Record Third Quarter Non-GAAP Operating Margin
Non-GAAP earnings per share increased 7% year-over-year, driven by a record third quarter non-GAAP operating margin of 10.8%.
Strong Workplace Furnishings Performance
Organic net sales in the Workplace Furnishings segment increased 3% year-over-year, with a non-GAAP segment operating profit margin exceeding 12%.
Positive Outlook for Office Space Demand
Return to office data shows an inflection, with Class A buildings in top markets reaching 98% peak day occupancy and a new office growth cycle emerging.
Steelcase Acquisition Synergy Expectations
The pending acquisition of Steelcase is expected to generate $120 million in synergies, with accretion of $1.20 per share when fully mature.
Strong Balance Sheet and Financial Flexibility
HNI expects to maintain significant financial flexibility, with targeted net leverage returning to the range of 1 to 1.5x within 18 to 24 months post-acquisition.