HNI (HNI) Q4 2025 earnings summary

Executive summary

• Achieved fourth consecutive year of double-digit non-GAAP EPS growth, with 2025 EPS up 22% year-over-year to $3.74, and average annual growth rate exceeding 15%.

• Completed the acquisition of Steelcase, transforming the workplace furnishings industry and creating a market leader, with integration off to a strong start.

• Total net sales increased 12.4% year-over-year to $2.8 billion, with 6% organic growth; adjusted operating margin expanded 80 basis points to 9.4%.

• Fourth quarter net sales were $888.4 million, with a net loss of $49.2 million due to acquisition-related costs.

• Strong customer response and positive momentum in both Workplace Furnishings and Residential Building Products segments.

Financial highlights

• Non-GAAP diluted EPS for legacy business was $3.74, up 22% from 2024; adjusted EPS excluding Steelcase stub and purchase accounting was $3.53.

• Full-year GAAP diluted EPS was $1.11; non-GAAP diluted EPS (excluding Steelcase) was $3.74.

• Consolidated operating margin was 8.6% for the year; non-GAAP operating margin (excluding Steelcase) expanded 80 bps to 9.4%.

• Gross profit margin expanded 50 bps to 41.4% year-over-year.

• Acquisition costs related to Steelcase totaled $94.6 million for the year.

Outlook and guidance

• Expecting a fifth year of double-digit non-GAAP EPS growth in 2026, driven by Steelcase synergies and ongoing strategic initiatives.

• Steelcase synergies projected at $120 million, with $1.20 non-GAAP EPS accretion when fully realized.

• Q1 2026 net sales projected to increase over 130% year-over-year, but non-GAAP EPS to decrease slightly due to timing and investment.

• Full-year 2026: mid-single digit revenue growth in Workplace Furnishings, low single-digit growth in Building Products; consolidated net sales expected to more than double year-over-year due to Steelcase.

• Leverage expected to return to pre-deal levels (1-1.5x net debt/EBITDA) within 18-24 months.