HNI (NYSE:HNI) Issues Quarterly Earnings Results, Beats Expectations By $0.23 EPS

HNI (NYSE:HNI) posted its quarterly earnings data on Thursday. The business services provider reported $1.27 EPS for the quarter, beating analysts’ consensus estimates of $1.04 by $0.23, FiscalAI reports. The firm had revenue of $1.47 billion for the quarter, compared to the consensus estimate of $1.48 billion. HNI had a net margin of 0.10% and a return on equity of 13.66%. The firm’s revenue was up 120.7% compared to the same quarter last year. During the same period in the prior year, the firm posted $1.11 EPS. 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 Performance

Shares of HNI stock opened at $45.09 on Friday. The company has a market cap of $3.21 billion, a P/E ratio of 501.02, a PEG ratio of 0.54 and a beta of 0.90. The business has a 50 day moving average of $37.11 and a two-hundred day moving average of $39.34. HNI has a 52 week low of $28.93 and a 52 week high of $52.79. The company has a quick ratio of 0.86, a current ratio of 1.36 and a debt-to-equity ratio of 0.76.

HNI Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Wednesday, June 10th. Shareholders of record on Friday, May 29th were paid a $0.35 dividend. The ex-dividend date was Friday, May 29th. This is an increase from HNI’s previous quarterly dividend of $0.34. This represents a $1.40 dividend on an annualized basis and a yield of 3.1%. HNI’s payout ratio is presently 341.46%.

Key Stories Impacting HNI

Here are the key news stories impacting HNI this week:

• Positive Sentiment: HNI reported second-quarter adjusted earnings of $1.27 per share, well above the $1.04 analyst consensus and up from $1.11 a year earlier. HNI Surpasses Q2 Earnings Estimates
• Positive Sentiment: Revenue surged 120.7% year over year to approximately $1.47 billion, reflecting the impact of HNI’s Steelcase acquisition, although sales were modestly below the $1.48 billion consensus estimate. HNI’s Revenue Surges in Second Quarter
• Positive Sentiment: Management raised its full-year 2026 adjusted EPS outlook to $4.15–$4.33, above the prior analyst consensus of $4.02, and now expects 20%–25% non-GAAP EPS growth. The company also increased its target for annual Steelcase synergies to at least $120 million. HNI Projects EPS Growth and Raises Synergy Target
• Neutral Sentiment: Third-quarter EPS guidance of $1.16–$1.19 was below the $1.31 consensus estimate, creating a near-term concern. However, the stronger full-year outlook suggests management expects improved performance later in the year. HNI Q2 Earnings Snapshot

Institutional Trading of HNI

Several hedge funds have recently made changes to their positions in HNI. Royal Bank of Canada boosted its holdings in shares of HNI by 20.5% during the first quarter. Royal Bank of Canada now owns 8,642 shares of the business services provider’s stock valued at $383,000 after acquiring an additional 1,472 shares during the period. AQR Capital Management LLC lifted its position in HNI by 6.3% in the 1st quarter. AQR Capital Management LLC now owns 13,527 shares of the business services provider’s stock valued at $600,000 after purchasing an additional 802 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its stake in HNI by 4.8% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 28,239 shares of the business services provider’s stock valued at $1,252,000 after purchasing an additional 1,290 shares during the period. Millennium Management LLC acquired a new position in HNI during the 1st quarter valued at about $10,666,000. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its position in HNI by 7.3% in the 1st 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 during the last quarter. Institutional investors own 75.26% of the company’s stock.

Analyst Ratings Changes

A number of equities analysts recently commented on the company. Wells Fargo & Company set a $65.00 price target on HNI in a research note on Wednesday, July 15th. Benchmark restated a “buy” rating on shares of HNI in a research note on Wednesday, July 15th. Finally, Weiss Ratings raised HNI from a “sell (d+)” rating to a “hold (c-)” rating in a report on Friday, July 24th. One research analyst has rated the stock with a Buy rating and one has issued a Hold rating to the company. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus price target of $65.00.

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.