HNI (NYSE:HNI) Releases Quarterly Earnings Results, Beats Estimates By $0.23 EPS

HNI (NYSE:HNI) posted its quarterly earnings results on Thursday. The business services provider reported $1.27 earnings per share for the quarter, topping analysts’ consensus estimates of $1.04 by $0.23, FiscalAI reports. HNI had a net margin of 0.04% and a return on equity of 13.17%. The business had revenue of $1.47 billion for the quarter, compared to the consensus estimate of $1.48 billion. During the same period in the prior year, the business posted $1.11 earnings per share. HNI’s revenue for the quarter was up 120.7% compared to the same quarter last year. HNI updated its FY 2026 guidance to 4.150-4.330 EPS and its Q3 2026 guidance to 1.160-1.190 EPS.

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

• Second-quarter non-GAAP EPS rose 14% year over year to $1.27, supported by Steelcase profit contribution, price-cost benefits including tariffs, productivity gains, and cost controls.
• Workplace demand indicators improved, with organic orders up 5%, backlog up 5%, and recent order growth accelerating; HNI expects legacy Workplace revenue to grow at a high-single-digit rate in the third quarter and mid-to-high single digits in the second half.
• Management raised confidence in the Steelcase integration, saying identified synergies now exceed the original $120 million target and that the acquisition should be modestly accretive in 2026.
• HNI projects 20%–25% non-GAAP EPS growth in 2026 and another year of double-digit EPS growth in 2027, driven primarily by Steelcase synergies and legacy network optimization rather than volume growth.
• Residential Building Products remains pressured by housing weakness, particularly new construction; second-half volume is expected to decline by low-single digits, with pricing only expected to keep revenue roughly flat.

HNI Stock Up 5.1%

HNI stock traded up $2.17 during mid-day trading on Thursday, hitting $44.95. 533,543 shares of the company’s stock were exchanged, compared to its average volume of 706,735. HNI has a 1-year low of $28.93 and a 1-year high of $52.79. The stock has a 50 day moving average of $36.56 and a two-hundred day moving average of $39.30. The company has a current ratio of 1.39, a quick ratio of 0.86 and a debt-to-equity ratio of 0.81. The stock has a market cap of $3.20 billion, a P/E ratio of 109.39, a P/E/G ratio of 0.55 and a beta of 0.90.

HNI Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Wednesday, June 10th. Shareholders of record on Friday, May 29th were given a dividend of $0.35 per share. The ex-dividend date of this dividend was Friday, May 29th. This is a positive change from HNI’s previous quarterly dividend of $0.34. This represents a $1.40 annualized dividend and a yield of 3.1%. HNI’s dividend payout ratio (DPR) is currently 341.46%.

Analyst Upgrades and Downgrades

HNI has been the topic of a number of recent research reports. Weiss Ratings upgraded HNI from a “sell (d+)” rating to a “hold (c-)” rating in a research note on Friday, July 24th. Benchmark reiterated a “buy” rating on shares of HNI in a report on Wednesday, July 15th. Finally, Wells Fargo & Company set a $65.00 price target on HNI in a research note on Wednesday, July 15th. One investment analyst has rated the stock with a Buy rating and one has issued a Hold rating to the stock. Based on data from MarketBeat, HNI presently has a consensus rating of “Moderate Buy” and a consensus target price of $65.00.

Institutional Trading of HNI

Several large investors have recently made changes to their positions in HNI. Triumph Capital Management bought a new position in shares of HNI in the 3rd quarter valued at approximately $28,000. Royal Bank of Canada boosted its holdings in shares of HNI by 20.5% during the 1st quarter. Royal Bank of Canada now owns 8,642 shares of the business services provider’s stock worth $383,000 after buying an additional 1,472 shares during the period. AQR Capital Management LLC lifted its position in HNI by 6.3% during the 1st quarter. AQR Capital Management LLC now owns 13,527 shares of the business services provider’s stock worth $600,000 after acquiring an additional 802 shares during the last quarter. Entropy Technologies LP bought a new position in shares of HNI in the third quarter worth about $676,000. Finally, New York State Common Retirement Fund increased its position in HNI by 31.7% in the 4th quarter. New York State Common Retirement Fund now owns 21,301 shares of the business services provider’s stock worth $895,000 after buying an additional 5,125 shares during the period. Institutional investors own 75.26% of the company’s stock.

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.