Financial Data and Key Metrics Changes - Fiscal 2025 non-GAAP diluted earnings per share for the legacy business was $3.74, a 22% increase from 2024 levels, marking the fourth consecutive year of double-digit earnings growth [11] - Total net sales for the year increased by 12% overall and 6% on an organic basis, with full-year adjusted operating margin expanding by 80 basis points to 9.4% [11][12] - The company expects a fifth year of double-digit non-GAAP EPS growth in 2026, with revenue growth anticipated to continue while driving bottom-line improvement [15][19] Business Line Data and Key Metrics Changes - In the legacy Workplace Furnishings business, full-year organic net sales increased by 6% year-over-year, with non-GAAP operating profit margin expanding by 100 basis points to 10.5% [12][13] - The Residential Building Products segment saw fourth-quarter revenue grow more than 10% compared to the same period in 2024, with full-year revenue increasing nearly 6% [13] - Segment non-GAAP operating profit margin in Residential Building Products expanded by 60 basis points year-over-year to 18.1% [13] Market Data and Key Metrics Changes - The company reported strong activity in the contract side of the business, with bid counts in the high teens, indicating healthy demand [28] - The macroeconomic picture for Workplace Furnishings is improving, with office leasing activity up more than 5% for the full year 2025 [19][20] - The new construction market remains weak, but the company expects continued outperformance in the remodel-retrofit segment [20][21] Company Strategy and Development Direction - The acquisition of Steelcase is expected to transform the company and the Workplace Furnishings industry, with anticipated synergies of $120 million and a focus on operational enhancements and digital transformation [8][9][21] - The company is committed to maintaining dealer partnerships and brand distribution, ensuring continuity for customers and dealers [10] - Investments are being made to drive top-line growth in Residential Building Products, focusing on customer engagement and go-to-market strategies [7][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the demand dynamics for Workplace Furnishings, driven by a return to office trends and positive net absorption of office space [19][20] - The company acknowledges ongoing challenges in the new construction market but expects to outperform due to structural changes and growth investments [20][21] - Management remains optimistic about the integration of Steelcase and the potential for revenue synergies, although it is still early in the process [21][72] Other Important Information - The company ended the year with a net debt to EBITDA ratio of 2 times, with expectations for cash flow strength to continue and leverage to return to pre-deal levels in the next 18-24 months [17] - The company remains committed to its long-standing dividend while continuing to invest in business growth [18] Q&A Session Summary Question: Clarification on the outlook for the year regarding revenue and earnings growth - Management clarified that the double-digit growth for 2026 is based on the adjusted EPS of $3.53, excluding purchase accounting and the Steelcase stub period [25][26] Question: Confidence in the acceleration of Workplace Furnishings in the first quarter - Management noted strong bid counts and healthy activity in both legacy and Steelcase businesses, contributing to confidence in mid-single-digit growth for the full year [28][29] Question: Insights from the Steelcase acquisition - Management reported positive feedback from customers and dealers regarding the Steelcase integration, reinforcing confidence in the transaction [30][31] Question: Synergy expectations and potential upside - Management confirmed that the $120 million synergy target remains unchanged, with a focus on execution and potential for modest accretion in the first year [42][44] Question: Residential growth investments and margin expectations - Management indicated that margins in the Residential Building Products segment are expected to remain stable while pursuing growth investments [46][48] Question: Profit headwinds in the first quarter - Management explained that timing of revenue recognition and expenses related to the Steelcase acquisition are contributing to short-term pressure, but they expect double-digit EPS growth to accelerate in subsequent quarters [54][55] Question: Demand for design support and pipeline activity - Management acknowledged increased demand for design support and noted that many projects are in the pipeline but not yet in the order backlog, with efforts underway to facilitate conversions [61][63]

HNI (NYSE:HNI) Q4 2025 Earnings call February 25, 2026 11:00 AM ET Company ParticipantsJeffrey D. Lorenger - Chairman, President, and CEOMatt McCall - Vice President, Investor Relations and Corporate DevelopmentSteven Ramsey - Deputy Director of ResearchVincent Paul Berger II - EVP and CFOConference Call ParticipantsDavid MacGregor - Senior Analyst and PresidentGreg Burns - Senior Equity AnalystReuben Garner - Equity Research AnalystOperatorHello. Thank you for standing by. My name is Bella. I will be your ...

HNI (NYSE:HNI) Q4 2025 Earnings call February 25, 2026 11:00 AM ET Speaker4Hello. Thank you for standing by. My name is Bella. I will be your conference operator today. At this time, I would like to welcome everyone to HNI Corporation Fourth Quarter and Fiscal Year End 2025 conference call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. If you would like to ask a question during this time, simply press star, then ...

HNI Corporation 600 East Second Street, Muscatine, Iowa 52761, Tel 563 272 7400, Fax 563 272 7347, hnicorp.com News Release HNI CORPORATION REPORTS FOURTH QUARTER AND FISCAL YEAR 2025 RESULTS Multiple years of elevated earnings growth visibility MUSCATINE, Iowa (February 25, 2026) – 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, respecti ...

Core Insights - HNI Corporation is identified as a promising investment opportunity for 2026, with Benchmark Co. raising its price target from $60 to $75 per share while maintaining a Buy recommendation [1][2] Group 1: Financial Performance and Projections - HNI Corporation announced plans to acquire Steelcase Inc. for an enterprise value of approximately $2.2 billion, with expected annual cost synergies of around $120 million post-integration [2] - The acquisition is projected to enhance HNI's earnings per share by $0.50 to $0.60 by fiscal year 2027 [2] - HNI's current price-to-earnings ratio stands at 13.35, indicating that the stock is priced below its historical values, suggesting potential for profit growth [3] Group 2: Operational Changes - HNI plans to close its manufacturing facility in Wayland, New York, by 2027, impacting about 135 jobs [4] - The company will continue to produce products currently made at the Wayland plant at other locations, with no expected changes to product quality or lineup [5] - Annual cost savings from this consolidation are estimated to be between $7.5 million and $8 million once fully implemented [5] Group 3: Company Overview - HNI Corporation specializes in manufacturing workplace furnishings and residential building products, including furniture systems, seating, and fireplaces [6]

Core Insights - Middle Coast Investing reported a strong performance in 2025, with the S&P 500 showing a 21.2% annualized return over the past three years, indicating signs of slowing growth [1] - In Q4 2025, the US Portfolios returned 2.7%, outperforming the S&P 500's 2.3% return, while European Portfolios declined by -0.4% [1] Company Focus: HNI Corporation - HNI Corporation (NYSE:HNI) is highlighted as a significant holding, with a market capitalization of $2.057 billion and a stock price of $44.87 as of January 13, 2026 [2] - The one-month return for HNI Corporation was 5.63%, but it experienced an 11.06% decline over the past 52 weeks [2] - HNI Corporation is a top 10 portfolio holding for Middle Coast Investing, with shares primarily acquired through the acquisition of SCS [3] Hedge Fund Interest - HNI Corporation was held by 25 hedge fund portfolios at the end of Q3 2025, an increase from 16 in the previous quarter, indicating growing interest [4] - Despite its potential, the company is not considered among the 30 most popular stocks among hedge funds, with a preference noted for certain AI stocks that may offer better upside potential [4]

Core Viewpoint - HNI Corporation will exit its Wayland, New York manufacturing facility by 2027, consolidating production into other North American facilities to improve productivity and customer experience [1][2] Company Strategy - The decision to close the Wayland facility is part of HNI's strategic network optimization journey, aimed at enhancing operational efficiency and customer service [2] - The consolidation will not change the product portfolio, and the Gunlocke brand will remain a key part of HNI's offerings [1] Financial Impacts - HNI estimates that the consolidation will result in annual cost savings of approximately $7.5 to $8.0 million once fully implemented [7] - The total estimated charges related to the consolidation are projected to impact pre-tax earnings by approximately $14.9 million in 2026 and 2027, including $5.7 million in non-cash charges [7] - A detailed breakdown of estimated costs includes $11.6 million in 2026 and $3.3 million in 2027 [4][7] Employment Impact - The closure of the Wayland facility will lead to the termination of approximately 135 employees [5]

Core View - HNI Corporation has a solid backlog base, indicating potential for future revenue generation, but faces challenges in its fundamental drivers [1] Company Analysis - The company has a strong backlog, which is a positive indicator for its operational capacity and future sales [1] - However, there are underlying challenges that may affect the company's performance in the short-to-medium term [1] Industry Context - The analysis reflects a broader understanding of the energy sectors, particularly focusing on oilfield equipment services and industrial supply industries, which may influence HNI Corporation's market dynamics [1]

Core Viewpoint - HNI Corporation has successfully completed its acquisition of Steelcase Inc. [1] Company Summary - HNI Corporation is expanding its portfolio through the acquisition of Steelcase Inc., indicating a strategic move to enhance its market position [1] - The acquisition is expected to strengthen HNI's capabilities and offerings in the office furniture sector [1] Industry Summary - The acquisition reflects ongoing consolidation trends within the office furniture industry, as companies seek to leverage synergies and expand their market reach [1] - This move may influence competitive dynamics in the industry, potentially leading to increased market share for HNI Corporation [1]

Group 1 - HNI Corporation is considered one of the best dividend stocks to buy, with an average price target suggesting a 65% upside and a Street high indicating a 78% upside [1][3] - On December 5, HNI and Steelcase Inc. announced that shareholders of HNI agreed to vote for the issuance of HNI common shares to Steelcase common stockholders under the Merger Agreement, with Steelcase shareholders also voting in favor [2][3] - The merger between HNI and Steelcase is set to conclude on December 10, 2025, following a strong majority backing from shareholders of both companies [3] Group 2 - HNI Corporation declared a quarterly dividend of $0.34 per share on November 5, which was distributed on December 1 to shareholders listed as of November 17 [4] - HNI designs, manufactures, and sells office furniture and residential building products primarily in the United States and Canada [4]