Revenue: As of FY2027 Q2, the actual value is USD 1.472 B, missing the estimate of USD 1.541 B.

EPS: As of FY2027 Q2, the actual value is USD 0.7, missing the estimate of USD 1.14.

EBIT: As of FY2027 Q2, the actual value is USD 94.9 M.

Consolidated Financial Performance (Three Months Ended July 4, 2026 vs June 28, 2025)

Net Sales

• Totaled $1,472.4 million, an increase of 121% from $667.1 million in the prior year quarter. Organically, net sales increased 0.1% year-over-year. The acquisition of Steelcase increased year-over-year sales by $806.9 million.

Gross Profit %

• GAAP: Expanded to 44.0%, up 110 basis points from 42.9%.
• Non-GAAP: Expanded to 44.4%, up 150 basis points from 42.9%.

Selling, General, and Administrative (SG&A) Expenses %

• GAAP: Increased to 36.2%, up 390 basis points from 32.3%.
• Non-GAAP: Increased to 34.8%, up 290 basis points from 31.9%.

Acquisition and Related Costs

• Amounted to $4.2 million.

Restructuring and Impairment Charges

• Were $17.9 million.

Operating Income

• GAAP: Reached $92.1 million, a 35.1% increase from $68.2 million.
• GAAP Operating Income %: Contracted to 6.3%, down -390 basis points from 10.2%.
• Non-GAAP: Increased to $141.4 million, up 92.7% from $73.4 million.
• Non-GAAP Operating Income %: Contracted to 9.6%, down -140 basis points from 11.0%.

Net Income

• GAAP: Was $51.1 million, compared to $48.3 million in the prior-year quarter.
• Non-GAAP: Was $92.6 million.

Effective Tax Rate

• GAAP: Stood at 28.2%, compared to 22.2% in the prior-year quarter.
• Non-GAAP: Stood at 24.9%, compared to 22.2% in the prior-year quarter.

Segment Financial Performance (Three Months Ended July 4, 2026 vs June 28, 2025)

Workplace Furnishings Segment

• Net Sales (GAAP): Increased 157% to $1,323.7 million from $516.0 million. Organically, net sales increased 0.6% year-over-year. The Steelcase acquisition contributed $806.9 million to net sales.
• Operating Income (GAAP): Increased 54.5% to $101.7 million from $65.8 million.
• Operating Income % (GAAP): Contracted to 7.7%, down -510 basis points from 12.8%.
• Operating Income (Non-GAAP): Increased 109% to $141.4 million from $67.7 million.
• Operating Income % (Non-GAAP): Contracted to 10.7%, down -240 basis points from 13.1%.
• Orders: Increased five percent year-over-year organically.

Residential Building Products Segment

• Net Sales (GAAP): Decreased -1.6% to $148.7 million from $151.1 million.
• Operating Income (GAAP): Decreased -1.2% to $23.4 million from $23.7 million.
• Operating Income % (GAAP): Remained flat at 15.7%.
• Operating Income (Non-GAAP): Increased 28.4% to $30.4 million from $23.7 million.
• Operating Income % (Non-GAAP): Expanded to 20.4%, up 470 basis points from 15.7%.
• Orders: Mostly unchanged compared to the prior year, with low single-digit growth over the most recent five-week period.

Cash Flow and Balance Sheet (Six Months Ended July 4, 2026 vs June 28, 2025)

Net Cash Flows from Operating Activities

• Were - $32.0 million, compared to $43.7 million in the prior year.

Net Cash Flows from Investing Activities

• Were - $79.8 million, compared to - $18.4 million in the prior year.

Capital Expenditures

• Increased to $62.4 million from $30.3 million.

Net Cash Flows from Financing Activities

• Were $6.4 million, compared to - $15.8 million in the prior year.

Cash and Cash Equivalents

• Totaled $105.0 million as of July 4, 2026, down from $209.2 million as of January 3, 2026.

Long-Term Debt

• Was $1,357.1 million as of July 4, 2026, up from $1,276.9 million as of January 3, 2026.

Outlook / Guidance

HNI Corporation expects low-single digit organic net sales growth for both segments in 2026 and anticipates 20-25 percent non-GAAP EPS growth for the full year 2026. For the third quarter of 2026, the company projects high single-digit net sales growth year-over-year for legacy Workplace Furnishings and approximately 175-180 percent total Workplace Furnishings net sales growth including Steelcase, while Residential Building Products net sales are expected to be roughly unchanged. Non-GAAP diluted earnings per share for the third quarter of 2026 are expected to increase in the mid-to-high 20 percent range from third quarter 2025 levels.