HNI Q4 revenue beats expectations on Steelcase acquisition; EPS misses

Overview

• Office furniture maker's Q4 revenue rose 38.3%, beating analyst expectations

• Adjusted EPS for Q4 missed analyst expectations

• Company completed acquisition of Steelcase, impacting Q4 results

Outlook

• HNI expects full-year 2026 net sales to more than double year-over-year, including Steelcase; sees modest organic growth

• Company projects fifth consecutive year of double-digit non-GAAP EPS growth in 2026 despite slight expected drop in Q1

• First-quarter 2026 consolidated net sales expected to increase by over 130% year-over-year

Result Drivers

• STEELCASE ACQUISITION - Acquisition contributed to significant sales increase but also higher SG&A and acquisition costs

• SYNERGY CAPTURE - Volume growth, productivity gains, and synergy capture drove non-GAAP EPS growth

• MARGIN EXPANSION - Non-GAAP operating margin expanded due to productivity and synergy benefits

Company press release: ID:nBw4Vtqy8a

Key Details

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 47.2% above its February 24 closing price of $48.57

• The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 10 three months ago

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