Name: HNI CORP Q1 2026 Earnings Call
Start: 2025-05-07T00:00:00.000Z

Executive Summary

Q1 2026 results have not been released as of today; no 8‑K 2.02, earnings press release, or call transcript are available for HNI for Q1 2026, so this report anchors on S&P Global consensus for Q1 2026 and the two most recent quarters actually reported (Q2 and Q3 2025), plus management’s latest outlook [ListDocuments: no 8‑K 2.02 or press release Jan–Jun 2026; no call transcript Jan–Jun 2026]. Q1 2026 consensus is EPS $0.48* and revenue $623.8M*, implying modest sequential deceleration versus seasonally stronger Q3 but YoY growth vs Q1 2025 non‑GAAP EPS $0.44 [GetEstimates Q1 2026; https://investors.hnicorp.com/news/news-details/2025/HNI-Corporation-Reports-First-Quarter-2025-Results/default.aspx].
Recent execution is solid: Q2 and Q3 2025 delivered revenue growth and record second/third‑quarter non‑GAAP operating margins (11.0% and 10.8%), with non‑GAAP EPS of $1.11 and $1.10, respectively, driven by productivity, synergies (KII, Mexico ramp), and Opex control .
2025 outlook calls for mid‑teens non‑GAAP EPS growth and stronger Q4 sales in both segments; secular margin drivers continue into 2026 (“elevated earnings growth visibility”), while tariffs remain a variable; management also expected the Steelcase acquisition to close before YE25 and to delever quickly afterward .
Key stock catalysts near term: magnitude of Q1 2026 beat/miss vs consensus; backlog conversion and order trends post tariff noise; clarity on synergy capture run‑rate and any M&A updates (Steelcase closing/deleverage) .

What Went Well and What Went Wrong

What Went Well
- Margin execution: Q2/Q3 2025 non‑GAAP operating margins reached record second/third‑quarter levels at 11.0% and 10.8%; non‑GAAP EPS grew 41% YoY in Q2 to $1.11 and 7% YoY in Q3 to $1.10 .
- Workplace Furnishings profitability: segment GAAP operating margin expanded to 12.8% in Q2 (+150 bps YoY) and 12.1% in Q3 (+70 bps YoY) on productivity and synergies; management: “profit transformation efforts and KII synergies continue to deliver benefits” .
- Visibility and balance sheet: management reiterated “elevated earnings growth visibility through 2026” and emphasized strong cash generation and deleveraging capacity; gross debt leverage fell to 0.9x by Q3; “anticipated strong free cash flow will help us quickly deleverage” .
What Went Wrong
- Tariff‑related volatility: management noted “ongoing tariff‑driven volatility” and a temporary hospitality demand pause, distorting order patterns and pricing realization .
- Price‑cost headwinds: Q3 commentary cited unfavorable price‑cost partially offsetting productivity; SG&A ratio rose 160 bps in Q3, including $8.3M one‑time costs tied to the pending Steelcase acquisition .
- RBP orders softness at times: Residential Building Products orders declined ~2% in Q2 before improving later in the quarter; Q3 RBP margin contracted on a non‑GAAP basis due to prior‑year restructuring comps and lower productivity .

Financial Results

Headline metrics (actuals and Q1 2026 consensus)

Metric	Q1 2025 (actual)	Q2 2025 (actual)	Q3 2025 (actual)	Q1 2026 (consensus)
Revenue ($USD Millions)	$599.8	$667.1	$683.8	$623.8*
EPS – GAAP ($)	$0.29	$1.02	$0.88	$0.48*
EPS – non‑GAAP ($)	$0.44	$1.11	$1.10	—
Operating Margin – GAAP (%)	4.1%	10.2%	9.4%	—
Operating Margin – non‑GAAP (%)	5.3%	11.0%	10.8%	—
Revenue Consensus Mean ($USD Millions)	—	—	—	$623.8*
Primary EPS Consensus Mean ($)	—	—	—	$0.48*
EBITDA Consensus Mean ($USD Millions)	—	—	—	$63.0*

Asterisked values are S&P Global consensus. Values retrieved from S&P Global.

Segment performance (GAAP)

Metric	Q2 2025	Q3 2025
Workplace Furnishings Net Sales ($M)	$516.0	$516.9
Workplace Furnishings Operating Income ($M)	$65.8	$62.5
Workplace Furnishings Operating Margin (%)	12.8%	12.1%
Residential Building Products Net Sales ($M)	$151.1	$166.9
Residential Building Products Operating Income ($M)	$23.7	$30.0
Residential Building Products Operating Margin (%)	15.7%	18.0%

KPIs and operating indicators

KPI	Q2 2025	Q3 2025
Workplace Furnishings Orders YoY (reported)	+1%	-3%
Workplace Furnishings Orders YoY (adjusted)	Slightly up ex hospitality & pull‑forward	+2% ex hospitality & tariff pre‑orders
Workplace Furnishings Backlog YoY	+5%	+7% (ex hospitality)
Residential Building Products Orders YoY	-2%	+2%
Gross Debt Leverage (x)	1.4x	0.9x

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Workplace Furnishings net sales growth	Q4 2025	—	High single‑digit YoY increase (includes extra week)	New detail (Q4)
Residential Building Products net sales growth	Q4 2025	—	High single‑digit YoY increase (includes extra week)	New detail (Q4)
Non‑GAAP EPS	Q4 2025	—	“Increase slightly” vs 2024	New detail (Q4)
Non‑GAAP EPS growth	FY 2025	Double‑digit growth expected (unchanged)	Mid‑teens % growth	Modestly raised vs early 2025 framing
WF segment sales (ex extra week)	FY 2025	Mid‑single‑digit growth; pricing realization lower on reduced tariff impacts	Trajectory consistent into H2; Q3 still implies strong Q4 sales growth	Maintained
RBP segment sales (ex extra week)	FY 2025	Mid‑single‑digit growth (slightly improved)	Strong Q4 sales growth expected	Maintained

Note: No specific Q1 2026 guidance disclosed; management reiterated “elevated earnings growth visibility through 2026” .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q2 2025)	Previous Mentions (Q3 2025)	Current Period (Q1 2026)	Trend
Tariffs and hospitality demand	Hospitality pause; tariff uncertainty; adjusted WF orders still up	Ongoing tariff volatility; adjusted WF orders +2% YoY	No new call available	Volatile but improving pipelines
Synergies (KII) and Mexico ramp	Record Q2 non‑GAAP margin; ~+$0.24 EPS benefit 1H25; $0.70–$0.80 through 2026	Record Q3 non‑GAAP margin; drivers continue into 2026	No new call available	Sustained tailwind
SMB vs Contract	SMB return to growth; contract strong; commingling SMB in contract settings	Adjusted WF orders slightly up; backlog +7%	No new call available	Improving breadth
RBP demand (new vs remodel)	RBP orders -2% with late‑Q improvement; growth initiatives gaining traction	RBP orders +2%; RBP op margin 18%	No new call available	Incremental improvement
Capital deployment	~$40M buybacks in Q2; strong FCF	Deleveraging ahead of M&A closing	No new call available	Balance sheet strengthening
M&A (Steelcase)	—	Expected to close before YE25; quick deleveraging expected	No new call available	Potential strategic re‑rating

Management Commentary

“We delivered strong results in the second quarter of 2025… non‑GAAP operating margin expanding to the strongest second‑quarter level on record” (Jeff Lorenger, CEO) .
“Our members delivered another strong quarter… The positive momentum of our strategies… continue to deliver strong shareholder value” (Q3 release) .
“We continue to expect a fourth consecutive year of double‑digit non‑GAAP diluted EPS growth… and as we look to 2026, we continue to have elevated earnings growth visibility” (Q3 concluding remarks) .
“In Workplace Furnishings, organic net sales increased… fueled by growth across all major brands… Non‑GAAP segment operating profit margin expanded” .
“Anticipated strong free cash flow will help us quickly deleverage our balance sheet” (re: expected Steelcase closing) .

Q&A Highlights

Synergy trajectory: management reiterated $0.70–$0.80 EPS benefit through 2026 and indicated leaning toward the high end given execution progress .
Incremental margins: expected 35–40% incremental in Workplace Furnishings with volume, before investment impacts .
SMB and contract dynamics: SMB strength viewed as recovery from tariff shock; contract pipelines improving as “business‑as‑usual” returns for in‑office investments .
RBP drivers: 1H25 mix roughly one‑third volume, two‑thirds price; more volume contribution expected in the back half .
Capital returns: buybacks guided as a quarter‑by‑quarter free‑cash‑flow decision (nearly $40M in Q2) .

Estimates Context

Q1 2026 consensus: EPS $0.48* (4 estimates), revenue $623.8M* (3 estimates), EBITDA $63.0M* [GetEstimates Q1 2026].
Context vs history: This implies YoY EPS growth vs Q1 2025 non‑GAAP EPS $0.44 and revenue growth vs $599.8M actual; sequential moderation vs seasonally strong Q3 2025 ($683.8M, $1.10 non‑GAAP EPS) .
Estimate revision risk: watch for any tariff‑related mix/pull‑forward effects and the pace of synergy realization continuing to offset price‑cost; management continues to emphasize productivity and backlog support into late 2025 .
Asterisked values are S&P Global consensus. Values retrieved from S&P Global.

Key Takeaways for Investors

Set up into Q1 2026 appears constructive: consensus embeds modest YoY growth; recent quarters showed record Q2/Q3 non‑GAAP margins and strong synergy traction—watch conversion of backlog and order momentum post tariff noise .
Margin algorithm is working: sustained productivity, KII synergies, and Mexico ramp underpin multi‑quarter margin expansion; monitor SG&A as growth investments rise and one‑time M&A costs roll off .
Tariff dynamics remain a swing factor, especially for hospitality; adjusted order trends are improving—focus on whether Q1 order commentary normalizes .
Residential Building Products resilience continues; initiatives (product, channels, distribution) support growth even amid housing softness—track volume mix shifting more positive .
Balance sheet optionality: leverage fell to 0.9x in Q3; management signals quick deleveraging post any Steelcase transaction; capital returns (dividend/buybacks) supported by FCF .
Potential catalysts: confirmation of Q1 2026 beat/miss vs EPS/revenue consensus; updated synergy cadence; any M&A close/timing updates and pro‑forma leverage targets [GetEstimates Q1 2026] .
Risk checks: price‑cost headwinds, tariff policy changes, and macro order volatility (SMB/contract) could pressure sequential comps; track commentary for pull‑forward/push‑out effects .

Sources and document status

No Q1 2026 8‑K Item 2.02, press release, or earnings call transcript available yet (Jan–Jun 2026 search windows returned none). Prior two quarters comprehensively reviewed (Q2 and Q3 2025 8‑Ks; Q2 2025 call transcript) [ListDocuments (no 2026 H1 docs)] .
Q1 2025 press release used for YoY baseline .
Asterisked estimate values are from S&P Global. Values retrieved from S&P Global.

HNI CORP (HNI)·Q1 2026 Earnings Summary