Furnishing products maker HNI's Q1 sales miss estimates

HNI

06/05/2026 12:39

Overview

U.S. workplace furnishings and hearth products maker's Q1 sales missed analyst expectations

Adjusted EPS for Q1 beat analyst expectations, aided by cost controls and productivity gains

Company cites geopolitical uncertainty and lower organic volume as headwinds for the quarter

Outlook

HNI expects full-year 2026 low-single digit organic net sales growth in both segments

Company sees mid-teens percent diluted non-GAAP EPS growth for full-year 2026

Second quarter 2026 net sales in Residential Building Products expected to decrease at low-single digit rate

Result Drivers

GEOPOLITICAL UNCERTAINTY - Co said lower organic net sales, especially in Workplace Furnishings, were driven by demand pressures tied to the Middle East conflict, tariffs, and macroeconomic concerns

COST MANAGEMENT - Expense control, project terminations, synergy recognition from Steelcase, and network optimization savings helped offset lower volume and support profit growth

PRODUCTIVITY AND PRICE-COST - Improved net productivity and favorable price-cost contributed to margin expansion, particularly in Residential Building Products

Company press release: ID:nBw2y3hTLa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Sales
Miss
$1.35 bln
$1.39 bln (3 Analysts)
Q1 Adjusted EPS
Beat
$0.34
$0.29 (4 Analysts)
Q1 EPS
-$0.55
Q1 Net Income
-$38.80 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 $71.50, about 97.4% above its May 5 closing price of $36.23

The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 12 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)