HNI Corporation (HNI)
NYSE:HNI
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HNI
(NYSE:HNI)
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Rating:63Neutral
Price Target:
$35.00
▲(7.79% Upside)
Action:ReiteratedDate:02/25/26
The score is driven primarily by mixed financial performance: strong recent cash generation offsets a sharp TTM revenue decline and higher balance-sheet risk. The earnings call provides a meaningful upside framework via synergy capture and continued EPS growth guidance, while technicals are supportive longer-term but soft near-term. Valuation is moderately favorable given the mid-teens P/E and a ~2.8% dividend yield.
Positive Factors
Strong Cash Generation
Sustained, high free cash flow as a large share of net income indicates durable earnings quality and internal funding capacity. Over 2–24 months this supports debt reduction, integration funding for Steelcase synergies, continued dividends, and the flexibility to invest in productivity without relying on external financing.
Negative Factors
Sharp Recent Revenue Decline
A nearly 25% TTM top-line decline materially weakens operating leverage and reduces margin carryover. If demand recovery is slow, revenue contraction will pressure operating profit, slow deleveraging and make it harder to realize modeled EPS and cash flow targets even with cost synergies.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Cash Generation
Sustained, high free cash flow as a large share of net income indicates durable earnings quality and internal funding capacity. Over 2–24 months this supports debt reduction, integration funding for Steelcase synergies, continued dividends, and the flexibility to invest in productivity without relying on external financing.
Read all positive factors
HNI (HNI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.31B
Dividend Yield3.2%
Average Volume (3M)948.08K
Price to Earnings (P/E)37.6
Beta (1Y)0.79
Revenue Growth1.15%
EPS Growth16.20%
CountryUS
Employees7,600
SectorConsumer Cyclical
Sector Strength84
IndustryBusiness Equipment & Supplies
Share Statistics
EPS (TTM)0.83
Shares Outstanding71,270,996
10 Day Avg. Volume896,538
30 Day Avg. Volume948,076
Financial Highlights & Ratios
PEG Ratio-0.61
Price to Book (P/B)1.11
Price to Sales (P/S)0.72
P/FCF Ratio9.69
Enterprise Value/Market Cap1.29
Enterprise Value/Revenue1.05
Enterprise Value/Gross Profit2.56
Enterprise Value/Ebitda10.90
Forecast
1Y Price Target
$75.00Price Target Upside130.98% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)4.11
Revenue Forecast (FY)$6.13B
HNI Business Overview & Revenue Model
Company Description
HNI Corporation, together with its subsidiaries, manufactures and sells workplace furnishings and residential building products primarily in the United States. The company operates through two segments, Workplace Furnishings and Residential Buildi...
How the Company Makes Money
HNI makes money by designing, manufacturing, and selling physical products across its two operating segments, generating revenue primarily from product sales (and associated freight/installation or service offerings where applicable). (1) Workplac...
HNI Earnings Call Summary
Earnings Call Date:Feb 25, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 23, 2026
Earnings Call Sentiment Positive
The call presents a largely positive view: strong multi-year earnings and margin expansion, organic revenue growth across segments, successful close of the Steelcase acquisition with clear synergy targets ($120M) and modeled accretion ($1.20), and a defined path to reduce leverage. Near-term challenges include Q1 2026 EPS pressure from timing and integration costs, purchase-accounting/stub distortions, and ongoing weakness in new-home construction. Management expects these headwinds to be temporary and to be offset by margin initiatives, synergy capture and steady cash flow, supporting confidence in continued double-digit EPS growth for 2026.Positive Updates
Sustained EPS Growth
Fourth consecutive year of double-digit non-GAAP diluted EPS growth; fiscal 2025 non-GAAP diluted EPS for legacy business was $3.74, up 22% versus 2024. Management cites an average annual EPS growth rate exceeding 15%.
Negative Updates
First Quarter 2026 Earnings Pressure
Management expects Q1 2026 non-GAAP EPS to decrease slightly versus 2025 due to revenue and expense recognition timing and increased investment; Q1 is described as a temporary headwind with recovery expected in Q2.
Read all updates
Q4-2025 Updates
Positive
Negative
Sustained EPS Growth
Fourth consecutive year of double-digit non-GAAP diluted EPS growth; fiscal 2025 non-GAAP diluted EPS for legacy business was $3.74, up 22% versus 2024. Management cites an average annual EPS growth rate exceeding 15%.
Read all positive updates
Company Guidance
HNI guided to a fifth consecutive year of double‑digit non‑GAAP EPS growth for fiscal 2026 off a $3.53 base (excluding purchase accounting and the Steelcase stub), with modest EPS accretion from Steelcase in 2026 and a targeted $120 million of Americas‑focused synergies driving $1.20 of total accretion (about $0.60 of that in year two); network optimization is expected to deliver an incremental $0.25–$0.30 over the next three years (≈$0.10 in 2026). Q1 2026 net sales are expected to increase >130% year‑over‑year while non‑GAAP EPS is expected to decrease slightly due to timing and investment impacts (earnings are expected to return in Q2 and accelerate through the year); workplace revenue is forecast to be mid‑single‑digit for the full year (with modest Q1 pressure) and building products revenue is expected up low‑single‑digits for Q1 and the full year. Management expects combined depreciation & amortization of $175–180 million, interest expense of $75–80 million, a tax rate of ~25%, post‑close net debt/EBITDA of ~2.0x that should decline to 1.0–1.5x in 18–24 months, and pro forma metrics including revenue >$5.8 billion, adjusted EBITDA ≈$750 million and annual free cash flow ≈$350 million.HNI Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
52
Neutral
Cash Flow
74
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.84B | 2.53B | 2.43B | 2.36B | 2.18B |
| Gross Profit | 1.18B | 1.01B | 949.20M | 812.80M | 727.20M |
| EBITDA | 233.50M | 313.80M | 185.20M | 239.50M | 167.60M |
| Net Income | 54.20M | 139.50M | 49.20M | 123.90M | 59.80M |
Balance Sheet | |||||
| Total Assets | 4.88B | 1.88B | 1.93B | 1.41B | 1.50B |
| Cash, Cash Equivalents and Short-Term Investments | 215.70M | 28.90M | 34.50M | 19.40M | 53.70M |
| Total Debt | 1.63B | 496.80M | 578.00M | 300.70M | 274.60M |
| Total Liabilities | 3.05B | 1.03B | 1.17B | 797.70M | 907.90M |
| Stockholders Equity | 1.84B | 840.10M | 761.40M | 616.50M | 589.60M |
Cash Flow | |||||
| Free Cash Flow | 210.40M | 176.10M | 189.40M | 21.20M | 78.17M |
| Operating Cash Flow | 276.20M | 226.70M | 267.50M | 81.20M | 131.63M |
| Investing Cash Flow | -443.90M | -51.00M | -444.80M | -10.70M | -111.01M |
| Financing Cash Flow | 363.10M | -182.20M | 188.80M | -105.40M | -84.48M |
HNI Technical Analysis
Negative
32.47
Price Trends
43.52
Negative
42.60
Negative
44.07
Negative
Market Momentum
-2.99
Positive
24.03
Positive
14.46
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HNI, the sentiment is Negative. The current price of 32.47 is below the 20-day moving average (MA) of 36.86, below the 50-day MA of 43.52, and below the 200-day MA of 44.07, indicating a bearish trend. The MACD of -2.99 indicates Positive momentum. The RSI at 24.03 is Positive, neither overbought nor oversold. The STOCH value of 14.46 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HNI.
HNI Risk Analysis
HNI disclosed 32 risk factors in its most recent earnings report. HNI reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
HNI Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $13.19B | 20.46 | 31.18% | 2.04% | 1.03% | 5.52% | |
63 Neutral | $2.31B | 37.63 | 5.05% | 3.20% | 1.15% | 16.20% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
50 Neutral | $988.01M | 14.70 | 0.83% | 4.16% | 4.34% | -141.36% | |
50 Neutral | $1.25B | 45.50 | 6.10% | ― | 3.05% | 890.32% | |
48 Neutral | $1.15B | 42.31 | -6.99% | 4.72% | -0.64% | -60.71% |
* Consumer Cyclical Sector Average
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HNI Corporate Events
Business Operations and Strategy
HNI launches operational improvement and manufacturing consolidation plan
Negative
Jan 8, 2026
On January 8, 2026, HNI Corporation announced an operational improvement plan that includes exiting its Wayland, New York, manufacturing facility in 2027 and consolidating production into other North American plants in its workplace furnishings ne...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.