Non-GAAP diluted EPS of $0.34 exceeded expectations as pricing and productivity offset weaker Workplace Furnishings demand.
HNI reported first-quarter non-GAAP diluted EPS of $0.34, beating internal forecasts despite softer demand in its Workplace Furnishings segment. Cost controls, pricing actions, and productivity gains drove the outperformance, while Residential Building Products revenue rose over 2% with a 17.6% operating margin.
Management reiterated mid-teens EPS growth for 2026, citing modest revenue growth in both segments and a fifth straight year of double-digit earnings improvement. Steelcase integration remains on track, with synergy capture and modest accretion expected next year after ending its ERP project to refocus resources.
The company noted solid remodel and retrofit demand in housing, though new construction stayed pressured by high rates and affordability challenges.