Overview

* HNI Q3 sales miss analyst expectations, adjusted EPS beats estimates

* Company's strategic initiatives drive strong operational performance and margin expansion

* Steelcase acquisition expected to close by end of 2025, enhancing capabilities

Outlook

* Company expects Q4 2025 net sales to grow at a high single-digit rate in Workplace Furnishings

* Non-GAAP EPS for Q4 2025 expected to increase slightly from 2024

* Company anticipates mid-teens percent non-GAAP EPS growth for full year 2025

Result Drivers

* PRODUCTIVITY GAINS - Co attributes strong results to productivity improvements and operating expense control

* STRATEGIC INITIATIVES - Profit transformation initiatives and synergy benefits from Kimball International acquisition boosted margins

* MEXICO FACILITY - Ramp-up of Mexico facility contributed to cost savings and elevated earnings growth visibility

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Sales Miss $683.80 $689.30

mln mln (4

Analysts

)

Q3 Beat $1.10 $1.06 (5

Adjusted Analysts

EPS )

Q3 EPS $0.88

Q3 Net $41.20

Income 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 ( HNI ) is $67.00, about 32.9% above its October 27 closing price of $44.95

* The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 13 three months ago

Press Release:

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(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.)