MillerKnoll Powers Through Uncertainty with Strong Q3 2026 Results
Despite ongoing macroeconomic and geopolitical uncertainty, MillerKnoll delivered a solid third quarter fiscal 2026 with continued sales and order growth, disciplined execution, and impressive cash generation from its North America Contract business.
According to Andi Owen, Chief Executive Officer of MillerKnoll, the company's 10,000 associates across the globe worked tirelessly to deliver results within expectations. "Our team's dedication and focus on our strategy to drive long-term value delivered another solid quarter," she said during a recent conference call.
One highlight from the quarter was the continued strength of MillerKnoll's North America Contract business. The company reported gross margin and operating income growth as sales continued to rise year-over-year. Industry benchmarks also showed improving trends in Class A leasing, net lease absorption, and return to office. "The power of this business as a cash generation engine was on display this quarter," Owen noted.
In terms of market dynamics, MillerKnoll saw order growth across most industry sectors, with customers continuing to invest in their spaces and adopt flexible work arrangements. The company's Design Days trade show is set for early June, where it will showcase launches from various brands, including Herman Miller, Knoll, Geiger, NaughtOne, HAY, Muuto, and Maharam.
MillerKnoll also highlighted the resilience of demand in its International Contract business. Despite ongoing challenges in certain regions, such as the Middle East, the company remains optimistic about long-term growth opportunities. "This region remains an important long-term growth opportunity for our international contract business," Owen stated, adding that MillerKnoll will continue to monitor policy and rates closely.
From a manufacturing perspective, MillerKnoll's 30-year partnership with Toyota has enabled the company to develop its proprietary MKPS (MillerKnoll Performance System) production system. This efficiency-driven approach allows MillerKnoll to produce products at high quality levels while minimizing costs. The company celebrated the 30th anniversary of MKPS during the quarter.
In terms of financials, MillerKnoll's Chief Financial Officer, Kevin Veltman, provided additional detail on the impact of recent developments in the Middle East on the company's fourth-quarter sales and costs. He noted that while there will be some disruption, the company remains committed to navigating these changes effectively.
Overall, MillerKnoll's third quarter fiscal 2026 results demonstrate the company's ability to power through uncertainty with disciplined execution, continued sales growth, and impressive cash generation from its North America Contract business. As the market continues to evolve, MillerKnoll remains well-positioned for long-term success."
