MillerKnoll, Inc. (NASDAQ: MLKN), based in Zeeland, Michigan, specializes in designing and manufacturing modern furniture products for office, healthcare, and education environments. The company, resulting from the merger of Herman Miller and Knoll, operates in the contract and retail furniture sectors.

For the fourth quarter of its fiscal 2025, MillerKnoll reported consolidated net sales of $961.8 million, an increase of 8.2% year-over-year. This performance was driven by strong sales across all business segments. Total new orders reached $1.04 billion, representing an 11.1% increase compared to the previous year. The company’s gross margin for the quarter was 39.2%, down from 39.6% in the same quarter last year, reflecting roughly $7 million in tariff-related costs.

The North America Contract segment generated net sales of $496.1 million, an increase of 12.5% year-over-year, with new orders of $567.6 million, up 15.8%. Operating margin in this segment was reported at 7.7%, a significant rise from breakeven performance in the prior year. Adjusted operating margin improved to 10.0% in comparison to 8.1% last year.

MillerKnoll’s International Contract segment showed net sales of $185.7 million, an increase of 6.9%. New orders were reported at $189.5 million, up 3.6%. The operating margin in this segment was 11.7%, up from 10.9% the previous year, while the adjusted operating margin was down to 12.9% from 15.2%, primarily due to a less favorable product sales mix.

The Global Retail segment saw net sales of $280.0 million, representing a 2.2% increase year-over-year, with new orders at $279.7 million, up 7.5%. The operating margin decreased to 5.3%, down from 6.0% last year, with an adjusted operating margin of 6.5%, reflecting the impact of new store opening costs and lower sales in international markets.

For the full fiscal year 2025, MillerKnoll reported net sales of $3.67 billion, a modest increase of 1.1%. Adjusted earnings per share decreased to $1.95, a 6.3% decline from fiscal 2024. The company’s operating margins were 1.4% for the year, down from 4.6% in the previous fiscal year, while adjusted operating margins also decreased to 6.8%.

Looking ahead, MillerKnoll provided guidance for the first quarter of fiscal 2026, expecting net sales between $899 million and $939 million, representing approximately a 6.7% year-over-year increase. The gross margin for Q1 is anticipated to be between 37.1% and 38.1%. The company expects adjusted diluted earnings per share to be in the range of $0.32 to $0.38, accounting for anticipated tariff-related costs that could reduce earnings by $9 million to $11 million before tax.

During the latest quarter, MillerKnoll generated $70.9 million in cash flow from operations and decreased its long-term debt by $4.8 million. The company ended the quarter with $575.9 million in liquidity and maintained a net debt-to-EBITDA ratio of 2.88. Capital expenditures for fiscal 2025 amounted to $107.6 million, with expectations for the upcoming year to be between $120 million and $130 million.

The current outlook indicates a steady condition for MillerKnoll, as it continues to navigate a dynamic macroeconomic environment while capitalizing on growth opportunities.