MillerKnoll (MLKN) Q2 2026 earnings summary

Executive summary

• Q2 FY2026 net sales were $955.2 million, down 1.6% year-over-year, while orders increased 5.5% to $972.5 million; organic sales declined 2.5% and organic orders rose 4.5%.

• Adjusted EPS for Q2 FY2026 was $0.43, down 21.8% year-over-year; reported EPS was $0.35, down from $0.49 last year.

• Gross margin improved by 20 basis points to 39.0%, driven by favorable product/channel mix and price increases.

• Operating margin was 5.1%, down from 6.4% last year; adjusted operating margin was 5.9%.

• Order growth was solid in every segment, with notable momentum in retail and contract businesses.

Financial highlights

• Six-month net sales were $1,910.9 million, up 4.3% year-over-year; net earnings attributable to shareholders were $44.4 million, up 35%.

• Adjusted EBITDA for FY25 was $359.8 million, down from $381.3 million in FY24.

• Free cash flow for FY25 was $101.7 million, a decrease from $273.9 million in FY24.

• Cash at Q2 FY26 was $180 million; long-term debt stood at $1,321 million; liquidity at quarter-end was $548.3 million.

• Net debt-to-EBITDA ratio at 2.87x, below lending covenant limits.

Outlook and guidance

• Q3 FY2026 net sales expected between $923 million and $963 million, with gross margin guidance of 37.9% to 38.9%.

• Adjusted diluted EPS for Q3 expected between $0.42 and $0.48.

• Full-year capital expenditures projected at $120 million–$130 million, focused on facilities and sustainability.

• Guidance reflects seasonal softness in contract business and Chinese New Year timing.

• Proactive pricing and tariff mitigation expected to offset tariff impacts in the second half.