HNI (NYSE:HNI) Announces Earnings Results

HNI (NYSE:HNI) released its quarterly earnings results on Wednesday. The business services provider reported $0.83 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.91 by ($0.08), FiscalAI reports. HNI had a net margin of 1.91% and a return on equity of 15.80%. The business had revenue of $888.40 million during the quarter, compared to the consensus estimate of $693.78 million. During the same period in the prior year, the firm earned $0.87 earnings per share. The business’s quarterly revenue was up 38.3% compared to the same quarter last year.

Here are the key takeaways from HNI’s conference call:

• The company completed the acquisition of Steelcase, creating a combined business with >$5.8 billion in revenue, ~ $750 million of adjusted EBITDA and ~ $350 million of annual free cash flow, and management reiterates a targeted $120 million of synergies and ~$1.20 of accretion (modestly accretive in 2026 already).
• Fiscal 2025 delivered a fourth consecutive year of double‑digit non‑GAAP EPS growth (legacy EPS $3.74, +22%), with total net sales +12% (organic +6%) and notable margin expansion across segments.
• Management expects 2026 to deliver a fifth year of double‑digit non‑GAAP EPS growth, continued revenue growth, modest 2026 accretion from Steelcase, and leverage returning toward pre‑deal levels (~1.0–1.5x net debt/EBITDA within 18–24 months).
• Near‑term headwinds: Q1 2026 revenue will appear >130% year‑over‑year due to consolidation but non‑GAAP EPS is expected to decline slightly because of revenue/expense timing from the Steelcase stub period and increased investments, with earnings recovery projected from Q2 onward.
• Operational initiatives (KII synergies, Mexico ramp, planned plant closures including Wayland, and other network optimization) have driven large margin gains historically and are expected to add an incremental ~$0.25–$0.30 of EPS over the next three years (about ~$0.10 in 2026).

HNI Stock Down 1.0%

NYSE:HNI opened at $45.63 on Friday. The company has a quick ratio of 0.85, a current ratio of 1.24 and a debt-to-equity ratio of 0.70. HNI has a 12-month low of $38.03 and a 12-month high of $53.29. The stock’s fifty day simple moving average is $46.64 and its 200-day simple moving average is $44.49. The firm has a market capitalization of $2.09 billion, a P/E ratio of 36.50, a P/E/G ratio of 0.56 and a beta of 0.94.

HNI Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Wednesday, March 11th. Stockholders of record on Monday, March 2nd will be paid a $0.34 dividend. The ex-dividend date of this dividend is Monday, March 2nd. This represents a $1.36 dividend on an annualized basis and a dividend yield of 3.0%. HNI’s dividend payout ratio is 108.80%.

Analysts Set New Price Targets

A number of equities analysts have recently issued reports on the stock. Wall Street Zen lowered shares of HNI from a “strong-buy” rating to a “buy” rating in a research report on Saturday, November 1st. Benchmark reaffirmed a “buy” rating on shares of HNI in a report on Friday, January 16th. Finally, Weiss Ratings upgraded HNI from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Tuesday, February 3rd. Three investment analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company’s stock. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $75.00.

Hedge Funds Weigh In On HNI

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Millennium Management LLC bought a new stake in shares of HNI in the 1st quarter valued at about $10,666,000. Jane Street Group LLC bought a new stake in HNI in the first quarter valued at approximately $10,301,000. Entropy Technologies LP acquired a new stake in HNI in the third quarter worth $676,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its position in shares of HNI by 7.3% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 142,290 shares of the business services provider’s stock worth $6,311,000 after purchasing an additional 9,730 shares in the last quarter. Finally, Intech Investment Management LLC grew its holdings in shares of HNI by 23.6% in the 1st quarter. Intech Investment Management LLC now owns 36,698 shares of the business services provider’s stock valued at $1,628,000 after buying an additional 7,000 shares during the period. Institutional investors own 75.26% of the company’s stock.

Key Headlines Impacting HNI

Here are the key news stories impacting HNI this week:

• Positive Sentiment: Sidoti raised HNI’s full‑year and several quarterly forecasts (FY2026 to $4.06 from $4.04; FY2027 to $4.94 from $4.87 and increases to some quarter estimates), signaling stronger multi‑year earnings upside.
• Positive Sentiment: Q4 revenue materially beat expectations — $888.4M reported, well above consensus — suggesting demand and scale benefits even as EPS lagged. QuiverQuant Q4 earnings
• Positive Sentiment: Management flagged a $120M synergy target from the Steelcase acquisition and projected another year of double‑digit EPS growth—this is a major strategic catalyst if realized. Seeking Alpha on synergies
• Neutral Sentiment: Earnings call commentary was upbeat on growth and synergies (useful for guidance context) but did not fully offset investor focus on the EPS miss. TipRanks call highlights
• Neutral Sentiment: Full Q4 earnings/transcript is available for deeper review of margins, cost actions and acquisition details. Earnings call transcript
• Negative Sentiment: Q4 EPS missed consensus: $0.83 reported vs. roughly $0.90+ expected, which pressured near‑term sentiment despite the revenue beat. Zacks on EPS miss
• Negative Sentiment: Sidoti trimmed some quarter‑level forecasts (notably Q3 2026 and Q3 2027 were reduced), introducing mixed near‑term expectations even as annual numbers were lifted.
• Negative Sentiment: Coverage pieces explain a recent sharp intraday decline — investors focused on the EPS miss and near‑term execution risk despite strategic positives. AAII explanation

HNI Company Profile

HNI Corporation, founded in 1944 as the Heating & Novelty Company and headquartered in Muscatine, Iowa, is a leading manufacturer of office furniture and hearth products. Over its history, the company has evolved from producing gas heaters into two primary business segments: Office Furniture and Hearth & Home. HNI’s Office Furniture division operates under well-known brands such as The HON Company, Allsteel, Gunlocke and Kimball, offering a comprehensive portfolio of workstations, seating, tables, storage solutions and acoustic products tailored for corporate, education, healthcare and government markets.

In its Hearth & Home segment, HNI designs, manufactures and distributes fireplaces, stoves, fireplace inserts, logs and related accessories.