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.

• 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 drove growth with 5.9% higher sales and 4.4% higher orders; Global Retail sales declined 5.3% due to timing of promotions.

• 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% as reported and 1.9% organically.

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

• Adjusted operating margin for Q2 FY2025 was 7.1%, down from 7.9% last 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 incorporates typical Q3 seasonal softness and the shift in the holiday promotional period, with $12 million in Global Retail net sales moving from Q2 to Q3.

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

• Full-year capital expenditures expected between $100 million and $125 million.