MillerKnoll (MLKN) Q2 2025 earnings summary

Executive summary

• Q2 FY2025 net sales rose 2.2% year-over-year to $970.4 million, with organic growth of 2.4%; orders declined 2.3% as reported and 1.9% organically, driven by timing shifts in retail promotions.

• Adjusted EPS for Q2 FY2025 was $0.55, down from $0.59 last year; reported EPS was $0.49, up from $0.45.

• Americas Contract segment led growth with net sales up 5.9% (6.2% organic) and orders up 4.4%; Global Retail sales declined 5.3% due to promotional timing.

• Returned $93.1 million to shareholders via dividends and share repurchases in the first half of FY2025.

• Cash flow from operations in Q2 was $55.3 million; liquidity at quarter-end was $470.4 million.

Financial highlights

• Q2 consolidated net sales: $970.4 million, up 2.2% year-over-year (2.4% organic); Q2 consolidated orders: $921.9 million, down 2.3% reported and 1.9% organic.

• Gross margin: 38.8%, slightly down from 39.2% last year due to product and channel mix.

• Adjusted operating margin: 7.1%, down from 7.9% year-over-year; operating margin: 6.4% (flat year-over-year).

• Net earnings attributable to MillerKnoll: $34.1 million, up 1.8% year-over-year.

• Net debt-to-EBITDA ratio stood at 2.94x at quarter-end.

Outlook and guidance

• Q3 FY2025 net sales expected between $903 million and $943 million; adjusted EPS guidance of $0.41–$0.47.

• Full-year FY2025 adjusted EPS guidance narrowed to $2.11–$2.17, reflecting slower macro improvements and lower orders in H1.

• Guidance reflects $12 million in Global Retail net sales and $27 million in orders shifting from Q2 to Q3 due to holiday promotional timing.

• Full-year sales and EPS still expected to grow over FY2024.

• Expectation of improved demand in H2 FY2025, supported by internal and external leading indicators.