HNI Corporation (HNI)

HNI Corporation Increases Quarterly DividendMay 18, 2026 5:11 PM
Business Wire HNI Corporation (NYSE: HNI) announced today its Board of Directors declared a quarterly dividend of 35 cents per share on its common stock. The dividend will be payable on June 10, 2026, to shareholders of record at the close of business on May 29, 2026. About HNI Corporation HNI Corporation (NYSE: HNI) has been improving where people live, work, and gather for more than 80 years. HNI is a manufacturer of workplace furnishings and residential building products, operating under two segments. The Workplace Furnishings segment is a leading global designer and provider of commercial furnishings, going to market under multiple unique brands. The Residential Building Products segment is the nation's leading manufacturer and marketer of hearth products, which include a full array of gas, electric, wood, and pellet-burning fireplaces, inserts, stoves, facings, and accessories. More information can be found on the Corporation's website at www.hnicorp.com. View source version on businesswire.com: https://www.businesswire.com/news/home/20260515111989/en/ VP Berger, Executive Vice President and Chief Financial Officer (563) 272-7400
Matthew S. McCall, Vice President, Investor Relations and Corporate Development (563) 275-8898 Original: HNI Corporation Increases Quarterly Dividend

HNI Corporation Releases Corporate Responsibility Progress ReportMay 13, 2026 9:30 AM
Business Wire HNI Corporation (NYSE: HNI) announced today the release of its Corporate Responsibility Progress Report, detailing the company’s performance against its measurable goals and ongoing efforts across its operations, products, communities, and members. These efforts continue to support product innovation, operational efficiency, risk management, and evolving customer expectations across HNI’s businesses, reinforcing the company’s commitment to being a great place to work and a responsible global citizen. This report reflects HNI operations for 2025 and does not include Steelcase, which will report separately for its 2025 performance. Report Highlights: HNI’s long-standing values continue to serve as the foundation and compass for its work. The company is committed to respecting people, reducing environmental impacts, and redefining tomorrow through sustainable innovation and responsible practices. HNI increasingly integrates sustainability considerations into the decision-making process across the organization and supports sustainability through collaboration at every level. The 2025 report reflects how these values drive measurable outcomes across HNI, supported by members throughout the organization. Key initiatives and accomplishments for 2025 include: Respecting People: Community engagement and investment: Supported key community initiatives, including the University of Iowa Tippie College of Business expansion, the Indiana University Health Foundation expansion, and the Muscatine Community College Technology Center expansion. Member safety and wellbeing: Expanded engagement opportunities, delivered meaningful training, and advanced inclusive leadership to support a safe and engaging workplace. Reducing impacts: Emissions reductions: Achieved a 78% reduction in Scope 1 and 2 emissions compared to a 2018 baseline, driven by renewable electricity procurement and operational efficiency improvements, exceeding the company’s near-term reduction targets. Waste reduction: Achieved zero waste to landfill status at 60% of manufacturing facilities. Redefining tomorrow: Material selection: Identified chemical ingredients within base materials representing 100% of spend across the Workplace Furnishings business, advancing material transparency. Product design: Launched the Evo carbon-neutral task chair, supported by lifecycle assessment and carbon offsetting, and the Heat-N-Glo SupremeX-I30, featuring a burner design that uses 14% less energy compared to similar models. Packaging: Eliminated expanded polystyrene across all manufactured products and increased the use of recycled materials. “Our progress reflects a continued focus on operational performance, product innovation, and responsible resource management,” said Jeff Lorenger, Chairman, President, and Chief Executive Officer. “We remain committed to advancing measurable outcomes while strengthening how sustainability supports our business and our customers. We take pride in our achievements and encourage you to review our latest Corporate Responsibility Progress Report to gain deeper insight into our progress.” The report is available on the Corporation’s website at https://www.hnicorp.com/corporate-responsibility. About HNI Corporation HNI Corporation (NYSE: HNI) has been improving where people live, work, and gather for more than 75 years. HNI is a manufacturer of workplace furnishings and residential building products, operating under two segments. The Workplace Furnishings segment is the thought leader in commercial furnishings and the preeminent global designer, innovator, and provider of workplace solutions going to market under unique brands serving multiple channels and customers from the largest multinational companies to small local businesses. The Residential Building Products segment is the nation's leading manufacturer and marketer of hearth products, which include a full array of gas, electric, wood, and pellet-burning fireplaces, inserts, stoves, facings, and accessories. More information can be found on the Corporation's website at www.hnicorp.com. View source version on businesswire.com: https://www.businesswire.com/news/home/20260506030700/en/ For information, contact:
VP Berger, Executive Vice President and Chief Financial Officer (563) 272-7400
Matthew S. McCall, Vice President, Investor Relations and Corporate Development (563) 275-8898 Original: HNI Corporation Releases Corporate Responsibility Progress Report

HNI Corporation Reports First Quarter 2026 ResultsMay 6, 2026 7:30 AM
Business Wire Streamlined Priorities Enhance Focus on Profit Growth Actions to combat demand pressures associated with geopolitics helped deliver solid first quarter results GAAP diluted EPS for Q1 was $(0.55). On a non-GAAP basis, diluted EPS totaled $0.34 For the full year 2026, low-single digit organic net sales growth is expected in both segments Cost management — including the termination and reprioritization of projects at Steelcase, synergy recognition, and legacy network optimization savings will offset lower volume growth expectations and continued investment The Corporation expects to deliver a fifth straight year of double-digit non-GAAP EPS growth in 2026 Expectations of sales growth, strategic initiatives, and synergies support an outlook for multiple years of elevated EPS growth visibility HNI Corporation (NYSE: HNI) today announced net sales of $1.3 billion and a net loss of $38.8 million for the first quarter ended April 4, 2026. Highlights Solid first quarter results. GAAP diluted EPS totaled $(0.55) and diluted non-GAAP EPS of $0.34 modestly exceeded internal expectations. While volume activity was negatively impacted by geopolitical conditions, especially in the Workplace Furnishings segment, expense control, price-cost, and productivity benefits partially offset volume softness and continued investment in initiatives aimed at driving future growth. GAAP results include the impact of Steelcase purchase accounting, the details of which can be found later in the release. Non-GAAP to GAAP reconciliations follow the financial statements in this release. Net sales growth expected in 2026. While industry-specific indicators and internal metrics are encouraging, Workplace Furnishings segment volume is expected to be negatively impacted by effects of the Middle East conflict in the first half of 2026, with price recognition driving low-single digit organic growth for the full year. In Residential Building Products, our structural changes organizing around the consumer and growth investments are expected to drive continued market outperformance, with modest price-driven net sales growth expected in 2026. Cost management efforts expected to complement accretion from Steelcase and benefits from network optimization. During the first quarter, the Corporation made certain key decisions pertaining to the Steelcase integration that will have positive longer-term implications. As an example, Steelcase's multi-year ERP implementation was terminated. This move is part of a broader corporate-wide effort to streamline priorities to focus on profitable growth, while also avoiding disruption, eliminating substantial future ERP investment, and redeploying resources back into the business—toward customer-focused initiatives. In addition, the Corporation began aggressively managing costs across all businesses in response to softer volume growth to begin the year, driven by the current geopolitical uncertainty. The Corporation continues to expect network optimization savings in its legacy Workplace Furnishings businesses to total nearly $30 million (or $0.30 to non-GAAP diluted EPS) over the next three years. Synergies associated with the integration of Steelcase are on track and expected to add $120 million (or $1.20 to non-GAAP diluted EPS) when fully mature. “Our members continued to focus on controlling the controllables in the first quarter of fiscal 2026. Through focused cost management and benefits of price-cost and productivity, we managed the middle of the income statement and were able to deliver solid first quarter results. This was despite demand softness to begin the year, especially in Workplace Furnishings, amid concerns related to the conflict in the Middle East, the U.S. economy broadly, and the impacts of tariffs specifically. The positive momentum of our on-going strategies, the benefits of our diversified revenue streams, and the merits of our customer-first business model will continue to deliver strong shareholder value. “In our legacy Workplace Furnishings businesses, first quarter net sales were down about five percent year-over-year on an organic basis, with modest organic growth in our businesses focused on small- and medium-sized workplace customers. The impacts of global macro uncertainty were most prevalent during January and February. Including Steelcase, operating profit was nearly double the prior-year level. Looking ahead, we expect modest organic revenue growth for the full year and solid margin expansion in our legacy Workplace Furnishings businesses, while we continue to invest to drive growth. “In Residential Building Products, revenue increased slightly more than two percent versus the prior-year period. These are strong results given the ongoing weakness in the new home construction market. First quarter segment operating profit margin expanded 190 basis points year-over-year, reaching 17.6 percent. New construction revenue was down mid-single digits, while remodel-retrofit was up 13 percent, both on a year-over-year basis. Despite expectations of ongoing uncertainty, we remain encouraged about the opportunities tied to the broader housing market and we continue to invest to grow our operating model and revenue streams. “Our first quarter performance demonstrates the strength of our strategies and our ability to manage daily uncertainty through varying macroeconomic conditions, all while remaining focused on investing for the future. We expect strong results to continue in 2026, driven by our margin expansion efforts and modest organic revenue growth,” stated Jeff Lorenger, Chairman, President, and Chief Executive Officer. HNI Corporation – First Quarter Financial Performance (Dollars in millions, except per share data)   Three Months Ended         April 4,
2026   March 29,
2025   Change   GAAP             Net Sales $1347.5     $599.8     125 %   Gross Profit % 37.1 %   39.7 %   -260 bps   SG&A % 38.2 %   34.6 %   360 bps   Acquisition Costs $3.5     $—     NM     Restructuring and Impairment Charges $18.0     $6.4     NM     Operating Income (Loss) ($36.4 )   $24.4     (249 %)   Operating Income (Loss) % (2.7 %)   4.1 %   -680 bps   Effective Tax Rate 30.3 %   26.3 %       Net Income (Loss) % (2.9 %)   2.3 %   -520 bps   EPS – diluted ($0.55 )   $0.29     (290 %)                 Non-GAAP             Gross Profit % 40.0 %   40.0 %   — bps   SG&A % 36.1 %   34.7 %   140 bps   Operating Income $52.1     $32.0     63.1 %   Operating Income % 3.9 %   5.3 %   -140 bps   Effective Tax Rate 24.5 %   20.1 %       EPS – diluted $0.34     $0.44     (22.7 %)   HNI Corporation – First Quarter Impact of Steelcase Acquisition   (Dollars in millions, except per share data)     Three Months Ended             April 4,
2026   March 29,
2025           GAAP Legacy HNI   Steelcase   Consolidated HNI   Consolidated HNI   Legacy Change   Consolidated Change   Net Sales $573.5     $774.0     $1347.5     $599.8     (4.4 %)   125 %   Gross Profit $238.0     $261.9     $499.9     $238.4     (0.1 %)   110 %   Gross Profit % 41.5 %   33.8 %   37.1 %   39.7 %   180 bps   -260 bps   SG&A $210.7     $304.1     $514.8     $207.6     1.5 %   148 %   SG&A % 36.7 %   39.3 %   38.2 %   34.6 %   210 bps   360 bps   Acquisition Costs ($5.0 )   $8.6     $3.5     $—     NM     NM     Restructuring and Impairment Charges $3.0     $15.0     $18.0     $6.4     NM     NM     Operating Income (Loss) $29.4     ($65.8 )   ($36.4 )   $24.4     20.4 %   (249 %)   Operating Income (Loss) % 5.1 %   (8.5 %)   (2.7 %)   4.1 %   100 bps   -680 bps   Effective Tax Rate 16.5 %   26.0 %   30.3 %   26.3 %           Net Income (loss) $20.9     ($59.7 )   ($38.8 )   $13.9     50.3 %   (379 %)   EPS - diluted         ($0.55 )   $0.29         (290 %)                             Non-GAAP                         Gross Profit $239.4     $299.4     $538.8     $239.9     (0.2 %)   125 %   Gross Profit % 41.7 %   38.7 %   40.0 %   40.0 %   170 bps   — bps   SG&A $210.4     $276.3     $486.7     $208.0     1.2 %   134 %   SG&A % 36.7 %   35.7 %   36.1 %   34.7 %   200 bps   140 bps   Operating Income $29.0     $23.1     $52.1     $32.0     (9.1 %)   63.1 %   Operating Income % 5.1 %   3.0 %   3.9 %   5.3 %   -20 bps   -140 bps   Effective Tax Rate 24.5 %   24.5 %   24.5 %   20.1 %           EPS - diluted $0.40         $0.34     $0.44     (9.1 %)   (22.7 %)   HNI Corporation — First Quarter Summary Comments Consolidated net sales increased 125 percent from the prior-year quarter to $1.3 billion, driven by the fourth quarter 2025 acquisition of Steelcase. On an organic basis, net sales decreased 3.2 percent year-over-year. The acquisition of Steelcase increased year-over-year sales by $774.0 million, while the divestiture of HNI India in the second quarter of 2025 decreased year-over-year sales by $7.1 million. A reconciliation of organic net sales, a non-GAAP measure, to net sales follows the financial statements in this release. Gross profit margin contracted 260 basis points compared to the prior-year quarter. The decrease was driven by impacts from the acquisition of Steelcase and lower organic net sales volume, partially offset by improved net productivity and favorable price-cost. Selling, general, and administrative expenses as a percentage of net sales increased 360 basis points compared to the prior-year quarter. The increase was driven by impacts from the acquisition of Steelcase, lower organic net sales, and increased input costs. Acquisition costs of $3.5 million were recorded during the current period in connection with the acquisition of Steelcase. Acquisition costs consist of retention compensation, other professional service fees, and change in control compensation expense adjustments. Incremental non-cash purchase accounting adjustments totaled $64.2 million for the current quarter related to the Steelcase acquisition. Of this total, $36.4 million was included in cost of sales and related to the inventory step-up and additional depreciation for the preliminary valuation adjustment to property, plant and equipment. The remaining $27.8 million was included in operating expenses and related to amortization of intangibles and additional depreciation for the preliminary valuation. Restructuring and impairment charges of $18.0 million were incurred in the current quarter, primarily related to the termination of Steelcase's multi-year ERP implementation project, and the Corporation's network optimization program. In the prior-year quarter, the Corporation incurred $6.4 million of such charges, primarily related to the HNI India business. Income tax rate comparability versus the prior-year quarter was primarily impacted by transaction costs associated with the acquisition of Steelcase that are not tax deductible. Net income (loss) per diluted share was $(0.55) compared to $0.29 in the prior-year quarter. On a non-GAAP basis, net income per diluted share decreased to $0.34 from $0.44 in the prior-year quarter. The changes were driven by lower organic net sales volume, increased interest expense, and increased shares outstanding, partially offset by impacts from the acquisition of Steelcase, improved net productivity, and favorable price-cost. Workplace Furnishings – First Quarter Financial Performance (Dollars in millions)   Three Months Ended         April 4,
2026   March 29,
2025   Change   GAAP             Net Sales $1185.4     $441.1     169 %   Operating Income (loss) ($42.6 )   $18.0     (336 %)   Operating Income (loss) % (3.6 %)   4.1 %   -770 bps                 Non-GAAP             Operating Income $48.7     $25.4     91.8 %   Operating Income % 4.1 %   5.8 %   -170 bps   Workplace Furnishings – First Quarter Impact of Steelcase Acquisition   (Dollars in millions)     Three Months Ended             April 4,
2026 March 29, 2025           GAAP Legacy Workplace   Steelcase   Total Workplace   Total Workplace   Legacy Change   Total Change   Net Sales $411.5     $774.0     $1185.4     $441.1     (6.7 %)   169 %   Operating Income (Loss) $16.2     ($58.8 )   ($42.6 )   $18.0     (10.1 %)   (336 %)   Operating Income (Loss) % 3.9 %   (7.6 %)   (3.6 %)   4.1 %   -20 bps   -770 bps                             Non-GAAP                         Operating Income $20.5     $28.2     $48.7     $25.4     (19.2 %)   91.8 %   Operating Income % 5.0 %   3.6 %   4.1 %   5.8 %   -80 bps   -170 bps   Workplace Furnishings — First Quarter Summary Comments Workplace Furnishings net sales increased 169 percent from the prior-year quarter to $1.2 billion. On an organic basis, net sales decreased 5.2 percent year-over-year. The acquisition of Steelcase during the fourth quarter of 2025 increased year-over-year sales by $774.0 million, while the divestiture of HNI India in the second quarter of the prior year decreased year-over-year net sales by $7.1 million and lower organic volume partially offset by price. Workplace Furnishings operating profit margin of (3.6) percent contracted by 770 basis points versus the prior-year quarter, driven by lower organic net sales, impacts from the acquisition of Steelcase, incremental purchase accounting adjustments, increased restructuring costs, and acquisition costs, partially offset by improved net productivity. On a non-GAAP basis, segment operating profit margin of 4.1 percent contracted 170 basis points year-over-year. Residential Building Products – First Quarter Financial Performance (Dollars in millions)   Three Months Ended         April 4,
2026   March 29,
2025   Change   GAAP             Net Sales $162.1     $158.7     2.1 %   Operating Income $28.5     $25.0     14.0 %   Operating Income % 17.6 %   15.7 %   190 bps   Residential Building Products — First Quarter Summary Comments Residential Building Products net sales increased 2.1 percent from the prior-year quarter to $162.1 million, as increased net sales in remodel-retrofit were partially offset by decreased net sales in the new home market. Residential Building Products operating profit margin of 17.6 percent expanded by 190 basis points year-over-year driven by improved net productivity and favorable price-cost, partially offset by lower volume. First Quarter Order Rates In the Workplace Furnishings segment, orders in the first quarter decreased one percent compared to the prior-year period organically. Orders from small-to-medium-sized customers were up low single-digits and orders from contract customers were down mid-single digits, versus first quarter 2025 levels on an organic basis. Year-over-year organic order growth improved in March, with five-week average organic order growth, as of the end of the quarter, up high single-digits. Steelcase order patterns were consistent with the legacy Workplace Furnishings trends. Orders in the Residential Building Products segment increased four percent compared to the first quarter of 2025. Remodel-retrofit orders outperformed those from the new construction channel. The year-over-year average order growth rate over the final five weeks of the quarter was in line with the quarter overall. Outlook Second quarter net sales. The Corporation expects second quarter 2026 net sales in legacy Workplace Furnishings to increase at a low single-digit rate year-over-year. Including Steelcase, total Workplace Furnishings net sales are expected to increase approximately 155-160 percent versus the prior-year period. In Residential Building Products, second quarter 2026 net sales are expected to decrease at a low single-digit rate compared to the same period in 2025. Second quarter non-GAAP diluted earnings per share. Non-GAAP diluted earnings per share in the second quarter of 2026 are expected to decline modestly from 2025 levels. The addition of Steelcase is expected to be net neutral to diluted non-GAAP earnings per share in the quarter. The year-over-year non-GAAP earnings pressure is expected to be driven by lower organic volume and continued investment. Second half strength expected. The Corporation's outlook for 2026 full-year earnings reflects expectations for mid-teens percent diluted non-GAAP EPS growth, with accelerating double-digit earnings growth in the second half of the year. Productivity, cost management, network optimization initiatives, Steelcase accretion, and price-cost benefits are expected to more than offset operating profit headwinds associated with volume pressure and continued investment. Double-digit diluted non-GAAP EPS growth again next year, with multiple years of elevated earnings growth visibility beyond 2027. The combination of Steelcase accretion and legacy workplace network optimization initiatives are expected to yield total cumulative savings exceeding $70 million (or $0.70 in diluted non-GAAP EPS) in 2027 and more than $150 million (or $1.50 in diluted non-GAAP EPS) when fully mature. Balance sheet. The Corporation remains committed to the reduction of debt levels, payment of its longstanding dividend, and continuing to invest in the business to drive future growth. Net financial leverage is expected to return to pre-deal levels in the 1.0-1.5 times range with two years of the deal closing. Concluding Remarks “Our members remain focused on our strategies, we managed our businesses well, and the Corporation delivered a solid quarter that modestly exceeded our expectations. This was despite order and shipment patterns in our Workplace Furnishings segment that saw clear impact from the geopolitical landscape and resulting uncertainty, and ongoing housing market weakness. As we look forward, we expect volume pressure to persist in the second quarter as macro pressures tied to the conflict in the Middle East and tariffs linger. "Our current outlook for the remainder of 2026, which is supported by both external macro and industry metrics and by our internal pipeline data, points to accelerating revenue growth in our Workplace Furnishings segment. In Residential Building Products, we expect modest price-driven revenue growth in the second half, despite expectations of ongoing housing market softness. From a profitability perspective, we anticipate both our legacy Workplace Furnishings and our Residential Building Products segments to expand margins in 2026. While we are optimistic about the year and expect another year of double-digit non-GAAP EPS growth, we will remain focused, conservative, and ready to adjust as required. Our outlook demonstrates the anticipated benefits of our ongoing visibility story and our proven ability to manage through changing economic conditions. “The integration of Steelcase is going well, synergy capture and accretion are on track, and our cultures are melding nicely. We continue to expect modest accretion in 2026, with total non-GAAP EPS benefit reaching $1.20 when fully mature. The benefits of the Steelcase acquisition, the strength of our strategies, and our financial discipline are expected to drive strong free cash flow, which will help us quickly deleverage our balance sheet over the next couple of years. “Our HNI members remain focused on driving growth and expanding margins. And we will continue to invest for the future with confidence,” concluded Mr. Lorenger. Conference Call As previously announced, HNI Corporation will host a conference call on Wednesday, May 6, 2026 at 10:00 a.m. (Central) to discuss first quarter fiscal year 2026 results. To participate, call 1-855-761-5600 – conference ID number 7175411. Both a live webcast and webcast replay will be available on HNI Corporation’s website at https://investors.hnicorp.com/events-and-presentations. About HNI Corporation HNI Corporation (NYSE: HNI) has been improving where people live, work, and gather for more than 75 years. HNI is a manufacturer of workplace furnishings and residential building products, operating under two segments. The Workplace Furnishings segment is a leading global designer and provider of commercial furnishings, going to market under multiple unique brands. The Residential Building Products segment is the nation’s leading manufacturer and marketer of hearth products, which include a full array of gas, electric, wood, and pellet-burning fireplaces, inserts, stoves, facings, and accessories. More information can be found on the Corporation’s website at www.hnicorp.com. Forward-Looking Statements This release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 and Section 27A of the Securities Act of 1933, which involve risks and uncertainties. Any statements, plans, objectives, expectations, strategies, beliefs, or future performance or events to the extent they are not statements of historical fact are forward-looking statements. Words, phrases or expressions such as “anticipate,” “believe,” “could,” “confident,” “continue,” “estimate,” “expect,” “forecast,” “hope,” “intend,” “likely,” “may,” “might,” “objective,” “plan,” “possible,” “potential,” “predict,” “project”, “target,” “trend” and similar words, phrases or expressions are intended to identify forward looking statements but are not the exclusive means of identifying such statements. Forward-looking statements are based on information available and assumptions made at the time the statements are made. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those expressed in or implied by the forward-looking statements. Forward-looking statements in this release include statements regarding our expectations regarding second quarter 2026 organic net sales and GAAP and non-GAAP diluted earnings per share, as well as non-GAAP diluted earnings per share growth for full year 2026 and subsequent periods. Forward-looking statements in this release about HNI's acquisition of Steelcase in December 2025 (the "Steelcase acquisition") include, but are not limited to, statements about the benefits of the transaction, including future financial and operating results, the combined company’s plans, objectives, expectations and intentions, and other statements that are not historical facts. The following factors related to the Steelcase acquisition, among others, could cause actual results to differ materially from those expressed in or implied by forward-looking statements: the risk that the benefits of the Steelcase acquisition may not be fully realized or may take longer to realize than expected, including as a result of changes in, or problems arising from, general economic and market conditions, interest and exchange rates, monetary policy, trade policy (including tariff levels), laws and regulations and their enforcement, and the degree of competition in the geographic and business areas in which HNI and Steelcase operate; any failure to promptly and effectively integrate the businesses of HNI and Steelcase; and potential adverse reactions to the transaction of HNI’s or Steelcase’s customers, employees or other business partners. Additional important factors relating to HNI that could cause actual results to differ materially from those in forward-looking statements include, but are not limited to, disruptions in the global supply chain; the effects of prolonged periods of inflation and rising interest rates; labor shortages; the levels of office furniture needs and housing starts; overall demand for HNI’s products; general economic and market conditions in the United States and internationally; industry and competitive conditions; the consolidation and concentration of HNI’s customers; HNI’s reliance on its network of independent dealers; changes in trade policy, including with respect to tariff levels; changes in raw material, component, or commodity pricing; market acceptance and demand for HNI’s new products; changing legal, regulatory, environmental, and healthcare conditions; the risks associated with international operations; the potential impact of product defects; the various restrictions on HNI’s financing activities; an inability to protect HNI’s intellectual property; cybersecurity threats, including those posed by potential ransomware attacks; impacts of tax legislation; and force majeure events outside HNI’s control, including those that may result from the effects of climate change. A description of these risks and uncertainties and additional risks and uncertainties can be found in HNI’s annual report on Form 10-K for the year ended January 3, 2026, and subsequent quarterly and current reports filed with the Securities and Exchange Commission on Forms 10-Q and 8-K. Forward-looking statements speak only as of the date they are made, and HNI does not undertake or assume any obligation to update publicly any of these statements to reflect actual results, new information or future events, changes in assumptions, or changes in other factors affecting forward-looking statements, except to the extent required by applicable law. HNI Corporation and Subsidiaries Condensed Consolidated Statements of Comprehensive Income (In millions, except per share data) (Unaudited)     Three Months Ended April 4,
2026   March 29,
2025 Net sales $ 1,347.5     $ 599.8   Cost of sales   847.6       361.4   Gross profit   499.9       238.4   Selling and administrative expenses   514.8       207.6   Acquisition costs   3.5       —   Restructuring and impairment charges   18.0       6.4   Operating income (loss)   (36.4 )     24.4   Other non-operating income, net   1.5       —   Interest expense, net   20.7       5.5   Income (loss) before income taxes   (55.6 )     18.9   Income taxes   (16.8 )     5.0   Net income (loss)   (38.8 )     13.9   Less: Net income (loss) attributable to non-controlling interest   —       (0.0 ) Net income (loss) attributable to HNI Corporation $ (38.8 )   $ 13.9           Average number of common shares outstanding – basic   71.6       47.0   Net income (loss) attributable to HNI Corporation per common share – basic $ (0.55 )   $ 0.30   Average number of common shares outstanding – diluted   71.6       48.0   Net income (loss) attributable to HNI Corporation per common share – diluted $ (0.55 )   $ 0.29           Foreign currency translation adjustments $ (4.5 )   $ (0.1 ) Change in unrealized gains (losses) on marketable securities, net of tax   (0.1 )     0.1   Change in derivative financial instruments, net of tax   0.6       (0.6 ) Other comprehensive income (loss), net of tax   (4.0 )     (0.5 ) Comprehensive income (loss)   (42.8 )     13.4   Less: Comprehensive income (loss) attributable to non-controlling interest   —       (0.0 ) Comprehensive income (loss) attributable to HNI Corporation $ (42.8 )   $ 13.4     Amounts may not sum due to rounding.   HNI Corporation and Subsidiaries Condensed Consolidated Balance Sheets (In millions) (Unaudited)     April 4,
2026   January 3,
2026 Assets       Current Assets:       Cash and cash equivalents $ 71.4     $ 209.2   Short-term investments   6.8       6.5   Receivables   552.8       571.1   Allowance for credit losses   (2.0 )     (1.1 ) Inventories, net   490.5       475.3   Prepaid expenses and other current assets   177.3       150.9   Total Current Assets   1,296.9       1,411.9   Property, Plant, and Equipment:       Land and land improvements   97.7       99.1   Buildings   529.4       529.1   Machinery and equipment   1,076.4       1,128.5   Construction in progress   53.7       58.5       1,757.3       1,815.2   Less accumulated depreciation   (706.6 )     (678.0 ) Net Property, Plant, and Equipment   1,050.7       1,137.2   Right-of-use Finance Leases   10.9       11.3   Right-of-use Operating Leases   259.7       274.5   Goodwill and Other Intangible Assets, net   1,820.7       1,702.6   Other Assets   333.8       347.6   Total Assets $ 4,772.6     $ 4,885.0   Liabilities and Equity       Current Liabilities:       Accounts payable and accrued expenses $ 820.5     $ 1,016.4   Current maturities of debt   18.3       16.2   Current maturities of other long-term obligations   28.7       38.2   Current lease obligations - Finance   4.0       4.2   Current lease obligations - Operating   64.7       64.4   Total Current Liabilities   936.1       1,139.3   Long-Term Debt   1,426.8       1,276.9   Long-Term Lease Obligations - Finance   7.1       7.3   Long-Term Lease Obligations - Operating   206.7       224.6   Other Long-Term Liabilities   195.9       220.4   Deferred Income Taxes   226.3       180.9   Total Liabilities   2,999.0       3,049.5   Equity:       HNI Corporation shareholders’ equity   1,773.6       1,835.6   Total Equity   1,773.6       1,835.6   Total Liabilities and Equity $ 4,772.6     $ 4,885.0     Amounts may not sum due to rounding.   HNI Corporation and Subsidiaries Condensed Consolidated Statements of Cash Flows (In millions) (Unaudited)     Three Months Ended   April 4,
2026   March 29,
2025 Net Cash Flows From (To) Operating Activities:       Net income (loss) $ (38.8 )   $ 13.9   Non-cash items included in net income (loss):       Depreciation and amortization   75.2       25.5   Other post-retirement and post-employment benefits   0.9       0.3   Stock-based compensation   18.1       6.8   Deferred income taxes   9.4       (2.0 ) Asset impairment charges   9.5       5.9   Inventory step-up   31.3       —   Other – net   (0.6 )     0.3   Net change in cash from operating assets and liabilities       Receivables   19.2       2.9   Inventories   (15.6 )     (13.4 ) Prepaid Expenses and Other   (60.7 )     0.6   Accounts payable and accrued expenses   (184.8 )     (34.8 ) Income taxes payable   (2.4 )     6.7   Increase (decrease) in other liabilities   (32.4 )     (0.1 ) Net cash flows from (to) operating activities   (171.8 )     12.6           Net Cash Flows From (To) Investing Activities:       Capital expenditures   (34.0 )     (15.7 ) Capitalized software   (1.7 )     (0.6 ) Purchase of investments   (2.7 )     (0.1 ) Sales or maturities of investments   1.4       0.7   Investment in Unconsolidated Affiliate Purchases   (45.7 )     —   Investment in Unconsolidated Affiliate Proceeds   8.0       —   Proceeds from sale of property, plant, and equipment   1.6       3.5   Net cash flows from (to) investing activities   (73.1 )     (12.2 )         Net Cash Flows From (To) Financing Activities:       Payments of debt   (37.4 )     (68.2 ) Proceeds from debt   188.0       129.1   Dividends paid   (26.6 )     (16.2 ) Purchase of HNI Corporation common stock   —       (40.4 ) Proceeds from sales of HNI Corporation common stock   0.7       0.8   Withholding related to net share settlements of equity based awards   (18.0 )     —   Other – net   0.5       (6.2 ) Net cash flows from (to) financing activities   107.3       (1.1 )         Net decrease in cash and cash equivalents including cash classified within current assets held for sale   (137.6 )     (0.8 ) Less: net increase in cash classified within current assets held for sale   —       0.6   Net increase (decrease) in cash and cash equivalents   (137.6 )     (1.4 ) Cash, cash equivalents, and restricted cash at beginning of period   217.9       22.5   Cash, cash equivalents, and restricted cash at end of period (1) $ 80.3     $ 21.1     (1) Restricted cash as of April 4, 2026 and March 29, 2025 was $8.9 million and $2.4 million, respectively, and is included in "Other Assets" in the Consolidated Balance Sheets   Amounts may not sum due to rounding. HNI Corporation and Subsidiaries Reportable Segment Data (In millions) (Unaudited)     Three Months Ended   April 4,
2026   March 29,
2025 Net Sales:       Workplace furnishings $ 1,185.4     $ 441.1   Residential building products   162.1       158.7   Total $ 1,347.5     $ 599.8   Cost of Sales:       Workplace furnishings $ 761.1     $ 273.3   Residential building products   86.5       88.1   Total $ 847.6     $ 361.4   Selling and Administrative Expenses:       Workplace furnishings $ 442.4     $ 143.4   Residential building products   47.1       45.7   General corporate   25.4       18.6   Total $ 514.8     $ 207.6   Acquisition Costs:       Workplace furnishings $ 6.6     $ —   General corporate   (3.1 )     —   Total $ 3.5     $ —   Restructuring and Impairment Charges       Workplace furnishings $ 18.0     $ 6.4   Total $ 18.0     $ 6.4   Operating Income (Loss):       Workplace furnishings $ (42.6 )   $ 18.0   Residential building products   28.5       25.0   General corporate   (22.3 )     (18.6 ) Total $ (36.4 )   $ 24.4   Other Non-Operating Income, net   1.5       —   Interest Expense, Net   20.7       5.5   Income (Loss) Before Income Taxes $ (55.6 )   $ 18.9           Depreciation and Amortization Expense:       Workplace furnishings $ 66.6     $ 17.1   Residential building products   3.9       3.6   General corporate   4.7       4.9   Total $ 75.2     $ 25.5   Capital Expenditures (including capitalized software):       Workplace furnishings $ 29.5     $ 11.0   Residential building products   3.3       3.2   General corporate   3.0       2.0   Total $ 35.7     $ 16.3     Amounts may not sum due to rounding.   Non-GAAP Financial Measures This earnings release includes certain non-GAAP financial measures as defined by Securities and Exchange Commission Regulation G. Pursuant to the requirements of this regulation, reconciliations of historical non-GAAP financial measures to the most directly comparable historical GAAP measures are included below. This information gives investors additional insights into HNI’s financial performance and operations. While HNI’s management believes the non-GAAP financial measures are useful in evaluating HNI’s operations, this information should be considered supplemental and not in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with GAAP. In addition, these measures may be different from similarly titled non-GAAP financial measures used by other companies, limiting their usefulness for comparison purposes. To supplement the condensed consolidated financial statements, which are prepared and presented in accordance with GAAP, this earnings release contains the following non-GAAP financial measures: organic net sales; non-GAAP gross profit; non-GAAP operating income; non-GAAP operating profit; non-GAAP interest expense, non-GAAP effective tax rate; non-GAAP net income; and non-GAAP net income per diluted share (EPS). These measures are adjusted from the comparable GAAP measures to exclude the impacts of the selected items as summarized in the tables below. Generally, non-GAAP EPS is calculated using HNI’s overall effective tax rate for the period, as this rate is reflective of the tax applicable to most non-GAAP adjustments. The effective tax rate used to calculate non-GAAP diluted EPS for the current-year quarter differs from the GAAP effective tax rate due to the impact of transaction costs associated with the acquisition of Steelcase, and non-GAAP diluted EPS for the prior-year quarter differs form the GAAP effective tax rate due to the impact of the impairment charge associated with HNI India. The transactions excluded for purposes of non-GAAP financial information included in this earnings release include: restructuring charges recorded to cost of sales comprised of accelerated depreciation, asset disposals, and relocation and new facility setup costs in the Workplace Furnishings segment; incremental purchase accounting costs associated with Steelcase; costs associated with factory consolidation initiatives in the Workplace Furnishings segment; acquisition costs associated with the Steelcase acquisition; the gain on sale of a manufacturing facility in Workplace Furnishings; a charitable donation of land recorded at corporate; and a current period loss adjustment and prior-period impairment charge in the Workplace Furnishings segment related to HNI India. This earnings release refers to our expectations regarding non-GAAP diluted EPS. The Corporation is unable to provide a reconciliation of this forward-looking non-GAAP measure to future EPS without unreasonable effort due to the uncertainty regarding, and to the potential variability of, many of the costs and expenses that could potentially impact diluted EPS calculated on a GAAP basis. These items include, but are not limited to, impairments, financial impacts from changes in legal, regulatory, and tax requirements, charges related to actions taken to improve future profitability, and the impact of acquisitions and divestitures, if any. These items necessary to reconcile forward-looking non-GAAP diluted EPS to diluted EPS could be material and have a significant impact on the Corporation’s results computed in accordance with GAAP. HNI Corporation Reconciliation (Dollars in millions)   Three Months Ended     April 4, 2026   March 29, 2025     Workplace Furnishings Residential Building Products Total   Workplace Furnishings Residential Building Products Total   Net sales as reported (GAAP) $ 1,185.4   $ 162.1   $ 1,347.5     $ 441.1 $ 158.7 $ 599.8   % change from PY 169 % 2.1 % 125 %                             Less: Steelcase Inc. acquisition 774.0   —   774.0     — — —   Less: HNI India divestiture —   —   —     7.1 — 7.1                     Organic net sales (non-GAAP) $ 411.5   $ 162.1   $ 573.5     $ 434.0 $ 158.7 $ 592.7   % change from PY (5.2 %) 2.1 % (3.2 %)           HNI Corporation Reconciliation (Dollars in millions, except per share data)   Three Months Ended     April 4, 2026     Gross Profit   SG&A   Acquisition Cost   Restructuring and Impairment   Operating Income   Tax   Net Income   EPS   As reported (GAAP) $499.9     $514.8     $3.5     $18.0     $(36.4 )   $(16.8 )   $(38.8 )   $(0.55 )   % of net sales 37.1 %   38.2 %   0.3 %   1.3 %   (2.7 %)       (2.9 %)       Tax %                     30.3 %                                             Restructuring, impairment, and other charges 2.5     0.3     —     18.0     20.8     5.1     15.7     0.22     Acquisition costs —     —     3.5     —     3.5     4.1     (0.5 )   (0.01 )   Incremental Purchase Accounting 36.4     27.8     —     —     64.2     15.7     48.5     0.67                                       Results (non-GAAP) $538.8     $486.7     $—     $—     $52.1     $8.1     $24.8     $0.34     % of net sales 40.0 %   36.1 %   — %   — %   3.9 %       1.8 %       Tax %                     24.5 %           HNI Corporation Reconciliation (Dollars in millions, except per share data)   Three Months Ended     March 29, 2025     Gross Profit   SG&A   Restructuring and Impairment   Operating Income   Tax   Net Income   EPS   As reported (GAAP) $ 238.4     $ 207.6     $ 6.4     $ 24.4     $ 5.0     $ 13.9     $ 0.29     % of net sales 39.7 %   34.6 %   1.1 %   4.1 %       2.3 %       Tax %                 26.3 %                                         Restructuring charges 1.5     —     0.5     2.0     0.4     1.6     0.03     Impairment charges —     —     5.9     5.9     —     5.9     0.12     Gain on disposal of assets, net —     (0.4 )   —     (0.4 )   (0.1 )   (0.3 )   (0.01 )                                 Results (non-GAAP) $ 239.9     $ 208.0     $ —     $ 32.0     $ 5.3     $ 21.1     $ 0.44     % of net sales 40.0 %   34.7 %   — %   5.3 %       3.5 %       Tax %                 20.1 %           HNI Corporation Reconciliation   (Dollars in millions)     Three Months Ended     April 4, 2026     Legacy HNI   Steelcase   Consolidated HNI   Gross Profit as reported (GAAP) $ 238.0     $ 261.9     $ 499.9     % of net sales   41.5 %     33.8 %     37.1 %                 Incremental Purchase Accounting   —       36.4       36.4     Restructuring charges recorded to cost of sales   1.4       1.1       2.5     Gross Profit (non-GAAP) $ 239.4     $ 299.4     $ 538.8     % of net sales   41.7 %     38.7 %     40.0 %                 SG&A as reported (GAAP) $ 210.7     $ 304.1     $ 514.8     % of net sales   36.7 %     39.3 %     38.2 %                 Restructuring, impairment, and other charges   0.3       —       0.3     Incremental Purchase Accounting   —       27.8       27.8     SG&A (non-GAAP) $ 210.4     $ 276.3     $ 486.7     % of net sales   36.7 %     35.7 %     36.1 %                 Operating income (loss) as reported (GAAP) $ 29.4     $ (65.8 )   $ (36.4 )   % of net sales   5.1 %     (8.5 %)     (2.7 %)                 Restructuring, impairment, and other charges   4.7       16.1       20.8     Acquisition costs   (5.0 )     8.6       3.5     Incremental Purchase Accounting $ —     $ 64.2     $ 64.2     Operating income (non-GAAP) $ 29.0     $ 23.1     $ 52.1     % of net sales   5.1 %     3.0 %     3.9 %                 Tax as reported $ 4.1     $ (21.0 )   $ (16.8 )   Effective Tax Rate   16.5 %     26.0 %     30.3 %                 Restructuring, impairment, and other charges   1.1       3.9       5.1     Acquisition costs   0.8       3.3       4.1     Incremental Purchase Accounting   —       15.7       15.7     Tax (non-GAAP) $ 6.0     $ 2.0     $ 8.1     Effective Tax Rate (non-GAAP)   24.5 %     24.5 %     24.5 %   HNI Corporation Reconciliation   (Dollars in millions, except per share data)     Three Months Ended     April 4, 2026   GAAP (as reported): Legacy HNI   Consolidated HNI   Operating income (loss) $ 29.4       $ (36.4 )   Other non-operating income (loss), net   (0.2 )       1.5     Interest expense, net   4.2         20.7     Income taxes (Legacy 16.5%, Consolidated 30.3%)   4.1         (16.8 )   Net income (loss) $ 20.9       $ (38.8 )   Average number of common shares outstanding – diluted   46.5   (1 )     71.6     EPS - Diluted $ 0.45   (1 )   $ (0.55 )               Non-GAAP:           Operating income $ 29.0       $ 52.1     Other non-operating income (loss), net   (0.2 )       1.5     Interest expense, net   4.2         20.7     Income taxes (Legacy 24.5%, Consolidated 24.5%)   6.0         8.1     Net income $ 18.6       $ 24.8     Average number of common shares outstanding – diluted   46.5   (1 )     71.7     EPS - Diluted $ 0.40       $ 0.34     (1) The average number of common shares outstanding – diluted for the Legacy HNI business, a non-GAAP measure calculated by excluding the quarter-to-date average impacts of new issuances of HNI common stock (25.2 million) as a result of the acquisition of Steelcase Inc. Workplace Furnishings Reconciliation (Dollars in millions)   Three Months Ended     April 4,
2026   March 29,
2025     Legacy Workplace Furnishings   Steelcase   Total Workplace Furnishings   Total Workplace Furnishings   Operating income (loss) as reported (GAAP) $ 16.2     $ (58.8 )   $ (42.6 )   $ 18.0     % of net sales   3.9 %     (7.6 %)     (3.6 %)     4.1 %                     Impairment charges   —       —       —       5.9     Restructuring and impairment charges   4.3       16.1       20.5       2.0     Acquisition costs   —       6.6       6.6       —     Incremental Purchase Accounting   —       64.2       64.2       —     Gain on disposal of assets, net   —       —       —       (0.5 )                     Operating income (non-GAAP) $ 20.5     $ 28.2     $ 48.7     $ 25.4     % of net sales   5.0 %     3.6 %     4.1 %     5.8 %     View source version on businesswire.com: https://www.businesswire.com/news/home/20260505631983/en/ For Information Contact: Vincent P. Berger, Executive Vice President and Chief Financial Officer (563) 272-7400
Matthew S. McCall, Vice President, Investor Relations and Corporate Development (563) 275-8898 Original: HNI Corporation Reports First Quarter 2026 Results

HNI Corporation Reports Fourth Quarter and Fiscal Year 2025 ResultsFebruary 25, 2026 7:30 AM
Business Wire
Multiple years of elevated earnings growth visibility



During the quarter, the Corporation completed the acquisition of Steelcase, Inc., providing a substantial profit opportunity for the combined organization, while transforming the workplace furnishings industry



Including timing-related financial impacts tied to a partial-month stub period of Steelcase results and all acquisition-related expenses, fiscal 2025 GAAP diluted EPS was $1.11



2025 non-GAAP diluted EPS (excluding Steelcase) was $3.74 (+22% YoY) on net sales growth and non-GAAP margin expansion in both segments; the fourth straight year of double-digit non-GAAP EPS growth



The Corporation expects Steelcase synergies of $120 million / non-GAAP diluted EPS accretion of $1.20



Strategic initiatives and expected synergies (KII / Steelcase) support outlook for a fifth straight year of double-digit non-GAAP EPS growth in 2026 with multiple years of elevated earnings growth visibility



HNI Corporation (NYSE: HNI) today announced net sales of $2.8 billion and net income of $54.2 million for the full year ended January 3, 2026. Fourth quarter net sales and net loss were $888.4 million and $49.2 million, respectively.


Highlights



Solid 2025 organic results — net sales, margins, and earnings. For the full-year 2025, total net sales increased 12 percent and organic net sales increased 6 percent, both on a year-over-year basis. Consolidated 2025 operating margin was 8.6 percent, unchanged year-over-year. Excluding impacts from Steelcase, full-year non-GAAP operating margin expanded 80 basis points to 9.4 percent. The improvement was driven by volume growth, productivity gains, Kimball International (KII) synergy capture, and price-cost benefits. This drove a fourth consecutive year of double-digit non-GAAP diluted EPS growth. Non-GAAP to GAAP reconciliations follow the financial statements in this release.




Net sales growth expected in 2026. In Residential Building Products, recent structural changes and growth investments point to continued market outperformance and modest price-driven net sales growth in 2026. Industry-specific indicators and internal metrics point to another year of solid price- and volume-led net sales growth in the Workplace Furnishings segment.




Steelcase acquisition complements existing visibility story. The Corporation continues to realize significant savings from the KII acquisition synergies and the ramp-up of its Mexico facility. Synergies associated with the integration of Steelcase are expected to add $1.20 to non-GAAP diluted EPS when fully mature, with modest accretion now expected in 2026. In addition to eliminating redundant public company corporate costs, the synergies are initially focused on efforts within the Americas and do not include any revenue synergies.




Strong balance sheet. Post the closing of the Steelcase acquisition, the Corporation's balance sheet ended the year with a net debt-to-EBITDA ratio (as calculated under the Corporation's credit agreement) of 2.0 times. Leverage is expected to return to pre-acquisition levels in the next 18-24 months. The Corporation remains committed to payment of its longstanding dividend and continuing to invest in the business to drive future growth.



“Fiscal 2025 was a seminal year for HNI Corporation. Late in the year, we completed the acquisition of Steelcase — a combination that will not only transform our company, but also the workplace furnishings industry. And, again in 2025, our members delivered excellent results, as we reported a fourth straight year of double-digit non-GAAP EPS growth despite persistent soft and uncertain macro conditions. The positive momentum of our strategies, the benefits of our diversified revenue streams, our ongoing focus on items within our control, and the merits of our customer-first business model continued to deliver strong shareholder value.


“In our legacy workplace furnishings businesses, full-year net sales increased 15 percent and full-year organic net sales increased six percent year-over-year, fueled primarily by strength from our contract brands and the benefit of an extra week in fiscal 2025. Full-year profitability, excluding the Steelcase stub period, benefitted from volume growth, our profit transformation efforts, and KII synergy capture, while we continued to invest in future growth initiatives. Full-year GAAP operating profit margin improved 50 basis points year-over-year to 9.5 percent, while full-year non-GAAP operating profit margin expanded 100 basis points year-over-year to 10.5 percent, as we delivered on our previously stated goal of achieving double-digit operating margin. Non-GAAP operating margin has expanded nearly 900 basis points over the past three years. Looking ahead, we expect revenue growth for the full year 2026 and margin expansion in our legacy workplace furnishings businesses, even as we continue to invest to drive growth.


“In Residential Building Products, fourth quarter revenue grew more than 10 percent versus the same period of 2024, driven by strength in repair/remodel and the benefits of the extra week. For the full year, revenue increased nearly six percent versus 2024. New construction revenue was flat, with remodel-retrofit up at a double-digit pace—with solid volume improvement. In 2025, segment GAAP operating profit margin expanded 60 basis points year-over-year to 18 percent and segment non-GAAP operating profit margin expanded 60 basis points year-over-year to a strong 18.1 percent, driving greater than nine percent profit growth. We remain encouraged about the long-term opportunities tied to the broader housing market and we continue to invest to grow our operating model and revenue streams. As we look to 2026, we expect modest segment revenue and profit growth, despite ongoing challenges in the new construction market.


“Finally, the integration of the Steelcase acquisition is off to a strong start. Six months following the announcement, we are even more confident in the complementary go-to-market nature of the two businesses—from a capability, product, brand, customer, and cultural perspective. We remain confident in our ability to deliver the targeted synergies of $120 million. And, importantly, we are laser-focused on minimizing any front-end distraction across our Workplace Furnishings businesses. As we have consistently stated, there are no plans to change the dealer partnerships, salesforces, or brand distribution. This continuity is being received positively by customers, industry influencers, and our dealers.


“Our fourth quarter and 2025 results demonstrate the strength of our strategies and our ability to manage through uncertain macroeconomic conditions, while we remain focused on investing for the future. We expect strong results to continue in 2026, driven by our margin expansion efforts, synergy recognition, and continued revenue growth,” stated Jeff Lorenger, Chairman, President, and Chief Executive Officer.


HNI Corporation — Fourth Quarter Results




 






HNI Corporation – Fourth Quarter Financial Performance






 








 






(Dollars in millions, except per share data)






 








 






 






Three Months Ended






 






 






 








 






 






January 3,

2026






 






December 28,

2024






 






Change






 








 






GAAP






 






 






 






 






 






 








 






Net Sales






$888.4






 






 






$642.5






 






 






38.3






%






 








 






Gross Profit %






40.9






%






 






40.5






%






 






40 bps






 








 






SG&A %






33.7






%






 






31.6






%






 






210 bps






 








 






Acquisition Costs %






9.7






%






 






—






%






 






NM






 






 








 






Restructuring and Impairment Charges %






1.0






%






 






0.4






%






 






60 bps






 








 






Operating Income (loss)






($31.2






)






 






$54.6






 






 






(157






%)






 








 






Operating Income (loss) %






(3.5






%)






 






8.5






%






 






-1,200 bps






 








 






Effective Tax Rate






(3.3






%)






 






22.5






%






 






 






 








 






Net Income (loss) %






(5.5






%)






 






6.0






%






 






-1,150 bps






 








 






EPS – diluted






($0.94






)






 






$0.79






 






 






(219






%)






 








 






 






 






 






 






 






 






 








 






Non-GAAP






 






 






 






 






 






 








 






Gross Profit %






41.0






%






 






40.9






%






 






10 bps






 








 






Operating Income






$64.6






 






 






$59.7






 






 






8.2






%






 








 






Operating Income %






7.3






%






 






9.3






%






 






-200 bps






 








 






Effective Tax Rate






21.5






%






 






22.5






%






 






 






 








 






EPS – diluted






$0.83






 






 






$0.87






 






 






(4.6






%)






 







The following table presents results for (1) the Corporation’s legacy business, excluding the impacts of Steelcase (“Legacy HNI”) and (2) Steelcase. Please refer to non-GAAP reconciliations, which follow the financial statements in this release for further information on the adjustments made to calculate non-GAAP performance.




 






HNI Corporation – Fourth Quarter Impact of Steelcase Acquisition






 








 






(Dollars in millions, except per share data)






 






 






 






 






 






 








 






 






Three Months Ended






 






 






 






 






 






 








 






 






January 3,

2026






 






December 28,

2024






 






 






 






 






 








 






GAAP






Legacy

HNI






 






Steelcase*






 






Consolidated HNI*






 






Consolidated

HNI






 






Legacy

Change






 






Consolidated

Change






 








 






Net Sales






$700.7






 






 






$187.6






 






 






$888.4






 






 






$642.5






 






 






9.1






%






 






38.3






%






 








 






Gross Profit






$296.3






 






 






$67.1






 






 






$363.5






 






 






$260.4






 






 






13.8






%






 






39.6






%






 








 






Gross Profit %






42.3






%






 






35.8






%






 






40.9






%






 






40.5






%






 






180 bps






 






40 bps






 








 






SG&A






$226.3






 






 






$73.3






 






 






$299.6






 






 






$203.3






 






 






11.3






%






 






47.4






%






 








 






Acquisition Costs






$44.7






 






 






$41.6






 






 






$86.3






 






 






$—






 






 






NM






 






 






NM






 






 








 






Restructuring and Impairment






$8.7






 






 






$0.2






 






 






$8.8






 






 






$2.5






 






 






251






%






 






257






%






 








 






Operating Income (Loss)






$16.7






 






 






($48.0






)






 






($31.2






)






 






$54.6






 






 






(69.4






%)






 






(157






%)






 








 






Operating Income (Loss) %






2.4






%






 






(25.6






%)






 






(3.5






%)






 






8.5






%






 






-610 bps






 






-1,200 bps






 








 






EPS - diluted






 






 






 






 






($0.94






)






 






$0.79






 






 






 






 






(219






%)






 








 






 






 






 






 






 






 






 






 






 






 






 






 






 








 






Non-GAAP






 






 






 






 






 






 






 






 






 






 






 






 








 






Gross Profit






$296.6






 






 






$67.5






 






 






$364.1






 






 






$262.9






 






 






12.8






%






 






38.5






%






 








 






Gross Profit %






42.3






%






 






36.0






%






 






41.0






%






 






40.9






%






 






140 bps






 






10 bps






 








 






Operating Income (loss)






$70.4






 






 






($5.8






)






 






$64.6






 






 






$59.7






 






 






18.0






%






 






8.2






%






 








 






Operating Income (Loss) %






10.0






%






 






(3.1






%)






 






7.3






%






 






9.3






%






 






70 bps






 






-200 bps






 








 






EPS - diluted






$1.11






 






 






 






 






$0.83






 






 






$0.87






 






 






27.6






%






 






(4.6






%)






 








 








*2025 fourth quarter results reflect 24 days of Steelcase results.







HNI Corporation — Fourth Quarter Summary Comments



Consolidated net sales increased 38.3 percent from the prior-year quarter to $888.4 million. On an organic basis, net sales increased 10.1 percent year-over-year. The acquisition of Steelcase in the current quarter increased year-over-year net sales by $187.5 million, while the divestiture of HNI India during the second quarter of 2025 decreased year-over-year net sales by $6.1 million. The Corporation's fiscal year convention resulted in 14 weeks of activity during the fourth quarter of 2025, while fourth the fourth quarter of 2024 included 13 weeks. A reconciliation of organic net sales, a non-GAAP financial measure, to net sales follows the financial statements in this release.




Gross profit as a percent of net sales expanded 40 basis points compared to the prior-year quarter, driven by favorable price-cost and higher organic net sales volume, partially offset by impacts from the acquisition of Steelcase.




Selling and administrative expenses as a percentage of net sales increased 210 basis points from the prior-year quarter. This increase was driven by impacts from the acquisition of Steelcase, higher core SG&A, and higher variable compensation, partially offset by higher organic net sales.




Acquisition costs of $86.3 million were recorded during the current quarter in connection with the acquisition of Steelcase. Acquisition costs consist of change in control compensation expense, transaction success fees, and other professional service fees.




Non-cash purchase accounting totaled $4.6 million in December related to the Steelcase acquisition. Of this total, $2.2 million was included in cost of sales and related to the inventory step-up and additional depreciation for the preliminary valuation adjustment to property, plant and equipment. The remaining $2.4 million was included in operating expenses and related to amortization of intangibles and additional depreciation for the preliminary valuation.




Restructuring and impairment charges totaled $8.8 million in the current-year quarter, primarily in connection with the impairment of intangible assets related to a small business unit in the Workplace Furnishings segment and the Corporation's network optimization program. In the prior-year quarter, the Corporation incurred $2.5 million of restructuring and impairment charges, primarily due to the Corporation's network optimization program.




Net income (loss) per diluted share was ($0.94) compared to $0.79 in the prior-year quarter. On a non-GAAP basis, net income per diluted share declined to $0.83 from $0.87 in the prior-year quarter, primarily driven by impacts from the acquisition of Steelcase, as well as lower core SG&A, higher variable compensation, higher insurance, and higher interest expense, and increased average shares outstanding largely due to equity issuances in connection with the acquisition, partially offset by increased Legacy HNI net sales volume and favorable price-cost.




Income tax rate comparability versus the prior-year quarter was impacted by the effects of the Steelcase acquisition in the current-year period.



HNI Corporation — Full-Year Results




 






HNI Corporation — Full-Year Financial Performance






 








 






(Dollars in millions, except per share data)






 








 






 






Twelve Months Ended






 






 






 








 






 






January 3,

2026






 






December 28,

2024






 






Change






 








 






GAAP






 






 






 






 






 






 








 






Net Sales






$2,839.0






 






 






$2,526.4






 






 






12.4






%






 








 






Gross Profit %






41.4






%






 






40.9






%






 






50 bps






 








 






SG&A %






33.0






%






 






32.5






%






 






50 bps






 








 






Acquisition Costs %






3.3






%






 






—






%






 






NM






 






 








 






Restructuring, Impairment, and Loss on Divestiture %






0.7






%






 






0.2






%






 






50 bps






 








 






Operating Income






$126.0






 






 






$206.5






 






 






(39.0






%)






 








 






Operating Income %






4.4






%






 






8.2






%






 






-380 bps






 








 






Effective Tax Rate






40.2






%






 






22.2






%






 






 






 








 






Net Income %






1.9






%






 






5.5






%






 






-360 bps






 








 






EPS – diluted






$1.11






 






 






$2.88






 






 






(61.5






%)






 








 






 






 






 






 






 






 






 








 






Non-GAAP






 






 






 






 






 






 








 






Gross Profit %






41.5






%






 






41.1






%






 






40 bps






 








 






Operating Income






$243.9






 






 






$217.8






 






 






12.0






%






 








 






Operating Income %






8.6






%






 






8.6






%






 






— bps






 








 






Effective Tax Rate






22.4






%






 






22.2






%






 






 






 








 






EPS – diluted






$3.46






 






 






$3.06






 






 






13.1






%






 







The following table presents results for (1) the Corporation’s legacy business, excluding the impacts of Steelcase (“Legacy HNI”) and (2) Steelcase. Please refer to non-GAAP reconciliations, which follow the financial statements in this release for further information on the adjustments made to calculate non-GAAP performance.




 






HNI Corporation – Full-Year Impact of Steelcase Acquisition






 








 






(Dollars in millions, except per share data)






 








 






 






Twelve Months Ended






 






 






 






 






 








 






 






January 3,

2026






 






December 28,

2024






 






 






 






 






 








 






GAAP






Legacy

HNI






 






Steelcase *






 






Consolidated

HNI*






 






Consolidated

HNI






 






Legacy

Change






 






Consolidated

Change






 








 






Net Sales






$2651.4






 






 






$187.6






 






 






$2839.0






 






 






$2526.4






 






 






4.9






%






 






12.4






%






 








 






Gross Profit






$1109.0






 






 






$67.1






 






 






$1176.1






 






 






$1033.4






 






 






7.3






%






 






13.8






%






 








 






Gross Profit %






41.8






%






 






35.8






%






 






41.4






%






 






40.9






%






 






90 bps






 






50 bps






 








 






SG&A






$863.7






 






 






$73.3






 






 






$937.0






 






 






$820.7






 






 






5.2






%






 






14.2






%






 








 






Acquisition Costs






$53.0






 






 






$41.6






 






 






$94.6






 






 






$—






 






 






NM






 






 






NM






 






 








 






Restructuring, Impairment, and Loss on Divestiture






$18.4






 






 






$0.2






 






 






$18.5






 






 






$6.2






 






 






198






%






 






201






%






 








 






Operating Income (Loss)






$173.9






 






 






($48.0






)






 






$126.0






 






 






$206.5






 






 






(15.8






%)






 






(39.0






%)






 








 






Operating Income (Loss) %






6.6






%






 






(25.6






%)






 






4.4






%






 






8.2






%






 






-160 bps






 






-380 bps






 








 






EPS - diluted






 






 






 






 






$1.11






 






 






$2.88






 






 






 






 






(61.5






%)






 








 






 






 






 






 






 






 






 






 






 






 






 






 






 








 






Non-GAAP






 






 






 






 






 






 






 






 






 






 






 






 








 






Gross Profit






$1111.1






 






 






$67.5






 






 






$1178.6






 






 






$1038.4






 






 






7.0






%






 






13.5






%






 








 






Gross Profit %






41.9






%






 






36.0






%






 






41.5






%






 






41.1






%






 






80 bps






 






40 bps






 








 






Operating Income (Loss)






$249.7






 






 






($5.8






)






 






$243.9






 






 






$217.8






 






 






14.7






%






 






12.0






%






 








 






Operating Income (Loss) %






9.4






%






 






(3.1






%)






 






8.6






%






 






8.6






%






 






80 bps






 






— bps






 








 






EPS - diluted






$3.74






 






 






 






 






$3.46






 






 






$3.06






 






 






22.2






%






 






13.1






%






 








 








*2025 full year results reflect 24 days of Steelcase results.







HNI Corporation — Full-Year Summary Comments



Consolidated net sales increased 12.4 percent from the prior year to $2.8 billion. On an organic basis, net sales increased 5.6 percent compared to the prior year. The acquisition of Steelcase in the fourth quarter increased year-over-year net sales by $187.5 million, while the divestiture of HNI India during the second quarter of 2025 decreased year-over-year net sales by $16.2 million. The Corporation's fiscal year convention resulted in 53 weeks of activity during fiscal year 2025, while fiscal year 2024 included 52 weeks.




Gross profit as a percent of net sales expanded 50 basis points compared to the prior year. This increase was driven by improved net productivity.




Selling and administrative expenses as a percentage of net sales increased 50 basis points compared to the prior year. This increase was driven by wage inflation, impacts from the acquisition of Steelcase, and higher core SG&A, partially offset by higher organic net sales.




Acquisition costs of $94.6 million were recorded during the current year in connection with the acquisition of Steelcase. Acquisition costs consist of change in control compensation expense, transaction success fees, and other professional service fees.




Non-cash purchase accounting totaled $4.6 million in December related to the Steelcase acquisition. Of this total, $2.2 million was included in cost of sales and related to the inventory step-up and additional depreciation for the preliminary valuation adjustment to property, plant and equipment. The remaining $2.4 million was included in operating expenses and related to amortization of intangibles and additional depreciation for the preliminary valuation.




Restructuring, impairment, and loss on divestiture charges of $18.5 million were primarily incurred in connection with the impairment of intangible assets related to a small business unit in the Workplace Furnishings segment, the loss on divestiture of the HNI India business, and the Corporation's network optimization program. Prior-year restructuring and impairment charges of $6.2 million were primarily incurred in connection with the Corporation's network optimization program.




Net income per diluted share was $1.11 compared to $2.88 in the prior year. On a non-GAAP basis, net income per diluted share increased to $3.46 compared to $3.06 in the prior year, driven by higher net sales volume in the Legacy HNI businesses and improved net productivity, partially offset by impacts from the acquisition of Steelcase and higher core SG&A.



Workplace Furnishings — Fourth Quarter and Full-Year Results




 






Workplace Furnishings – Financial Performance






 








 






(Dollars in millions)






 








 






 






Three Months Ended






 






 






 






 






Twelve Months Ended






 






 






 








 






 






January 3,

2026






 






December 28,

2024






 






Change






 






 






January 3,

2026






 






December 28,

2024






 






Change






 








 






GAAP






 






 






 






 






 






 






 






 






 






 






 






 






 








 






Net Sales






$690.2






 






 






$462.9






 






 






49.1






%






 






 






$2,164.1






 






 






$1,888.0






 






 






14.6






%






 








 






Operating Income






$36.8






 






 






$30.7






 






 






19.6






%






 






 






$183.0






 






 






$169.1






 






 






8.3






%






 








 






Operating Income %






5.3






%






 






6.6






%






 






-130 bps






 






 






8.5






%






 






9.0






%






 






-50 bps






 








 






 






 






 






 






 






 






 






 






 






 






 






 






 






 








 






Non-GAAP






 






 






 






 






 






 






 






 






 






 






 






 






 








 






Operating Income






$45.7






 






 






$35.7






 






 






28.0






%






 






 






$202.4






 






 






$179.2






 






 






12.9






%






 








 






Operating Income %






6.6






%






 






7.7






%






 






-110 bps






 






 






9.4






%






 






9.5






%






 






-10 bps






 







The following tables present results for (1) the Corporation’s legacy Workplace Furnishings business, excluding the impacts of Steelcase (“Legacy Workplace”) and (2) Steelcase. Please refer to non-GAAP reconciliations, which follow the financial statements in this release for further information on the adjustments made to calculate non-GAAP performance.




 






Workplace Furnishings – Fourth Quarter Impact of Steelcase Acquisition






 








 






(Dollars in millions)






 








 






 






Three Months Ended






 






 






 






 






 








 






 






January 3,

2026






 






December 28,

2024






 






 






 






 






 








 






GAAP






Legacy

Workplace






 






Steelcase*






 






Total

Workplace*






 






Total

Workplace






 






Legacy

Change






 






Total

Change






 








 






Net Sales






$502.6






 






 






$187.6






 






 






$690.2






 






 






$462.9






 






 






8.6






%






 






49.1






%






 








 






Operating Income (Loss)






$41.8






 






 






($5.1






)






 






$36.8






 






 






$30.7






 






 






36.0






%






 






19.6






%






 








 






Operating Income (Loss) %






8.3






%






 






(2.7






%)






 






5.3






%






 






6.6






%






 






170 bps






 






-130 bps






 








 






 






 






 






 






 






 






 






 






 






 






 






 






 








 






Non-GAAP






 






 






 






 






 






 






 






 






 






 






 






 








 






Operating Income






$50.3






 






 






($4.5






)






 






$45.7






 






 






$35.7






 






 






40.6






%






 






28.0






%






 








 






Operating Income %






10.0






%






 






(2.4






%)






 






6.6






%






 






7.7






%






 






230 bps






 






-110 bps






 









 






Workplace Furnishings – Full-Year Impact of Steelcase Acquisition






 








 






(Dollars in millions)






 








 






 






Twelve Months Ended






 






 






 






 






 








 






 






January 03, 2026






 






December 28,

2024






 






 






 






 






 








 






GAAP






Legacy

Workplace






 






Steelcase*






 






Total

Workplace*






 






Legacy

Workplace






 






Legacy

Change






 






Total

Change






 








 






Net Sales






$1,976.5






 






 






$187.6






 






 






$2,164.1






 






 






$1,888.0






 






 






4.7






%






 






14.6






%






 








 






Operating Income (Loss)






$188.1






 






 






($5.1






)






 






$183.0






 






 






169.1






 






 






11.3






%






 






8.3






%






 








 






Operating Income (Loss) %






9.5






%






 






(2.7






%)






 






8.5






%






 






9.0






%






 






50 bps






 






-50 bps






 








 






 






 






 






 






 






 






 






 






 






 






 






 






 








 






Non-GAAP






 






 






 






 






 






 






 






 






 






 






 






 








 






Operating Income (Loss)






$206.9






 






 






($4.5






)






 






$202.4






 






 






$179.2






 






 






15.5






%






 






12.9






%






 








 






Operating Income (Loss) %






10.5






%






 






(2.4






%)






 






9.4






%






 






9.5






%






 






100 bps






 






-10 bps






 








 








*2025 fiscal year results reflect 24 days of Steelcase results.







Workplace Furnishings — Fourth Quarter Summary Comments



Workplace Furnishings net sales increased 49.1 percent from the prior-year quarter to $690.2 million, driven by the addition of Steelcase. On an organic basis, net sales increased 10.0 percent from the prior year. The impact of the Steelcase acquisition in the current quarter increased year-over-year net sales by $187.5 million.




Workplace Furnishings operating profit margin of 5.3 percent contracted by 130 basis points versus the prior-year period, driven by purchase accounting adjustments related to the Steelcase acquisition and higher core SG&A, partially offset by higher organic net sales volume and favorable price-cost. On a non-GAAP basis, segment operating profit margin of 6.6 percent contracted by 110 basis points.



Workplace Furnishings — Full-Year Summary Comments



Workplace Furnishings net sales increased 14.6 percent from the prior year to $2.2 billion. On an organic basis, net sales increased 5.6 percent from the prior year. The impact of the Steelcase acquisition in the current quarter increased year-over-year net sales by $187.5 million while the divestiture of HNI India in the second quarter of 2025 decreased year-over-year net sales by $16.2 million.




Workplace Furnishings operating profit margin of 8.5 percent contracted by 50 basis points, driven by unfavorable price-cost and higher core SG&A, partially offset by improved net productivity and higher net sales volume. On a non-GAAP basis, segment operating profit margin of 9.4 percent was flat year-over-year.



Residential Building Products — Fourth Quarter and Full-Year Results




 






Residential Building Products – Financial Performance






 








 






(Dollars in millions)






 








 






 






Three Months Ended






 






 






 






 






Twelve Months Ended






 






 






 








 






 






January 3,

2026






 






December 28,

2024






 






Change






 






 






January 3,

2026






 






December 28,

2024






 






Change






 








 






GAAP






 






 






 






 






 






 






 






 






 






 






 






 






 








 






Net Sales






$198.2






 






 






$179.6






 






 






10.3






%






 






 






$674.9






 






 






$638.4






 






 






5.7






%






 








 






Operating Income






$43.1






 






 






$39.8






 






 






8.4






%






 






 






$121.8






 






 






$110.8






 






 






9.9






%






 








 






Operating Income %






21.8






%






 






22.2






%






 






-40 bps






 






 






18.0






%






 






17.4






%






 






60 bps






 








 






 






 






 






 






 






 






 






 






 






 






 






 






 






 








 






Non-GAAP






 






 






 






 






 






 






 






 






 






 






 






 






 








 






Operating Income






$43.5






 






 






$39.8






 






 






9.3






%






 






 






$122.1






 






 






$111.9






 






 






9.1






%






 








 






Operating Income %






21.9






%






 






22.2






%






 






-30 bps






 






 






18.1






%






 






17.5






%






 






60 bps






 







Residential Building Products — Fourth Quarter Summary Comments



Residential Building Products net sales increased 10.3 percent from the prior-year quarter to $198.2 million. Remodel-retrofit net sales outperformed new construction.




Residential Building Products operating profit margin of 21.8 percent contracted by 40 basis points, driven by higher variable compensation, higher core SG&A, and reduced net productivity partially offset by favorable price-cost and higher net sales volume. On a non-GAAP basis, segment operating profit margin of 21.9 percent contracted by 30 basis points year-over-year.



Residential Building Products — Full-Year Summary Comments



Residential Building Products net sales increased 5.7 percent from the prior year to $674.9 million. Remodel-retrofit net sales outperformed new construction.




Residential Building Products operating profit margin of 18.0 percent expanded 60 basis points primarily due to favorable price-cost, partially offset by higher variable compensation. Segment non-GAAP operating profit margin was 18.1 percent, an improvement of 60 basis points year-over-year.



Fourth Quarter Order Rates



In the legacy Workplace Furnishings segment, orders in the fourth quarter were up five percent compared to the prior-year period, including the impact of the extra week in 2025.




Orders in the Residential Building Products segment increased eight percent compared to the fourth quarter of 2024, also including the extra week.



Outlook



Net Sales. For the full year, modest organic revenue growth is expected — with the consolidated Workplace Furnishings businesses expected to grow at a rate in the mid-single digit percentage range and the Residential Building Products segment expected to grow at a rate in the low-single digits. Including Steelcase, full-year consolidated net sales are expected to more than double year-over-year. The Corporation expects first quarter 2026 consolidated net sales to increase by more than 130 percent year-over-year, inclusive of Steelcase revenue.




Non-GAAP diluted earnings per share for the full year is expected to grow at a double-digit pace for the fifth consecutive year — with accelerating/double-digit growth in the second half expected to be driven by volume growth, accelerating productivity gains, and increased synergy recognition. In the first quarter of 2026, non-GAAP diluted EPS is expected to decrease slightly from 2025 levels. Temporary first-quarter earnings pressure is expected to be driven by revenue timing and increased investment.



Concluding Remarks


“I want to reflect on the fundamental improvements we have driven at HNI. Our transformation has taken multiple steps and years. In Workplace Furnishings, margins have been reset. Three years ago, our legacy workplace furnishings businesses launched a profitability improvement initiative that was instrumental in expanding operating margin nearly 900 basis points. In 2023, price-cost recovery following the period of elevated inflation drove the first phase of expansion. Since then, multiple portfolio management moves, ongoing network optimization efforts, KII synergies, and the benefits of ramping our Mexico facility have supported consistent profitability improvement. Based on initiatives already underway, including the recently announced plans to close our Wayland, New York manufacturing facility, we have line of sight to continued margin expansion in the coming years. And our margin expansion story is increasingly supported by a firming macroeconomic picture in our Workplace segment.


"In our Residential Building Products business, our evolution started with the strategic shifts that followed the Great Financial Crisis. Since then, we have adjusted our cost structure, fully embraced LEAN manufacturing, and continued to pursue a vertically integrated business model with the leading brands in all product categories. The result was more than 1,000 basis points of operating margin expansion over the decade post 2009. Furthermore, since 2019, the efficiency, nimbleness, and uniqueness of our building products business have supported consistently strong profitability, with sustained high margins. The consistency of both margins and cash flow are foundational elements to HNI’s financial strength. We expect this profitability and cash generation stability to continue in 2026 and beyond.


“More recently, our focus in Residential Building Products has shifted to the front end of the business and on driving top line growth. Structural changes have been implemented to organize around the customer and ensure we have laser-focused go-to-market strategies to support our growth initiatives. These front-end investments are paying off in the absence of cyclical support. In 2025, we reported segment revenue growth of six percent, despite continued weakness in the new home market. We expect outperformance again in 2026.


“This historical context helps set the stage as we enter the next, exciting chapter of the HNI story. The acquisition of Steelcase unites two industry leaders to meet the dynamic marketplace and evolving needs of the workplace amid accelerating in-office work trends. We have brought together two highly respected companies with shared values, talented teams, strong financial profiles, and highly complementary capabilities—innovation, thought leadership, and operational excellence chief among them. This strong foundation, combined with expected synergies, will accelerate our ability to invest in long-term operational enhancements, digital transformation, products to meet evolving customer needs, and customer-centered buying experiences. Our integration efforts are well underway, and we are leveraging a disciplined and proven approach informed by recent experience, while continuing to build on the iconic brands for which both companies are widely respected.


“We enter 2026 a transformed and fundamentally stronger organization. We are the market leader in both of our industries — workplace furnishings and hearth products. The acquisition of Steelcase brings tremendous capabilities, and we are confident we can improve Steelcase's margins. Our confidence is based on current synergy projections and does not include any potential revenue synergies. Over the next few years, we expect to drive substantially higher earnings, stronger margins and greater cash flow, with a conservative balance sheet. This will enable us to deliver exceptional value to our shareholders, customers, dealers, members, and communities,” concluded Mr. Lorenger.


Conference Call


As previously announced, HNI Corporation will host a conference call on Thursday, February 25, 2026 at 10:00 a.m. (Central) to discuss fourth quarter and fiscal year 2025 results. To participate, call 1-855-761-5600 – conference ID number 7175411. Both a live webcast and webcast replay will be available on HNI Corporation’s website at https://investors.hnicorp.com/events-and-presentations.


About HNI Corporation


HNI Corporation (NYSE: HNI) has been improving where people live, work, and gather for more than 75 years. HNI is a manufacturer of workplace furnishings and residential building products, operating under two segments. The Workplace Furnishings segment is a leading global designer and provider of commercial furnishings, going to market under multiple unique brands. The Residential Building Products segment is the nation’s leading manufacturer and marketer of hearth products, which include a full array of gas, electric, wood, and pellet-burning fireplaces, inserts, stoves, facings, and accessories. More information can be found on the Corporation’s website at www.hnicorp.com.


Forward-Looking Statements


This release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 and Section 27A of the Securities Act of 1933, which involve risks and uncertainties. Any statements, plans, objectives, expectations, strategies, beliefs, or future performance or events to the extent they are not statements of historical fact are forward-looking statements. Words, phrases or expressions such as “anticipate,” “believe,” “could,” “confident,” “continue,” “estimate,” “expect,” “forecast,” “hope,” “intend,” “likely,” “may,” “might,” “objective,” “plan,” “possible,” “potential,” “predict,” “project”, “target,” “trend” and similar words, phrases or expressions are intended to identify forward looking statements but are not the exclusive means of identifying such statements. The forward-looking statements in this release include the Corporation's expectations regarding consolidated net sales growth for fiscal year 2026 and first quarter 2026. Forward-looking statements are based on information available and assumptions made at the time the statements are made. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those expressed in or implied by the forward-looking statements. Forward-looking statements in this release about HNI's acquisition of Steelcase in December 2025 (the "Steelcase acquisition") include, but are not limited to, statements about the benefits of the transaction, including future financial and operating results, the combined company’s plans, objectives, expectations and intentions, and other statements that are not historical facts.


The following factors related to the Steelcase acquisition, among others, could cause actual results to differ materially from those expressed in or implied by forward-looking statements: the risk that the benefits of the Steelcase acquisition may not be fully realized or may take longer to realize than expected, including as a result of changes in, or problems arising from, general economic and market conditions, interest and exchange rates, monetary policy, trade policy (including tariff levels), laws and regulations and their enforcement, and the degree of competition in the geographic and business areas in which HNI and Steelcase operate; any failure to promptly and effectively integrate the businesses of HNI and Steelcase; and potential adverse reactions to the transaction of HNI’s or Steelcase’s customers, employees or other business partners.


Additional important factors relating to HNI that could cause actual results to differ materially from those in forward-looking statements include, but are not limited to, disruptions in the global supply chain; the effects of prolonged periods of inflation and rising interest rates; labor shortages; the levels of office furniture needs and housing starts; overall demand for HNI’s products; general economic and market conditions in the United States and internationally; industry and competitive conditions; the consolidation and concentration of HNI’s customers; HNI’s reliance on its network of independent dealers; changes in trade policy, including with respect to tariff levels; changes in raw material, component, or commodity pricing; market acceptance and demand for HNI’s new products; changing legal, regulatory, environmental, and healthcare conditions; the risks associated with international operations; the potential impact of product defects; the various restrictions on HNI’s financing activities; an inability to protect HNI’s intellectual property; cybersecurity threats, including those posed by potential ransomware attacks; impacts of tax legislation; and force majeure events outside HNI’s control, including those that may result from the effects of climate change. A description of these risks and uncertainties and additional risks and uncertainties can be found in HNI’s annual report on Form 10-K for the year ended December 28, 2024, and subsequent quarterly and current reports filed with the Securities and Exchange Commission on Forms 10-Q and 8-K.


Forward-looking statements speak only as of the date they are made, and HNI does not undertake or assume any obligation to update publicly any of these statements to reflect actual results, new information or future events, changes in assumptions, or changes in other factors affecting forward-looking statements, except to the extent required by applicable law.




HNI Corporation and Subsidiaries








Condensed Consolidated Statements of Comprehensive Income








(In millions, except per share data)








(Unaudited)








 








 






Three Months Ended






 






Twelve Months Ended








January 3,

2026






 






December 28,

2024






 






January 3,

2026






 






December 28,

2024








Net sales






$






888.4






 






 






$






642.5






 






 






$






2,839.0






 






 






$






2,526.4






 








Cost of sales






 






524.9






 






 






 






382.1






 






 






 






1,662.9






 






 






 






1,493.0






 








Gross profit






 






363.5






 






 






 






260.4






 






 






 






1,176.1






 






 






 






1,033.4






 








Selling and administrative expenses






 






299.6






 






 






 






203.3






 






 






 






937.0






 






 






 






820.7






 








Acquisition Costs






 






86.3






 






 






 






—






 






 






 






94.6






 






 






 






—






 








Restructuring, impairment, and loss on divestiture






 






8.8






 






 






 






2.5






 






 






 






18.5






 






 






 






6.2






 








Operating income (loss)






 






(31.2






)






 






 






54.6






 






 






 






126.0






 






 






 






206.5






 








Interest expense, net






 






16.7






 






 






 






5.1






 






 






 






35.6






 






 






 






27.2






 








Other non-operating income, net






 






0.4






 






 






 






—






 






 






 






0.4






 






 






 






—






 








Income (loss) before income taxes






 






(47.6






)






 






 






49.5






 






 






 






90.8






 






 






 






179.3






 








Income taxes






 






1.6






 






 






 






11.2






 






 






 






36.5






 






 






 






39.8






 








Net income (loss)






 






(49.2






)






 






 






38.3






 






 






 






54.2






 






 






 






139.5






 








Less: Net income attributable to non-controlling interest






 






—






 






 






 






0.0






 






 






 






0.0






 






 






 






0.0






 








Net income (loss) attributable to HNI Corporation






$






(49.2






)






 






$






38.3






 






 






$






54.2






 






 






$






139.5






 








 






 






 






 






 






 






 






 








Average number of common shares outstanding – basic






 






52.4






 






 






 






47.5






 






 






 






47.9






 






 






 






47.4






 








Net income (loss) attributable to HNI Corporation per common share – basic






$






(0.94






)






 






$






0.81






 






 






$






1.13






 






 






$






2.95






 








 






 






 






 






 






 






 






 








Average number of common shares outstanding – diluted






 






52.4






 






 






 






48.6






 






 






 






48.9






 






 






 






48.5






 








Net income (loss) attributable to HNI Corporation per common share – diluted






$






(0.94






)






 






$






0.79






 






 






$






1.11






 






 






$






2.88






 








 






 






 






 






 






 






 






 








Foreign currency translation adjustments






$






2.2






 






 






$






(0.3






)






 






$






8.5






 






 






$






(0.4






)








Change in unrealized gains (losses) on marketable securities, net of tax






 






0.0






 






 






 






(0.2






)






 






 






0.2






 






 






 






0.1






 








Change in pension and post-retirement liability, net of tax






 






1.4






 






 






 






1.1






 






 






 






3.4






 






 






 






1.1






 








Change in derivative financial instruments, net of tax






 






0.1






 






 






 






1.6






 






 






 






(0.4






)






 






 






1.6






 








Other comprehensive income (loss), net of tax






 






3.7






 






 






 






2.2






 






 






 






11.8






 






 






 






2.4






 








Comprehensive income (loss)






 






(45.5






)






 






 






40.5






 






 






 






66.0






 






 






 






141.9






 








Less: Comprehensive income attributable to non-controlling interest






 






—






 






 






 






0.0






 






 






 






0.0






 






 






 






0.0






 








Comprehensive income (loss) attributable to HNI Corporation






$






(45.5






)






 






$






40.5






 






 






$






66.0






 






 






$






141.9






 








 








Amounts may not sum due to rounding.









HNI Corporation and Subsidiaries








Condensed Consolidated Balance Sheets








(In millions)








(Unaudited)








 








 






January 3,

2026






 






December 28,

2024








Assets






 






 






 








Current Assets:






 






 






 








Cash and cash equivalents






$






209.2






 






 






$






20.2






 








Short-term investments






 






6.5






 






 






 






6.4






 








Receivables






 






571.1






 






 






 






248.4






 








Allowance for doubtful accounts






 






(1.1






)






 






 






(2.0






)








Inventories, net






 






475.3






 






 






 






194.3






 








Prepaid expenses and other current assets






 






150.9






 






 






 






54.9






 








Total Current Assets






 






1,411.9






 






 






 






522.2






 








Property, Plant, and Equipment:






 






 






 








Land and land improvements






 






99.1






 






 






 






58.5






 








Buildings






 






529.1






 






 






 






407.9






 








Machinery and equipment






 






1,128.5






 






 






 






685.9






 








Construction in progress






 






58.5






 






 






 






25.9






 








 






 






1,815.2






 






 






 






1,178.2






 








Less accumulated depreciation






 






(678.0






)






 






 






(648.6






)








Net Property, Plant, and Equipment






 






1,137.2






 






 






 






529.6






 








Right-of-use Finance Leases






 






11.3






 






 






 






14.3






 








Right-of-use Operating Leases






 






274.5






 






 






 






121.8






 








Goodwill and Other Intangible Assets, net






 






1,702.6






 






 






 






624.3






 








Other Assets






 






347.6






 






 






 






63.0






 








Total Assets






$






4,885.0






 






 






$






1,875.1






 








 






 






 






 








Liabilities and Equity






 






 






 








Current Liabilities:






 






 






 








Accounts payable and accrued expenses






$






1,016.4






 






 






$






391.2






 








Current maturities of debt






 






16.2






 






 






 






50.3






 








Current maturities of other long-term obligations






 






38.2






 






 






 






2.3






 








Current lease obligations - Finance






 






4.2






 






 






 






5.6






 








Current lease obligations - Operating






 






64.4






 






 






 






28.1






 








Total Current Liabilities






 






1,139.3






 






 






 






477.5






 








Long-Term Debt






 






1,276.9






 






 






 






294.3






 








Long-Term Lease Obligations - Finance






 






7.3






 






 






 






8.9






 








Long-Term Lease Obligations - Operating






 






224.6






 






 






 






109.6






 








Other Long-Term Liabilities






 






220.4






 






 






 






72.9






 








Deferred Income Taxes






 






180.9






 






 






 






71.6






 








Total Liabilities






 






3,049.5






 






 






 






1,034.7






 








Equity:






 






 






 








HNI Corporation shareholders’ equity






 






1,835.6






 






 






 






840.1






 








Non-controlling interest






 






—






 






 






 






0.3






 








Total Equity






 






1,835.6






 






 






 






840.4






 








Total Liabilities and Equity






$






4,885.0






 






 






$






1,875.1






 








 








Amounts may not sum due to rounding.









HNI Corporation and Subsidiaries








Condensed Consolidated Statements of Cash Flows








(In millions)








(Unaudited)








 








 






Twelve Months Ended








 






January 3,

2026






 






December 28,

2024








Net Cash Flows From (To) Operating Activities:






 






 






 








Net income






$






54.2






 






 






$






139.5






 








Non-cash items included in net income:






 






 






 








Depreciation and amortization






 






107.1






 






 






 






107.8






 








Other post-retirement and post-employment benefits






 






1.9






 






 






 






1.1






 








Stock-based compensation






 






24.7






 






 






 






17.4






 








Deferred income taxes






 






33.7






 






 






 






(14.1






)








Asset impairment charges






 






7.7






 






 






 






—






 








Loss on sale of subsidiary






 






6.6






 






 






 






—






 








Other – net






 






14.3






 






 






 






5.5






 








Net increase (decrease) in cash from operating assets and liabilities






 






23.9






 






 






 






(19.1






)








Decrease in other liabilities






 






2.1






 






 






 






(11.4






)








Net cash flows from (to) operating activities






 






276.3






 






 






 






226.7






 








 






 






 






 








Net Cash Flows From (To) Investing Activities:






 






 






 








Capital expenditures






 






(65.8






)






 






 






(50.6






)








Acquisition spending, net of cash acquired






 






(390.3






)






 






 






—






 








Capitalized software






 






(2.0






)






 






 






(2.3






)








Purchase of investments






 






(2.8






)






 






 






(3.2






)








Sales or maturities of investments






 






4.8






 






 






 






4.7






 








Net proceeds from sale of subsidiary






 






8.1






 






 






 






—






 








Other – net






 






4.1






 






 






 






0.4






 








Net cash flows from (to) investing activities






 






(443.9






)






 






 






(51.0






)








 






 






 






 








Net Cash Flows From (To) Financing Activities:






 






 






 








Payments of debt






 






(782.5






)






 






 






(420.6






)








Proceeds from debt






 






1,296.7






 






 






 






328.2






 








Dividends paid






 






(63.1






)






 






 






(63.6






)








Purchase of HNI Corporation common stock






 






(83.6






)






 






 






(65.8






)








Proceeds from sales of HNI Corporation common stock






 






3.8






 






 






 






51.2






 








Debt-issuance costs






 






(14.6






)






 






 






—






 








Withholding related to net share settlements of equity based awards






 






(13.3






)






 






 






(7.6






)








Proceeds from COLI






 






32.0






 






 






 






—






 








Other – net






 






(12.5






)






 






 






(4.0






)








Net cash flows from (to) financing activities






 






363.1






 






 






 






(182.2






)








 






 






 






 








Net increase (decrease) in cash and cash equivalents






 






195.4






 






 






 






(6.4






)








Cash, cash equivalents, and restricted cash at beginning of period






 






22.5






 






 






 






28.9






 








Cash, cash equivalents, and restricted cash at end of period(1)






$






217.9






 






 






$






22.5






 








(1) Restricted cash as of January 3, 2026 and December 28, 2024 was $8.8 million and $2.4 million, respectively, and is included in "Other Assets" in the Consolidated Balance Sheets.








 








Amounts may not sum due to rounding.









HNI Corporation and Subsidiaries








Reportable Segment Data








(In millions)








(Unaudited)








 








 






Three Months Ended






 






Twelve Months Ended








 






January 3,

2026






 






December 28,

2024






 






January 3,

2026






 






December 28,

2024








Net Sales:






 






 






 






 






 






 






 








Workplace Furnishings






$






690.2






 






 






$






462.9






 






 






$






2,164.1






 






 






$






1,888.0






 








Residential Building Products






 






198.2






 






 






 






179.6






 






 






 






674.9






 






 






 






638.4






 








Total






$






888.4






 






 






$






642.5






 






 






$






2,839.0






 






 






$






2,526.4






 








Cost of Sales:






 






 






 






 






 






 






 








Workplace Furnishings






$






419.8






 






 






$






285.2






 






 






$






1,295.7






 






 






$






1,140.6






 








Residential Building Products






 






105.1






 






 






 






96.9






 






 






 






367.3






 






 






 






352.4






 








Total






$






524.9






 






 






$






382.1






 






 






$






1,662.9






 






 






$






1,493.0






 








Selling and Administrative Expenses:






 






 






 






 






 






 






 








Workplace Furnishings






$






225.2






 






 






$






144.5






 






 






$






667.8






 






 






$






573.3






 








Residential Building Products






 






49.6






 






 






 






42.9






 






 






 






185.5






 






 






 






174.0






 








General Corporate






 






24.9






 






 






 






16.0






 






 






 






83.7






 






 






 






73.4






 








Total






$






299.6






 






 






$






203.3






 






 






$






937.0






 






 






$






820.7






 








Acquisition Costs:






 






 






 






 






 






 






 








General Corporate






$






86.3






 






 






$






—






 






 






$






94.6






 






 






$






—






 








Total






$






86.3






 






 






$






—






 






 






$






94.6






 






 






$






—






 








Restructuring, Impairment, and Loss on Divestiture:






 






 






 






 






 






 






 








Workplace Furnishings






$






8.5






 






 






$






2.5






 






 






$






17.6






 






 






$






5.1






 








Residential Building Products






 






0.4






 






 






 






—






 






 






 






0.4






 






 






 






1.1






 








General Corporate






 






—






 






 






 






—






 






 






 






0.6






 






 






 






—






 








Total






$






8.8






 






 






$






2.5






 






 






$






18.5






 






 






$






6.2






 








Operating Income (Loss):






 






 






 






 






 






 






 








Workplace Furnishings






$






36.8






 






 






$






30.7






 






 






$






183.0






 






 






$






169.1






 








Residential Building Products






 






43.1






 






 






 






39.8






 






 






 






121.8






 






 






 






110.8






 








General Corporate






 






(111.1






)






 






 






(16.0






)






 






 






(178.9






)






 






 






(73.4






)








Total






$






(31.2






)






 






$






54.6






 






 






$






126.0






 






 






$






206.5






 








Interest Expense, Net:






 






16.7






 






 






 






5.1






 






 






 






35.6






 






 






 






27.2






 








Other Non-Operating Income:






 






0.4






 






 






 






—






 






 






 






0.4






 






 






 






—






 








Income Before Income Taxes:






$






(47.6






)






 






$






49.5






 






 






$






90.8






 






 






$






179.3






 








 






 






 






 






 






 






 






 








Depreciation and Amortization Expense:






 






 






 






 






 






 






 








Workplace Furnishings






$






23.2






 






 






$






19.2






 






 






$






72.8






 






 






$






73.5






 








Residential Building Products






 






3.8






 






 






 






3.6






 






 






 






14.9






 






 






 






14.3






 








General Corporate






 






4.7






 






 






 






4.9






 






 






 






19.3






 






 






 






20.1






 








Total






$






31.6






 






 






$






27.7






 






 






$






107.1






 






 






$






107.8






 








Capital Expenditures (including capitalized software):






 






 






 






 






 






 






 








Workplace Furnishings






$






13.2






 






 






$






6.5






 






 






$






50.8






 






 






$






36.2






 








Residential Building Products






 






2.4






 






 






 






2.2






 






 






 






10.0






 






 






 






8.2






 








General Corporate






 






1.4






 






 






 






0.9






 






 






 






7.1






 






 






 






8.4






 








Total






$






17.0






 






 






$






9.7






 






 






$






67.8






 






 






$






52.9






 








 








Amounts may not sum due to rounding.









HNI Corporation and Subsidiaries








Reportable Segment Data








(In millions)








(Unaudited)








 








 






As of

January 3,

2026






 






As of

December 28,

2024








Identifiable Assets:






 






 






 








Workplace Furnishings






$






3,887.4






 






$






1,282.6








Residential Building Products






 






440.6






 






 






465.8








General Corporate






 






557.0






 






 






126.7








Total






$






4,885.0






 






$






1,875.1








 








Amounts may not sum due to rounding.







Non-GAAP Financial Measures


This earnings release includes certain non-GAAP financial measures as defined by Securities and Exchange Commission Regulation G. Pursuant to the requirements of this regulation, reconciliations of historical non-GAAP financial measures to the most directly comparable historical GAAP measures are included below. This information gives investors additional insights into HNI’s financial performance and operations. While HNI’s management believes the non-GAAP financial measures are useful in evaluating HNI’s operations, this information should be considered supplemental and not in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with GAAP. In addition, these measures may be different from similarly titled non-GAAP financial measures used by other companies, limiting their usefulness for comparison purposes.


To supplement the condensed consolidated financial statements and our segment results, which are prepared and presented in accordance with GAAP, this earnings release contains the following non-GAAP financial measures for full year or interim periods: organic net sales and non-GAAP gross profit, operating income, operating profit, income taxes, effective tax rate, net income, and net income per diluted share (i.e., EPS). These measures are adjusted from the comparable GAAP measures to exclude the impacts of the selected items as summarized in the tables below. Generally, non-GAAP EPS is calculated using HNI’s overall effective tax rate for the period, as this rate is reflective of the tax applicable to most non-GAAP adjustments. In the current year and current-year quarter, the effective tax rate used to calculate non-GAAP EPS differs from the GAAP effective tax rate primarily due to the impact of nondeductible charges associated with the acquisition of Steelcase Inc. Additionally, non-GAAP EPS for the Legacy HNI business is calculated by excluding the impact of new issuances of HNI common stock and HNI restricted stock units made in connection with the acquisition of Steelcase Inc.


The sales adjustments to arrive at the non-GAAP organic net sales information presented in this earnings release relate to the exclusion of net sales of Steelcase for a portion of the current full-year period, and HNI India for a portion of the prior year period. The transactions excluded for purposes of other non-GAAP financial information included in this earnings release include: restructuring charges recorded to cost of sales comprised of accelerated depreciation, asset disposals, and relocation and new facility setup costs in the Workplace Furnishings segment; transaction costs associated with the Steelcase acquisition, interest expense associated with bridge loan financing for the Steelcase acquisition, costs associated with factory consolidation and network optimization initiatives in the Workplace Furnishings segment; current-period intangible asset impairment costs in the Workplace Furnishings segment; the gain on sale of a manufacturing facility in Workplace Furnishings; the payout to settle a pension plan at corporate; and the loss on sale of the HNI India business in Workplace Furnishings and at corporate.


This earnings release refers to our expectations regarding non-GAAP EPS. The Corporation is unable to provide a reconciliation of this forward-looking non-GAAP measure to future EPS without unreasonable effort due to the uncertainty regarding, and to the potential variability of, many of the costs and expenses that could potentially impact EPS calculated on a GAAP basis. These items include, but are not limited to, impairments, financial impacts from changes in legal, regulatory, and tax requirements, charges related to actions taken to improve future profitability, and the impact of acquisitions and divestitures, if any. These items necessary to reconcile forward-looking non-GAAP EPS to EPS could be material and have a significant impact on the Corporation’s results computed in accordance with GAAP.




 






HNI Corporation Reconciliation






 








 






(Dollars in millions)






 








 






 






Three Months Ended






 








 






 






January 3, 2026






 






December 28, 2024






 








 






 






Workplace

Furnishings






Residential

Building

Products






Total






 






Workplace

Furnishings






Residential

Building

Products






Total






 








 






Net Sales as reported (GAAP)






$






690.2






 






$






198.2






 






$






888.4






 






 






$






462.9






$






179.6






$






642.5






 








 






% change from PY






 






49.1






%






 






10.3






%






 






38.3






%






 






 






 






 






 








 






Less: Steelcase Inc. acquisition






 






187.5






 






 






—






 






 






187.5






 






 






 






—






 






—






 






—






 








 






Less: HNI India divestiture






 






—






 






 






—






 






 






—






 






 






 






6.1






 






—






 






6.1






 








 






 






 






 






 






 






 






 






 






 








 






Organic net sales (non-GAAP)






$






502.6






 






$






198.2






 






$






700.8






 






 






$






456.8






$






179.6






$






636.4






 








 






% change from PY






 






10.0






%






 






10.3






%






 






10.1






%






 






 






 






 






 









 






HNI Corporation Reconciliation






 








 






(Dollars in millions)






 








 






 






Twelve Months Ended






 








 






 






January 3, 2026






 






December 28, 2024






 








 






 






Workplace

Furnishings






Residential

Building

Products






Total






 






Workplace

Furnishings






Residential

Building

Products






Total






 








 






Net sales as reported (GAAP)






$






2,164.1






 






$






674.9






 






$






2,839.0






 






 






$






1,888.0






$






638.4






$






2,526.4






 








 






% change from PY






 






14.6






%






 






5.7






%






 






12.4






%






 






 






 






 






 








 






Less: Steelcase Inc. acquisition






 






187.5






 






 






—






 






 






187.5






 






 






 






—






 






—






 






—






 








 






Less: HNI India divestiture






 






—






 






 






—






 






 






—






 






 






 






16.2






 






—






 






16.2






 








 






 






 






 






 






 






 






 






 






 








 






Organic net sales (non-GAAP)






$






1,976.6






 






$






674.9






 






$






2,651.5






 






 






$






1,871.8






$






638.4






$






2,510.1






 








 






% change from PY






 






5.6






%






 






5.7






%






 






5.6






%






 






 






 






 






 









 






HNI Corporation Reconciliation






 








 






(Dollars in millions, except per share data)






 








 






 






Three Months Ended






 








 






 






January 3, 2026






 








 






 






Gross

Profit






 






Operating

Income






 






Interest






 






Tax






 






Net

Income






 






 




EPS






 








 






As reported (GAAP)






$






363.5






 






 






$






(31.2






)






 






$






16.7






 






 






$






1.6






 






 






$






(49.2






)






 






$






(0.94






)






 








 






% of net sales






 






40.9






%






 






 






(3.5






%)






 






 






1.9






%






 






 






 






 






(5.5






%)






 






 






 








 






Tax %






 






 






 






 






 






 






 






(3.3






%)






 






 






 






 






 








 






 






 






 






 






 






 






 






 






 






 






 






 






 








 






Restructuring charges






 






0.7






 






 






 






1.6






 






 






 






—






 






 






 






0.4






 






 






 






1.2






 






 






 






0.02






 






 








 






Pension Settlement






 






—






 






 






 






0.2






 






 






 






—






 






 






 






0.0






 






 






 






0.2






 






 






 






0.00






 






 








 






Steelcase Acquisition






 






—






 






 






 






86.3






 






 






 






8.2






 






 






 






8.4






 






 






 






86.0






 






 






 






1.61






 






 








 






Impairment






 






—






 






 






 






7.7






 






 






 






—






 






 






 






1.7






 






 






 






6.1






 






 






 






0.11






 






 








 






 






 






 






 






 






 






 






 






 






 






 






 






 








 






Results (non-GAAP)






$






364.1






 






 






$






64.6






 






 






$






8.5






 






 






$






12.1






 






 






$






44.3






 






 






$






0.83






 






 








 






% of net sales






 






41.0






%






 






 






7.3






%






 






 






1.0






%






 






 






 






 






5.0






%






 






 






 








 






Tax %






 






 






 






 






 






 






 






21.5






%






 






 






 






 






 









 






HNI Corporation Reconciliation






 








 






(Dollars in millions)






 








 






 






Three Months Ended






 








 






 






January 3, 2026






 








 






 






Legacy HNI






 






Steelcase






 






Consolidated HNI






 








 






Gross profit as reported (GAAP)






$






296.3






 






 






$






67.1






 






 






$






363.5






 






 








 






% of net sales






 






42.3






%






 






 






35.8






%






 






 






40.9






%






 








 






 






 






 






 






 






 






 








 






Restructuring charges recorded to cost of sales






 






0.3






 






 






 






0.4






 






 






 






0.7






 






 








 






Gross profit (non-GAAP)






$






296.6






 






 






$






67.5






 






 






$






364.1






 






 








 






% of net sales






 






42.3






%






 






 






36.0






%






 






 






41.0






%






 








 






 






 






 






 






 






 






 








 






Operating income as reported (GAAP)






$






16.7






 






 






$






(48.0






)






 






$






(31.2






)






 








 






% of net sales






 






2.4






%






 






 






(25.6






%)






 






 






(3.5






%)






 








 






 






 






 






 






 






 






 








 






Restructuring charges






 






1.0






 






 






 






0.6






 






 






 






1.6






 






 








 






Pension Settlement costs






 






0.2






 






 






 






—






 






 






 






0.2






 






 








 






Steelcase Acquisition






 






44.7






 






 






 






41.6






 






 






 






86.3






 






 








 






Impairment






 






7.7






 






 






 






—






 






 






 






7.7






 






 








 






Operating income (non-GAAP)






$






70.4






 






 






$






(5.8






)






 






$






64.6






 






 








 






% of net sales






 






10.0






%






 






 






(3.1






%)






 






 






7.3






%






 









 






HNI Corporation Reconciliation






 








 






(Dollars in millions, except per share data)






 








 






 






Three Months Ended






 








 






 






January 3, 2026








 






GAAP (as reported):






Legacy HNI






 






Consolidated HNI






 








 






Operating income






$






16.7






 






 






 






$






(31.2






)






 








 






Interest expense, net






 






12.8






 






 






 






 






16.7






 






 








 






Income taxes (Legacy (3.7)%, Consolidated (3.3)%)






 






(0.1






)






 






 






 






1.6






 






 








 






Net income






$






4.0






 






 






 






$






(49.2






)






 








 






Average number of common shares outstanding – diluted






 






47.0






 






(1)






 






 






52.4






 






 








 






EPS - Diluted






$






0.09






 






 






 






$






(0.94






)






 








 






 






 






 






 






 






 








 






Non-GAAP:






 






 






 






 






 








 






Operating income






$






70.4






 






 






 






$






64.6






 






 








 






Interest expense, net






 






4.7






 






 






 






 






8.5






 






 








 






Income taxes (Legacy 21.5%, Consolidated 21.5%)






 






14.1






 






 






 






 






12.1






 






 








 






Net income






$






51.6






 






 






 






$






44.3






 






 








 






Average number of common shares outstanding – diluted






 






47.0






 






(1)






 






 






53.5






 






 








 






EPS - Diluted






$






1.11






 






 






 






$






0.83






 






 








(1) The average number of common shares outstanding – diluted for the Legacy HNI business is calculated by excluding the quarter-to-date average impacts of new issuances of HNI common stock (25.2 million) and dilutive HNI restricted stock units (0.9 million) as a result of the acquisition of Steelcase Inc.









 






HNI Corporation Reconciliation






 








 






(Dollars in millions, except per share data)






 








 






 






Three Months Ended






 








 






 






December 28, 2024






 








 






 






Gross

Profit






 






Operating

Income






 






Tax






 






Net Income






 






 




EPS






 








 






As reported (GAAP)






$






260.4






 






 






$






54.6






 






 






$






11.2






 






 






$






38.3






 






 






$






0.79






 








 






% of net sales






 






40.5






%






 






 






8.5






%






 






 






 






 






6.0






%






 






 






 








 






Tax %






 






 






 






 






 






22.5






%






 






 






 






 






 








 






 






 






 






 






 






 






 






 






 






 






 








 






Restructuring charges






 






2.5






 






 






 






5.1






 






 






 






1.1






 






 






 






4.0






 






 






 






0.08






 








 






 






 






 






 






 






 






 






 






 






 






 








 






Results (non-GAAP)






$






262.9






 






 






$






59.7






 






 






$






12.3






 






 






$






42.3






 






 






$






0.87






 








 






% of net sales






 






40.9






%






 






 






9.3






%






 






 






 






 






6.6






%






 






 






 








 






Tax %






 






 






 






 






 






22.5






%






 






 






 






 






 









 






HNI Corporation Reconciliation






 








 






(Dollars in millions, except per share data)






 








 






 






Twelve Months Ended






 








 






 






January 3, 2026






 








 






 






Gross

Profit






 






Operating

Income






 






Interest






 






Tax






 






Net

Income






 






 




EPS






 








 






As reported (GAAP)






$






1,176.1






 






 






$






126.0






 






 






$






35.6






 






 






$






36.5






 






 






$






54.2






 






 






$






1.11






 








 






% of net sales






 






41.4






%






 






 






4.4






%






 






 






1.3






%






 






 






 






 






1.9






%






 






 






 








 






Tax %






 






 






 






 






 






 






 






40.2






%






 






 






 






 






 








 






 






 






 






 






 






 






 






 






 






 






 






 






 








 






Restructuring charges






 






2.5






 






 






 






6.7






 






 






 






—






 






 






 






1.4






 






 






 






5.2






 






 






 






0.11






 








 






Loss on divestiture of HNI India






 






—






 






 






 






6.5






 






 






 






—






 






 






 






0.1






 






 






 






6.4






 






 






 






0.13






 








 






Pension Settlement and Gain on disposal of assets, net






 






—






 






 






 






2.4






 






 






 






—






 






 






 






0.6






 






 






 






1.9






 






 






 






0.04






 








 






Steelcase Acquisition






 






—






 






 






 






94.6






 






 






 






9.5






 






 






 






8.7






 






 






 






95.4






 






 






 






1.95






 








 






Impairment






 






—






 






 






 






7.7






 






 






 






—






 






 






 






1.7






 






 






 






6.1






 






 






 






0.12






 








 






 






 






 






 






 






 






 






 






 






 






 






 






 








 






Results (non-GAAP)






$






1,178.6






 






 






$






243.9






 






 






$






26.0






 






 






$






49.0






 






 






$






169.3






 






 






$






3.46






 








 






% of net sales






 






41.5






%






 






 






8.6






%






 






 






1.0






%






 






 






 






 






6.0






%






 






 






 








 






Tax %






 






 






 






 






 






 






 






22.4






%






 






 






 






 






 









 






HNI Corporation Reconciliation






 








 






(Dollars in millions)






 








 






 






Twelve Months Ended






 








 






 






January 3, 2026






 








 






 






Legacy

HNI






 






Steelcase






 






Consolidated

HNI






 








 






Gross profit as reported (GAAP)






$






1,109.0






 






 






$






67.1






 






 






$






1,176.1






 






 








 






% of net sales






 






41.8






%






 






 






35.8






%






 






 






41.4






%






 








 






 






 






 






 






 






 






 








 






Restructuring charges recorded to cost of sales






 






2.1






 






 






 






0.4






 






 






 






2.5






 






 








 






Gross profit (non-GAAP)






$






1,111.1






 






 






$






67.5






 






 






$






1,178.6






 






 








 






% of net sales






 






41.9






%






 






 






36.0






%






 






 






41.5






%






 








 






 






 






 






 






 






 






 








 






Operating income as reported (GAAP)






$






173.9






 






 






$






(48.0






)






 






$






126.0






 






 








 






% of net sales






 






6.6






%






 






 






(25.6






%)






 






 






4.4






%






 








 






 






 






 






 






 






 






 








 






Restructuring charges






 






6.1






 






 






 






0.6






 






 






 






6.7






 






 








 






Loss on divestiture of HNI India






 






6.5






 






 






 






—






 






 






 






6.5






 






 








 






Pension Settlement and Gain on disposal of assets, net






 






2.4






 






 






 






—






 






 






 






2.4






 






 








 






Steelcase Acquisition






 






53.0






 






 






 






41.6






 






 






 






94.6






 






 








 






Impairment






 






7.7






 






 






 






—






 






 






 






7.7






 






 








 






Operating income (non-GAAP)






$






249.7






 






 






$






(5.8






)






 






$






243.9






 






 








 






% of net sales






 






9.4






%






 






 






(3.1






%)






 






 






8.6






%






 









 






HNI Corporation Reconciliation









 






(Dollars in millions, except per share data)









 






 






Twelve Months Ended









 






 






January 3, 2026









 






GAAP (as reported):






Legacy HNI






 






Consolidated HNI









 






Operating income






$






173.9






 






 






$






126.0









 






Interest expense, net






 






31.7






 






 






 






35.6









 






Income taxes (Legacy 24.5%, Consolidated 40.2%)






 






34.8






 






 






 






36.5









 






Net income






$






107.4






 






 






$






54.2









 






Average number of common shares outstanding – diluted






 






47.2






(1)






 






 






48.9









 






EPS - Diluted






$






2.27






 






 






$






1.11









 






 






 






 






 






 









 






Non-GAAP:






 






 






 






 









 






Operating income






$






249.7






 






 






$






243.9









 






Interest expense, net






 






22.2






 






 






 






26.0









 






Income taxes (Legacy 22.4%, Consolidated 22.4%)






 






51.0






 






 






 






49.0









 






Net income






$






176.6






 






 






$






169.3









 






Average number of common shares outstanding – diluted






 






47.2






(1)






 






 






48.9









 






EPS - Diluted






$






3.74






 






 






$






3.46









(1) The average number of common shares outstanding – diluted for the Legacy HNI business is calculated by excluding the year-to-date average impacts of new issuances of HNI common stock (25.2 million) and dilutive HNI restricted stock units (0.9 million) as a result of the acquisition of Steelcase Inc.








 

HNI Corporation Reconciliation





 


 

(Dollars in millions, except per share data)





 


 

 






Twelve Months Ended





 


 

 






December 28, 2024





 


 

 






Gross

Profit






 






Operating

Income






 






Tax






 






Net

Income






 






EPS





 


 

As reported (GAAP)






$






1,033.4






 






 






$






206.5






 






 






$






39.8






 






 






$






139.5






 






 






$






2.88





 


 

% of net sales






 






40.9






%






 






 






8.2






%






 






 






 






 






5.5






%






 






 





 


 

Tax %






 






 






 






 






 






22.2






%






 






 






 






 





 


 

 






 






 






 






 






 






 






 






 






 





 


 

Restructuring charges






 






5.0






 






 






 






11.3






 






 






 






2.5






 






 






 






8.8






 






 






 






0.18





 


 

 






 






 






 






 






 






 






 






 






 





 


 

Results (non-GAAP)






$






1,038.4






 






 






$






217.8






 






 






$






42.3






 






 






$






148.3






 






 






$






3.06





 


 

% of net sales






 






41.1






%






 






 






8.6






%






 






 






 






 






5.9






%






 






 





 


 

Tax %






 






 






 






 






 






22.2






%






 






 






 






 





 




 






Workplace Furnishings Reconciliation






 








 






(Dollars in millions)






 








 






 






Three Months Ended






 






 






 








 






 






January 03, 2026






 






December 28, 2024






 






 






 








 






 






Legacy

Workplace

Furnishings






 






Steelcase






 






Total

Workplace

Furnishings






 






Total

Workplace

Furnishings






 






Percent

Change






 








 






 






 






 






 






 






 






 






 






 






 






 








 






Operating income as reported (GAAP)






$






41.8






 






 






$






(5.1






)






 






$






36.8






 






 






$






30.7






 






 






19.6






%






 








 






% of net sales






 






8.3






%






 






 






(2.7






%)






 






 






5.3






%






 






 






6.6






%






 






 






 








 






 






 






 






 






 






 






 






 






 






 






 








 






Restructuring charges






 






0.7






 






 






 






0.6






 






 






 






1.2






 






 






 






5.0






 






 






 






 








 






Impairment






 






7.7






 






 






 






—






 






 






 






7.7






 






 






 






—






 






 






 






 








 






 






 






 






 






 






 






 






 






 






 






 








 






Operating income (non-GAAP)






$






50.3






 






 






$






(4.5






)






 






$






45.7






 






 






$






35.7






 






 






28.0






%






 








 






% of net sales






 






10.0






%






 






 






(2.4






%)






 






 






6.6






%






 






 






7.7






%






 






 






 








 

Workplace Furnishings Reconciliation





 


 

(Dollars in millions)





 


 

 






Twelve Months Ended





 

 






 





 


 

 






January 03, 2026






 






 




December 28, 2024






 






 





 


 

 






Legacy

Workplace

Furnishings






 






Steelcase






 






Total

Workplace

Furnishings






 






Total

Workplace

Furnishings






 






Percent

Change





 


 

 






 






 






 






 






 






 






 






 






 





 


 

Operating income as reported (GAAP)






$






188.1






 






 






$






(5.1






)






 






$






183.0






 






 






$






169.1






 






 






8.3






%





 


 

% of net sales






 






9.5






%






 






 






(2.7






%)






 






 






8.5






%






 






 






9.0






%






 






 





 


 

 






 






 






 






 






 






 






 






 






 





 


 

Restructuring charges






 






5.8






 






 






 






0.6






 






 






 






6.3






 






 






 






10.1






 






 






 





 


 

Loss on divestiture of HNI India






 






5.9






 






 






 






—






 






 






 






5.9






 






 






 






—






 






 






 





 


 

Impairment






 






7.7






 






 






 






—






 






 






 






7.7






 






 






 






—






 






 






 





 


 

Gain on disposal of assets, net






 






(0.6






)






 






 






—






 






 






 






(0.6






)






 






 






—






 






 






 





 


 

 






 






 






 






 






 






 






 






 






 





 


 

Operating income (non-GAAP)






$






206.9






 






 






$






(4.5






)






 






$






202.4






 






 






$






179.2






 






 






12.9






%





 


 

% of net sales






 






10.5






%






 






 






(2.4






%)






 






 






9.4






%






 






 






9.5






%






 






 





 



 

Residential Building Products Reconciliation





 


 

(Dollars in millions)





 


 

 






Three Months Ended






 






 






 






 






Twelve Months Ended






 






 





 


 

 






January 3,

2026






 






December 28,

2024






 






Percent

Change






 






 






January 03,

2026






 






December 28,

2024






 






Percent

Change





 


 

Operating income as reported (GAAP)






$43.1






 






 






$39.8






 






 






8.4






%






 






 






$121.8






 






 






$110.8






 






 






9.9






%





 


 

% of net sales






21.8






%






 






22.2






%






 






 






 






 






18.0






%






 






17.4






%






 






 





 


 

 






 






 






 






 






 






 






 






 






 






 






 






 





 


 

Restructuring charges






0.4






 






 






—






 






 






 






 






 






0.4






 






 






1.1






 






 






 





 


 

 






 






 






 






 






 






 






 






 






 






 






 






 





 


 

Operating income (non-GAAP)






$43.5






 






 






$39.8






 






 






9.3






%






 






 






$122.1






 






 






$111.9






 






 






9.1






%





 


 

% of net sales






21.9






%






 






22.2






%






 






 






 






 






18.1






%






 






17.5






%






 






 





 


 

View source version on businesswire.com: https://www.businesswire.com/news/home/20260223541771/en/
Vincent P. Berger, Executive Vice President and Chief Financial Officer (563) 272-7400

Matthew S. McCall, Vice President, Investor Relations and Corporate Development (563) 275-8898


Original: HNI Corporation Reports Fourth Quarter and Fiscal Year 2025 Results