Muscatine-based office furniture manufacturer HNI Corp. has announced its third-quarter results, reporting $683.8 million in sales and a net income of $41.2 million, up 2% year over year. Its Workplace furnishings segment had organic net sales increase 3% year over year, as well. The company also reported continued savings from shared resources following its 2023 acquisition of Kimball International and ramp-up of its Mexico facility. Workplace furnishings orders were up 2% year over year, when excluding the impact of orders placed by customers ahead of tariff-related price increases and hospitality orders, the company reports. 

Quarter-ending backlog was up 7% versus the same period of 2024, also excluding hospitality orders. Third-quarter residential building products orders increased 2% compared to the prior year period, led by strength in the remodel retrofit space. Order patterns improved as the quarter progressed. HNI reduced debt by $120 million during the quarter, in advance of the anticipated closing of the acquisition of Steelcase. As a result, gross debt leverage at the end of the third quarter was 0.9x, as calculated in accordance with the HNI’s debt agreements. The company continues to expect the acquisition of Steelcase to close before the end of 2025. This combination brings together two companies with complementary capabilities, dealer networks, brand portfolios and customer segments. 

“Our members delivered another strong quarter, despite ongoing tariff-driven volatility and continuing macro uncertainty. The positive momentum of our strategies, the benefits of our diversified revenue streams, our focus on items within our control, and the merits of our customer-first business model continue to deliver strong shareholder value,” Jeff Lorenger, chairman, president and CEO, said in a press release. 

Looking forward, the company expects fourth-quarter net sales in workplace furnishings to increase at a high single-digit rate year over year. In residential building products, fourth-quarter net sales are expected to increase at a high-single digit rate compared to the same period in 2024. These projected growth rates include the benefit of an extra week in the fourth quarter this year.

“As we look forward, several positive secular trends and our HNI-specific initiatives will help offset macro-related risks and continued tariff-driven volatility. We will remain focused, conservative, and ready to adjust as required; and, as a result, our earnings outlook for the full year is essentially unchanged and we continue to expect a fourth consecutive year of double-digit non-GAAP diluted EPS growth,” Lorenger said. “As we approach the closing of the Steelcase acquisition, we are excited about the future of bringing together our combined capabilities to create new career growth opportunities for team members, deliver more value for customers and further support and invest in the communities in which we operate. The deal is right from a strategic, financial, and cyclical perspective, and our two companies are highly complementary on many fronts. Our anticipated strong free cash flow will help us quickly deleverage our balance sheet.”