HNI Corporation Reports Full-Year and Q4 2025 Financial Results
HNI Corporation (NYSE: HNI) today announced its financial results for the full year ended January 3, 2026, reporting net sales of $2.8 billion and net income of $54.2 million. In the fourth quarter, the company recorded net sales of $888.4 million and a net loss of $49.2 million.
Full-Year Performance and Organic Growth
The company delivered solid organic results in 2025, with net sales, margins, and earnings showing year-over-year growth. Total net sales increased 12 percent, while organic net sales grew 6 percent. The consolidated operating margin for 2025 remained steady at 8.6 percent. Excluding impacts from Steelcase, the full-year non-GAAP operating margin improved by 80 basis points to 9.4 percent.
This improvement was driven by volume growth, productivity gains, synergies from the Kimball International (KII) acquisition, and favorable price-cost dynamics. These factors contributed to a fourth consecutive year of double-digit non-GAAP diluted EPS growth. Non-GAAP to GAAP reconciliations are provided in the financial statements included in this release.
Outlook for 2026
HNI expects continued net sales growth in 2026. In the Residential Building Products segment, recent structural changes and strategic growth investments are expected to drive modest price-related sales growth. Similarly, in the Workplace Furnishings segment, industry indicators and internal metrics suggest another year of strong price- and volume-led net sales growth.
Steelcase Acquisition and Synergy Realization
The acquisition of Steelcase complements HNI’s existing visibility strategy. The company continues to achieve significant savings from KII acquisition synergies and the ramp-up of its Mexico facility. Synergies from Steelcase are expected to contribute $1.20 to non-GAAP diluted EPS at full maturity, with modest accretion expected in 2026. Initial efforts focus on reducing redundant corporate costs in the Americas, with revenue synergies not included in the early stage of integration.
Strong Balance Sheet
Following the Steelcase acquisition, HNI ended the fiscal year with a net debt-to-EBITDA ratio of 2.0 times, as calculated under its credit agreement. The company anticipates returning leverage to pre-acquisition levels within 18–24 months. HNI remains committed to its longstanding dividend and continues to invest in its business to support future growth initiatives.
Commentary from Leadership
Jeff Lorenger, Chairman, President, and Chief Executive Officer, described 2025 as a transformative year for HNI Corporation. He highlighted the completion of the Steelcase acquisition, which positions the company to reshape the workplace furnishings industry. Despite soft and uncertain macroeconomic conditions, HNI achieved a fourth straight year of double-digit non-GAAP EPS growth, driven by its diversified revenue streams, strategic focus, and customer-first business model.
Workplace Furnishings Segment Performance
In the legacy workplace furnishings business, full-year net sales increased 15 percent, with organic net sales up six percent year-over-year. This growth was fueled by strong performance from contract brands and the benefit of an extra week in fiscal 2025. Profitability, excluding the Steelcase stub period, benefited from volume growth, profit transformation initiatives, and KII synergy capture.
Full-year GAAP operating profit margin improved 50 basis points to 9.5 percent, while non-GAAP operating margin expanded 100 basis points to 10.5 percent. Over the past three years, non-GAAP operating margin has grown nearly 900 basis points. Looking ahead, HNI anticipates continued revenue growth and margin expansion in its workplace furnishings business while continuing to invest in growth initiatives.
Residential Building Products Segment Performance
In the Residential Building Products segment, fourth-quarter revenue grew more than 10 percent compared with the same period in 2024, supported by strength in repair and remodel projects and the extra week in the fiscal calendar.
Full-year revenue increased nearly six percent, with new construction flat and remodel-retrofit projects growing at a double-digit pace. Segment GAAP operating profit margin improved 60 basis points to 18 percent, while non-GAAP operating profit margin also rose 60 basis points to 18.1 percent, resulting in more than nine percent profit growth. HNI remains optimistic about long-term opportunities in the broader housing market and is continuing investments to enhance operating models and revenue streams. For 2026, modest segment revenue and profit growth are expected despite ongoing challenges in new construction.
Integration of Steelcase
The integration of Steelcase is progressing successfully. Six months after the acquisition, HNI is confident in the complementary nature of the two businesses, including capabilities, product offerings, brand presence, customer reach, and culture. The company expects to achieve $120 million in targeted synergies and is focused on minimizing any disruptions to its front-end operations across its workplace furnishings businesses. Dealer partnerships, salesforces, and brand distribution remain unchanged, a strategy that customers, industry influencers, and dealers have positively received.
Strategic Focus and Future Outlook
HNI’s results for the fourth quarter and full year demonstrate the strength of its strategic initiatives and its ability to manage in uncertain macroeconomic conditions. The company remains focused on investing in the future, with expectations for continued growth in 2026 driven by margin expansion efforts, synergy realization, and ongoing revenue growth.
Summary
Fiscal 2025 was a pivotal year for HNI Corporation, marked by strong financial performance, strategic acquisitions, and operational improvements. The company achieved solid organic g
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