Company Overview - MillerKnoll, Inc. is a growth-oriented small-cap value company operating in the industrial and consumer sectors, formed from the merger of two modern design icons, Herman Miller and Knoll [5] - The company offers a diverse portfolio of furniture and accessories for both commercial and residential spaces, including brands like Colebrook Bosson Saunders, DatesWeiser, DWR, Edelman, Geiger, HAY, HOLLY HUNT, Knoll Textiles, Maharam, Muuto, NaughtOne, and Spinneybeck | FilzFelt [5] - In fiscal year 2025, MillerKnoll generated net sales of $3.7 billion [5] Upcoming Financial Results - MillerKnoll will release its first quarter fiscal 2026 results on September 23, 2025, after market close [1] - A conference call and webcast to discuss the financial and operational results will take place at 5:00 p.m. Eastern time on the same day [1][3] - Investors can access the press release and supporting materials on the company's investor relations website [2]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 __________________________________________ FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended May 31, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 MillerKnoll, Inc. (Exact name of registrant as specified in its charter) __________________________________________ (State or other jurisdiction of incorpor ...

Financial Performance & Guidance - FY25 revenue reached $3.7 billion[10] - FY25 Adjusted EPS was $1.95[45] - FY25 Adjusted EBITDA was $360 million[45] - Q4 FY25 net sales increased by 8.2% and orders increased by 11.1% year-over-year[59] - Q1 FY26 revenue is projected to be between $899 million and $939 million[66] - Q1 FY26 Adjusted Earnings Per Share is guided to be $0.32 to $0.38[66] Cash Flow & Debt - FY25 Cash Flow from Operations was $209 million[47] - FY25 Free Cash Flow was $102 million[48] - Q4 FY25 cash balance was $194 million[52] - Q4 FY25 long-term debt was $1.311 billion[52] - Q4 FY25 Net Debt to EBITDA Ratio was 2.88x[52] Business Segments - North America Contract represented 54% of FY25 revenue[10] - Global Retail accounted for 28% of FY25 revenue[10] - International Contract contributed 18% to FY25 revenue[10]

Financial Data and Key Metrics Changes - The company reported adjusted earnings of $0.60 per share for Q4, significantly outperforming guidance, with consolidated net sales of $962 million, up 8.2% year-over-year [20][21] - Consolidated backlog increased by $78 million to $761 million, driven by improved demand [21] - Consolidated gross margin was 39.2%, slightly down from last year but up 130 basis points sequentially [21][22] Business Line Data and Key Metrics Changes - In the North America contract segment, net sales were $496 million, up nearly 13% year-over-year, with new orders at $568 million, reflecting growth of almost 16% [23] - The international contract segment saw net sales of $186 million, up 6.9% year-over-year, with new orders increasing by 3.6% [24] - The global retail segment reported net sales of $280 million, up 2.2% year-over-year, with new orders improving to $280 million, up 7.5% [25][26] Market Data and Key Metrics Changes - The North American contract market experienced a return to order growth in Q4 after a previous decline due to tariffs [14] - Strength was noted in European and UK markets, with significant customer engagement during design events [15] - Office leasing activity is rising, with a 68% increase in days in the office among Fortune 100 companies since 2022 [16] Company Strategy and Development Direction - The company is focused on expanding its retail footprint, planning to open 10 to 15 new stores in fiscal 2026 [10][11] - Investment in product assortment expansion and e-commerce penetration is a key growth lever [11][12] - The company aims to balance long-term growth with prudent cost management and innovation [18] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the macroeconomic environment, noting a dynamic landscape [14][17] - The company anticipates a return to growth in contract business as the industry recovers [17] - Future guidance for Q1 fiscal 2026 includes expected net sales between $899 million and $939 million, reflecting a 6.7% increase year-over-year [29] Other Important Information - The company paid approximately $52 million in dividends and returned about $85 million to shareholders through share repurchases in fiscal 2025 [27] - Capital expenditures for fiscal 2025 were $107.6 million, with expectations to increase to between $120 million and $130 million in fiscal 2026 [27] Q&A Session Summary Question: Insights on pull forward effect from pricing actions - Management noted a mid-single-digit decline in order entry year-over-year in the early part of the current quarter, aligning with expectations due to pull forward [34][35] Question: Confidence in retail store openings amid softer demand - Management expressed confidence in retail expansion, citing a need in the market and a strategy to open stores prudently [36][37] Question: Clarification on North American pull forward estimates - Management confirmed the estimated pull forward of $55 million to $60 million for the consolidated enterprise, with no significant pull ahead in international markets [48][49] Question: Profitability outlook amid tariffs and pull forward - Management indicated that the impact from pull forward and tariffs would likely affect Q1 and Q2, with expectations for recovery in Q3 and Q4 [55][56] Question: Balance sheet and cash flow considerations - Management highlighted a focus on managing debt levels and capital expenditures for store build-outs while maintaining a strong balance sheet [58]

Financial Data and Key Metrics Changes - In Q4 2025, the company generated adjusted earnings of $0.60 per share, significantly outperforming guidance, with consolidated net sales of $962 million, up 8.2% year over year [22][23] - Consolidated backlog increased by $78 million to $761 million, driven by improved demand [23] - Consolidated gross margin was 39.2%, slightly down from last year but up 130 basis points sequentially [23][24] Business Line Data and Key Metrics Changes - North America contract segment net sales were $496 million, up nearly 13% year over year, with new orders at $568 million, reflecting growth of almost 16% [25] - International contract segment net sales improved to $186 million, up 6.9% year over year, with new orders at $190 million, a 3.6% increase [26] - Global retail segment net sales were $280 million, up 2.2% on a reported basis, with new orders improving to $280 million, up 7.5% [27][28] Market Data and Key Metrics Changes - The company noted a return to order growth in the North American contract segment in Q4 after a dip due to tariffs [15][16] - Strength was observed in European and UK markets, with significant customer engagement during design events [17] - Office leasing activity is rising, with a 68% increase in days in the office among Fortune 100 companies since 2022 [18] Company Strategy and Development Direction - The company is focused on expanding its retail footprint, planning to open 10 to 15 new stores in fiscal 2026 [12][13] - Investment in product assortment expansion and e-commerce penetration is a priority to drive revenue growth [13][14] - The company aims to balance long-term growth with prudent cost management and innovation [20] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the macroeconomic environment, noting a dynamic landscape with potential for growth in contract markets [15][19] - The company anticipates that pricing actions will offset tariff-related cost impacts in the latter half of fiscal 2026 [30][31] - Management highlighted strong internal indicators for growth, including increased customer activity and order trends [19][57] Other Important Information - The company paid approximately $52 million in dividends and returned about $85 million to shareholders through share repurchases in fiscal 2025 [29] - Capital expenditures for fiscal 2025 were $107.6 million, with expectations to increase to between $120 million and $130 million in fiscal 2026 [29] Q&A Session Summary Question: Insights on pull forward effect from pricing actions - Management noted a mid-single-digit decline in order entry year over year in early Q1, aligning with expectations due to pull forward [35][37] Question: Confidence in retail store openings amid softer demand - Management expressed confidence in retail expansion, citing a need in the market and a strategy to open stores prudently [38][39] Question: Clarification on North American pull forward estimates - Management confirmed an estimated pull forward of $55 million to $60 million, with significant orders expected in Q1 and Q2 [51][59] Question: Profitability impact from pull forward and tariffs - Management indicated that the impact from pull forward would be most significant in Q1, with a gradual decrease in Q2 [58][59] Question: Balance sheet and cash flow considerations - Management highlighted a focus on managing debt levels while increasing capital expenditures for store openings [61]

Financial Performance - Net sales for Q4 2025 reached $961.8 million, an increase of 8.2% year-over-year, with organic growth of 7.8%[6] - Orders for Q4 2025 totaled $1,036.8 million, up 11.1% as reported and 10.7% organically compared to the previous year[6] - Full year net sales amounted to $3.67 billion, reflecting a 1.1% increase year-over-year, with an organic growth of 1.6%[6] - Total net sales for the three months ended May 31, 2025, were $961.8 million, a 8.2% increase from $888.9 million for the same period last year[34] - The North America Contract segment reported net sales of $496.1 million for the three months ended May 31, 2025, a 12.5% increase from $441.1 million in the same period last year[34] - The International Contract segment achieved net sales of $185.7 million, a 6.5% increase from $173.7 million year-over-year[34] - The Global Retail segment's net sales were $280.0 million, slightly up from $274.1 million in the prior year[34] - Organic sales growth in North America for the three months ended May 31, 2025, was 12.6%, while international contract sales grew by 5.5%[39] Profitability and Margins - The operating margin for Q4 2025 improved to 5.7%, compared to 2.7% in the prior year, while the adjusted operating margin was 7.5%, down from 8.3%[6] - Gross margin for the same period was $376.9 million, representing a gross margin percentage of 39.2%, compared to 39.6% in the prior year[34] - Operating earnings for the three months ended May 31, 2025, were $55.0 million, or 5.7% of net sales, up from $23.7 million, or 2.7% of net sales, in the same period last year[34] - Adjusted operating earnings for the twelve months ended May 31, 2025, were $248.7 million, or 6.8% of net sales, compared to $262.2 million, or 7.2% of net sales, in the prior year[35] - The gross margin for the three months ended May 31, 2025, was $376.9 million, representing a margin of 39.2%, compared to $352.4 million and 39.6% for the same period last year[37] - Operating expenses for the three months ended May 31, 2025, were $321.9 million, or 33.5% of sales, compared to $328.7 million and 37.0% last year, with adjusted operating expenses at $305.0 million[38] Losses and Charges - The company reported a net loss of $56.2 million for Q4 2025, resulting in a diluted loss per share of $0.84[17] - Special charges of $16.9 million were recorded in Q4 2025, primarily due to restructuring and purchase accounting amortization[6] - The diluted loss earnings per share for the three months ended May 31, 2025, was $(0.84), compared to $0.14 for the same period last year, while the adjusted earnings per share was $0.60, down from $0.67[36] - The company incurred restructuring charges of $10.6 million for the three months ended May 31, 2025, compared to $22.1 million in the same period last year[38] Liquidity and Debt - Liquidity as of May 31, 2025, was $575.9 million, including cash on hand and available credit[6] - The net debt-to-EBITDA ratio was reported at 2.88x, with scheduled debt maturities of $16.0 million in fiscal 2026[11] - Total current assets increased to $1,108.7 million as of May 31, 2025, compared to $1,069.6 million a year earlier[20] - Total liabilities rose to $2,615.1 million as of May 31, 2025, compared to $2,584.6 million in the previous year[20] - Stockholders' equity decreased to $1,275.8 million from $1,385.1 million year-over-year[20] - The total debt, less cash, at the end of the trailing period was $1,142.2 million[38] - The adjusted bank covenant EBITDA for the twelve months ended May 31, 2025, was $396.4 million, with a net debt to adjusted bank covenant EBITDA ratio of 2.88[38] Future Outlook - The company plans to open three new retail stores in Q1 FY2026, which will impact operating expenses[16] - The first quarter FY2026 outlook projects net sales between $899 million and $939 million, with an adjusted effective tax rate of 21.5% to 23.5%[13] - The company reported a backlog of $761.3 million as of Q4 FY2025, indicating strong future demand[44] Risks and Challenges - Risks associated with the Knoll acquisition include potential difficulties in retaining key personnel and maintaining customer relationships[47] - Economic factors such as supply chain challenges and tariff changes could materially impact MillerKnoll's operations and financial results[47] - The success of newly-introduced products will be critical for MillerKnoll's future performance[47] - MillerKnoll's ability to comply with debt covenants post-acquisition is a key concern[47] - The company faces risks from public health crises, which could affect its operational results[47] - Fluctuations in foreign currency exchange rates may impact financial performance[47] - The financial strength of dealers and customers is essential for MillerKnoll's business stability[47] - MillerKnoll does not commit to updating forward-looking statements unless legally required[47] Brand and Acquisition - MillerKnoll's brand portfolio includes notable names such as Herman Miller and Knoll, focusing on sustainable design for the 21st century[46] - The company anticipates significant synergies from the Knoll acquisition, although the exact amount and timing remain uncertain[47]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 __________________________________________ FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 1, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-15141 __________________________________________ MillerKnoll, Inc. (Exact name of reg ...

Core Insights - MillerKnoll, Inc. reported third-quarter fiscal 2025 results with adjusted earnings meeting consensus estimates but declining year over year, while net sales missed consensus but grew slightly year over year [1][4] Financial Performance - Adjusted earnings were 44 cents per share, down 2.2% from 45 cents year over year [4] - Net sales reached $876.2 million, missing the consensus estimate of $922 million by 5%, but increased by 0.4% year over year [4] - Organic net sales grew by 1.8% year over year, with orders amounting to $853.1 million, up 2.7% reported and 4.1% organically [4] Segment Performance - North America Contract segment saw net sales grow by 1.4% reported and 1.7% organically to $468.2 million, with new orders down 1.8% year over year [5] - International Contract segment experienced a 5% decline in net sales to $145.5 million, with new orders down 1.6% reported but up 1.4% organically [6] - Global Retail segment's net sales increased by 1.9% reported and 3.9% organically to $262.5 million, with new orders up 14.7% reported and 16.9% organically [7] Operating Metrics - Gross margin declined by 70 basis points year over year to 37.9% due to unfavorable channel and product mix, lower fixed cost leverage, and higher commodity costs [9] - Adjusted operating expenses decreased by 1.6% year over year to $274.4 million, attributed to lower incentive compensation and cost control [10] Liquidity and Debt - As of March 1, 2025, the company had $468.2 million in liquidity, with cash and equivalents at $169.8 million, down from $230.4 million at the end of fiscal 2024 [11] - Long-term debt slightly decreased to $1.28 billion from $1.29 billion reported at the end of fiscal 2024 [11] Future Guidance - For fiscal Q4, net sales are expected to range from $910 million to $950 million, with adjusted EPS projected between 46 to 52 cents [13] - For fiscal 2025, net sales are anticipated to be between $3.618 billion and $3.658 billion, with adjusted EPS expected to be between $1.81 and $1.87, down from earlier estimates [15]

Financial Data and Key Metrics Changes - Consolidated net sales for the third quarter were $876 million, an increase from the previous year, with a slight organic growth of 1.8% [34] - Consolidated orders were $853 million, up 2.7% as reported and 4.1% organically [34] - Consolidated gross margin was 37.9%, down 70 basis points from the previous year [35] - Reported loss per share was $0.19, compared to diluted earnings per share of $0.30 in the prior year [35] - Adjusted earnings per share were $0.44, consistent with the midpoint of guidance [33][37] Business Line Data and Key Metrics Changes - North America Contract segment net sales were $468 million, up 1.4% reported and 1.7% organically [42] - New orders in North America Contract were $434 million, reflecting a 1.8% reported decrease [42] - International Contract segment net sales were $146 million, down 5% reported and 1.5% organically [44] - Retail segment net sales were $263 million, up 1.9% reported and 3.9% organically, with new orders up 14.7% reported and almost 17% organically [46] Market Data and Key Metrics Changes - Retail demand in North America saw a significant increase, with cyber-adjusted orders up 14% [17] - Orders in the first three weeks of March were up 10% year-over-year in the retail segment [47] - International Contract orders in the first three weeks of March trended up 2% compared to last year [45] Company Strategy and Development Direction - The company has re-segmented its operations into North America Contract, International Contract, and Global Retail to align better with long-term strategies [12][15] - The focus is on expanding the product assortment and increasing store footprint, with plans to open 10 to 15 new locations in fiscal 2026 [23][24] - A 4.5% list price increase is planned to mitigate tariff-related costs and other inflationary pressures [28][108] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the demand in the retail segment despite macroeconomic uncertainties [10][30] - The company is focused on maintaining cost control while investing in growth opportunities [30][31] - Management acknowledged the impact of tariffs and macroeconomic factors on sales and order pacing, emphasizing a prudent outlook for the fourth quarter [50][98] Other Important Information - The company reported a consolidated backlog of $686 million, up 7.4% from a year ago [34] - Special charges related to intangible amortization, impairment, and restructuring totaled $140 million, impacting the reported loss [36] Q&A Session Summary Question: About the impairment charges in global retail - Management explained that impairment charges were due to lagging profitability relative to internal expectations and the need for a full review following the re-segmentation of the business [59] Question: On new store locations and their distribution - Management confirmed that new store openings would be evenly distributed throughout the fiscal year [62] Question: Regarding tariffs and future offsetting strategies - Management indicated that while the tariff situation is fluid, they believe they can offset costs through pricing and other mitigation efforts [66] Question: On revenue guidance and backlog - Management acknowledged the cautious revenue guidance due to macroeconomic uncertainties, despite a positive backlog and order growth [72][98] Question: On pipeline activity metrics in North America - Management reported that leading indicators remain strong, with a year-over-year increase in awarded projects and contract activations [81] Question: Demand from consumers in the direct-to-consumer business - Management noted strong demand in the direct-to-consumer segment, with new product assortments contributing positively [88] Question: On restructuring goals and cost reductions - Management clarified that restructuring actions were aimed at aligning the cost structure with current demand, expecting annualized savings of approximately $4 million [115]

Financial Data and Key Metrics Changes - Consolidated net sales for the third quarter were $876 million, an increase from the previous year, with a slight organic growth of 1.8% [34] - Consolidated orders were $853 million, up 2.7% as reported and 4.1% organically [34] - Consolidated gross margin was 37.9%, down 70 basis points from the previous year [35] - The company reported a loss per share of $0.19 for the quarter, compared to diluted earnings per share of $0.30 in the prior year [35][36] - Adjusted earnings per share were $0.44, consistent with the midpoint of guidance [33][37] Business Line Data and Key Metrics Changes - **North America Contract Segment**: Net sales were $468 million, up 1.4% reported and 1.7% organically; new orders were $434 million, reflecting a 1.8% reported decrease [42] - **International Contract Segment**: Net sales were $146 million, down 5% reported and 1.5% organically; new orders were $159 million, a 1.6% decline reported but a 1.4% increase organically [44] - **Global Retail Segment**: Net sales were $263 million, up 1.9% reported and 3.9% organically; new orders were $260 million, up 14.7% reported and almost 17% organically [46] Market Data and Key Metrics Changes - Retail demand in North America saw a significant increase, with cyber-adjusted orders up 14% [17] - Orders in the first three weeks of March were up 10% year-over-year in the retail segment [47] - International contract orders in the first three weeks of March trended up 2% compared to last year [45] Company Strategy and Development Direction - The company has re-segmented its operations into North America Contract, International Contract, and Global Retail to better align with long-term strategies [12][15] - The focus remains on expanding the product assortment and store footprint, with plans to open 10 to 15 new locations in fiscal 2026 [23][24] - The company is navigating tariff-related uncertainties by implementing a 4.5% list price increase effective June 2nd [28] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the demand in the retail segment despite macroeconomic uncertainties [10][30] - The company remains focused on long-term strategies and growth levers while managing costs [30] - The outlook for the fourth quarter includes expected net sales between $910 million and $950 million, reflecting a 4.6% increase at the midpoint [50] Other Important Information - The company generated $62 million in cash flow from operations and reduced long-term debt by $61 million [39] - The consolidated backlog was $686 million, up 7.4% from a year ago [34] Q&A Session Summary Question: About the impairment charges in global retail - Management explained that impairment charges were due to lagging profitability relative to internal expectations and a re-segmentation of the business [59] Question: On new store locations - The company plans to open new locations evenly throughout the fiscal year, with two additional locations planned for the current quarter [62] Question: Regarding tariffs and future quarters - Management indicated that while the tariff situation is fluid, they believe they can offset costs through pricing and other mitigation efforts [66] Question: On revenue guidance and backlog - Management acknowledged the cautious outlook due to macroeconomic uncertainties, despite a positive start to Q4 and improved order growth [72][98] Question: On restructuring and cost reductions - The restructuring aimed at aligning the cost structure with current demand, with expected annualized savings of approximately $4 million [115]