HNI Corporation reported its third‑quarter 2025 financial results, showing net sales of $683.8 million, a 1.7% year‑over‑year increase that fell short of analyst consensus estimates of $688.66 million to $691.5 million.
GAAP net income declined to $41.2 million from $47.5 million in the same period last year, while GAAP diluted earnings per share dropped to $0.88 from $0.98. Non‑GAAP diluted EPS rose to $1.10, a 3% beat over the consensus range of $1.06 to $1.07.
Workplace Furnishings generated $516.9 million in net sales, up 2.3% YoY, and reported operating income of $62.5 million, reflecting continued volume growth across its brand portfolio. Residential Building Products posted $166.9 million in net sales, essentially flat YoY.
Chief Executive Officer Jeff Lorenger noted that the company delivered strong results despite tariff‑driven volatility and reaffirmed its full‑year guidance, emphasizing that margin expansion and volume growth are expected to continue into the fourth quarter.
The earnings beat supports HNI’s outlook for a fourth consecutive year of double‑digit non‑GAAP EPS growth and reinforces investor confidence in the company’s profit‑transformation strategy.
Additional context: HNI’s consolidated organic net sales grew 2.6% YoY, and Workplace Furnishings’ organic sales grew 3.5% YoY, excluding the impact of the HNI India divestiture, which reduced year‑over‑year sales by $5.6 million. The company reduced debt by $120 million during the quarter, bringing its gross debt leverage to 0.9x. HNI is pursuing the acquisition of Steelcase, expected to close before the end of 2025. Management highlighted that synergies from the Kimball International acquisition and the ramp‑up of its Mexico facility are expected to contribute $0.75 to $0.80 to diluted non‑GAAP EPS in 2025‑2026. Q4 guidance includes high single‑digit year‑over‑year net sales growth for both Workplace Furnishings and Residential Building Products, and a slight increase in non‑GAAP diluted EPS from 2024 levels.
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