Adjusted EPS Growth
Adjusted EPS of $1.90 in Q1 2026, up approximately 25% versus the prior year.
Revenue
Net sales of approximately $2.7 billion in Q1, up 8% as reported and down 2.6% on a constant-currency basis.
Margin Expansion
Adjusted gross margin of 24.8% (23.5% reported), up ~70 basis points year-over-year; adjusted operating margin improved to 5.5% of sales (adjusted operating income $149 million), up 70 basis points versus prior year.
Segment Profitability Improvements
Global Ceramic adjusted operating income $55M (5.0% of sales, +20 bps); Flooring North America adjusted operating income $35M (4.0% of sales, +100 bps); Flooring Western World adjusted operating income $74M (9.8% of sales, +70 bps).
Productivity and Restructuring Benefits
Q1 benefits from productivity, restructuring and mix (various disclosures: productivity/res savings noted >$200M last year and additional $50–60M planned this year; quarter-level benefits cited in aggregate as tens of millions) materially offsetting some inflation in Q1.
Share Repurchase
Repurchased 607 thousand shares for $64 million during the quarter under the current buyback authorization.
Strong Balance Sheet
Cash and cash equivalents of $872 million, net debt ~$1.2 billion and net debt to EBITDA ratio of 0.9x, providing financial flexibility.
CapEx and Investment Plans
Quarterly CapEx of $102 million; full-year 2026 CapEx guidance of roughly $480 million focused on cost reduction, product innovation and maintenance.
Commercial End-Market Strength and New Products
Commercial channels continue to outperform residential globally; new premium collections, product innovations (e.g., allergen-certified carpets, LVT and premium ceramics) improving mix and pricing power.
Guidance
Q2 adjusted EPS guidance of $2.50–$2.60 (excl. restructuring/one-time charges); full-year tax rate guidance of 19–20%.