MillerKnoll (MLKN) Q3 2026 earnings summary

Executive summary

• Q3 FY26 net sales rose 5.8% year-over-year to $926.6M, with organic growth of 3.8% and orders up 9.2% (7.2% organic), led by North America Contract and Global Retail.

• Adjusted EPS for Q3 FY26 was $0.43, slightly down from $0.44 last year; reported EPS improved to $0.34 from a loss of $0.19.

• Gross margin improved by 20 basis points year-over-year to 38.1%, driven by higher sales volumes and favorable mix.

• Operating margin improved to 4.8% from -9.4% in the prior year; adjusted operating margin was 5.7%.

• Strategic initiatives, disciplined execution, and impactful brand campaigns supported performance and long-term value creation.

Financial highlights

• Q3 net earnings attributable to shareholders were $23.5M, compared to a loss of $12.7M last year.

• Consolidated net sales reached $927M, up 5.8% year-over-year (3.8% organic growth).

• Orders grew to $932M, up 9.2% as reported and 7.2% organically.

• Cash flow from operations was $61.1M in Q3; liquidity at $594M, with cash and equivalents at $174.6M.

• Net debt-to-EBITDA ratio was 2.75x at quarter end.

Outlook and guidance

• Q4 FY26 net sales expected between $955M and $995M; gross margin guidance 38.5%-39.5%.

• Adjusted diluted EPS guidance for Q4: $0.49-$0.55, including $8M-$9M direct impact from Middle East conflict and $3.5M-$4.5M in new store costs.

• Full-year capital expenditures projected at $120M-$130M, focused on facilities and sustainability.

• Management expects adequate liquidity to fund operations, capital needs, debt maturities, dividends, and share repurchases.