MillerKnoll(US:MLKN)2026-01-05 21:06Financial Performance - Net earnings for the six months ended November 29, 2025, increased to $46.3 million, up from $34.7 million in the same period last year, representing a growth of 33.6%[9] - For the six months ended November 30, 2024, MillerKnoll reported a net loss of $1.2 million, compared to net earnings of $34.1 million for the same period in the previous year[11] - The company reported net earnings of $46.3 million for the six months ended November 29, 2025, compared to $34.7 million for the same period in the previous year, representing a 33.6% increase[9] - For the three months ended November 29, 2025, net earnings attributable to MillerKnoll, Inc. were $24.2 million, compared to $34.1 million for the same period in 2024, representing a decrease of 29.1%[47] Revenue and Sales - Total revenue for the six months ended November 30, 2024, was $1,910.9 million, representing an increase of 4.3% from $1,831.9 million in the prior year[28] - Total net sales for the three months ended November 29, 2025, were $955.2 million, a decrease of 1.3% compared to $970.4 million for the same period in 2024[30] - North America Contract revenue for the six months ended November 30, 2024, was $1,042.4 million, up from $1,000.9 million, reflecting a growth of 4.1%[28] - The North America Contract segment reported net sales of $508.5 million, down 3.3% from $524.7 million in the prior year[93] - The International Contract segment reported net sales of $170.9 million for the three months ended November 29, 2025, compared to $182.4 million in the same period of 2024, a decline of 6.5%[93] - The Global Retail segment achieved net sales of $275.8 million for the three months ended November 29, 2025, an increase from $263.3 million in the prior year, reflecting a growth of 4.8%[93] Assets and Liabilities - Total current assets as of November 29, 2025, were $1,118.4 million, slightly up from $1,108.7 million as of May 31, 2025[8] - Total liabilities decreased to $2,583.6 million as of November 29, 2025, from $2,615.1 million as of May 31, 2025, a reduction of 1.2%[8] - The carrying value of the Company's long-term debt as of November 29, 2025, is $1,350.2 million, with a fair value of $1,295.6 million[52] - The company reported a decrease in accounts receivable, net of allowance, to $325.3 million as of November 29, 2025, from $350.2 million as of May 31, 2025[8] Cash Flow and Expenditures - Cash and cash equivalents decreased to $180.4 million as of November 29, 2025, from $193.7 million at the beginning of the period, a decline of 6.8%[9] - The company reported a net cash provided by operating activities of $74.0 million for the six months ended November 29, 2025, compared to $76.4 million for the same period last year[9] - Capital expenditures for the six months ended November 29, 2025, were $61.3 million, up from $44.9 million in the prior year, indicating a 36.5% increase[9] - Capital expenditures for the total segments were $30.6 million for the three months ended November 29, 2025, compared to $22.3 million for the same period in 2024, an increase of 37.0%[95] Stockholders' Equity and Dividends - Stockholders' equity increased to $1,299.7 million as of November 29, 2025, from $1,275.8 million as of May 31, 2025, reflecting a growth of 1.9%[10] - The company declared dividends of $0.1875 per share, totaling $13.1 million for the six months ended November 29, 2025[10] - Total stockholders' equity decreased to $1,310.8 million as of November 30, 2024, down from $1,332.5 million at the end of the previous period[11] Impairments and Charges - The Company recognized a total non-cash goodwill impairment charge of $92.3 million during the third quarter of fiscal year 2025, primarily due to reduced sales and profitability projections[36] - The Company recognized $37.7 million in non-cash impairment charges related to indefinite-lived trade names during the third quarter of fiscal year 2025[43] - Goodwill impairment charges of $30.1 million and $62.2 million were recognized in the Global Retail and Holly Hunt reporting units, respectively, due to reduced sales and profitability projections[36] Tax and Compensation - The effective tax rate for the six months ended November 29, 2025, was 24.3%, up from 20.0% for the same period in 2024, reflecting an increase of 21.5%[50] - Stock-based compensation expense for the six months ended November 29, 2025, was $9.3 million, compared to $9.1 million for the same period in the previous year[10][11] - The total stock-based compensation expense for the six months ended November 29, 2025, was $15.1 million, down from $17.9 million in the prior year, a decrease of 15.6%[48] Restructuring and Integration - The company incurred restructuring costs of $1.5 million in North America for the three months ended November 29, 2025, and $2.0 million for the six months ended November 29, 2025[107] - The company has recorded a total of $144.4 million in pre-tax integration expenses related to the Knoll Integration plan, with no future costs expected[98] - The company incurred $28.3 million in costs related to the Knoll Integration for the six months ended November 30, 2024, which included $25.8 million of exit and disposal costs[99] Market and Segment Performance - The company operates under a collective of globally recognized design brands, enhancing its market presence and brand equity[14] - The company’s performance seating category focuses on ergonomic seating solutions, which are essential for productivity across diverse settings[24][26] - The workplace category emphasizes the development of products that enhance functionality and productivity in work environments[24][25]