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HNI
(NYSE:HNI)
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Rating:57Neutral
Price Target:
$50.00
▲(0.12% Upside)
Action:Reiterated
Date:08/21/26
The score is held back primarily by weak recent financial performance (sharp TTM earnings compression and higher leverage) and a very stretched P/E multiple. Offsetting this are strong technical momentum, a constructive earnings call with raised/strong EPS growth outlook and margin/synergy progress, and supportive capital actions (buyback expansion and extended debt maturities).
Positive Factors
Workplace demand recovery
Improving orders, backlog and bid activity support a durable recovery in Workplace Furnishings. Stronger demand can improve factory utilization, sustain revenue growth and provide operating leverage as the Steelcase integration expands HNI's market reach.
Negative Factors
Sharp TTM earnings deterioration
The latest TTM results show substantial pressure on revenue, operating profit and net income. Even if recovery guidance is achieved, weak current profitability reduces resilience, limits internal funding capacity and increases sensitivity to volume, mix and cost changes.
Read all positive and negative factors
Positive Factors
Negative Factors
Workplace demand recovery
Improving orders, backlog and bid activity support a durable recovery in Workplace Furnishings. Stronger demand can improve factory utilization, sustain revenue growth and provide operating leverage as the Steelcase integration expands HNI's market reach.
Read all positive factors
HNI (HNI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.49B
Dividend Yield2.86%
Average Volume (3M)577.18K
Price to Earnings (P/E)438.5
Beta (1Y)0.86
Revenue Growth70.13%
EPS Growth-95.94%
CountryUS
Employees18,500
SectorGeneral
Sector StrengthN/A
IndustryFurnishings, Fixtures & Appliances
Share Statistics
EPS (TTM)0.13
Shares Outstanding72,181,800
10 Day Avg. Volume558,080
30 Day Avg. Volume577,177
Financial Highlights & Ratios
PEG Ratio-0.61
Price to Book (P/B)1.11
Price to Sales (P/S)0.72
P/FCF Ratio9.69
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)4.22
Revenue Forecast (FY)$5.99B
HNI Business Overview & Revenue Model
Company Description
Established in 1944 and headquartered in Muscatine, Iowa, HNI Corporation specializes in the production and distribution of office furnishings and residential heating goods, primarily across the United States. The company's operations are divided ...
How the Company Makes Money
HNI makes money primarily by selling manufactured products across two main segments: workplace furnishings and residential building products. In workplace furnishings, revenue is generated from the sale of office furniture systems and components (...
HNI Earnings Call Summary
Earnings Call Date:Jul 30, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 03, 2026
Earnings Call Sentiment Positive
The call communicated a clear and improving operational picture: organic demand indicators and orders strengthened (especially in Workplace), margins expanded materially, acquisition integration is progressing with growing synergy visibility, and management raised confidence in full-year and multi-year double-digit EPS growth. Offsetting risks include continued residential/new-construction softness, early-year volume impacts from geopolitical factors, and elevated post-acquisition leverage. Overall, the positive drivers (revenue lift from Steelcase, margin expansion, orders/backlog improvement, synergy upside, and cash flow deleveraging) materially outweigh the identified challenges.Positive Updates
Non-GAAP EPS Growth
Non-GAAP diluted EPS of $1.27 in Q2 2026, up 14% year-over-year and ahead of internal expectations.
Negative Updates
Residential Revenue Weakness
Residential Building Products revenue decreased 1.6% year-over-year in Q2; new construction channel remained weak and weighed on overall segment results.
Read all updates
Q2-2026 Updates
Positive
Negative
Non-GAAP EPS Growth
Non-GAAP diluted EPS of $1.27 in Q2 2026, up 14% year-over-year and ahead of internal expectations.
Read all positive updates
Company Guidance
HNI now expects 2026 non‑GAAP diluted EPS growth of 20%–25% (from 2025’s $3.46), with accelerating double‑digit EPS growth in H2, Q3 EPS up mid‑ to‑high‑20% vs. Q3 2025 and Q3 roughly 15% above Q4; Q2 non‑GAAP EPS was $1.27 (+14% YoY) and GAAP EPS $0.70. They forecast legacy Workplace volume returning in Q3 to drive mid‑ to‑high‑single‑digit net sales growth in H2 (legacy Workplace Q3 high single‑digit; total Workplace including Steelcase Q3 +175%–180% YoY), Residential Building Products Q3 roughly flat (Q2 resi sales −1.6%), Workplace organic orders +5% in Q2 (backlog +5%) with recent 5‑week order acceleration, and overall net sales in Q2 +121% (organic ~flat). Margins should expand (Q2 segment operating margin +470 bps to 20.4%), workplace gross margin improvement ~150 bps (10.5%→12% pre‑tariff refund), residential +90 bps plan, Q2 net tariff benefit ≈ $0.25 EPS and ~40 bps expected for the year, cumulative savings >$70M in 2027 and >$150M when fully mature (Steelcase Americas synergies at least $120M), depreciation & amortization ~$170–180M (plus ~$100M purchase accounting), net interest ≈ $80M, tax rate ~25%–26%, free cash flow used to reduce net debt by ~$100M this quarter, and leverage down to 2.4x (from 2.5x) with a return to pre‑Steelcase levels expected within 18–24 months of the Dec‑2025 close.HNI Financial Statement Overview
Summary
Income Statement
38
Negative
Balance Sheet
46
Neutral
Cash Flow
55
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.39B | 2.84B | 2.53B | 2.43B | 2.36B | 2.18B |
| Gross Profit | 1.76B | 1.15B | 1.01B | 949.20M | 812.80M | 727.20M |
| EBITDA | 331.80M | 233.00M | 313.80M | 185.20M | 239.50M | 167.60M |
| Net Income | 4.30M | 54.20M | 139.50M | 49.20M | 123.90M | 59.80M |
Balance Sheet | ||||||
| Total Assets | 4.82B | 4.88B | 1.88B | 1.93B | 1.41B | 1.50B |
| Cash, Cash Equivalents and Short-Term Investments | 108.20M | 215.70M | 28.90M | 34.50M | 19.40M | 53.70M |
| Total Debt | 1.68B | 1.63B | 496.80M | 578.00M | 300.70M | 274.60M |
| Total Liabilities | 3.01B | 3.05B | 1.03B | 1.17B | 797.70M | 907.90M |
| Stockholders Equity | 1.81B | 1.84B | 840.10M | 761.40M | 616.50M | 589.60M |
Cash Flow | ||||||
| Free Cash Flow | -103.10M | 210.40M | 176.10M | 189.40M | 21.20M | 78.17M |
| Operating Cash Flow | 28.80M | 276.20M | 226.70M | 267.50M | 81.20M | 131.63M |
| Investing Cash Flow | -578.40M | -443.90M | -51.00M | -444.80M | -10.70M | -111.01M |
| Financing Cash Flow | 492.60M | 363.10M | -182.20M | 188.80M | -105.40M | -84.48M |
HNI Technical Analysis
Positive
49.94
Price Trends
44.50
Positive
38.82
Positive
40.19
Positive
Market Momentum
1.15
Positive
56.64
Neutral
37.36
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HNI, the sentiment is Positive. The current price of 49.94 is above the 20-day moving average (MA) of 48.61, above the 50-day MA of 44.50, and above the 200-day MA of 40.19, indicating a neutral trend. The MACD of 1.15 indicates Positive momentum. The RSI at 56.64 is Neutral, neither overbought nor oversold. The STOCH value of 37.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HNI.
HNI Risk Analysis
HNI disclosed 32 risk factors in its most recent earnings report. HNI reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
HNI Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $13.22B | 18.95 | 31.07% | 2.37% | 5.84% | 2.33% | |
57 Neutral | $3.49B | 438.45 | 0.28% | 3.29% | 70.13% | -95.94% | |
56 Neutral | $1.52B | 16.96 | 6.94% | 3.40% | 4.68% | ― | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
53 Neutral | $1.13B | 232.25 | 0.76% | ― | -4.37% | -92.21% | |
47 Neutral | $745.02M | 27.84 | -6.17% | 6.06% | -5.65% | -64.96% |
* General Sector Average
HNI
HNI
48.23
3.09
6.85%
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173.03
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TRIP
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HNI Corporate Events
Business Operations and StrategyStock Buyback
HNI Expands Share Repurchase Authorization to $284 Million
Positive
Aug 20, 2026
On August 17, 2026, HNI Corporation’s Board of Directors approved an additional expenditure of up to $200 million to repurchase outstanding shares of its Common Stock under the existing share repurchase program. With $84.3 million previously...
Business Operations and StrategyPrivate Placements and Financing
HNI Refinances Term Loan Facility to Extend Maturities
Positive
Jun 10, 2026
On June 10, 2026, HNI Corporation entered into a third amendment to its existing credit agreement, creating a new $498.75 million tranche of term loans maturing in 2032 to replace all outstanding Initial Tranche B Term Loans. The replacement loans...
Executive/Board ChangesShareholder Meetings
HNI Updates CFO Agreement and Confirms Board Leadership
Positive
May 22, 2026
On May 18, 2026, HNI’s board approved a new 10‑year change‑in‑control employment agreement for Executive Vice President and Chief Financial Officer Vincent P. Berger II, effective June 1, 2026, replacing a similar pact set ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.