How Does HNI Company Work?

This segment provides desks, chairs, storage, and architectural products. It serves commercial spaces from small businesses to large corporate campuses. Distribution is primarily through independent dealers and company-owned outlets.

This segment focuses on hearth products like fireplaces, inserts, and stoves. These are sold through retail and new construction channels. Brands include Heatilator, Heat & Glo, and Harman.

HNI's operations are driven by a 'member-owner' culture and lean manufacturing principles, known as Rapid Continuous Improvement (RCI). This approach emphasizes waste reduction, efficiency, and quality control across its North American facilities.

The company strategically integrates acquisitions to enhance its operations. The acquisition of Kimball International in June 2023, for example, has yielded significant cost synergies, boosting productivity and operating margins.

In June 2023, HNI company operations were significantly bolstered by the acquisition of Kimball International for $503.7 million. This move expanded HNI's product lines and market reach, with projected synergies now estimated at $50 million, doubling initial expectations. Further enhancing its scale, HNI agreed in August 2025 to acquire Steelcase Inc. for approximately $2.2 billion, creating a combined entity with pro forma annual revenue of about $5.8 billion.

To improve operational efficiency, HNI announced in May 2024 the consolidation of its Hickory, North Carolina, manufacturing plant by mid-2025. This initiative is expected to yield $8 million to $9 million in annual savings starting in 2025, increasing to $11 million annually by 2026. These efforts are part of broader profit transformation initiatives and disciplined cost management strategies.

HNI company functions by adapting to market challenges, such as housing market volatility. Despite a 5% revenue decline in its Residential Building Products segment in Q4 2024 due to market weakness, the segment's non-GAAP operating profit margin saw a 50 basis point expansion for the full year. This demonstrates resilience through strategic adjustments.

The company's competitive edge is built on a strong portfolio of recognized brands, manufacturing scale, and extensive distribution networks. A unique 'member-owner' culture fuels continuous improvement and innovation, supported by robust R&D and a patent portfolio extending through 2042. HNI is also accelerating investments in operational enhancements, digital transformation, and customer-centric experiences, aligning with global ESG trends.

HNI Corporation is a dominant force in the office furniture and hearth products industries. It ranks among the largest office furniture manufacturers globally by revenue and is the world's foremost company in hearth products. The integration with Steelcase is set to further solidify its market leadership and expand its global reach.

The company faces risks from macroeconomic uncertainties, including interest rate volatility impacting construction demand. Regulatory changes and tariffs also present challenges, with an estimated $3 million to $4 million impact from anticipated tariffs in Q1 2025. Intense competition within the office furniture market remains a constant factor.

HNI anticipates a return to net sales growth in 2025 for both its segments, driven by volume increases. Synergies from Kimball International and the Mexico facility ramp-up are expected to enhance earnings visibility through 2026, potentially adding $0.70 to $0.80 per share. The company is focused on sustainable growth and innovation.

HNI's 2025 CSR Report details a strategic plan for sustainable growth, emphasizing people, environmental impact reduction, and innovation. The company has achieved a 79% reduction in Scope 1 and 2 emissions since 2010, aligning with market demands for eco-friendly products and long-term value creation.