HNI Q2 sales and adjusted EPS beat analyst expectations

Overview

• U.S. workplace furnishings and hearth products maker's Q2 sales rose, beating analyst expectations

• Adjusted EPS for Q2 beat analyst expectations, driven by Steelcase acquisition and productivity gains

Outlook

• HNI expects Q3 Workplace Furnishings net sales to rise 175-180% year-over-year including Steelcase

• Company sees Q3 Residential Building Products net sales roughly unchanged from prior year

• HNI expects 2026 full-year non-GAAP EPS growth of 20-25% including net tariff impacts

Result Drivers

• STEELCASE ACQUISITION - Co said the Steelcase acquisition was the main driver of year-over-year sales and profit growth

• TARIFF IMPACTS AND PRODUCTIVITY - Co said net tariff impacts and operational productivity improvements contributed to profit performance

• ORDER IMPROVEMENT - Co said Workplace Furnishings Q2 orders and backlog each grew 5% year-over-year, indicating improving demand

Company press release: ID:nBw5JCqHLa

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the business support supplies peer group is "buy"

• Wall Street's median 12-month price target for HNI Corp is $69.00, about 61.3% above its July 29 closing price of $42.78

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 8 three months ago

Reuters Recommended Reads

• July 29 - Canada's Decisive Dividend Q2 sales rise on hearth and agriculture demand

• July 29 - Canada's DIRTT Q2 revenue rises 4%, net income turns positive

• July 30 - Germany's Takkt Q2 sales fall on weaker demand

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)