HNI (HNI) Q4 2025 Earnings Call Transcript
The Motley Fool
by newsfeedback@fool.com (Motley Fool Transcribing)February 25, 2026
AI-Generated Deep Dive Summary
HNI Corporation delivered a strong financial performance in its Q4 2025 earnings call, highlighted by robust revenue growth and margin expansion across key segments. The company reported a Non-GAAP EPS of $3.74 for the full year, marking a 22% increase and reflecting an average annual growth rate exceeding 15% over the past four years. Total Net Sales rose 12%, driven by 6% organic growth and the recent Steelcase acquisition, which contributed significantly to scale and profitability.
The Workplace Furnishings segment demonstrated resilience with a 6% organic sales increase, supported by strong contract brand performance and operational efficiencies. The segment's Non-GAAP Operating Margin expanded by 100 basis points to 10.5%, underscoring HNI's ability to leverage synergies from the Kimball International integration. Meanwhile, the Residential Building Products Segment also showed strength, with revenue growing nearly 6% for the year and a notable 10% increase in the fourth quarter, despite challenges in new construction.
The Steelcase acquisition closed successfully in December, propelling HNI's pro forma revenues to over $5.8 billion. The deal is expected to generate $750 million in total adjusted EBITDA and approximately $350 million in annual free cash flow. Management outlined $120 million in targeted synergies, with a projected 1.20 per share accretion, reaffirming the company's commitment to delivering value through strategic integration.
Looking ahead, HNI anticipates continued double-digit EPS growth
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Originally published on The Motley Fool on 2/25/2026