MillerKnoll (MHR) AI Stock Analysis

MillerKnoll

(BX Swiss:MHR)

Rating:―N/A

Action:N/A

Date:―

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Positive Factors

Strong cash generationPositive operating and free cash flow provide internal funding for investment, dividends, and debt reduction. The conversion of earnings into cash also supports earnings quality, although the company must continue improving cash generation relative to its debt burden.

Negative Factors

Weak revenue momentumWeak sales momentum limits operating leverage and makes margin gains harder to sustain. The reduced outlook indicates that softer demand is affecting near-term planning, while lower revenue and backlog can constrain investment capacity and delay a broader earnings recovery.

MillerKnoll Business Overview & Revenue Model

Company Description

MillerKnoll, Inc. is a global entity dedicated to the research, design, manufacturing, and distribution of a comprehensive range of interior furnishings. The company's operations are divided into four primary business segments: Americas Contract, Int...

MillerKnoll Earnings Call Summary

Earnings Call Date:Sep 21, 2026(Q1-2027)|Next Earnings Date:Dec 22, 2026

Earnings Call SentimentPositive

The call was broadly constructive. Management reported improved adjusted profitability, strong cash generation, growth in consolidated orders, robust International Contract orders, continued North America retail order growth, and progress from cost and store initiatives. These positives were tempered by a 3.4% decline in sales, lower backlog, weaker North America and International Contract sales, a significant International Contract margin decline, early-quarter retail softness, tariff costs, inflationary pressure, and reduced full-year sales guidance. Overall, the highlights outweighed the lowlights, but management remained focused on execution and demand timing.

Positive Updates

Adjusted Earnings Above Guidance Excluding Tariff Refunds

First-quarter adjusted earnings per share were $0.53, or $0.42 excluding the $0.11 per share net benefit from IEPA tariff refunds. Excluding the refund benefit, adjusted EPS was above the company's guidance range, reflecting disciplined execution, price realization, and improved cost management.

Negative Updates

Consolidated Sales Declined

First-quarter consolidated net sales were $923 million, down 3.4% year over year on a reported basis and 3.3% lower on an organic basis, primarily reflecting softer-than-anticipated revenue in North America Contract and Global Retail.

Company Guidance

For the second quarter of fiscal 27, MillerKnoll expects net sales of $972 million to $1.012 billion, representing approximately 4% year over year growth at the midpoint, gross margin of 38.3% to 39.3%, adjusted operating expenses of $321 million to $331 million, and adjusted diluted earnings per share of $0.43 to $0.49; for the full year, it reduced expected net sales to $3.88 billion to $4.03 billion, reflecting 3% growth year over year at the midpoint, while maintaining adjusted earnings per share of $1.85 to $2.15, including an estimated $0.07 per share of unfavorable impact from the most recent US and Canada tariff actions and approximately $6 million per quarter of incremental new store expense on a year over year comparison; it expects to open 5 to 7 new stores during the second quarter and approximately 14 to 18 new store openings throughout fiscal 2027, expects North America contract growth for the balance of the year, and expects price cost to be a slight headwind, call it 20 percent 30 basis points year over year in the second quarter.

MillerKnoll Risk Analysis

MillerKnoll disclosed 24 risk factors in its most recent earnings report. MillerKnoll reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added

3 New Risks

1.Our indebtedness and related covenants could adversely affect our financial flexibility and ability to operate our business.Q2, 2026

2.Our executive leadership transition may adversely affect our ability to execute our strategy and maintain business momentum.Q2, 2026

3.We are subject to cybersecurity and data security risks that could compromise our systems, data, operations, and reputation.Q2, 2026

MillerKnoll Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

CH:MHR against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TILE	85Outperform	$2.13B	15.37	18.54%	0.29%	6.54%	53.02%
ETD	68Neutral	$513.16M	13.45	8.40%	22.79%	-5.72%	-22.50%
KEQU	67Neutral	$96.82M	11.68	11.34%	―	5.33%	-33.32%
Sector *	61Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
HNI	58Neutral	$3.54B	451.73	0.28%	2.78%	70.13%	-95.94%
VIRC	54Neutral	$97.74M	-40.30	-2.32%	1.61%	-18.97%	-118.61%

* Consumer Cyclical Sector Average

Performance Comparison

CH:MHR and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
ETD	Ethan Allen Interiors	21.11	1.55	7.94%
HNI	Hni Corp	49.67	10.85	27.95%
TILE	Interface Inc	38.42	12.40	47.64%
KEQU	Kewaunee Scientific	33.40	-7.88	-19.09%
VIRC	Virco Manufacturing	6.21	-0.65	-9.45%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

MillerKnoll AI Stock Analysis