(RTTNews) - HNI Corp. (HNI), a manufacturer of commercial furnishings and building products, Thursday announced that fourth quarter net income increased from the prior year.
For the fourth quarter, net income was $38.3 million, higher than $22.7 million last year.
Earnings per share increased to $0.79 from $0.48 in the previous year.
For the fourth quarter Adjusted net income was $42.3 million and adjusted earnings per share were $0.87 versus $0.98 in the previous year's quarter.
Analysts, on average, had expected the company to earn $0.74 per share. Analysts' estimates typically exclude special items.
Operating income surged to $54.6 million from $30.7 million.
However, revenue decreased to $642.5 million from $679.8 million last year.
In the first quarter of 2025, the company expects net sales in Workplace Furnishings to decline slightly, while Residential Building Products sales should grow by mid-single digits compared to 2024.
The company noted that, non-GAAP earnings per share are expected to decrease slightly due to tariff impacts, but without this factor, adjusted earnings per share would have shown modest growth, driven by improved productivity.
For the full year 2025, net sales in both segments are projected to grow at a low-to-mid single-digit rate. Workplace Furnishings sales should improve from the second quarter onward as orders and backlogs increase.
Residential Building Products sales are expected to see most of their growth later in the year.
The company continues to expect Kimball International acquisition synergies and the ramp-up of its Mexico facility to contribute an additional $0.70 to $0.80 of earnings per share over the next two years.
In the pre-market trading, HNI is 1.80% higher at $49.90 on the Nasdaq.
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