Vulcan Value Partners highlighted MillerKnoll as a material contributor to its second-quarter 2026 performance, reversing a prior-quarter detraction. The firm noted that despite recent share price gains, MillerKnoll remains one of its most discounted businesses and continues to command a significant weight in its strategy. Operating results exceeded expectations, particularly in the North American Contract segment, with strong free cash flow used primarily to de-lever. Vulcan Value Partners believes depressed volume trends in commercial and residential end markets are holding back the true normal earnings power, which is materially higher than today's levels, and views the iconic company as incredibly compelling at a discount to intrinsic value.
MillerKnoll IncStrong operating results and free cash flow exceeded expectations, and the stock remains deeply discounted according to the fund.