HNI Corporation Reports 7% Revenue Growth and Increased Net Income in Q2 2025

HNI Corporation reported a strong financial performance for the second quarter of 2025, with net sales reaching $667.1 million, a 7.0% increase from $623.7 million in the same period last year. The workplace furnishings segment contributed significantly to this growth, with a 7.4% rise in sales, while the residential building products segment saw a 5.3% increase. The company’s net income attributable to HNI Corporation also rose to $48.2 million, or $1.02 per diluted share, compared to $36.0 million, or $0.75 per diluted share, in the prior year’s quarter.

The financial results reflect several strategic developments, including the divestiture of HNI India, which impacted net sales by approximately $4.5 million. Despite this, the overall revenue growth was driven by improved productivity and pricing actions across both segments. The company’s gross profit margin improved to 42.9% from 41.9% year-over-year, aided by higher sales volume and operational efficiencies, although this was partially offset by unfavorable price-cost dynamics.

Operationally, HNI Corporation has focused on enhancing its manufacturing capabilities and optimizing its supply chain. The company reported a decrease in selling and administrative expenses as a percentage of net sales, which fell to 32.3% from 33.0% in the previous year. This reduction was attributed to higher sales volumes, although it was partially countered by a $2.7 million pension plan settlement and wage inflation. The company’s total assets increased to $1.912 billion as of June 28, 2025, up from $1.875 billion at the end of 2024, reflecting a solid liquidity position bolstered by cash and cash equivalents of $32.0 million.

Looking ahead, HNI Corporation remains optimistic about its long-term growth prospects despite facing challenges in the housing market and macroeconomic volatility. The company plans to continue investing in its operational capabilities and technology to drive future growth. Additionally, the recent passage of the One Big Beautiful Bill Act is expected to provide favorable tax treatment, which may further enhance the company’s financial flexibility. HNI Corporation anticipates that its strategic initiatives, including the integration of Kimball International, will yield positive results in the coming quarters.