HNI (HNI) Q1 2026 earnings summary

Executive summary

• Net sales rose 125% year-over-year to $1.35 billion in Q1 2026, driven by the $1.9 billion Steelcase acquisition, while organic net sales declined 3.2%.

• Q1 2026 GAAP net loss was $38.8 million (diluted EPS $(0.55)), primarily due to acquisition-related purchase accounting and restructuring charges; non-GAAP diluted EPS was $0.34, modestly exceeding expectations.

• Cost management, synergy realization, and network optimization offset volume softness and continued investment, with integration of Steelcase progressing well and synergy capture on track.

• Strategies, diversified revenue streams, and cost management drove shareholder value.

• Expecting a fifth consecutive year of double-digit non-GAAP EPS growth and modest revenue growth in both segments for 2026.

Financial highlights

• Q1 2026 net sales: $1,347.5 million, up 125% year-over-year, with $774.0 million from Steelcase; organic net sales down 3% year-over-year.

• Q1 2026 GAAP EPS: $(0.55); non-GAAP diluted EPS: $0.34, slightly ahead of expectations; non-GAAP results exclude $88M in items, mainly from Steelcase purchase accounting.

• Gross profit: $499.9 million, up 110% year-over-year; gross margin decreased 260 bps to 37.1% due to purchase accounting adjustments and lower legacy sales.

• Operating loss: $(36.4) million (GAAP); non-GAAP operating income: $52.1 million.

• Workplace Furnishings segment non-GAAP operating profit nearly doubled to ~$49M; Residential Building Products revenue up 2% year-over-year, with remodel/retrofit revenue up 13%.

Outlook and guidance

• 2026 net sales expected to grow, with double-digit non-GAAP EPS growth anticipated and accelerating in the second half.

• Workplace Furnishings revenue to increase low single digits for the year, with high single-digit growth in H2; Steelcase expected to be net neutral in H1, modestly accretive in H2 and full year.

• Residential Building Products to see modest price-driven growth in H2 despite housing softness.

• 2026 full-year non-GAAP EPS growth expected in mid-teens percent from $3.53 in 2025; double-digit EPS growth projected for 2027, with multiple years of elevated earnings visibility.

• Capital expenditures for 2026 projected at $130–$140 million, focused on operational improvements and digital capabilities.