Core Insights - Allsteel has expanded its Evo series with a focus on sustainability, versatility, and user comfort, introducing new eco-friendly options and carbon-neutral models [1][6]. Product Features - The new Quilted Knit Back is made from SEAQUAL® upcycled marine litter and features a zero-waste manufacturing process, enhancing comfort while being environmentally conscious [2][4]. - The design includes a quilted infill structure that contours to the user's back shape, allowing for real-time flexibility and support [5][3]. - Evo chairs now include weight-activated control, dual density foam, and 4D Arms, providing multiple levels of comfort and support [5]. Sustainability Commitment - Select Evo models are certified as carbon neutral, with carbon offsets supporting U.S.-based reforestation projects [6]. - The Evo collection holds SCS Indoor Advantage™ Gold and BIFMA LEVEL® 3 certifications, reflecting Allsteel's commitment to responsible material choices and low emissions [6]. Design Flexibility - The expansion introduces painted aluminum as a new finish option, offering 40 curated paint choices for customization [7].

Core Viewpoint - Growth investors are increasingly focused on identifying stocks with above-average financial growth, which can lead to solid returns, but finding such stocks is challenging due to their inherent risks and volatility [1] Group 1: Company Overview - HNI is identified as a promising growth stock, supported by a favorable Growth Score and a top Zacks Rank [2] - The company is a manufacturer of office furniture and fireplaces, making it a relevant player in its industry [3] Group 2: Earnings Growth - HNI has a historical EPS growth rate of 10.6%, with projected EPS growth of 14.2% this year, significantly outperforming the industry average of 2.1% [5] Group 3: Cash Flow Growth - HNI's year-over-year cash flow growth stands at 19.1%, well above the industry average of 4.9%, indicating strong financial health [6] - The company's annualized cash flow growth rate over the past 3-5 years is 6.2%, compared to an industry average of -4% [7] Group 4: Earnings Estimate Revisions - The current-year earnings estimates for HNI have been revised upward, with the Zacks Consensus Estimate increasing by 7.2% over the past month, suggesting positive momentum [9] Group 5: Investment Positioning - HNI has achieved a Growth Score of B and a Zacks Rank of 2, positioning it well for potential outperformance in the market, making it an attractive option for growth investors [11]

Group 1 - HNI closed at $47.92, with a 16.3% gain over the past four weeks, and analysts set a mean price target of $66, indicating a 37.7% upside potential [1] - The average price targets range from a low of $63 to a high of $70, with a standard deviation of $3.61, suggesting a 31.5% to 46.1% upside from the current price [2] - Analysts show strong agreement on HNI's ability to report better earnings, with a positive trend in earnings estimate revisions correlating with potential stock price increases [4][11] Group 2 - The Zacks Consensus Estimate for HNI has increased by 7.1% over the last 30 days, with one estimate moving higher and no negative revisions [12] - HNI holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates [13] - While consensus price targets may not be reliable for predicting exact gains, they can indicate the direction of price movement, which appears to be a good guide for potential upside [13]

Core Viewpoint - Investors are increasingly seeking growth stocks that demonstrate above-average growth potential, but identifying such stocks can be challenging due to inherent risks and volatility [1] Group 1: Growth Stock Identification - The Zacks Growth Style Score system aids in identifying promising growth stocks by analyzing real growth prospects beyond traditional metrics [2] - HNI is currently recommended as a strong growth stock, possessing a favorable Growth Score and a top Zacks Rank [2] Group 2: Earnings Growth - Earnings growth is a critical factor for growth investors, with double-digit growth being particularly attractive [3] - HNI has a historical EPS growth rate of 10.6%, with projected EPS growth of 14.1% this year, significantly outperforming the industry average of 2.1% [4] Group 3: Cash Flow Growth - High cash flow growth is essential for growth-oriented companies, allowing them to fund new projects without relying on external financing [5] - HNI's year-over-year cash flow growth stands at 19.1%, well above the industry average of 4.9% [5] - The company's annualized cash flow growth rate over the past 3-5 years is 6.2%, compared to an industry average of -4% [6] Group 4: Earnings Estimate Revisions - Positive trends in earnings estimate revisions correlate strongly with near-term stock price movements [7] - HNI's current-year earnings estimates have been revised upward, with the Zacks Consensus Estimate increasing by 7.1% over the past month [8] Group 5: Overall Assessment - HNI has achieved a Growth Score of B and a Zacks Rank of 2, indicating it is a potential outperformer and a solid choice for growth investors [10]

Core Viewpoint - HNI is positioned as a strong investment opportunity due to significant revisions in earnings estimates, indicating a positive earnings outlook and potential for continued stock price growth [1][2]. Earnings Estimate Revisions - Analysts have shown increasing optimism regarding HNI's earnings prospects, leading to higher earnings estimates which are expected to positively influence the stock price [2]. - The current-quarter earnings estimate is $0.84 per share, reflecting a year-over-year increase of +6.33%, with a 15.07% rise in the Zacks Consensus Estimate over the last 30 days [6]. - For the full year, HNI is projected to earn $3.49 per share, representing a +14.05% change from the previous year, with a 7.06% increase in the consensus estimate over the past month [7][8]. Zacks Rank and Performance - HNI has achieved a Zacks Rank 2 (Buy), indicating favorable estimate revisions that suggest strong future performance [9]. - Historically, stocks with Zacks Rank 1 (Strong Buy) and 2 (Buy) have significantly outperformed the S&P 500, with Zacks 1 stocks averaging a +25% annual return since 2008 [3][9]. Stock Performance - HNI shares have increased by 16.2% over the past four weeks, reflecting investor confidence in the company's earnings growth prospects [10].

Financial Data and Key Metrics Changes - Non-GAAP EPS increased nearly 20% year over year, reaching $0.44 per share [5][8] - Revenue growth returned in both segments, with Workplace Furnishings revenue slightly increasing and Residential Building Products revenue growing 7% year over year [8][10] - Consolidated non-GAAP gross and operating margins expanded year over year, with non-GAAP operating margin at the highest first quarter level since 2007 [8][9] Business Line Data and Key Metrics Changes - Workplace Furnishings segment saw a slight revenue increase, but non-GAAP EBIT margin compressed by 20 basis points year over year due to a different mix of business [9][10] - Residential Building Products revenue increased 7% year over year, with remodel retrofit business growing 13% and operating profit growing 16% [11][12] Market Data and Key Metrics Changes - Contract customer revenue increased 4% year over year, while shipments to small and medium-sized businesses (SMB) declined approximately 5% [9][10] - Orders in the Residential Building Products segment increased 8% year over year, with remodel retrofit orders up double digits [15][16] Company Strategy and Development Direction - The company remains focused on investing to drive revenue growth and expanding margins, with a cautious yet confident outlook for 2025 [6][32] - Continued investment in new product development and strengthening relationships with builders is emphasized to enhance market position [22][23] Management's Comments on Operating Environment and Future Outlook - Management acknowledges heightened macroeconomic uncertainty but expresses confidence in strategies and customer commitment to long-term investments [13][38] - The company expects continued earnings improvement driven by margin expansion and revenue growth, despite potential demand volatility [12][23] Other Important Information - The company maintains a strong balance sheet and cash flow generation, with a gross debt leverage ratio of 1.3 times [30][31] - Ongoing initiatives in Mexico and KII synergies are expected to contribute an additional $0.70 to $0.80 of EPS through 2026 [23][24] Q&A Session Summary Question: What was the SMB order number this last quarter? - SMB orders were slightly down 5% for Q1 [36] Question: Are there any changes in order patterns or buying activity due to increased uncertainty? - There is a lot of uncertainty, but the backlog looks encouraging, and customers are committed to long-term investments [38] Question: Was the hospitality business affected by tough comparisons this quarter? - Yes, it was a tough comp, and there is some volatility in demand, particularly in custom business [40] Question: Did you see any improvement in the transactional part of the SMB business in April? - Orders started to pick back up over the last five weeks, indicating resilience [47] Question: What are the end market assumptions for the second half? - Limited market help is expected, but strategic initiatives are anticipated to drive low single-digit growth [55] Question: How do you expect earnings visibility to translate into free cash flow? - Expected free cash flow from transformational efforts is projected to be $45 million to $50 million, enhancing financial flexibility [64]

Core Viewpoint - HNI reported quarterly earnings of $0.44 per share, exceeding the Zacks Consensus Estimate of $0.35 per share, and showing an increase from $0.37 per share a year ago, indicating a 25.71% earnings surprise [1] Group 1: Earnings Performance - HNI has surpassed consensus EPS estimates for the last four quarters [2] - The company posted revenues of $599.8 million for the quarter ended March 2025, which is a 3.31% increase over the Zacks Consensus Estimate and an increase from $588 million year-over-year [2] - HNI's earnings surprise for the previous quarter was 19.18%, with actual earnings of $0.87 per share compared to an expected $0.73 [1][2] Group 2: Stock Performance and Outlook - HNI shares have declined approximately 13.8% since the beginning of the year, while the S&P 500 has decreased by 4.7% [3] - The company's earnings outlook will be crucial for future stock performance, with current consensus EPS estimates at $0.73 for the next quarter and $3.26 for the current fiscal year [4][7] - The Zacks Rank for HNI is currently 3 (Hold), indicating expected performance in line with the market [6] Group 3: Industry Context - The Business - Office Products industry, to which HNI belongs, is currently in the top 16% of over 250 Zacks industries, suggesting a favorable industry outlook [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact HNI's stock performance [5]

Financial Performance - HNI Corporation reported net sales of $599.8 million for Q1 2025, a 2.0% increase year-over-year[3]. - GAAP EPS for Q1 2025 was $0.29, down 22% from the previous year, while non-GAAP EPS increased by 19% to $0.44[5]. - The consolidated operating margin for Q1 2025 was 4.1% on a GAAP basis, a decrease of 90 basis points year-over-year, but non-GAAP operating margin improved to 5.3%, up 20 basis points[5]. - Net sales for the three months ended March 29, 2025, were $599.8 million, an increase of 2.9% compared to $588.0 million for the same period in 2024[32]. - Gross profit for the same period was $238.4 million, up from $232.8 million, reflecting a gross margin of approximately 39.7%[32]. - Operating income decreased to $24.4 million from $29.7 million, representing a decline of 17.7% year-over-year[32]. - Net income attributable to HNI Corporation was $13.9 million, down from $17.7 million, resulting in a diluted earnings per share of $0.29 compared to $0.37 in the prior year[32]. - Non-GAAP net income for the quarter was $21.1 million, resulting in an EPS of $0.44[44]. Segment Performance - Workplace Furnishings segment net sales increased slightly by 0.3% to $441.1 million, while operating income decreased by 31.4% to $18.0 million[15]. - Residential Building Products segment net sales grew by 7.1% to $158.7 million, with operating income rising by 16.9% to $25.0 million[17]. - The workplace furnishings segment reported net sales of $441.1 million, a slight increase from $439.8 million, while the residential building products segment saw a larger increase to $158.7 million from $148.2 million[39]. - Orders in the Workplace Furnishings segment were unchanged year-over-year, while Residential Building Products orders increased by 8%[23]. Future Outlook - The company anticipates mid-single digit net sales growth in Workplace Furnishings and low-to-mid single digit growth in Residential Building Products for 2025[23]. - HNI Corporation expects double-digit EPS growth for 2025, driven by synergies from the Kimball International acquisition and ramp-up of its Mexico facility[23]. Financial Position - The company reported a quarter-ending gross debt leverage of 1.3x, indicating a strong balance sheet[5]. - Total current assets increased slightly to $529.3 million from $524.5 million, with inventories rising to $205.0 million from $194.3 million[34]. - Long-term debt increased to $354.7 million from $294.3 million, indicating a rise in leverage[34]. - Capital expenditures for the three months ended March 29, 2025, were $16.3 million, compared to $11.2 million in the same period last year, reflecting increased investment in growth[39]. Restructuring and Charges - HNI Corporation incurred restructuring and impairment charges of $6.4 million in Q1 2025, primarily related to the HNI India business[13]. - Restructuring and impairment charges amounted to $6.4 million, significantly higher than $0.1 million in the prior year, impacting overall profitability[39]. - The company incurred restructuring charges of $1.5 million and impairment charges of $5.9 million during the current quarter[44]. Challenges and Risks - The company continues to face risks including supply chain disruptions and inflationary pressures, which may affect future performance[29]. - HNI Corporation's financial results reflect ongoing challenges in the Workplace Furnishings segment, particularly related to impairment and restructuring efforts[42].

Group 1 - HNI Corporation is viewed positively due to its growth prospects and cash flow generation capabilities [1] - The company is part of a broader investment service focused on oil and natural gas, emphasizing cash flow and value [1] - The investment service offers tools such as a 50+ stock model account and in-depth cash flow analyses for exploration and production firms [2] Group 2 - Subscribers to the investment service can engage in live chat discussions about the oil and gas sector [2] - A promotional offer is available for a two-week free trial to attract new subscribers [3]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 28, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______________________________ to ______________________________ Commission File Number: 1-14225 HNI Corporation Iowa (Exact name of registrant as specified in its charter) 42 ...