MillerKnoll (MLKN) Q4 2024 earnings summary

Executive summary

• Q4 FY24 net sales were $888.9 million, down 7.1% year-over-year, while organic orders increased 2.9% and sequential orders grew 12.4%.

• Adjusted gross margin improved by 260 basis points year-over-year to 39.6%, driven by price optimization and operational efficiencies.

• Adjusted EPS for Q4 FY24 was $0.67, up from $0.41 in Q4 FY23; full year adjusted EPS was $2.08, up 12.4% year-over-year.

• Achieved $160 million in annualized run-rate cost synergies from Knoll integration, exceeding targets.

• Ended Q4 with $552.7 million in liquidity and a net debt-to-EBITDA ratio of 2.63x.

Financial highlights

• Q4 net sales were $888.9 million, down 7.1% year-over-year; full year net sales were $3.6 billion.

• Q4 adjusted operating margin was 8.3%, up from 6.0% in Q4 FY23.

• Q4 cash flow from operations was $78 million; free cash flow for FY24 was $78 million.

• Q4 adjusted diluted EPS was $0.67, exceeding guidance midpoint.

• Net debt to EBITDA ratio at 2.63x at fiscal year-end.

Outlook and guidance

• Fiscal 2025 net sales expected to exceed FY24, with adjusted EPS guidance of $2.10–$2.30.

• Q1 FY25 net sales expected between $872–$912 million; adjusted EPS between $0.38–$0.44.

• Gross margin for Q1 FY25 projected at 39.0%–40.0%.

• Modest margin expansion anticipated in FY25, driven by retail growth and improved unit volume efficiency.