HNI Corporation (NYSE:HNI) reported its third-quarter results on Tuesday, surpassing Wall Street’s earnings expectations while posting a modest year-on-year revenue increase. Shares of the workplace furnishings and residential building products company edged up 0.04% in pre-market trading following the announcement.
The company reported adjusted earnings per share (EPS) of $1.10, beating the analyst consensus of $1.06. Total revenue came in at $683.8 million, slightly below expectations of $688.66 million, but up 1.7% year-on-year. Excluding the impact of the HNI India divestiture, organic sales grew 2.6%.
“Our members delivered another strong quarter, despite ongoing tariff-driven volatility and continuing macro uncertainty,” said Jeff Lorenger, Chairman, President, and CEO. “Our diversified revenue streams, disciplined execution, and customer-first business model continue to drive strong shareholder value.”
The Workplace Furnishings segment — which contributes the bulk of HNI’s business — saw net sales rise 2.3% to $516.9 million, with organic growth of 3.5%. The Residential Building Products division reported nearly flat sales at $166.9 million, down 0.1% year-on-year.
HNI also achieved its highest third-quarter non-GAAP operating margin of 10.8%, improving by 10 basis points YoY, driven by profit transformation initiatives, productivity gains, and expense control.
Looking ahead, HNI expects Workplace Furnishings sales to grow at a high single-digit rate YoY in Q4 FY25, while Residential Building Products sales are expected to grow similarly. The company also anticipates completing its pending acquisition of Steelcase (NYSE:SCS) by the end of 2025.
“As we approach the closing of the Steelcase acquisition, we are excited about the future,” Lorenger added. “The deal is strategically and financially sound, and both companies complement each other across multiple fronts.”
