HNI Corporation Reports First Quarter 2025 Results

HNI Corporation, a leading manufacturer of workplace furnishings and residential building products, has released its financial results for the first quarter of 2025. The company reported a solid start to the year with notable earnings and revenue growth, despite some challenges.

Financial Highlights

For the first quarter ended March 29, 2025, HNI Corporation reported net sales of $599.8 million, a 2% increase from the same period in 2024. The company's GAAP earnings per share (EPS) were $0.29, down 22% year-over-year, while non-GAAP EPS rose 19% to $0.44. The GAAP operating margin was 4.1%, and the non-GAAP operating margin reached 5.3%, the highest first-quarter level since 2007.

Business and Operational Highlights

HNI's performance was driven by several factors, including profit transformation initiatives, synergy benefits from the Kimball International acquisition, and volume growth. The Workplace Furnishings segment saw a slight increase in net sales, while the Residential Building Products segment experienced a 7.1% increase in net sales, primarily due to higher remodel-retrofit sales.

Strategic Initiatives and Corporate Developments

The company continues to benefit from the synergies of the Kimball International acquisition and the ramp-up of its Mexico facility, which are expected to contribute an additional $0.70 to $0.80 of EPS in 2025 and 2026. HNI also engaged in $40 million of stock repurchase activity in the first quarter and maintained its quarterly dividend.

Management's Perspective

Jeff Lorenger, Chairman, President, and CEO, highlighted the company's strong start to 2025, emphasizing the benefits of HNI's diversified revenue streams and customer-first business model. He noted that while the macroeconomic environment remains dynamic, the company is well-prepared to manage through any demand challenges.

Future Outlook

HNI Corporation expects continued net sales growth in both segments for the full year 2025. The company projects mid-single-digit net sales growth in Workplace Furnishings and low-to-mid single-digit growth in Residential Building Products. The outlook for 2025 earnings remains unchanged, with double-digit EPS growth expected, driven by synergies, volume growth, and productivity benefits.

SEC Filing: HNI CORP [ HNI ] - 8-K - May. 07, 2025