HNI (NYSE:HNI) Releases Quarterly Earnings Results, Beats Estimates By $0.23 EPS

Key Points

• HNI reported quarterly EPS of $1.27, beating analyst estimates by $0.23, while revenue of $1.47 billion narrowly missed forecasts but increased 120.7% year over year.
• Management raised confidence in its outlook, projecting FY 2026 EPS of $4.15–$4.33 and expecting 20%–25% non-GAAP EPS growth, driven by Steelcase synergies and legacy network optimization.
• Workplace demand improved, with organic orders and backlog each up 5%, but the Residential Building Products segment remains challenged by housing weakness and is expected to see low-single-digit volume declines in the second half.

HNI (NYSE:HNI - Get Free Report) released its quarterly earnings results on Thursday. The business services provider reported $1.27 EPS for the quarter, topping the consensus estimate of $1.04 by $0.23, FiscalAI reports. The business had revenue of $1.47 billion during the quarter, compared to analyst estimates of $1.48 billion. HNI had a net margin of 0.04% and a return on equity of 13.17%. The company's quarterly revenue was up 120.7% on a year-over-year basis. During the same quarter in the prior year, the firm earned $1.11 earnings per share. HNI updated its FY 2026 guidance to 4.150-4.330 EPS and its Q3 2026 guidance to 1.160-1.190 EPS.

Here are the key takeaways from HNI's conference call:

• Second-quarter non-GAAP EPS rose 14% year over year to $1.27, supported by Steelcase profit contribution, price-cost benefits including tariffs, productivity gains, and cost controls.
• Workplace demand indicators improved, with organic orders up 5%, backlog up 5%, and recent order growth accelerating; HNI expects legacy Workplace revenue to grow at a high-single-digit rate in the third quarter and mid-to-high single digits in the second half.
• Management raised confidence in the Steelcase integration, saying identified synergies now exceed the original $120 million target and that the acquisition should be modestly accretive in 2026.
• HNI projects 20%–25% non-GAAP EPS growth in 2026 and another year of double-digit EPS growth in 2027, driven primarily by Steelcase synergies and legacy network optimization rather than volume growth.
• Residential Building Products remains pressured by housing weakness, particularly new construction; second-half volume is expected to decline by low-single digits, with pricing only expected to keep revenue roughly flat.

HNI Trading Up 5.1%

Shares of HNI stock traded up $2.17 during trading hours on Thursday, reaching $44.95. 533,543 shares of the stock traded hands, compared to its average volume of 706,735. The company has a quick ratio of 0.86, a current ratio of 1.39 and a debt-to-equity ratio of 0.81. The firm has a market capitalization of $3.20 billion, a PE ratio of 109.39, a PEG ratio of 0.55 and a beta of 0.90. HNI has a 1-year low of $28.93 and a 1-year high of $52.79. The business has a fifty day moving average price of $36.56 and a 200 day moving average price of $39.30.

HNI Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, June 10th. Shareholders of record on Friday, May 29th were issued a $0.35 dividend. The ex-dividend date was Friday, May 29th. This is a positive change from HNI's previous quarterly dividend of $0.34. This represents a $1.40 annualized dividend and a dividend yield of 3.1%. HNI's dividend payout ratio is 341.46%.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the business. Millennium Management LLC acquired a new stake in HNI during the 1st quarter worth about $10,666,000. Jane Street Group LLC purchased a new stake in shares of HNI in the first quarter worth approximately $10,301,000. Entropy Technologies LP purchased a new stake in shares of HNI in the third quarter worth approximately $676,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its holdings in shares of HNI by 7.3% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 142,290 shares of the business services provider's stock worth $6,311,000 after purchasing an additional 9,730 shares during the period. Finally, Intech Investment Management LLC grew its position in HNI by 23.6% during the first quarter. Intech Investment Management LLC now owns 36,698 shares of the business services provider's stock valued at $1,628,000 after purchasing an additional 7,000 shares in the last quarter. Hedge funds and other institutional investors own 75.26% of the company's stock.

Analyst Ratings Changes

Several research firms have commented on HNI. Weiss Ratings upgraded shares of HNI from a "sell (d+)" rating to a "hold (c-)" rating in a research report on Friday, July 24th. Benchmark reissued a "buy" rating on shares of HNI in a report on Wednesday, July 15th. Finally, Wells Fargo & Company set a $65.00 price target on HNI in a report on Wednesday, July 15th. One analyst has rated the stock with a Buy rating and one has issued a Hold rating to the company. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average target price of $65.00.

HNI Company Profile

HNI Corporation, founded in 1944 as the Heating & Novelty Company and headquartered in Muscatine, Iowa, is a leading manufacturer of office furniture and hearth products. Over its history, the company has evolved from producing gas heaters into two primary business segments: Office Furniture and Hearth & Home. HNI's Office Furniture division operates under well-known brands such as The HON Company, Allsteel, Gunlocke and Kimball, offering a comprehensive portfolio of workstations, seating, tables, storage solutions and acoustic products tailored for corporate, education, healthcare and government markets.

In its Hearth & Home segment, HNI designs, manufactures and distributes fireplaces, stoves, fireplace inserts, logs and related accessories.

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