MUSCATINE, Iowa – HNI (HNI) Corporation recently reported solid results in revenue, margins, and earnings during a third quarter that saw net sales of $683.8 million and a net income of $41.2 million.
In a Tuesday, Oct. 28, news release announcing those Q3 results for the quarter that ended Sept. 27, HNI also reported quarterly earnings of $1.1 per share. That easily beat the Zacks Consensus Estimate of $1.07 per share.
Yahoo Finance also said the third quarter report “represents an earnings surprise of +2.80%. A quarter ago, it was expected that this maker of office furniture and fireplaces would post earnings of $0.86 per share when it actually produced earnings of $1.11, delivering a surprise of +29.07%.”
HNI Third quarter over-the-year net sales also saw a 2% increase and organic net sales increased 3%, the company said in the release. And HNI continues to forecast strong sales in the fourth quarter despite ongoing “tariff-driven volatility and continuing macro uncertainty.”
HNI Chairman, President and CEO Jeff Lorenger said in the Oct. 28 release, “Our third quarter performance demonstrates the strength of our strategies and our ability to manage through varying macroeconomic conditions and daily uncertainty, while remaining focused on investing for the future.”
He added “We expect strong results to continue, driven by our margin expansion efforts and continued volume growth.”
Acquisitions make impact
Muscatine-based HNI, for example, continues to expect its acquisition of Steelcase (NYSE: SCS) will close before the end of calendar year 2025 and it expects elevated earnings growth visibility through 2026.
The new combination with Steelcase, HNI said, brings together two companies with highly complementary capabilities, dealer networks, brand portfolios, and customer segments. Find out more about the Steelcase deal at HNI’s Aug. 4 initial Investor Briefing here.
In addition to the upcoming Steelcase acquisition, HNI said in the news release that it continues to realize significant savings from the June 2023 Kimball International acquisition synergies and from the ramp-up of its Mexico facility. These two initiatives are expected to contribute a total of $0.75 to $0.80 to diluted non-GAAP EPS in 2025-2026
Recent demand activity also supports the corporation’s outlook for strong sales growth in the fourth quarter, HNI said.
For example, despite market and economic challenges, Q3 organic net sales in Workplace Furnishings increased 3% over the year, fueled by growth across all major brands, HNI said. Adjusted order rates also were up slightly in the quarter year-over-year while the adjusted segment backlog increased 7% from the third quarter of 2024.
In Residential Building Products, the company also reported that revenue was roughly unchanged over the same period last year, but it was not unexpected. New construction revenue also was down slightly, while remodel-retrofit grew slightly.
The company concluded that “despite expectations of ongoing uncertainty, we remain encouraged about the opportunities tied to the broader housing market and we continue to invest to grow our operating model and revenue streams.”
HNI added “Third quarter segment order and backlog growth, the strength of our market-leading positions, and our unique operating model support our expectations of revenue and profit growth in the fourth quarter of 2025.”
