HNI Corporation Reports 25.8% Net Income Growth, 7.4% Revenue Increase in Third Quarter

HNI Corporation reported significant financial performance for the three and nine months ended September 28, 2024, reflecting both growth and strategic developments. For the third quarter, net income increased to $47.5 million, a 25.8% rise from $37.8 million in the same period of 2023. The nine-month net income also saw a substantial increase, reaching $101.2 million compared to $26.5 million in the prior year, marking a 282% growth.

Total revenue for the third quarter was $672.2 million, down 5.5% from $711.6 million in the previous year. However, for the nine months, revenue rose to $1,883.9 million, a 7.4% increase from $1,754.2 million. The workplace furnishings segment contributed significantly to this growth, with nine-month sales increasing by 14.1% to $1,425.1 million, despite a 5.9% decline in the third quarter. The acquisition of Kimball International in June 2023 added $228 million to net sales, while the divestiture of Poppin reduced sales by $11.1 million.

Operating income for the third quarter improved to $68.9 million, a 21.3% increase from $56.8 million in the prior year. For the nine months, operating income surged 155% to $151.9 million. The increase in profitability was attributed to improved productivity, lower variable compensation, and reduced interest expenses, alongside the absence of acquisition-related costs that impacted the previous year.

The company’s total shareholders’ equity as of September 28, 2024, was $846.9 million, up from $741.1 million a year earlier. Retained earnings also increased to $577.1 million. The corporation's total debt stood at $345.4 million, with long-term debt at $294.5 million, reflecting early repayments on a term loan used for the Kimball acquisition.

HNI Corporation has also undertaken restructuring initiatives aimed at optimizing manufacturing, including ramping up operations in Mexico and consolidating domestic production. Restructuring costs for the current year were $3.0 million, with future costs estimated at $5.4 million.

The company declared a quarterly cash dividend of $0.33 per share, paid on September 12, 2024. Additionally, during the nine months ended September 28, 2024, HNI repurchased 0.5 million shares for $24.8 million, with $208.2 million authorized for future repurchases.

Overall, HNI Corporation's financial results reflect a robust performance driven by strategic acquisitions and operational efficiencies, despite challenges in certain market segments.