HNI Corporation has recently released its 10-K report, providing an in-depth look at the company's financial performance and operations. The company, which was incorporated in 1944 and is headquartered in Muscatine, Iowa, operates through two segments: Workplace Furnishings and Residential Building Products.
In 2024, HNI Corporation reported consolidated net sales of $2.526 billion, marking a 3.8% increase compared to the previous year. This growth was primarily driven by an 8.5% increase in sales within the Workplace Furnishings segment, partially offset by an 8.0% decrease in the Residential Building Products segment. The full year of Kimball International sales in 2024 contributed to the increase in net sales, while the divestiture of Poppin in 2023 had a negative impact on year-over-year sales.
Net income attributable to HNI Corporation in 2024 was $139.5 million, a significant increase from $49.2 million in 2023. This surge in net income was driven by improved net productivity, favorable price-cost, and the full year benefit of the Kimball International acquisition, partially offset by lower sales volume in the legacy HNI businesses.
The Workplace Furnishings segment saw a notable increase in operating income, reaching $169.1 million in 2024 compared to $68.6 million in 2023. This segment's operating income as a percentage of net sales increased by 510 basis points in 2024 compared to the previous year, primarily due to improved net productivity and the benefit of a full year of Kimball International ownership.
In contrast, the Residential Building Products segment experienced a decrease in net sales, which fell by 8.0% in 2024 compared to 2023. However, the segment's operating income as a percentage of net sales increased by 60 basis points in 2024, driven by improved net productivity, favorable price-cost, lower variable compensation, and favorable product mix, partially offset by lower sales volume.
In terms of liquidity and capital resources, HNI Corporation reported cash, cash equivalents, and short-term investments totaling $28.9 million at the end of 2024, compared to $34.5 million at the end of 2023. The company also highlighted its ability to access the full $425 million of borrowing capacity available under its revolving credit facility as of December 28, 2024.
The market has reacted to these announcements by moving the company's shares 3.0% to a price of $47.47. For more information, read the company's full 10-K submission here.
