HNI Corporation has reported its fourth quarter and fiscal year 2025 results, and the numbers are quite impressive. In the fiscal year 2025, the company's non-GAAP diluted EPS (excluding Steelcase) stood at $3.74, reflecting a significant 22% year-over-year increase. This marks the fourth consecutive year of double-digit non-GAAP EPS growth for the company.
The acquisition of Steelcase, Inc. has had a substantial impact on the company's financials. The corporation expects Steelcase synergies of $120 million and non-GAAP diluted EPS accretion of $1.20. Looking ahead, HNI Corporation anticipates a fifth straight year of double-digit non-GAAP EPS growth in 2026, with multiple years of elevated earnings growth visibility.
In terms of net sales, the company reported a full-year 2025 total net sales increase of 12%, with organic net sales growing by 6% year-over-year. The operating margin remained steady at 8.6%, while the non-GAAP operating margin expanded by 80 basis points to 9.4%, excluding impacts from Steelcase.
In the fourth quarter of 2025, HNI Corporation reported a substantial 38.3% increase in net sales to $888.4 million. However, the net loss for the quarter was $49.2 million. The gross profit percentage expanded by 40 basis points to 40.9%. The non-GAAP diluted EPS for the fourth quarter stood at $0.83, showing a slight decline of 4.6% year-over-year.
The integration of the Steelcase acquisition is off to a strong start, with the company confident in their ability to deliver the targeted synergies of $120 million. The balance sheet also looks robust, with a net debt-to-EBITDA ratio of 2.0 times, which is expected to return to pre-acquisition levels in the next 18-24 months.
Following these announcements, the company's shares moved 2.32%, and are now trading at a price of $47.19. If you want to know more, read the company's complete 8-K report here.
