Earnings call transcript: HNI tops Q3 2026 profit views as shares slip

HNI Corporation delivered stronger-than-expected third-quarter fiscal 2026 earnings on Tuesday, surpassing Wall Street's profit estimates while revenue fell slightly short of predictions. The office-furniture and building-products firm reported non-GAAP earnings of $1.62 per share, exceeding the $1.40 forecast, as revenue reached $1.59 billion, slightly below the $1.61 billion estimate.

Shares dipped 0.5%, closing at $49.67, near the upper end of their 52-week range of $28.93 to $52.79. HNI's profit growth was primarily driven by pricing, productivity gains, and the Steelcase acquisition.

Total net sales rose 133% year-over-year, with organic sales increasing by 6%, while Workplace Furnishings reported 6% organic sales growth and Residential Building Products grew 5%, both with volume increases. Operating performance also improved, with non-GAAP segment operating margin, excluding Steelcase, expanding to a 3rd-quarter record of 16.2%, up 390 basis points.

Total market capitalization stood at $3.55 billion, and the gross profit margin was 41.9%. HNI's management expects double-digit earnings growth for the full year 2026, including a 20%-25% increase in non-GAAP EPS compared to 2025.