What does Hni do and what are its main business segments?

What guidance did Hni's management provide for the next earnings period?

What is Hni's latest dividend and current dividend yield?

Did Hni beat or miss consensus estimates last quarter?

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What is the revenue and EPS growth rate for Hni year over year?

What is the market's earnings forecast for Hni next quarter?

- **Q3 EPS Beat**: 7% YoY growth to $1.10, driven by 10.8% operating margin (record for Q3). 
- **Steelcase Deal**: $120M annual synergies, $1.20 EPS accretion, with 1.0-1.5x leverage target post-18-24 months.
- **Residential Strength**: 2% Q3 orders (remodel +7%), outpacing flat new construction market.
- **Office Recovery**: 2025 net absorption +6M sq ft, Class A occupancy near pre-pandemic highs.
- **KII Savings**: $0.75-$0.80 EPS contribution over 2025-2026, with $45M-$50M realized in 2025.

**【CEO Summary Section】**
- **Q3 2025 Results**: Non-GAAP EPS increased 7% YoY to $1.10, driven by a record 10.8% operating margin. Workplace Furnishings revenue grew 3% organically, while Residential Building Products revenue was flat due to pricing actions and macro challenges.
- **Steelcase Acquisition**: Expected $120M annual synergies and $1.20 EPS accretion upon full integration. Post-closing leverage target is 1.0-1.5x within 18-24 months.
- **Market Outlook**: Optimistic on office furniture recovery (Q3 2025 net absorption +6M sq ft) and residential remodel demand. Steelcase deal positions for long-term growth in both segments.

**【CFO Financial Commentary】**
- **Q4 2025 Guidance**: Workplace Furnishings revenue +high single digits YoY (excluding divestitures), Residential Building Products +high single digits (pricing-led). Full year 2025 EPS growth ~mid-teens.
- **KII/Mexico Savings**: $0.75-$0.80 EPS contribution over 2025-2026, with $45M-$50M realized in 2025. Tax rate for 2H25 adjusted to 24.4% (full year 23%).
- **Balance Sheet**: $1.2B available liquidity post-Steelcase close. Free cash flow to deleverage quickly.

**【Q&A Highlights】**
- **Steelcase Synergies**: $120M hard-coded, with potential upside. Integration process disciplined but open to additional savings.
- **Residential Outperformance**: 2% Q3 orders (remodel +7%), 13% backlog growth. Outpacing market despite new construction weakness.
- **Office Furniture Cycle**: 2025 net absorption highest since 2019. Class A occupancy rates near pre-pandemic levels, driving furniture events.
- **Tariff Impact**: Hospitality segment volatility expected to normalize in 2026. Preorder activity improving.


HNI Corporation (HNI) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

HNI

HNI fundamentals

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