HNI Corporation reported fourth‑quarter and full‑year 2025 results, posting net sales of $888.4 million for the quarter and $2.8 billion for the year ended January 3, 2026. The company recorded a net loss of $49.2 million in the quarter and a net income of $54.2 million for the year. Non‑GAAP diluted earnings per share were $0.83, missing consensus estimates of $0.91 by $0.08.
The revenue beat was driven almost entirely by the Steelcase acquisition, which closed on December 10, 2025. Steelcase contributed 24 days of revenue to the quarter, lifting HNI’s sales to $888.4 million—well above the analyst estimate of roughly $720 million. For the full year, net sales rose 10.6% from $2.526 billion in FY 2024 to $2.8 billion, reflecting both the acquisition and a 6% organic growth in HNI’s legacy businesses.
The EPS miss resulted from integration costs and higher interest expense associated with the Steelcase deal. The newly acquired business posted a non‑GAAP operating loss for the stub period, and the company incurred additional one‑time charges to align accounting policies. These factors offset the earnings strength of HNI’s core segments, leading to a net loss in the quarter and a lower EPS than expected.
Management guided for 2026 net sales to more than double year‑over‑year, including Steelcase revenue, and reaffirmed a fifth consecutive year of double‑digit non‑GAAP EPS growth. The company reiterated its $120 million synergy target, which is expected to add $1.20 to non‑GAAP EPS once fully realized, with accretion beginning in fiscal 2026. HNI also confirmed that its net debt‑to‑EBITDA ratio will return to pre‑acquisition levels within 18–24 months.
Jeff Lorenger, HNI’s Chairman, President and CEO, said the Steelcase acquisition “will not only transform our company, but also the workplace furnishings industry.” He added that the combined entity will accelerate investments in long‑term operational enhancements, digital transformation, and customer‑centered buying experiences, underscoring confidence in the synergy plan and the strategic fit of the two brands.
The content on EveryTicker is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.