HNI CORP SEC 10-Q Report

HNI Corporation, a leading provider of workplace furnishings and residential building products, has released its Form 10-Q report for the second quarter of 2025. The report highlights significant growth in both financial and operational metrics, driven by strong performance in key business segments and strategic initiatives aimed at enhancing productivity and expanding market presence.

Financial Highlights

HNI Corporation reported robust financial results for the second quarter of 2025, showcasing significant improvements across various key metrics:

• Net Sales: $667.1 million, a 7.0% increase compared to the prior-year quarter, driven by strong volume growth in the workplace furnishings segment and pricing actions.
• Gross Profit: $286.2 million, representing 42.9% of net sales, up 9.5% from the prior-year quarter, attributed to improved net productivity.
• Operating Income: $68.2 million, a 27.6% increase from the prior-year quarter, with operating margin expanding by 160 basis points due to higher net sales volume and improved net productivity.
• Net Income Attributable to HNI Corporation: $48.2 million, a 34.0% increase from the prior-year quarter, driven by higher net sales volume and improved net productivity.
• Diluted EPS: $1.02, up from $0.75 in the prior-year quarter, reflecting the overall improvement in net income.

Business Highlights

HNI Corporation's business performance in the second quarter of 2025 was marked by notable achievements and strategic initiatives:

• Revenue Segments: The workplace furnishings segment saw a 7.4% increase in net sales, driven by favorable price-cost and higher volume in most customer channels. The residential building products segment experienced a 5.3% increase in net sales, with remodel-retrofit sales growing at a higher rate than new construction.
• Operational Performance: The workplace furnishings segment's operating income as a percentage of net sales increased by 150 basis points compared to the same period in 2024, due to improved net productivity and higher net sales volume. The residential building products segment's operating income as a percentage of net sales increased by 190 basis points, driven by favorable price-cost and higher net productivity.
• Divestiture Impact: The divestiture of HNI India in the second quarter of 2025 resulted in a $4.5 million decrease in year-over-year net sales for the workplace furnishings segment.
• Future Outlook: The Corporation remains optimistic about long-term prospects in the workplace furnishings and residential building products markets, despite near-term uncertainty driven by macroeconomic conditions. Management is confident that investments in the business will continue to generate strong returns for shareholders.
• Strategic Focus: The Corporation is focused on margin expansion in the workplace furnishings segment through the integration of Kimball International, expanded utilization of its manufacturing facility in Mexico, and factory optimization initiatives. The residential building products segment is focused on driving revenue growth over the long term, navigating challenging housing market dynamics.

SEC Filing: HNI CORP [ HNI ] - 10-Q - Jul. 29, 2025