MillerKnoll (MLKN) Q1 2025 earnings summary

Executive summary

• Entered fiscal 2025 with momentum as orders increased 2.4% year-over-year (3.5% organically), led by Americas Contract and International Contract & Specialty segments.

• Net sales for Q1 FY25 declined 6.1% year-over-year to $861.5M; organic sales down 5.3%.

• Gross margin held steady at 39.0%, supported by pricing actions and product mix; adjusted operating margin was 5.8%.

• Adjusted diluted EPS was $0.36, down 2.7% from last year; reported diluted loss per share was $(0.02).

• Backlog increased 9.2% year-over-year to $758.0M, up 10.9% since fiscal year start.

Financial highlights

• Consolidated orders reached $936M, up 2.4% year-over-year (3.5% organically).

• Operating earnings fell 62.3% to $15.2M; net loss attributable to MillerKnoll was $1.2M.

• Cash flow from operations was $21.1M; $43.7M spent on share repurchases.

• Cash and cash equivalents at quarter-end were $209.7M; total liquidity was $488.4M.

• Net debt to EBITDA ratio at 2.84x at quarter end.

Outlook and guidance

• Maintaining full-year adjusted EPS guidance of $2.20, supported by order growth and backlog.

• Q2 FY25 net sales expected between $950M and $990M; adjusted diluted EPS between $0.51 and $0.57.

• Shift in retail promotional period will move $17M–$23M of revenue from Q2 to Q3.

• Full-year capital expenditures projected at $100M–$125M.

• Company believes current liquidity and cash flow are sufficient for near-term operations and capital needs.