分组1 - HNI reported quarterly earnings of $1.11 per share, exceeding the Zacks Consensus Estimate of $0.86 per share, and up from $0.79 per share a year ago, representing an earnings surprise of +29.07% [1] - The company achieved revenues of $667.1 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 3.17%, and an increase from $623.7 million year-over-year [2] - HNI has surpassed consensus EPS estimates in all four of the last quarters and has topped consensus revenue estimates twice in the same period [2] 分组2 - The stock has gained approximately 4.2% since the beginning of the year, while the S&P 500 has increased by 8.1% [3] - The current consensus EPS estimate for the upcoming quarter is $1.16 on revenues of $699.2 million, and for the current fiscal year, it is $3.50 on revenues of $2.64 billion [7] - The Business - Office Products industry, to which HNI belongs, is currently ranked in the top 39% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8]

HNI Corporation Second Quarter 2025 Results [Financial Highlights](index=1&type=section&id=Financial%20Highlights) HNI Corporation reported strong Q2 2025 growth with net sales up 7.0% to $667.1 million and GAAP diluted EPS rising 36% to $1.02, driven by strategic initiatives Q2 2025 Key Financial Metrics (YoY) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Net Sales | $667.1M | $623.7M | +7.0% | | GAAP Diluted EPS | $1.02 | $0.75 | +36.0% | | Non-GAAP Diluted EPS | $1.11 | $0.79 | +40.5% | | GAAP Operating Margin | 10.2% | 8.6% | +160 bps | | Non-GAAP Operating Margin | 11.0% | 9.0% | +200 bps | - Earnings growth visibility is elevated through 2026, with two key initiatives—KII acquisition synergies and the Mexico facility ramp-up—expected to contribute an additional **$0.50 to $0.60 of EPS** over the next 18 months, having already added approximately **$0.24 of EPS benefit** in the first half of 2025[4](index=4&type=chunk) - The company maintained a strong balance sheet with gross debt leverage at **1.4x** and deployed nearly **$40 million** for stock repurchases in the second quarter while continuing its quarterly dividend[4](index=4&type=chunk)[5](index=5&type=chunk) - Recent demand activity supports the 2025 outlook, with Workplace Furnishings contract orders up **5% YoY** and total segment orders growing **1% organically**[4](index=4&type=chunk) [Segment Performance](index=2&type=section&id=Segment%20Performance) HNI's segments, Workplace Furnishings and Residential Building Products, both achieved strong Q2 sales growth and operating margin expansion [Workplace Furnishings](index=2&type=section&id=Workplace%20Furnishings) The Workplace Furnishings segment achieved strong net sales growth and significant GAAP operating margin expansion, driven by improved productivity and higher sales volume Workplace Furnishings Q2 Financial Performance (YoY) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Net Sales | $516.0M | $480.2M | +7.4% | | GAAP Operating Income | $65.8M | $54.3M | +21.1% | | GAAP Operating Margin | 12.8% | 11.3% | +150 bps | | Non-GAAP Operating Margin | 13.1% | 11.9% | +120 bps | - Organic net sales for the segment increased by **8.5% year-over-year**, fueled by growth across all major brands, including those focused on small-and-medium-sized businesses and contract brands[6](index=6&type=chunk)[16](index=16&type=chunk) [Residential Building Products](index=2&type=section&id=Residential%20Building%20Products) The Residential Building Products segment reported increased net sales and substantial operating margin expansion, driven by growth in both new construction and remodel-retrofit channels Residential Building Products Q2 Financial Performance (YoY) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Net Sales | $151.1M | $143.5M | +5.3% | | GAAP Operating Income | $23.7M | $19.8M | +19.9% | | GAAP Operating Margin | 15.7% | 13.8% | +190 bps | - Sales growth was strong in both key channels, with new construction up **more than 4%** and remodel-retrofit growing **over 7% year-over-year**[7](index=7&type=chunk) - Operating margin expansion was driven by favorable price-cost and higher net productivity, which were partially offset by unfavorable product mix and higher variable compensation[17](index=17&type=chunk) [Business Outlook](index=5&type=section&id=Business%20Outlook) HNI Corporation modestly improved its full-year 2025 outlook, projecting mid-single-digit net sales growth and double-digit EPS growth, while maintaining strategic capital deployment priorities - **Q3 2025 Outlook:** - Workplace Furnishings: Net sales to increase at a low-single-digit rate YoY - Residential Building Products: Net sales to increase at a low-single-digit rate YoY - Non-GAAP diluted EPS: Expected to increase slightly from 2024 levels[21](index=21&type=chunk) - **Full Year 2025 Outlook:** - Workplace Furnishings: Mid-single-digit net sales growth (excluding extra week) - Residential Building Products: Mid-single-digit net sales growth (excluding extra week) - Consolidated: Double-digit percent EPS growth expected[21](index=21&type=chunk)[22](index=22&type=chunk) - The company expects to offset the majority of any tariff-driven pressures for the full year 2025[21](index=21&type=chunk) - Capital deployment priorities are reinvesting in the business, funding dividends, pursuing share buybacks, and exploring M&A opportunities, supported by low leverage and strong cash flow[21](index=21&type=chunk) Financial Statements and Reconciliations [Condensed Consolidated Statements of Comprehensive Income](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) HNI's Q2 2025 comprehensive income statement shows increased net sales, operating income, and net income attributable to HNI Corporation compared to the prior year Q2 2025 Income Statement Summary (in millions, except EPS) | Account | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net sales | $667.1 | $623.7 | | Gross profit | $286.2 | $261.3 | | Operating income | $68.2 | $53.4 | | Net income attributable to HNI | $48.2 | $36.0 | | Diluted EPS | $1.02 | $0.75 | [Condensed Consolidated Balance Sheets](index=9&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 28, 2025, HNI's balance sheet reflects increased total assets and liabilities, primarily due to higher long-term debt, impacting shareholders' equity Balance Sheet Summary (in millions) | Account | June 28, 2025 | Dec 28, 2024 | | :--- | :--- | :--- | | Total Current Assets | $597.6 | $524.5 | | Total Assets | $1,912.0 | $1,875.1 | | Total Current Liabilities | $410.7 | $477.5 | | Long-Term Debt | $444.4 | $294.3 | | Total Liabilities | $1,101.0 | $1,034.7 | | Total HNI Shareholders' Equity | $811.0 | $840.1 | [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 28, 2025, HNI generated positive net cash from operating activities, with net outflows from investing and financing activities Six-Month Cash Flow Summary (in millions) | Activity | Six Months Ended June 28, 2025 | | :--- | :--- | | Net cash from operating activities | $43.7 | | Net cash from investing activities | $(18.4) | | Net cash from financing activities | $(15.8) | | Net increase in cash | $9.5 | | Cash at end of period | $32.0 | [Non-GAAP Financial Measures](index=12&type=section&id=Non-GAAP%20Financial%20Measures) This section reconciles GAAP to non-GAAP financial measures, providing additional insight into HNI's performance by adjusting for specific non-recurring items in Q2 2025 Q2 2025 GAAP to Non-GAAP EPS Reconciliation | Item | Per Share Amount | | :--- | :--- | | **As reported (GAAP) EPS** | **$1.02** | | Restructuring charges | $0.03 | | Loss on divestiture of HNI India | $0.01 | | Pension settlement | $0.04 | | **Results (non-GAAP) EPS** | **$1.11** | - Organic net sales, a non-GAAP measure, increased **7.7% year-over-year** for the consolidated company, calculated by excluding the impact of the HNI India divestiture[11](index=11&type=chunk)[42](index=42&type=chunk) - Non-GAAP adjustments for the quarter excluded restructuring charges, costs from factory consolidation, the gain on a facility sale, a pension plan settlement payout, and the loss on the sale of the HNI India business[40](index=40&type=chunk)

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Overview: HNI - HNI currently holds a Momentum Style Score of B and a Zacks Rank of 2 (Buy), indicating a favorable outlook for the stock [3][4] - The company is a manufacturer of office furniture and fireplaces, and its performance is being evaluated for potential investment opportunities [4] Price Performance - HNI shares have increased by 6.94% over the past week, outperforming the Zacks Business - Office Products industry, which rose by 2.54% during the same period [6] - Over the last month, HNI's stock price has changed by 10.14%, compared to the industry's 8.2% [6] - In the longer term, HNI shares have gained 19.59% over the past quarter and 15.27% over the last year, while the S&P 500 has increased by 10.24% and 14.41%, respectively [7] Trading Volume - HNI's average 20-day trading volume is 305,784 shares, which serves as a baseline for price-to-volume analysis [8] Earnings Outlook - In the past two months, one earnings estimate for HNI has been revised upward, while none have been revised downward, leading to an increase in the consensus estimate from $3.26 to $3.50 [10] - For the next fiscal year, one estimate has also moved upwards with no downward revisions [10] Conclusion - Considering the positive price trends and earnings outlook, HNI is positioned as a 2 (Buy) stock with a Momentum Score of B, making it a potential candidate for near-term investment [11][12]

HNI Corporation Overview - HNI Corporation's TTM (Trailing Twelve Months) revenue is $2.53 billion[8] - HNI Corporation's TTM Non-GAAP EBITDA is $322.7 million[8] - HNI Corporation's 2024 Cash Dividends totaled $63.6 million[8] - HNI Corporation's five-year average free cash flow is $137 million, exceeding $3.00 per share[8] Workplace Furnishings Segment - HNI expects total savings of $80-$85 million compared to 2022, with $45-$50 million benefiting 2025 and 2026, equating to $0.70-$0.80 of incremental EPS[6,34] - HNI anticipates KII (Kimball International) synergies to reach $60 million by the end of 2026, more than double the initial projection from mid-2023[6,34] - HNI expects total net savings from the Mexico facility ramp to reach $20-$25 million by the end of 2026[6,34] - HNI expects total savings of $11 million by the end of 2026 from Hickory consolidation, which are included in KII synergies[6,34] - Industry shipments remain 12% below pre-COVID levels[57,58] - 2024 industry volume (adjusted for pricing actions/inflation) is approximately 35% below 2019 levels[57,58] Residential Building Products Segment - Approximately 20-25% of HNI's new home business flows through its vertically-integrated installing distribution model[67] - 61% of all mortgage rates are below 4%, creating a "lock-in" effect that is positive for future remodel/retrofit activity[75]

Group 1 - HNI shares have increased by 8.8% over the past four weeks, closing at $47.26, with a mean price target of $69.50 indicating a potential upside of 47.1% [1] - The average price targets range from a low of $63 to a high of $80, with a standard deviation of $7.59, suggesting a consensus among analysts [2] - Analysts have shown increasing optimism regarding HNI's earnings prospects, with a 7.2% increase in the Zacks Consensus Estimate for the current year [11][12] Group 2 - HNI holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates [13] - The positive trend in earnings estimate revisions is correlated with potential stock price movements, indicating a legitimate reason for expecting an upside [11] - Analysts' price targets, while often overly optimistic, can provide a starting point for further research into the stock's potential [9][10]

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].