MillerKnoll Inc (NASDAQ:MLKN), a growth-oriented small-cap value company in the industrial and consumer sectors, stock fell 8.89% (As on September 24, 11:22:48 AM UTC-4, Source: Google Finance) after the company reported first-quarter earnings that exceeded analyst expectations. Orders were of $1,036.8 million, up 11.1% as reported and up 10.7% organically, year-over-year. Gross margin decreased 40 basis points, primarily from approximately $7.0 million of tariff-related cost increases in the quarter, offset in part by the benefit of leverage on higher net sales. Consolidated adjusted operating expenses increased to $305.0 million, driven primarily by higher variable incentive compensation costs and higher selling expense from the higher sales volume. The company delivered adjusted operating margin of 7.5%, compared to 8.3% in the prior year. Liquidity, as of May 31, 2025, were of $575.9 million reflected cash on hand and Revolving Credit Facility availability. Amended Revolving Credit Facility and Term Loan A during the quarter, extending maturity date to April 2030. The company generated Cash flow from operations of $70.9 million and reduction in total outstanding debt were of $4.8 million. Net debt-to-EBITDA ratio, as defined by our Credit Facility, of 2.88x.

Moreover, for North America Contract, Q4 net sales of $496.1 million, up 12.5% as reported and up 12.6% organically, year-over-year. Q4 orders of $567.6 million, up 15.8% as reported and up 15.9% organically, year-over-year. For International Contract, Q4 net sales of $185.7 million, up 6.9% as reported and up 5.5% organically, year-over-year and Q4 orders of $189.5 million, up 3.6% as reported and up 2.1% organically, year-over-year.

MLKN in the first quarter of FY 26 has reported the adjusted earnings per share of $, beating the analysts’ estimates for the adjusted earnings per share of $. The company had reported the adjusted revenue growth of 8.2 percent to $955.7 million in the first quarter of FY 26, beating the analysts’ estimates for revenue of $910.97 million. Revenue growth was driven by strong performance across the company’s business segments, continuing the momentum seen in the previous quarter when the company reported an 8.2% increase in sales.

Looking ahead, MillerKnoll provided guidance for the second quarter of fiscal 2026, projecting revenue between $926 million and $966 million, compared to the analyst consensus of $960.7 million. The company expects adjusted earnings per share of $0.38 to $0.44, versus the consensus estimate of $0.41.