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 third quarter. The report provides a comprehensive overview of the company's financial performance and operational highlights, reflecting both the challenges and opportunities faced by the business.

Financial Highlights

Net Sales: $599.8 million, an increase of 2.0% compared to the prior-year quarter, primarily driven by improved volume in the residential building products segment.

Gross Profit: $238.4 million, representing 39.7% of net sales, a slight increase of 10 basis points from the previous year, driven by improved net productivity.

Operating Income: $24.4 million, a decrease of 17.7% from the prior year, impacted by restructuring and impairment charges related to the HNI India business.

Net Income Attributable to HNI Corporation: $13.9 million, a decrease of 21.3% from the prior year, primarily due to impairment and restructuring charges.

Net Income Attributable to HNI Corporation Per Common Share – Diluted: $0.29, compared to $0.37 in the prior year, reflecting the impact of restructuring and impairment charges.

Business Highlights

Revenue Segments: The workplace furnishings segment reported net sales of $441.1 million, a slight increase of 0.3% compared to the previous year, driven by higher volume in the contract and hospitality customer channels. The residential building products segment saw a 7.1% increase in net sales to $158.7 million, with remodel-retrofit sales increasing at a higher rate than new construction.

Operational Performance: The workplace furnishings segment experienced a decline in operating income margin by 190 basis points due to the impairment of HNI India, higher restructuring costs, and unfavorable price-cost dynamics. However, improved net productivity partially offset these challenges.

Operational Performance: The residential building products segment improved its operating income margin by 130 basis points, benefiting from higher sales volume.

Future Outlook: The Corporation remains focused on margin expansion in the workplace furnishings segment through the integration of Kimball International, expanded manufacturing in Mexico, and factory optimization initiatives. The residential building products segment is navigating market challenges but is focused on long-term revenue growth.

Future Outlook: Management is optimistic about the long-term prospects in both the workplace furnishings and residential building products markets, despite near-term macroeconomic uncertainties. Investments in capabilities are expected to support long-term growth and generate strong returns for shareholders.

SEC Filing: HNI CORP [ HNI ] - 10-Q - May. 07, 2025