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 ...

Financial Data and Key Metrics Changes - In Q4 2024, non-GAAP EPS was $0.87, exceeding expectations [8] - For the full year 2024, non-GAAP EPS totaled $3.06, up 15% from 2023, marking a record high [12] - Consolidated operating margin for 2024 was 8.6%, the highest since 2005 [13] Business Line Data and Key Metrics Changes - Workplace Furnishings saw a 44% increase in non-GAAP operating profit, with a non-GAAP operating margin of 9.5%, the highest since 2007 [14] - Residential Building Products experienced a 5% decline in Q4 revenue year-over-year, but operating profit margin expanded by 50 basis points to 17.5% [11][14] Market Data and Key Metrics Changes - The housing market index improved from 39 in August to 47 in January, but remains below the ten-year average of 62 [21] - Segment orders in Q4 were up 2% year-over-year, with contract customer orders performing better than small to medium-sized customer orders [19] Company Strategy and Development Direction - The company is focusing on driving growth in Workplace Furnishings and residential building products, with increased investments in selling capabilities and product development [54][30] - The strategy includes managing through economic cycles and leveraging operational improvements for profit growth [16][32] Management's Comments on Operating Environment and Future Outlook - Management anticipates continued earnings improvement in 2025, despite demand volatility and macroeconomic uncertainties [17][48] - There is optimism regarding a return to revenue growth in Workplace Furnishings, supported by improving internal metrics and external indicators [20] Other Important Information - The company plans to offset tariff impacts through a surcharge approach and expects to manage costs effectively [40][41] - Operating cash flow exceeded $225 million in 2024, with a year-end gross debt leverage ratio of 1.1 times [45] Q&A Session Summary Question: Focus on margin expansion and growth investments - Management confirmed that while margin expansion remains a priority, they are now investing in selling capabilities and improving customer experience [53] Question: Drivers for residential building product growth - Investments are focused on organizing around the consumer and enhancing selling capabilities, with a strong product pipeline expected to drive growth [56][58] Question: Federal government exposure and buying patterns - The federal segment is small but important, with no significant changes in buying patterns currently observed [61] Question: SMB business demand stabilization - Management noted that the SMB segment is currently flat but anticipates potential revenue upside in the latter half of the year [66] Question: Tariff offsetting strategies - The company plans to use a surcharge approach to offset tariffs quickly, rather than permanent price adjustments [68] Question: Incremental margins on projected revenue growth - Incremental margins for core business growth are expected to be over 40% [72] Question: Near-term residential outlook and order dynamics - The residential market is stabilizing, with a significant increase in orders expected to contribute to growth throughout the year [80] Question: Return to office trends from contract customers - There is increasing momentum for return-to-office plans, which is expected to drive furniture demand [96]

Core Viewpoint - HNI reported quarterly earnings of $0.87 per share, exceeding the Zacks Consensus Estimate of $0.73 per share, but down from $0.98 per share a year ago, indicating a 19.18% earnings surprise [1][2] Financial Performance - HNI's revenues for the quarter ended December 2024 were $642.5 million, missing the Zacks Consensus Estimate by 3.37% and down from $679.8 million year-over-year [2] - Over the last four quarters, HNI has surpassed consensus EPS estimates four times but has only topped consensus revenue estimates once [2] Stock Performance - HNI shares have declined approximately 2.7% since the beginning of the year, while the S&P 500 has gained 4.5% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.42 on revenues of $582 million, and for the current fiscal year, it is $3.60 on revenues of $2.63 billion [7] - The trend of estimate revisions for HNI is mixed, which could change following the recent earnings report [6] Industry Context - The Business - Office Products industry, to which HNI belongs, is currently ranked in the bottom 28% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Empirical research indicates that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [8]

Financial Performance - HNI Corporation reported full-year net sales of $2.526 billion, a 3.8% increase from the previous year, with fourth-quarter net sales at $642.5 million, down 5.5% year-over-year[3][12][18]. - Full-year GAAP EPS reached $2.88, a 164% increase year-over-year, while non-GAAP EPS was $3.06, up 15.5% from the prior year[5][14][19]. - Operating cash flow exceeded $225 million in 2024, with a year-ending gross debt leverage ratio of 1.1x, indicating a strong balance sheet[5][6]. - Net income attributable to HNI Corporation for the twelve months ended December 28, 2024, was $139.5 million, compared to $49.2 million in 2023, marking a 183.5% increase[42]. - The company reported a net income of $38.3 million for the three months ended December 28, 2024, resulting in an earnings per share (EPS) of $0.79, compared to $0.63 in the same period last year[55]. - For the twelve months ended December 28, 2024, the consolidated net income was $139.5 million, with an EPS of $2.88, and a gross profit margin of 40.9%[60]. Segment Performance - The Workplace Furnishings segment saw an 8.5% increase in full-year net sales to $1.888 billion, with a significant operating income growth of 146%[20]. - Residential Building Products net sales decreased 8.0% year-over-year to $638.4 million, with remodel-retrofit sales declining at a higher rate than new construction[31]. - Operating income for Workplace Furnishings was $169.1 million, with an operating margin of 9.0%, an improvement of 510 basis points year-over-year[28]. - Operating profit margin for Residential Building Products increased 60 basis points to 17.4%, driven by improved net productivity and favorable price-cost dynamics[31]. - Non-GAAP operating income for Residential Building Products decreased by 5.0% to $111.9 million compared to $117.8 million for the previous year[67]. Cost Management and Efficiency - The consolidated operating income margin expanded by 450 basis points on a GAAP basis and 130 basis points on a non-GAAP basis compared to 2023, driven by profit transformation initiatives and synergy benefits[5][14]. - The gross profit margin for the full year improved by 190 basis points to 40.9%, driven by enhanced productivity and favorable price-cost dynamics[14][18]. - The company incurred restructuring and impairment charges of $2.5 million for the three months ended December 28, 2024, significantly lower than $31.4 million in the same period last year[50]. - Restructuring and impairment charges for the year totaled $6.2 million, significantly lower than the previous year's $44.8 million, reflecting improved operational efficiency[18]. - The company is focusing on cost reduction initiatives, with a noted impact of $0.1 million in the Legacy Workplace segment[67]. Future Outlook - The company anticipates a return to net sales growth in 2025, supported by encouraging order rates and backlog levels in both segments[5][12]. - The Corporation anticipates double-digit EPS growth in 2025, driven by synergies from the Kimball International acquisition and increased profits from net sales growth[31]. - The Corporation expects year-over-year net sales growth in the low-to-mid single digits for both segments in 2025, with improving growth rates as the year progresses[31]. - For Q1 2025, Workplace Furnishings net sales are expected to decrease at a low-to-mid single-digit rate year-over-year, while Residential Building Products are projected to increase mid-single digits[31]. Shareholder Returns - The company maintained its quarterly dividend while accelerating stock repurchase activity, with total buybacks and dividends paid amounting to $129 million for the year[5][6]. - The balance sheet remains strong, with low leverage and substantial capacity for capital deployment, focusing on reinvestment, dividends, share buybacks, and M&A opportunities[31].

Financial Data and Key Metrics Changes - Non-GAAP EPS for Q3 2024 was $1.03, exceeding internal expectations and representing an 11% increase year-over-year despite revenue pressure [5][6] - The company achieved more than double the EPS over the past three years without top-line support [6] - Full-year EPS is expected to increase, extending the streak of growing full-year EPS by 10% or more to three years [23][26] Business Line Data and Key Metrics Changes - In the Workplace Furnishings segment, non-GAAP operating profit margin reached a 20-year high [7] - Residential Building Products saw non-GAAP operating profit margin expand year-over-year, exceeding 18% for only the third time [7] - SMB orders declined 3% year-over-year in Q3, contrasting with a 6% growth in the same period last year [17] Market Data and Key Metrics Changes - The Housing Market Index fell to 39 in August, down from a peak of 51 earlier in the year, reflecting builder and homeowner sentiment impacted by economic factors [12] - The Small Business Optimism survey indicated record high uncertainty ahead of the US elections, affecting discretionary spending [10] Company Strategy and Development Direction - The company is optimistic about future profit growth, with initiatives in Mexico and KII synergies expected to deliver $0.70 to $0.80 of EPS growth in 2025 and 2026 [13][15] - The focus remains on expanding margins in Workplace Furnishings and driving long-term revenue growth in Residential Building Products [26] - Continued investment in product innovations and online capabilities is planned to enhance market position [21] Management's Comments on Operating Environment and Future Outlook - Management noted a near-term demand pause across businesses, expecting fourth-quarter profit to decline compared to the same period in 2023 [8][22] - Economic and election concerns are causing small business leaders to hesitate on discretionary spending, but this is viewed as a temporary pressure [10][11] - Long-term market fundamentals in Residential Building Products remain positive, with expectations for interest rate reductions to drive increased housing turnover [20] Other Important Information - The company improved its financial position, with gross leverage at 1.1 times, down from 1.5 times in the previous quarter [24] - Share repurchase activity accelerated, with over $11 million in buybacks during the quarter [25] - Marshall Bridges will step down as CFO, with VP Berger taking over at year-end [28] Q&A Session Summary Question: Can you elaborate on the near-term softness in Residential Building Products? - Management indicated that the softness is primarily in the stove business, which is part of the remodel/retrofit segment, and is experiencing slower normalization than expected [31][34] Question: Will this softness persist into early next year? - Management believes the current conditions will not change radically, and it is premature to project anything for 2025 [37] Question: How do transactional business trends relate to order growth? - The transactional business is sensitive to economic changes and is currently leading the short-cycle trends, which may indicate negative order growth in the fourth quarter [41][42] Question: What are the capital allocation priorities now that leverage is back down? - The company plans to reinvest in the business, maintain dividends, and assess share repurchase and M&A opportunities on a case-by-case basis [49] Question: What is the outlook for cash flow generation and working capital impact for 2025? - Working capital is normalized, and the company expects healthy free cash flow next year, with CapEx anticipated to increase slightly [59]

Core Insights - HNI reported quarterly earnings of $1.03 per share, exceeding the Zacks Consensus Estimate of $0.97 per share, and showing an increase from $0.93 per share a year ago, resulting in an earnings surprise of 6.19% [1] - The company posted revenues of $672.2 million for the quarter ended September 2024, which was below the Zacks Consensus Estimate by 6.38% and a decrease from $711.6 million year-over-year [2] - HNI has outperformed the S&P 500 with a year-to-date gain of approximately 23.9% compared to the S&P 500's 22.1% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.04 on revenues of $700 million, and for the current fiscal year, it is $3.17 on revenues of $2.63 billion [7] - The estimate revisions trend for HNI is mixed, leading to a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Business - Office Products industry, to which HNI belongs, is currently ranked in the top 13% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - The performance of HNI's stock may be influenced by the overall industry outlook, as empirical research indicates a strong correlation between near-term stock movements and earnings estimate revisions [5]

HNI Corporation 600 East Second Street, Muscatine, Iowa 52761, Tel 563 272 7400, Fax 563 272 7347, hnicorp.com News Release HNI CORPORATION REPORTS THIRD QUARTER 2024 RESULTS Double-digit EPS growth fueled by profit transformation and synergy acceleration • Delivered strong third quarter EPS, GAAP $0.98 (+23% YoY) / non-GAAP $1.03 (+11% YoY) • Workplace Furnishings segment operating margin (GAAP and non-GAAP) reached a 20-year high • Residential Building Products segment profit grew in the third quarter des ...

Have you been paying attention to shares of HNI (HNI) ? Shares have been on the move with the stock up 21.3% over the past month. The stock hit a new 52-week high of $55.4 in the previous session. HNI has gained 31% since the start of the year compared to the 8.2% move for the Zacks Business Services sector and the 8.2% return for the Zacks Business - Office Products industry. What's Driving the Outperformance? The stock has a great record of positive earnings surprises, as it hasn't missed our earnings con ...

HNI Corporation (NYSE:HNI) Q2 2024 Earnings Conference Call July 25, 2024 11:00 AM ET Matthew McCall - VP, Investor Relations and Corporate Development Jeffrey Lorenger - Chairman, President & CEO Marshall Bridges - CFO & SVP Budd Bugatch - Water Tower Research Greg Burns - Sidoti & Company Reuben Garner - The Benchmark Company Steven Ramsey - Thompson Research Group Thank you for standing by. My name is Christina, and I will be your conference operator today. At this time, I would like to welcome everyone ...