actively monitoring recent trade policy and tariff announcements, including various executive orders issued by the current U.S. presidential administration. Increased restrictions on global trade, including an increase in U.S. tariffs and any retaliatory responses thereto, could result in, among other things, increased input costs, supply chain disruptions, decreased consumer demand and volatility in foreign exchange rates and financial markets, any of which may adversely affect the Company’s business financial condition, results of operations, and prospects. Due to its global footprint and manufacturing operations across 19 countries, the Company is generally able to provide its customers with regional supply. In addition, certain products the Company manufactures in Mexico are exempt from recent tariffs announced against Mexico, as such products are compliant with the United States-Mexico-Canada trading agreement. However, certain of the Company’s sourcing and upstream and downstream supply chain processes occur outside the U.S. or with vendors, suppliers, or customers located outside the U.S. The Company is working to determine its overall tariff cost exposure, the potential impact of retaliatory responses thereto, if any, and mitigation plans. Given the timing, uncertainty and fluidity of the evolving global trade environment, the impact to the Company’s business, financial condition, results of operations, and prospects cannot be predicted.
Current wording
The Company continues to actively monitor trade policy and tariff announcements, including various executive orders issued by the current U.S. presidential administration. Due to its global footprint and manufacturing operations across 19 countries, the Company is generally able to provide its customers with regional supply. In addition, certain products the Company manufactures in Mexico are exempt from recent tariffs announced against Mexico, as such products are compliant with the United States-Mexico-Canada trading agreement. However, certain of the Company’s sourcing and upstream and downstream supply chain processes occur outside the U.S. or with vendors, suppliers, or customers located outside the U.S. The Company has begun to take steps to mitigate the implemented tariffs through managing inventory of sourced products, adjusting prices and optimizing its supply chain. At a 10% baseline tariff rate, the Company expects to incur an annualized cost of approximately $50 million related to such tariffs. On July 7, 2025, the U.S. government issued an executive order establishing a deadline of August 1, 2025, for finalizing tariffs on individual trading partners either through negotiations or by decree at amounts that may or may not be aligned with those announced on April 2, 2025 while also announcing specific tariffs on key trading partners such as the EU, Canada and a number of countries in Asia. The Company continues to monitor changing tariff levels and adjust its strategies to mitigate their impact as trade policy evolves. However, the duration, magnitude and scope of any additional tariffs, trade restrictions, retaliatory or other measures are difficult to predict, including any related impacts to consumer demand, along with the extent (if any) to which the Company will be able to offset the impacts of such actions through mitigation efforts. These tariff actions, retaliatory measures, or other trade restrictions, could materially and adversely impact the Company’s business, financial condition, results of operations, and prospects.
Previous wording
Due to its global footprint, Mohawk’s business is sensitive to geopolitical conflict, including the Russia-Ukraine conflict and the ongoing conflicts in the Middle East. Since the first quarter of 2022, the Company has suspended new investments in Russia in response to ongoing Russian military actions in Ukraine. In addition, an escalation of conflict in the Middle East region could result in supply chain disruptions, decreased consumer demand and increased transportation barriers, though the extent of the impact on the Company’s business, financial condition, results of operations, and prospects cannot be predicted. The broader consequences of current ongoing military conflicts, which may include further economic sanctions, embargoes, regional instability, and geopolitical shifts; potential retaliatory actions, including nationalization of foreign-owned businesses; increased tensions between the United States and countries in which the Company operates; and the extent of the conflict’s effect on the Company’s business and results of operations, as well as the global economy, cannot be predicted.
Current wording
Due to its global footprint, Mohawk’s business is sensitive to geopolitical conflict, including the Russia-Ukraine conflict and the ongoing conflicts in the Middle East. Since the first quarter of 2022, the Company has suspended new investments in Russia in response to ongoing Russian military actions in Ukraine. In addition, continued escalation of conflict in the Middle East region could result in supply chain disruptions, higher energy and raw material prices, decreased consumer demand for the Company’s products and increased transportation barriers, though the extent of the impact on the Company’s business, financial condition, results of operations, and prospects cannot be predicted. The broader consequences of current ongoing military conflicts, which may include further economic sanctions, embargoes, regional instability, and geopolitical shifts; potential retaliatory actions, including nationalization of foreign-owned businesses; increased tensions between the United States and countries in which the Company operates; and the extent of the conflict’s effect on the Company’s business and results of operations, as well as the global economy, cannot be predicted.
Previous wording
In 2025, the Company plans to invest approximately $530 million focused on completing capacity expansion projects and targeted initiatives that will drive cost reduction while improving operational performance.
Current wording
In 2025, the Company plans to invest approximately $500 million focused on completing capacity expansion projects and targeted initiatives that will drive cost reduction while improving operational performance.
Previous wording
For the three months ended March 29, 2025, the net earnings attributable to the Company were $72.6 million compared to the net earnings attributable to the Company of $105.0 million for the three months ended March 30, 2024. The change was primarily attributable to higher input costs; the impact of the order management system conversion; higher restructuring, acquisition and integration-related, and other costs and lower sales volume, partially offset by productivity gains and lower income tax expenses.
Current wording
For the three months ended June 28, 2025, the net earnings attributable to the Company were $146.5 million compared to the net earnings attributable to the Company of $157.4 million for the three months ended June 29, 2024. The change was primarily attributable to higher input costs; lower sales volume; the unfavorable impact of temporary plant shutdowns, partially offset by productivity gains; lower restructuring, acquisition and integration-related, and other costs and lower income tax expenses.
Previous wording
For the three months ended March 29, 2025, the Company generated $3.7 million of cash from operating activities. As of March 29, 2025, the Company had cash and cash equivalents of $702.5 million, of which $458.8 million was in the United States and $243.7 million was in other countries.
Current wording
For the six months ended June 28, 2025, the Company generated $210.0 million of cash from operating activities. As of June 28, 2025, the Company had cash and cash equivalents of $546.7 million of which $295.4 million was in the U.S. and $251.3 million was in foreign countries.
Previous wording
Net sales for the three months ended March 29, 2025, were $2,525.8 million compared to net sales of $2,679.4 million for the three months ended March 30, 2024. The change was primarily attributable to fewer shipping days for the quarter ended March 29, 2025, of approximately $78 million; the unfavorable net impact of foreign exchange rates of approximately $57 million and the impact of the order management system conversion of approximately $50 million, partially offset by the favorable net impact of price and product mix of approximately $31 million.
Current wording
Net sales for the three months ended June 28, 2025, were $2,802.1 million compared to net sales of $2,801.3 million for the three months ended June 29, 2024. The change was primarily attributable to lower sales volume of approximately $57 million and fewer shipping days for the quarter ended June 28, 2025 of approximately $12 million, partially offset by the favorable net impact of price and product mix of approximately $36 million and the favorable net impact of foreign exchange rates of approximately $34 million.
Previous wording
Global Ceramic—Net sales for the three months ended March 29, 2025, were $993.8 million compared to net sales of $1,044.8 million for the three months ended March 30, 2024. The change was primarily attributable to the unfavorable net impact of foreign exchange rates of approximately $36 million and fewer shipping days for the quarter ended March 29, 2025, of approximately $28 million, partially offset by the favorable net impact of price and product mix of approximately $23 million.
Current wording
Global Ceramic—Net sales for the three months ended June 28, 2025, were $1,120.9 million compared to net sales of $1,115.6 million for the three months ended June 29, 2024. The change was primarily attributable to the favorable net impact of price and product mix of approximately $42 million and the favorable net impact of foreign exchange rates of approximately $5 million, partially offset by lower sales volume of approximately $30 million and fewer shipping days for the quarter ended June 28, 2025 of approximately $12 million.
Previous wording
Selling, general and administrative expenses for the three months ended March 29, 2025, were $487.3 million compared to $502.9 million for the three months ended March 30, 2024. Selling, general and administrative expenses did not significantly change as a percentage of net sales for the three months ended March 29, 2025, compared to the three months ended March 30, 2024.
Current wording
Selling, general and administrative expenses for the three months ended June 28, 2025, were $525.7 million compared to $509.8 million for the three months ended June 29, 2024. Selling, general and administrative expenses did not significantly change as a percentage of net sales for the three months ended June 28, 2025, compared to the three months ended June 29, 2024.
Previous wording
Operating income for the three months ended March 29, 2025, was $96.0 million compared to operating income of $146.6 million for the three months ended March 30, 2024. The change was primarily attributable to higher input costs of approximately $41 million; the impact of the order management system conversion of approximately $30 million; higher restructuring, acquisition and integration-related, and other costs of approximately $18 million and lower sales volume of approximately $11 million, partially offset by productivity gains of approximately $51 million.
Current wording
Operating income for the three months ended June 28, 2025, was $188.7 million compared to operating income of $214.0 million for the three months ended June 29, 2024. The change was primarily attributable to higher input costs of approximately $63 million; lower sales volume of approximately $21 million and the unfavorable impact of temporary plant shutdowns of approximately $18 million, partially offset by productivity gains of approximately $57 million and lower restructuring, acquisition and integration-related, and other costs of approximately $12 million.
Previous wording
Global Ceramic—Operating income was $41.8 million for the three months ended March 29, 2025, compared to operating income of $48.8 million for the three months ended March 30, 2024. The change was primarily attributable to higher input costs of approximately $18 million and lower sales volume of approximately $10 million, partially offset by productivity gains of approximately $21 million.
Current wording
Global Ceramic—Operating income was $88.2 million for the three months ended June 28, 2025, compared to operating income of $83.1 million for the three months ended June 29, 2024. The change was primarily attributable to the favorable net impact of price and product mix of approximately $27 million; productivity gains of approximately $17 million and lower restructuring, acquisition and integration-related, and other costs of approximately $10 million, partially offset by higher input costs of approximately $36 million; lower sales volume of approximately $16 million.
Previous wording
Flooring ROW—Operating income was $58.7 million for the three months ended March 29, 2025, compared to operating income of $70.9 million for the three months ended March 30, 2024. The change was primarily attributable to the unfavorable net impact of price and product mix of approximately $8 million.
Current wording
Flooring ROW—Operating income was $65.8 million for the three months ended June 28, 2025, compared to operating income of $65.6 million for the three months ended June 29, 2024. The change was primarily attributable to lower restructuring, acquisition and integration-related, and other costs of approximately $15 million and productivity gains of approximately $8 million, partially offset by the unfavorable net impact of price and product mix of approximately $19 million.
Previous wording
Other income and expense, net was income of $0.5 million for the three months ended March 29, 2025, compared to other income of $1.1 million for the three months ended March 30, 2024. Other income and expense, net did not significantly change for the three months ended March 29, 2025, from the three months ended March 30, 2024.
Current wording
Other income and expense, net was expense of $3.0 million for the three months ended June 28, 2025, compared to other expense of $1.6 million for the three months ended June 29, 2024. Other income and expense, net did not significantly change for the three months ended June 28, 2025, from the three months ended June 29, 2024.
Previous wording
Flooring NA—Net sales for the three months ended March 29, 2025, were $862.4 million compared to net sales of $900.2 million for the three months ended March 30, 2024. The change was primarily attributable to the impact of the order management system conversion of approximately $50 million and fewer shipping days for the quarter ended March 29, 2025, of approximately $28 million, partially offset by higher sales volume of approximately $25 million and the favorable net impact of price and product mix of approximately $17 million.
Current wording
Flooring NA—Net sales for the six months ended June 28, 2025, were $1,809.2 million compared to net sales of $1,858.7 million for the six months ended June 29, 2024. The change was primarily attributable to the impact of the order management system conversion of approximately $50 million; the impact of fewer shipping days for the six months ended June 28, 2025 of approximately $28 million, partially offset by the favorable net impact of price and product mix of approximately $30 million.
Previous wording
Flooring ROW—Net sales for the three months ended March 29, 2025, were $669.6 million compared to net sales of $734.4 million for the three months ended March 30, 2024. The change was primarily attributable to fewer shipping days for the quarter ended March 29, 2025, of approximately $22 million; the unfavorable net impact of foreign exchange rates of approximately $21 million and lower sales volume of approximately $12 million.
Current wording
Flooring ROW—Net sales for the six months ended June 28, 2025, were $1,404.0 million compared to net sales of $1,461.6 million for the six months ended June 29, 2024. The change was primarily attributable to the unfavorable net impact of price and product mix of approximately $29 million; fewer shipping days for the June 28, 2025 of approximately $22 million and lower sales volume of approximately $15 million.
Previous wording
Gross profit for the three months ended March 29, 2025, was $583.3 million compared to gross profit of $649.5 million for the three months ended March 30, 2024. The change was primarily attributable to the higher input costs of approximately $30 million; order management system conversion of approximately $26 million; higher restructuring, acquisition and integration-related, and other costs of approximately $20 million and lower sales volume of approximately $12 million, partially offset by productivity gains of approximately $42 million.
Current wording
Gross profit for the six months ended June 28, 2025, was $1,297.7 million compared to gross profit of $1,373.3 million for the six months ended June 29, 2024. The change was primarily attributable to higher input costs of approximately $73 million; lower sales volume of approximately $34 million; the unfavorable impact of temporary plant shutdowns of approximately $31 million and order management system conversion of approximately $26 million, partially offset by productivity gains of approximately $89 million.
Previous wording
Flooring NA—Operating income was $9.3 million for the three months ended March 29, 2025, compared to operating income of $45.0 million for the three months ended March 30, 2024. The change was primarily attributable to the impact of the order management system conversion of approximately $30 million; higher input costs of approximately $19 million and higher restructuring, acquisition and integration-related, and other costs of approximately $15 million, partially offset by productivity gains of approximately $27 million.
Current wording
Flooring NA—Operating income was $61.8 million for the six months ended June 28, 2025, compared to operating income of $123.3 million for the six months ended June 29, 2024. The change was primarily attributable to higher input costs of approximately $42 million; order management system conversion of approximately $30 million and higher restructuring, acquisition and integration-related, and other costs of approximately $28 million and the unfavorable impact of temporary plant shutdowns of approximately $16 million, partially offset by productivity gains of approximately $58 million.
Previous wording
Interest expense was $6.4 million for the three months ended March 29, 2025, compared to interest expense of $14.9 million for the three months ended March 30, 2024. The change was primarily attributable to strong cash flow and prepayments of the U.S. and European portions of the Term Loan Facility during the three months ended March 30, 2024, resulting in lower debt.
Current wording
Interest expense was $11.6 million for the six months ended June 28, 2025, compared to interest expense of $27.5 million for the six months ended June 29, 2024. The change was primarily attributable to strong cash flow and prepayments of the U.S. and European portions of the Term Loan Facility during the six months ended June 29, 2024, resulting lower debt.
Previous wording
For the three months ended March 29, 2025, the Company recorded income tax expense of $17.5 million on earnings before income taxes of $90.1 million, for an effective tax rate of 19.4%. For the three months ended March 30, 2024, the Company recorded income tax expense of $27.8 million on earnings before income taxes of $132.8 million, for an effective tax rate of 21.0%. The increase in the effective tax rate was primarily driven by a tax benefit related to a prior period adjustment to deferred taxes during the three months ended March 29, 2025, partially offset by the Company’s geographic dispersion of profits and losses for the respective periods.
Current wording
For the six months ended June 28, 2025, the Company recorded income tax expense of $51.5 million on earnings before income taxes of $270.5 million, for an effective tax rate of 19.0%. For the six months ended June 29, 2024, the Company recorded income tax expense of $70.1 million on earnings before income taxes of $332.6 million, for an effective tax rate of 21.1%. The decrease in the effective tax rate was primarily driven by the Company’s geographic dispersion of profits and losses for the respective periods and a tax benefit related to a prior period adjustment to deferred taxes during the six months ended June 28, 2025, partially offset by a larger increase in unrecognized tax benefits during the six months ended June 28, 2025.
Previous wording
Net cash provided by operating activities in the first three months of 2025 was $3.7 million, compared to net cash provided by operating activities of $183.7 million in the first three months of 2024. The change was primarily attributable to the change in accounts receivable; inventory and lower net earnings, partially offset by the change in accounts payable.
Current wording
Net cash provided by operating activities in the first six months of 2025 was $210.0 million, compared to net cash provided by operating activities of $417.3 million in the first six months of 2024. The change was primarily attributable to the change in accounts receivable; lower net earnings and change in accounts payable.
Previous wording
Net cash used in investing activities in the first three months of 2025 was $89.1 million compared to net cash used in investing activities of $86.8 million in the first three months of 2024. The amount of net cash used in investing activities did not significantly change for the three months ended March 29, 2025, from the three months ended March 30, 2024.
Current wording
Net cash used in investing activities in the first six months of 2025 was $169.3 million compared to net cash used in investing activities of $178.2 million in the first six months of 2024. The amount of net cash used in investing activities did not significantly change for the six months ended June 28, 2025, from the six months ended June 29, 2024.
Previous wording
Net cash provided by financing activities in the first three months of 2025 was $90.8 million compared to net cash used in financing activities of $76.1 million in the first three months of 2024. The change was primarily attributable to payments of term loan facility of $912.3 million for the three months ended March 30 2024, partially offset by the lower proceeds from commercial paper of $787.3 million (net of payments) and higher share repurchase of $25.5 million.
Current wording
Net cash used in financing activities in the first six months of 2025 was $205.1 million compared to net cash used in financing activities of $381.5 million in the first six months of 2024. The change was primarily attributable to prior year payments of term loan facility of $912.3 million; higher net proceeds from the Senior Credit Facility of $92.4 million and lower share repurchase of $19.7 million, partially offset by the lower net proceeds from commercial paper of $847.3 million (year to date net repayment of $144.5 million in 2025 as compared to net proceeds of $702.8 million in 2024, year to date).
Previous wording
As of March 29, 2025, the Company had cash of $702.5 million, of which $458.8 million was in the United States and $243.7 million was in foreign countries. The Company plans to permanently reinvest the cash held outside the United States. The Company believes that its cash and cash equivalents on hand, cash generated from operations and availability under its existing credit facilities will be sufficient to meet its capital expenditure, working capital and debt servicing requirements over at least the next twelve months. The Company continually evaluates its projected needs and may conduct additional debt financings, subject to market conditions, to increase its liquidity and to take advantage of attractive financing opportunities.
Current wording
As of June 28, 2025, the Company had cash of $546.7 million, of which $295.4 million was in the United States and $251.3 million was in foreign countries. The Company plans to permanently reinvest the cash held outside the United States. The Company believes that its cash and cash equivalents on hand, cash generated from operations and availability under its existing credit facilities will be sufficient to meet its capital expenditure, working capital and debt servicing requirements over at least the next twelve months. The Company continually evaluates its projected needs and may conduct additional debt financings, subject to market conditions, to increase its liquidity and to take advantage of attractive financing opportunities.
Previous wording
On February 10, 2022, the Company’s Board of Directors approved a new share repurchase program, authorizing the Company to repurchase up to $500 million of its common stock (the “2022 Share Repurchase Program”). As of March 29, 2025, there remained $42.3 million authorized under the 2022 Share Repurchase Program.
Current wording
On July 24, 2025, the Company’s Board of Directors approved a new share repurchase program, authorizing the Company to repurchase up to $500 million of its common stock (the “2025 Share Repurchase Program”). For the three months ended June 28, 2025, the Company purchased $42.1 million of its common stock under its existing share repurchase program announced in February 2022 (the “2022 Share Repurchase Program”). As of June 28, 2025, there remained $0.2 million authorized under the 2022 Share Repurchase Program.
Rearranged current paragraphs (3)
Current report — wording carried from elsewhere
Interest expense was $5.2 million for the three months ended June 28, 2025, compared to interest expense of $12.6 million for the three months ended June 29, 2024. The change was primarily attributable to strong cash flow, resulting in lower debt.
Current report — wording carried from elsewhere
For the three months ended June 28, 2025, the Company recorded income tax expense of $34.0 million on earnings before income taxes of $180.5 million, for an effective tax rate of 18.8%. For the three months ended June 29, 2024, the Company recorded income tax expense of $42.3 million on earnings before income taxes of $199.8 million, for an effective tax rate of 21.2%. The decrease in the effective tax rate was primarily driven by the Company’s geographic dispersion of profits and losses for the respective periods and a prior period Italian tax benefit granted during the three months ended June 28, 2025, partially offset by a larger increase in unrecognized tax benefits during the three months ended June 28, 2025.
Current report — wording carried from elsewhere
Selling, general and administrative expenses for the six months ended June 28, 2025, were $1,012.9 million compared to $1,012.7 million for the six months ended June 29, 2024. Selling, general and administrative expenses did not significantly change as a percentage of net sales for the six months ended June 28, 2025, compared to the six months ended June 29, 2024.