HNI Corporation reports Q1 EPS 44c, consensus 34c

Reports Q1 revenue $599.8M, consensus $580.5M. “In the Workplace Furnishings segment, net sales increased slightly year-over-year, led by improving demand in our contract businesses. Orders accelerated and backlog levels are up, while return-to-office plans gained momentum. Each of these drivers points to continued year-over-year revenue growth over the remainder of 2025. Our profit transformation efforts and recognition of KII synergies continued to benefit first quarter results. However, stronger volume from large projects and from state and local government customers, which tend to carry higher discounts, was dilutive to segment operating margin. As a result, segment GAAP and non-GAAP operating profit margin compressed year-over-year in the first quarter. Despite elevated near-term uncertainty, we expect margin expansion in 2025, while we remain focused on our investments aimed at driving growth in this segment. In Residential Building Products, revenue growth returned, and segment operating profit margin expanded 130 basis points year-over-year in the quarter. While challenging housing market dynamics continued to pressure new construction demand, our remodel-retrofit business generated solid year-on-year revenue growth during the first quarter. Despite the current housing headwinds, we remain encouraged about the long-term opportunities tied to the broader housing market, and in the strength of our market-leading positions and profitable operating model. And, we continue to invest to drive future growth. Our first quarter results demonstrate our ability to manage through varying macroeconomic conditions, while remaining focused on the future. And while we expect macro headwinds and demand volatility over the near-term, based on our leading indicators-both external and internal, we expect strong results to continue, driven by our margin expansion efforts and a return of volume growth,” stated Jeff Lorenger, CEO.