HNI (HNI) Q4 2025 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Wed, February 25, 2026 astatine 11:26 AM CST 32 min read

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Wednesday, Feb. 25, 2026 astatine 11 a.m. ET

• Chairman, President, and Chief Executive Officer — Jeffrey D. Lorenger

• Executive Vice President and Chief Financial Officer — Vincent Paul Berger

Jeffrey D. Lorenger: Good morning, and convey you for joining us. 2025 was a seminal twelvemonth for HNI Corporation. Our members delivered fantabulous results, arsenic we reported a 4th consecutive twelvemonth of double-digit non-GAAP EPS maturation contempt persistent brushed and uncertain macro conditions. The affirmative momentum of our strategies, the benefits of our diversified gross streams, our ongoing absorption connected items wrong our control, and the merits of our customer-first concern exemplary continued to present beardown shareholder value. And precocious successful the year, we completed the acquisition of Steelcase. This operation volition not lone alteration our company, but besides the workplace furnishings industry.

On today’s call, we volition reappraisal our 4th fourth and afloat twelvemonth 2025 results, and supply immoderate commentary astir our expectations for 2026 and beyond, including the benefits of the Steelcase acquisition.

Before I sermon our caller performance, I privation to bespeak connected the cardinal improvements we person driven astatine HNI Corporation. Our translation has taken aggregate steps and years. I volition statesman with Workplace Furnishings wherever margins person been reset. Three years ago, our bequest Workplace Furnishings concern launched a profitability betterment inaugural that was instrumental successful expanding operating borderline astir 1,000 ground points. In 2023, price/cost betterment pursuing the play of elevated ostentation drove the archetypal signifier of expansion. Since then, aggregate portfolio absorption moves, ongoing web optimization efforts, KII synergies, and the benefits of ramping our Mexico installation person supported accordant profitability improvement.

Based connected the initiatives already underway, including the precocious announced plans to adjacent our Wayland, New York manufacturing facility, we person enactment of show to continued operating borderline enlargement successful the coming years. And our borderline enlargement communicative is progressively supported by a firming macroeconomic representation successful our Workplace Furnishings segment. I volition supply much macro commentary aboriginal successful the call.

Shifting to our Residential Building Products segment, our improvement started with the strategical shifts pursuing the Great Financial Crisis. Since then, we person adjusted our outgo structure, afloat embraced thin manufacturing, and proceed to prosecute a vertically integrated concern exemplary with the starring brands successful each merchandise categories. The effect was much than 1,000 ground points of operating borderline enlargement implicit the decennary post-2009. In addition, since 2019, the efficiency, nimbleness, and uniqueness of our Building Products concern person supported consistently beardown profitability with sustained operating margins successful the mid- to high-teens. This consistency of some margins and currency travel are foundational elements to HNI Corporation’s fiscal strength.