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Dec 28, 2024
HNI Q4 2024 Earnings Report
HNI Corporation reported a decline in revenue and lower non-GAAP EPS compared to the previous year, but achieved strong net income growth driven by operational improvements.
Key Takeaways
HNI Corporation's Q4 2024 net sales declined by 5.5% year-over-year to $642.5 million. GAAP EPS increased significantly to $0.79, while non-GAAP EPS declined to $0.87. Operating income saw a sharp increase on a GAAP basis due to lower restructuring costs. Workplace Furnishings and Residential Building Products both experienced revenue declines.
Q4 net sales declined 5.5% year-over-year to $642.5 million.
GAAP EPS surged to $0.79, while non-GAAP EPS fell to $0.87.
Operating income increased 78% on a GAAP basis, benefiting from lower restructuring costs.
Revenue decline was observed across both business segments.
HNI
HNI
HNI Revenue by Segment
Revenue by Segment
Workplace Furnishings Revenue
CapyFin.comResidential Building Products Revenue
CapyFin.com Forward Guidance
HNI Corporation expects a return to net sales growth in 2025, driven by strong backlog levels and order growth in Workplace Furnishings and Residential Building Products. Earnings growth is anticipated to continue, benefiting from operational efficiencies and synergy gains.
Positive Outlook
- Workplace Furnishings order rates and backlog levels remain strong.
- Residential Building Products orders grew 8% year-over-year in Q4.
- EPS growth expected in 2025, driven by synergy benefits and cost efficiencies.
- Strong cash flow provides flexibility for capital deployment.
- Investment in operational improvements expected to drive long-term growth.
Challenges Ahead
- Macroeconomic uncertainty and demand volatility remain risks in 2025.
- Tariffs and inflation could create margin pressures in the near term.
- Interest rates remain elevated, impacting housing market demand.
- Lower sales volume impacted Q4 non-GAAP EPS performance.
- Restructuring costs and factory consolidation efforts may create short-term disruptions.
Revenue & Expenses
Visualization of income flow from segment revenue to net income