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Jun 28
HNI Q2 2025 Earnings Report
HNI delivered strong revenue growth and record Q2 non-GAAP operating margin, supported by volume growth and productivity gains.
Key Takeaways
HNI Corporation posted solid Q2 2025 results with $667.1 million in revenue and net income of $48.2 million. Both segments contributed to growth, with Workplace Furnishings achieving significant margin expansion and Residential Building Products growing despite housing market uncertainty. Non-GAAP operating margin reached a record 11.0%.
Revenue grew 7% year-over-year to $667.1 million
GAAP operating margin expanded to 10.2%, and non-GAAP operating margin reached 11.0%
Workplace Furnishings revenue grew 7.4% to $516 million with a 12.8% operating margin
Residential Building Products revenue rose 5.3% to $151.1 million with a 15.7% operating margin
HNI
HNI
HNI Revenue by Segment
Revenue by Segment
Workplace Furnishings Revenue
CapyFin.comResidential Building Products Revenue
CapyFin.com Forward Guidance
HNI expects mid-single-digit revenue growth in both segments for 2025 and modestly higher non-GAAP operating margin. EPS is expected to grow at a double-digit rate, supported by KII synergies and Mexico facility ramp-up.
Positive Outlook
- Mid-single-digit revenue growth expected in both segments for full year 2025
- Modestly higher non-GAAP operating margin versus 2024
- Double-digit EPS growth expected for fourth consecutive year
- KII synergies and Mexico facility ramp-up expected to add $0.50–$0.60 EPS benefit over next 18 months
- Strong balance sheet with low leverage supports capital deployment
Challenges Ahead
- Tariff-driven demand volatility in hospitality segment
- Residential Building Products orders declined slightly due to Q1 pull-forward activity
- Higher variable compensation impacting margins
- Unfavorable product mix pressures Residential Building Products margins
- Ongoing housing market uncertainty may limit growth
Revenue & Expenses
Visualization of income flow from segment revenue to net income