MillerKnoll (MLKN) investor relations material

Executive summary

• Net sales rose 10.9% year-over-year to $955.7 million, with organic growth of 10.0% and strong profitability gains; adjusted EPS increased 25% to $0.45.

• Orders declined 5.4% year-over-year, mainly due to a significant order pull-forward in the prior quarter in North America Contract.

• Leadership changes included a new Board Chair, promotion of Jeff Stutz to COO, and Kevin Veltman as Interim CFO.

• Focus remains on accelerated product innovation, execution, and cost management while investing for growth.

• Operating margin improved to 5.6% from 1.8% year-over-year; adjusted operating margin rose to 6.3%.

Financial highlights

• Gross margin was 38.5%, down 50 basis points year-over-year, impacted by $8 million in net tariff-related costs.

• Adjusted operating expenses were $308.0 million, or 32.2% of sales.

• Net earnings attributable to shareholders were $20.2 million, compared to a loss of $1.2 million a year ago.

• Cash and cash equivalents at quarter-end were $167.2 million, with total liquidity of $480.5 million.

• Cash flow from operations was $9.4 million for the quarter.

Outlook and guidance

• Q2 FY2026 net sales expected between $926 million and $966 million; adjusted EPS guidance is $0.38–$0.44.

• Gross margin guidance: 37.6%–38.6%; adjusted operating expenses forecasted at $300–$310 million.

• Full-year capital expenditures projected at $120–$130 million.

• Guidance includes $2–$4 million in incremental tariff costs and costs for four new retail store openings.

• Management believes current liquidity and cash flow are sufficient to fund operations, capital needs, debt maturities, dividends, and share repurchases.