Hni Corporation · NYSE:HNI
Hni — Q2 2025 Earnings Presentation
28 slides from Hni's earnings presentation, Jul 24, 2025
Slide 1: HNI Corporation Investor Presentation
HNI Corporation Investor Presentation – March 2025
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains "forward-looking" statements based on current expectations regarding future plans, events, outlook, objectives, financial performance, expectations for sales growth, and earnings per diluted share (GAAP and non-GAAP), including statements regardi
Slide 3: Investment Thesis
Investment Thesis 1 Margin Expansion Focus on margin expansion in Workplace Furnishings. Strong progress through 2024, with our profit transformation plan, synergies, and productivity offering additional opportunity. 2 Organic Revenue Growth Driving category expansion in Residential Building Product
Slide 4: Company Overview
Company Overview Segment Revenue Breakdown* Segment Non-GAAP EBITDA Breakdown* HNI Corporation is a manufacturer of workplace furnishings and residential building products. The company operates under two segments. The workplace furnishings segment is a leading designer and provider of commercial fur
Slide 5: Profitable Growth Strategic Framework
Profitable Growth Strategic Framework While HNI’s unique Member-Owner culture remains our foundation, our corporate-wide focus and members’ efforts are centered on the following three pillars: Customer 1st Effortless Winning Own Operational Mindset Experiences Excellence • We are broadening our enga
Slide 6: Track Record
Track Record Revenue History Non-GAAP EBITDA History ▪ Free cash flow consistently exceeds net income ▪ 69 years of continuous dividends ▪ Mid-teens median ROIC Free Cash Flow History Dividend History Non-GAAP ROIC History 6
Slide 7: Workplace Furnishings
Workplace Furnishings 7
Slide 8: Workplace Furnishings Overview
Workplace Furnishings Overview Workplace Furnishings Revenue History HNI is a leading global office furniture company • Our brands are among the strongest, most widely known, and most well respected in our industry. • The depth and breadth of our products, the scale and capability of our manufacturi
Slide 9: Diverse Revenue Streams
Diverse Revenue Streams Workplace Furnishings Small and Medium Businesses Contract Channel HNI Workplace Furnishings Brands TTM Revenue Mix* Contract Asian Imports Small and Medium Key Global Businesses Competitors MillerKnoll Steelcase Haworth Core, • Our price point breadth and channel reach are u
Slide 10: Workplace Furnishings Margin Expansion
Workplace Furnishings Margin Expansion ▪ KII Synergies –total synergies are now expected to reach $60 million by the end of 2026—more than double the initial projection provided when the deal was announced in mid-2023. $80-85M ▪ Hickory consolidation – in May 2024, we announced plans to optimize our
Slide 11: Secular Trends Drive Improving Demand Opportunity
Secular Trends Drive Improving Demand Opportunity Workplace Furnishings Number of Spend per Refresh Employees Employee Rate Long-Term = Long-Term = Long-Term + ++ Number of office workers continues to grow == Spend per employee expected to ++ New (often off-cycle) investments to support remain flat;
Slide 12: Macro Cyclical Drivers
Macro Cyclical Drivers Workplace Furnishings ▪ Approximately 4% of all office Share of “Nonviable” Space Total Office Inventory Removed (square feet) 18% buildings are considered 16% nonviable*…with “occupancy” rates in 14% 35,000,000 these buildings as high as ~70% 12% 10% 25,000,000 8% ▪ The comme
Slide 13: Industry Shipments vs. Industry Unit Volume
Industry Shipments vs. Industry Unit Volume Workplace Furnishings HNI WFs Revenue ▪ The addition of Kimball International and the benefits of multiple pricing actions put in place to offset inflation helped HNI Workplace Furnishings revenue in 2024 reach the highest since 2008. ▪ However, industry s
Slide 14: Residential Building Products
Residential Building Products 14
Slide 15: Residential Building Products
Residential Building Products Residential Building Products Revenue History HNI is the world leader in hearth products • Our hearth brands are the strongest, most respected in the industry and include a full array of gas, electric, wood, and biomass burning fireplaces, inserts, stoves, facings, and
Slide 16: Diverse Revenue Streams
Diverse Revenue Streams Building Products New Construction Channel Remodel/Retrofit Channel Building Products Installing Distributors Specialty Dealer DIY TTM Revenue Mix Manufacturing HNI Brands Installing Innovative Health Products (IHP) Distribution Key Napoleon Competitors New Travis Constructio
Slide 17: Secular Trends
Secular Trends Building Products • Housing supply < demand – by as many as three million units Housing Supply and Demand --Post-2008 household deficit still above 1M (peak was 5M) --Deficit elimination + demolitions supports 1.8M starts ’24-’26 --Return to normal vacancies could add another 1M start
Slide 18: Macro Cyclical Drivers
Macro Cyclical Drivers Building Products Single-Family Housing Starts and Permits Positive demographic trends and historically low inventory levels support new construction ▪ Single-family permits and starts remain stable ▪ New homes as a % of total closings are near all-time highs; while the top-20
Slide 19: Strategic Initiatives
Strategic Initiatives Building Products New Home – Expand Category • 66% of homebuyers identify fireplaces as a “must have” feature, but fewer than 40% choose one • Enhancing the connection with prospective homebuyer – digital marketing and touch points, consumer marketing, architect outreach, and m
Slide 20: Corporate Responsibility
Corporate Responsibility Respecting People, Reducing Impacts, Redefining Tomorrow HNI is committed to being a great place to work and a responsible corporate citizen. We continuously look for new and better ways to reduce our environmental impact, make a positive social contribution, and support the
Slide 21: Balance Sheet and Cash Flow
Balance Sheet and Cash Flow Our capital priorities are: 1. Invest in the business, generating strong returns. 2. Maintain and modestly increase the dividend. 3. Repurchase shares. 4. Pursue value-enhancing acquisitions. Note – leverage ratio as of Q4:24 was 1.1x, which compares to our leverage coven
Slide 22: Appendix – Non-GAAP Reconciliations
Appendix – Non-GAAP Reconciliations 22
Slide 23: Non-GAAP Reconciliations
Non-GAAP Reconciliations HNI Corporation Reconciliation (Dollars in millions) Net income (loss) Net income attributable to Interest (loss) attr. to Operating Non-GAAP Non-GAAP Depreciation Net Debt / HNI Corp. as Income expense, noncontrollin Income (EBIT) as Adjustment Operating and Non-GAAP Debt /
Slide 24: Non-GAAP Reconciliations
Non-GAAP Reconciliations HNI Corporation Workplace Furnishings Reconciliation HNI Corporation Building Products Reconciliation (Dollars in millions) (Dollars in millions) Operating Operating Non-GAAP Income (EBIT) Non-GAAP Non-GAAP Depreciation Non- Income (EBIT) Operating Depreciatio As reported Ad
Slide 25: Non-GAAP Reconciliations
Non-GAAP Reconciliations HNI Corporation Non-GAAP ROIC Reconciliation (Dollars in millions) Non-GAAP Return on Non-GAAP Operating Invested Capital Operating Non-GAAP Profit After Tax Shareholders Invested Capital Average (NOPAT / Avg Income (EBIT) Tax Rate (NOPAT) Debt Equity (Debt + Equity) Investe
Slide 26: Non-GAAP Reconciliations
Non-GAAP Reconciliations HNI Corporation Non-GAAP FCF Reconciliation (Dollars in millions) Proceeds from sale and Operating Cash Capital Capitalized license of PP&E, intangibles, Flow Expenditures Software and businesses Free Cash Flow FCF/Share FY 2005 201.2 (38.9) (2.9) 0.3 159.7 2.90 FY 2006 159.
Slide 27: Slide 27
Slide 28: Kimball
Kimball a ae \ interwoven