HNI Corporation reported stronger third-quarter earnings, with net sales of $1.6 billion and net income of $90 million for the quarter ended Oct. 3, 2026. The office-furnishings and building-products company said earnings exceeded its internal expectations, helped by the Steelcase acquisition, productivity gains and cost management.
HNI maintained its full-year growth expectations, including 20% to 25% growth in adjusted diluted earnings per share. It also cited improving order trends in both of its business segments.
Key details
- Earnings rose sharply year over year. GAAP diluted earnings per share were $1.23, up 39.8%. On a non-GAAP basis, diluted EPS was $1.62, up 47.3%. Non-GAAP net income was $118.7 million, compared with GAAP net income of $90 million.
- Sales met expectations, while earnings beat them. HNI said quarterly sales were in line with its expectations. Earnings exceeded internal expectations, as cost and productivity improvements more than offset volume growth that was slightly below plan.
- Several factors supported profit growth. HNI cited the Steelcase acquisition, operational productivity, price-cost benefits and organic volume growth in both segments. SG&A cost management and the timing of investments also helped.
- Orders increased in both businesses. Workplace Furnishings orders were up 6% from a year earlier, while Residential Building Products orders rose 4%.
- Full-year outlook remains intact. HNI continues to expect low-single-digit organic sales growth in each segment in 2026 and 20% to 25% growth in non-GAAP diluted EPS. The company said this would mark its fifth consecutive year of double-digit growth in that measure.
- More Steelcase savings are expected over time. HNI cited at least $130 million in synergies once they are fully realized, alongside sales initiatives, cost actions and manufacturing-network changes as sources of potential earnings growth over multiple years.
The results point to stronger earnings despite sales that were merely in line with expectations: acquisition benefits and operating improvements helped lift profit, while orders grew in both segments. HNI’s stated long-term earnings support includes additional Steelcase synergies and further cost and manufacturing changes.