MillerKnoll Inc. Reports Second Quarter Results for Fiscal Year

December 18, 2025  by Karen Parrish in Business Strategy, Industry   

Second Quarter

- Net sales of $955.2 million, down 1.6% as reported and down 2.5% organically, year-over-year

- Orders of $972.5 million, up 5.5% as reported and up 4.5% organically, year-over-year, driven by growth in every segment

- Gross margin increased 20 basis points

- Consolidated operating expenses increased to $323.7 million

- Consolidated adjusted operating expenses increased to $316.3 million, driven primarily by higher compensation expense and higher costs related to new stores

- Operating expense special charges of $7.4 million:

- $1.4 million of restructuring charges related to a facility consolidation

- $6.0 million of purchase accounting amortization

- Operating margin of 5.1%, compared to 6.4% in the prior year

- Adjusted operating margin of 5.9%, compared to 7.1% in the prior year

Second Quarter 2026 Cash Flow, Debt, and Liquidity

- Liquidity, as of November 29, 2025, of $548.3 million reflected cash on hand and Revolving Credit Facility availability

- Cash flow from operations of $64.6 million, compared to $55.3 million in Q2 last year

- Net debt-to-EBITDA ratio, as defined by our Credit Facility, of 2.87x

- Near term scheduled debt maturities:

- $10.3 million in fiscal 2026

- $23.3 million in fiscal 2027

- $25.8 million in fiscal 2028

"Our second quarter results reflect the disciplined execution of our strategic priorities and the strength of MillerKnoll's brand collective. We delivered sales and earnings per share that exceeded expectations. Consolidated orders grew 5.5% with strength in every segment, including record performance from our Global Retail business during the Black Friday / Cyber Monday period. As industry trends continue to improve, we are well positioned to build on this momentum and drive long-term value for our customers and shareholders through ongoing innovation and operational excellence," said Andi Owen, President and Chief Executive Officer. 

Third Quarter 2026 Outlook

The table below presents our expectations for the third quarter of fiscal 2026 financial operating results:

Net sales – $923 million to $963 million
Gross margin % — 37.9% to 38.9%
Adjusted operating expenses — $300 million to $310 million
Interest and other expense, net — $16.3 million to $17.3 million
Adjusted effective tax rate — 20.5% to 22.5%
Adjusted earnings per share – diluted — $0.42 to $0.48

— Above guidance ranges include the following estimated impacts to incremental operating expense in Q3:

- $5 million to $6 million in costs associated with new store investments expected in the second half of fiscal 2026, including two to three new store openings in Q3

- Higher year-over-year variable selling and incentive expense

— Based on tariffs in place as of the date of this release, we expect incremental tariff costs in Q3 to be offset by previously announced pricing actions

— Our guidance takes into consideration the typical seasonal softness in our Contract businesses as the calendar year comes to a close and by the timing of the Chinese New Year holiday

Webcast and Conference Call Information

An online archive of the webcast will also be available on the Company's investor relations website. Additional links to materials supporting the release will be available at https://www.millerknoll.com/investor-relations.

To view the full release, click here.