MillerKnoll (MLKN) Q1 FY2027 Earnings Call: Margin Gains, Sales Outlook Reduced
Source Tradingkey
Key Takeaways
- MillerKnoll reported Q1 FY2027 net sales of $923 million, down 3.4% year over year, while orders increased 3.2% to $914 million.
- Adjusted diluted EPS was $0.53. Excluding an $0.11-per-share net benefit from IEPA tariff refunds, adjusted EPS was $0.42.
- Adjusted gross margin reached 41.8%. Excluding tariff refunds, it improved 150 basis points year over year, supported by pricing and cost management.
- International Contract orders rose 17.3%, while Global Retail orders increased 4.3%. North America Contract orders declined 1.7% amid slower project conversion and weakness in government and healthcare.
- Management reduced its FY2027 sales outlook to $3.88 billion-$4.03 billion but maintained adjusted EPS guidance of $1.85-$2.15.
- Management said orders increased 9% year over year during the first three weeks of September, with growth across all three segments.
Core Financial Data
| Metric | Q1 FY2027 result | Change / context |
|---|---|---|
| Consolidated net sales | $923 million | Down 3.4% reported; down 3.3% organically |
| Consolidated orders | $914 million | Up 3.2% reported; up 3.5% organically |
| Backlog | $669 million | Down 3.1% year over year |
| Reported gross margin | 41.7% | Up 320 basis points year over year |
| Adjusted gross margin | 41.8% | Up 150 basis points excluding tariff refunds |
| Adjusted diluted EPS | $0.53 | $0.42 excluding the $0.11 net tariff-refund benefit |
| Operating cash flow | $49 million | Capital expenditures were $33 million |
| Available liquidity | $580 million | Quarter-end balance |
| Net debt to EBITDA | 2.75x | As defined by the lending agreement |
Disclaimer: For information purposes only. Past performance is not indicative of future results.
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