Overview

• U.S. workplace furnishings and hearth products maker's Q1 sales missed analyst expectations

• Adjusted EPS for Q1 beat analyst expectations, aided by cost controls and productivity gains

• Company cites geopolitical uncertainty and lower organic volume as headwinds for the quarter

Outlook

• HNI expects full-year 2026 low-single digit organic net sales growth in both segments

• Company sees mid-teens percent diluted non-GAAP EPS growth for full-year 2026

• Second quarter 2026 net sales in Residential Building Products expected to decrease at low-single digit rate

Result Drivers

• GEOPOLITICAL UNCERTAINTY - Co said lower organic net sales, especially in Workplace Furnishings, were driven by demand pressures tied to the Middle East conflict, tariffs, and macroeconomic concerns

• COST MANAGEMENT - Expense control, project terminations, synergy recognition from Steelcase, and network optimization savings helped offset lower volume and support profit growth

• PRODUCTIVITY AND PRICE-COST - Improved net productivity and favorable price-cost contributed to margin expansion, particularly in Residential Building Products

Company press release: ID:nBw2y3hTLa

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Sales	Miss	$1.35 bln	$1.39 bln (3 Analysts)
Q1 Adjusted EPS	Beat	$0.34	$0.29 (4 Analysts)
Q1 EPS		-$0.55
Q1 Net Income		-$38.80 mln

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 $71.50, about 97.4% above its May 5 closing price of $36.23

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

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