MillerKnoll (MLKN) Q3 2025 earnings summary

Executive summary

• Q3 FY25 net sales were $876.2M, up 0.4% year-over-year (1.8% organic), with strong Global Retail order growth and resilience from a diversified business model.

• Adjusted EPS was $0.44, nearly flat year-over-year; reported loss per share was $(0.19) due to $130M in non-cash impairment charges.

• Segment reorganization realigned reporting into North America Contract, International Contract, and Global Retail.

• Proactive cost controls and restructuring actions were taken amid macroeconomic and tariff-related headwinds.

• The company operates 15 global brands across the three segments.

Financial highlights

• Q3 consolidated net sales were $876.2M (+0.4% YoY, +1.8% organic); Q3 orders were $853.1M (+2.7% YoY, +4.1% organic).

• Q3 gross margin was 37.9%, down 70 bps year-over-year due to unfavorable mix and higher commodity costs.

• Q3 operating loss was $(82.2)M, driven by $130M in impairment charges; adjusted operating margin was 6.6%.

• Cash flow from operations was $62.1M in Q3; cash at quarter-end was $169.8M; available liquidity $468.2M.

• Net debt-to-EBITDA ratio at quarter end was 2.93x.

Outlook and guidance

• Q4 FY25 net sales expected at $910M–$950M; adjusted diluted EPS $0.46–$0.52; gross margin 37.5%–38.5%.

• Full-year FY25 net sales guidance: $3.62B–$3.66B; adjusted diluted EPS $1.81–$1.87; gross margin 38.3%–38.6%.

• Tariff-related costs in Q4 estimated at $5M–$7M pre-tax, impacting EPS by $0.05–$0.07.

• Guidance reflects prudence amid ongoing macroeconomic, trade policy, and integration uncertainty.

• Full-year capital expenditures expected at $80M–$100M.