MillerKnoll Reports Significant Q2 Earnings Decline Amidst Sales Dip, But Orders Show Growth; Appoints New COO and CFO
Summary
MillerKnoll reported a 29.0% decrease in Q2 net earnings and a 1.6% dip in net sales, despite a 5.5% increase in new orders. The company also announced new Chief Operating Officer and Chief Financial Officer appointments and detailed debt management activities.
Key Events
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Q2 Net Earnings Decline
Net earnings attributable to MillerKnoll, Inc. decreased by 29.0% to $24.2 million for the three months ended November 29, 2025, compared to $34.1 million in the prior year period.
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Q2 Diluted EPS Drops
Diluted earnings per share fell by 28.6% to $0.35 in Q2 FY26, down from $0.49 in Q2 FY25.
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Q2 Orders Show Growth
New orders increased by 5.5% to $972.5 million in Q2 FY26, compared to $921.9 million in the same quarter last year, indicating potential future revenue.
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New Executive Appointments
Jeffrey M. Stutz was appointed Chief Operating Officer effective September 8, 2025, and Kevin Veltman was appointed Chief Financial Officer effective October 20, 2025.
Analysis
MillerKnoll's second fiscal quarter results show a notable decline in profitability, with net earnings attributable to the company dropping by 29.0% and diluted EPS by 28.6% year-over-year. This was primarily driven by decreased sales volumes in the North America and International Contract segments, coupled with increased operating expenses. However, a positive signal for future revenue is the 5.5% increase in new orders for the quarter. The company also announced key leadership changes with the appointment of a new Chief Operating Officer and Chief Financial Officer, which could signal a strategic shift or renewed focus on operational efficiency. Additionally, debt restructuring and the establishment of a new accounts receivable securitization facility indicate active management of the balance sheet and liquidity, though a $7.8 million debt extinguishment loss was incurred. Investors should monitor if the positive order trend translates into improved profitability in subsequent quarters and how the new executive team impacts performance.
At the time of this filing, MLKN was trading at $18.39 on NASDAQ in the Manufacturing sector, with a market capitalization of approximately $1.3B. The 52-week trading range was $13.77 to $23.47. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.