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 ...

HNI Corporation 600 East Second Street, Muscatine, Iowa 52761, Tel 563 272 7400, Fax 563 272 7347, www.hnicorp.com News Release HNI CORPORATION REPORTS SECOND QUARTER 2024 RESULTS Strong second quarter EPS fueled by Workplace Furnishings profit transformation, Kimball International accretion, and Residential Building Products actions MUSCATINE, Iowa (July 25, 2024) – HNI Corporation (NYSE: HNI) today announced net sales for the second quarter ended June 29, 2024 of $623.7 million and net income of $36.0 mil ...

HNI (HNI) could be a solid choice for investors given its recent upgrade to a Zacks Rank #1 (Strong Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices. The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system. As such, the ...

What's Driving the Outperformance? For the current fiscal year, HNI is expected to post earnings of $3.10 per share on $2.65 billion in revenues. This represents a 16.98% change in EPS on an 8.92% change in revenues. For the next fiscal year, the company is expected to earn $3.62 per share on $2.75 billion in revenues. This represents a year-over-year change of 16.77% and 3.87%, respectively. HNI may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question ...

Based in Muscatine, HNI (HNI) is in the Business Services sector, and so far this year, shares have seen a price change of 12.65%. The maker of office furniture and fireplaces is currently shelling out a dividend of $0.33 per share, with a dividend yield of 2.8%. This compares to the Business - Office Products industry's yield of 3.05% and the S&P 500's yield of 1.57%. Looking at dividend growth, the company's current annualized dividend of $1.32 is up 3.1% from last year. Over the last 5 years, HNI has inc ...