hni-20250329

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM

10-Q

☒

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended

March 29, 2025

☐

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ____________to____________

Commission File Number:

1-14225

HNI Corporation

Iowa

(Exact name of registrant as specified in its charter)

42-0617510

(State or other jurisdiction of incorporation or organization)

(I.R.S. Employer Identification No.)

600 East Second Street

P.O. Box 1109

Muscatine

Iowa

52761-0071

(Address of principal executive offices) (Zip Code)

(

563

)

272-7400

(Registrant's telephone number, including area code)

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock

HNI

New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes

☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes

☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☒

Accelerated filer

☐

Smaller reporting company

☐

Non-accelerated filer

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes

☐

No ☒

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.

Common Stock, $1 Par Value

Outstanding as of

March 29, 2025

46,552,671


HNI Corporation and Subsidiaries
Quarterly Report on Form 10-Q

Table of Contents

PART I. FINANCIAL INFORMATION
		Page
Item 1.	Financial Statements (Unaudited)

	Condensed Consolidated Statements of Comprehensive Income - Three Months Ended March 29, 2025 and March 30, 2024	3

	Condensed Consolidated Balance Sheets - March 29, 2025 and December 28, 2024	4

	Condensed Consolidated Statements of Equity - Three Months Ended March 29, 2025 and March 30, 2024	6

	Condensed Consolidated Statements of Cash Flows - Three Months Ended March 29, 2025 and March 30, 2024	7

	Notes to Condensed Consolidated Financial Statements	8

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	22

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	27

Item 4.	Controls and Procedures	27

PART II. OTHER INFORMATION

Item 1.	Legal Proceedings	28

Item 1A.	Risk Factors	28

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	28





Item 5.	Other Information	28

Item 6.	Exhibits	30

Signatures		31

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements


HNI Corporation and Subsidiaries Condensed Consolidated Statements of Comprehensive Income (In millions, except per share data)
(Unaudited)

	Three Months Ended
		March 29, 2025		March 30, 2024

Net sales		$	599.8	$	588.0
Cost of sales		361.4		355.1
Gross profit		238.4		232.8
Selling and administrative expenses		207.6		203.1

Restructuring and impairment charges		6.4		0.1
Operating income		24.4		29.7
Interest expense, net		5.5		7.6
Income before income taxes		18.9		22.0
Income taxes		5.0		4.3
Net income		13.9		17.7
Less: Net income (loss) attributable to non-controlling interest		(0.0)		0.0
Net income attributable to HNI Corporation		$	13.9	$	17.7

Average number of common shares outstanding – basic		47.0		47.1
Net income attributable to HNI Corporation per common share – basic		$	0.30	$	0.38
Average number of common shares outstanding – diluted		48.0		48.1
Net income attributable to HNI Corporation per common share – diluted		$	0.29	$	0.37

Foreign currency translation adjustments		$	(0.1)	$	0.0
Change in unrealized gains (losses) on marketable securities, net of tax		0.1		(0.0)

Change in derivative financial instruments, net of tax		(0.6)		1.4
Other comprehensive income (loss), net of tax		(0.5)		1.4
Comprehensive income		13.4		19.0
Less: Comprehensive income (loss) attributable to non-controlling interest		(0.0)		0.0
Comprehensive income attributable to HNI Corporation		$	13.4	$	19.0

See accompanying Notes to Condensed Consolidated Financial Statements (Unaudited).

Amounts may not sum due to rounding.


HNI Corporation and Subsidiaries Condensed Consolidated Balance Sheets (In millions)
(Unaudited)

	March 29, 2025		December 28, 2024
Assets
Current Assets:
Cash and cash equivalents	$	21.1	$	22.5
Short-term investments	6.4		6.4
Receivables	236.4		248.4
Allowance for doubtful accounts	(1.9)		(2.0)
Inventories, net	205.0		194.3

Prepaid expenses and other current assets	48.7		50.0
Assets held for sale	13.6		4.9
Total Current Assets	529.3		524.5

Property, Plant, and Equipment:
Land and land improvements	56.9		58.5
Buildings	407.9		407.9
Machinery and equipment	666.4		685.9
Construction in progress	26.5		25.9
	1,157.7		1,178.2
Less accumulated depreciation	(638.7)		(648.6)
Net Property, Plant, and Equipment	519.0		529.6

Right-of-use - Finance Leases	14.0		14.3

Right-of-use - Operating Leases	116.5		121.8

Goodwill and Other Intangible Assets, net	617.5		624.3

Other Assets	61.9		60.7

Total Assets	$	1,858.1	$	1,875.1

See accompanying Notes to Condensed Consolidated Financial Statements (Unaudited).

Amounts may not sum due to rounding.


HNI Corporation and Subsidiaries Condensed Consolidated Balance Sheets (In millions)
(Unaudited)

	March 29, 2025		December 28, 2024
Liabilities and Equity
Current Liabilities:
Accounts payable and accrued expenses	$	348.8	$	391.2
Current maturities of debt	50.0		50.3
Current maturities of other long-term obligations	2.9		2.3
Current lease obligations - Finance	5.4		5.6
Current lease obligations - Operating	29.1		28.1
Liabilities held for sale	7.6		—
Total Current Liabilities	443.7		477.5

Long-Term Debt	354.7		294.3



Long-Term Lease Obligations - Finance	8.8		8.9

Long-Term Lease Obligations - Operating	103.5		109.6

Other Long-Term Liabilities	74.1		72.9

Deferred Income Taxes	69.5		71.6

Total Liabilities	1,054.2		1,034.7

Equity:









HNI Corporation shareholders’ equity	803.6		840.1

Non-controlling interest	0.3		0.3

Total Equity	803.9		840.4

Total Liabilities and Equity	$	1,858.1	$	1,875.1

See accompanying Notes to Condensed Consolidated Financial Statements (Unaudited).

Amounts may not sum due to rounding.


HNI Corporation and Subsidiaries Condensed Consolidated Statements of Equity (In millions, except per share data)
(Unaudited)

	Three Months Ended - March 29, 2025
	Common Stock		Additional Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Non-controlling Interest		Total Shareholders’ Equity
Balance, December 28, 2024	$	47.2	$	201.5	$	599.6	$	(8.3)	$	0.3	$	840.4
Comprehensive income:
Net income	—		—		13.9		—		(0.0)		13.9
Other comprehensive income (loss), net of tax	—		—		—		(0.5)		—		(0.5)



Dividends payable	—		—		(0.3)		—		—		(0.3)
Cash dividends; $0.33 per share	—		—		(15.5)		—		—		(15.5)

Common shares – treasury:
Shares purchased	(0.9)		(40.3)		—		—		—		(41.2)

Shares issued under Members’ Stock Purchase Plan and stock awards, net of tax	0.3		6.8		—		—		—		7.1
Balance, March 29, 2025	$	46.6	$	168.1	$	597.7	$	(8.8)	$	0.3	$	803.9





	Three Months Ended - March 30, 2024
	Common Stock		Additional Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Non-controlling Interest		Total Shareholders’ Equity
Balance, December 30, 2023	$	46.9	$	201.6	$	523.6	$	(10.6)	$	0.3	$	761.8
Comprehensive income:
Net income	—		—		17.7		—		0.0		17.7
Other comprehensive income (loss), net of tax	—		—		—		1.4		—		1.4



Dividends payable	—		—		(0.8)		—		—		(0.8)
Cash dividends; $0.32 per share	—		—		(15.1)		—		—		(15.1)
Common shares – treasury:
Shares purchased	(0.1)		(2.5)		—		—		—		(2.5)

Shares issued under Members’ Stock Purchase Plan and stock awards, net of tax	0.5		8.9		—		—		—		9.4
Balance, March 30, 2024	$	47.3	$	208.1	$	525.4	$	(9.3)	$	0.3	$	771.8

See accompanying Notes to Condensed Consolidated Financial Statements (Unaudited).

Amounts may not sum due to rounding.


HNI Corporation and Subsidiaries Condensed Consolidated Statements of Cash Flows (In millions)
(Unaudited)

	Three Months Ended
	March 29, 2025		March 30, 2024
Net Cash Flows From (To) Operating Activities:
Net income	$	13.9	$	17.7
Non-cash items included in net income:
Depreciation and amortization	25.5		26.4
Other post-retirement and post-employment benefits	0.3		0.3
Stock-based compensation	6.8		7.7


Deferred income taxes	(2.0)		(2.1)
Asset impairment charges	5.9		—

Other – net	0.3		0.6
Net decrease in cash from operating assets and liabilities	(38.0)		(47.6)
Decrease in other liabilities	(0.1)		(7.2)
Net cash flows from (to) operating activities	12.6		(4.3)

Net Cash Flows From (To) Investing Activities:
Capital expenditures	(15.7)		(10.7)

Capitalized software	(0.6)		(0.5)

Purchase of investments	(0.1)		(0.6)
Sales or maturities of investments	0.7		1.2

Proceeds from sale of property, plant, and equipment	3.5		0.1
Net cash flows from (to) investing activities	(12.2)		(10.6)

Net Cash Flows From (To) Financing Activities:
Payments of debt	(68.2)		(81.5)
Proceeds from debt	129.1		118.6
Dividends paid	(16.2)		(16.6)
Purchase of HNI Corporation common stock	(40.4)		(2.6)
Proceeds from sales of HNI Corporation common stock	0.8		0.6
Other – net	(6.2)		(5.6)
Net cash flows from (to) financing activities	(1.1)		12.9

Net decrease in cash and cash equivalents including cash classified within current assets held for sale	(0.8)		(2.0)
Less: net increase in cash classified within current assets held for sale	0.6		—
Net decrease in cash and cash equivalents	(1.4)		(2.0)
Cash and cash equivalents at beginning of period	22.5		28.9
Cash and cash equivalents at end of period	$	21.1	$	27.0

See accompanying Notes to Condensed Consolidated Financial Statements (Unaudited).

Amounts may not sum due to rounding.

SEC Form 10-Q filed by HNI Corporation