Shares of HNI Corporation (NYSE:HNI) ticked up 0.04% in premarket trading on Tuesday after the company delivered third-quarter 2025 earnings that came in ahead of expectations, even though revenue was marginally below estimates.
The workplace furnishings and residential building products manufacturer reported adjusted earnings of $1.10 per share, topping the consensus forecast of $1.06. Revenue reached $683.8 million, just shy of the $688.66 million expected by analysts. On a year-over-year basis, revenue grew 1.7%, with organic sales up 2.6% after excluding the impact of the company’s India divestiture.
“Our members delivered another strong quarter, despite ongoing tariff-driven volatility and continuing macro uncertainty,” said Jeff Lorenger, Chairman, President, and CEO. “The positive momentum of our strategies, the benefits of our diversified revenue streams, our focus on items within our control, and the merits of our customer-first business model continue to deliver strong shareholder value.”
The Workplace Furnishings segment, which represents the bulk of HNI’s business, saw net sales rise 2.3% to $516.9 million, with organic growth of 3.5%. The Residential Building Products segment was relatively flat, with sales of $166.9 million, down 0.1% from the prior year.
HNI achieved its highest-ever third-quarter non-GAAP operating margin of 10.8%, an improvement of 10 basis points from last year, helped by productivity initiatives, synergies, profit transformation measures, and tight cost management.
Looking to the fourth quarter, HNI expects net sales in Workplace Furnishings to grow at a high single-digit rate year over year, with Residential Building Products expected to expand at a similar pace. The company also reaffirmed plans to complete its acquisition of Steelcase (NYSE:SCS) by year-end.
“As we approach the closing of the Steelcase acquisition, we are excited about the future of bringing together our combined capabilities,” Lorenger added. “The deal is right from a strategic, financial, and cyclical perspective, and our two companies are highly complementary on many fronts.”