Non-GAAP EPS Growth
Non-GAAP EPS increased nearly 20% year-over-year, exceeding expectations, with both segments showing revenue growth.
Segment Revenue Growth
Residential Building Products revenue grew 7% year-over-year, and Workplace Furnishings revenue increased slightly compared to the same period in 2024.
Profitability and Margin Expansion
Consolidated non-GAAP gross and operating margins expanded year-on-year to 40% and 5.3%, respectively, with operating margin reaching the highest first quarter level since 2007.
Strong Contract Customer Growth
Contract customer orders increased 4% year-over-year, with a 15% increase excluding hospitality.
Residential Building Products Profit Growth
Operating profit grew 16% year-over-year, with segment EBIT margin expanding 130 basis points to 15.7%.
Order Backlog Increase
Workplace Furnishings segment backlog is up 19% year-over-year.
Returns to Office Opportunities
Elevated levels of nonviable office space present a positive indicator for future furniture demand.
Strong Balance Sheet and Cash Flow
Quarter-ending gross debt leverage was 1.3x, with $40 million in stock repurchases, demonstrating confidence in future earnings and cash flow generation.