Building products maker HNI's Q2 sales, EPS beats expectations

HNI

24/07/2025 12:44

Overview

HNI Q2 net sales rise 7% to $667.1 mln, beating analyst expectations

Adjusted EPS for Q2 increases 41% to $1.11, exceeding estimates

Growth driven by volume increases and synergy benefits from Kimball acquisition

Outlook

Company expects Q3 net sales growth in Workplace Furnishings and Residential Building Products segments in low-single digits

HNI expects productivity benefits and volume growth to drive Q3 EPS yoy increase

HNI sees full-year 2025 mid-single-digit net sales growth in both segments

Company anticipates double-digit EPS growth for full-year 2025

Result Drivers

VOLUME GROWTH - Strong volume growth in Workplace Furnishings segment drove sales increase, per CEO Jeff Lorenger

SYNERGY BENEFITS - Synergies from Kimball International acquisition and Mexico facility ramp-up contributed to earnings growth

PRODUCTIVITY IMPROVEMENTS - Improved net productivity supported profit margin expansion, despite unfavorable price-cost dynamics

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
Beat
$667.10 mln
$646.40 mln (4 Analysts)
Q2 Adjusted EPS
Beat
$1.11
$0.86 (5 Analysts)
Q2 EPS
$1.02
Q2 Operating Income
$73.40 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

The average consensus recommendation for the business support supplies peer group is "buy"

Wall Street's median 12-month price target for HNI Corp is $63.00, about 16.7% above its July 23 closing price of $52.50

The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 12 three months ago

Press Release: ID:nBwcd953Fa

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)