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1. "Steelcase for office furniture."

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• Office Furniture: HNI manufactures a comprehensive range of office furniture products, including seating, desks, tables, storage, and modular systems.
• Hearth Products: HNI produces various hearth products such as fireplaces, stoves, and inserts for residential and commercial heating and ambiance.

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HNI Corporation (symbol: HNI) primarily sells its products to other companies (B2B) rather than directly to individual consumers. Its major customers are:

• Independent Office Furniture Dealers: These are typically privately-held businesses that resell HNI's office furniture brands (such as HON, Allsteel, HBF, and OFM) to a wide range of end-users including other businesses, government agencies, educational institutions, and healthcare facilities.
• Wholesalers and Distributors: For its hearth products segment (brands like Heatilator, Harman, and Quadra-Fire), HNI sells to wholesalers and distributors who then supply builders, contractors, and retailers.
• National Accounts and Large Corporate Clients: HNI also serves large organizations and government entities directly or through preferred dealer networks for their office furniture needs.

Due to HNI's diversified distribution strategy across thousands of independent dealers, distributors, and direct national accounts, no single customer typically accounts for 10% or more of its consolidated net sales. Therefore, there are no specific, publicly traded major customer companies that can be individually identified with a symbol.

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Jeffrey D. Lorenger, Chairman, President, and Chief Executive Officer

Jeffrey D. Lorenger has served as HNI Corporation's President and Chief Executive Officer since June 2018 and became Chairman of the Board in February 2020. He has been with HNI Corporation for over 20 years, holding various executive-level positions including President of Office Furniture (2017-2018), President of Contract Furniture (2014-2017), and President of Allsteel (2008-2014). Prior to joining HNI in 1998, Mr. Lorenger practiced law, focusing on general corporate transactions, with the firm Gray Plant Mooty in Minneapolis, Minnesota.

Vincent P. Berger II, Executive Vice President and Chief Financial Officer (effective December 29, 2024)

Vincent P. Berger II is set to become Executive Vice President and Chief Financial Officer of HNI Corporation on December 29, 2024. He has been a member of HNI for 27 years and has served as Executive Vice President and President of Hearth and Home Technologies since 2016. Mr. Berger is a Certified Public Accountant with over 30 years of experience in various finance, operational, and leadership roles within the company.

Marshall H. Bridges, Senior Vice President and Chief Financial Officer (retiring December 28, 2024)

Marshall H. Bridges currently serves as Senior Vice President and Chief Financial Officer of HNI Corporation, a position he has held since January 2017. He joined HNI Corporation in 2001 and has held several leadership roles, including Vice President of Corporate Finance, Treasurer, Director of Mergers & Acquisitions, and Vice President of Investor Relations. Mr. Bridges is scheduled to retire on December 28, 2024, after which he will continue to work with HNI in a part-time capacity on strategic artificial intelligence projects.

Kurt A. Tjaden, Senior Vice President and President of HNI International

Kurt A. Tjaden has been the President of HNI International since January 2017 and a Senior Vice President of HNI Corporation since October 2015. Prior to these roles, he served as the Chief Financial Officer of HNI Corporation from August 2008 to January 2017. Before joining HNI, Mr. Tjaden held significant financial and international positions, including Vice President and Chief Financial Officer, Asia, for Whirlpool Corporation (2007-2008), Chief Financial Officer of Pure Fishing Inc. (2001-2006), and Chief Financial Officer of Gateway Asia Pacific. He also spent 14 years in various roles at Procter & Gamble.

Steven Mark Bradford, Senior Vice President, General Counsel and Secretary

Steven Mark Bradford serves as Senior Vice President, General Counsel, and Secretary for HNI Corporation. He has held the positions of Secretary and General Counsel for HNI Corp. since 2008.

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Here are the key risks to HNI Corporation's business:

1. Macroeconomic Uncertainty and Demand Volatility: HNI Corporation faces significant risks from heightened macroeconomic uncertainty, which influences demand volatility across its segments. This includes the impact of elevated interest rates and consumer sentiment on the housing market, affecting its Residential Building Products segment, and general economic and election uncertainty leading to reduced discretionary spending by small businesses and project delays in its Workplace Furnishings segment. A notable pause in demand, particularly in transactional small and medium-sized business (SMB) operations and contract furniture project timelines, represents a primary near-term challenge.
2. Raw Material Costs and Supply Chain Fluctuations: The company is exposed to risks from price changes and tariffs for key direct materials and assembly components used in its operations, such as steel, plastics, textiles, and wood particleboard. The market prices of these materials, particularly plastics and textiles, are sensitive to global market conditions and the cost of oil and natural gas. Tariff uncertainty and rising inflation expectations are anticipated to cause ongoing demand volatility and temporary margin pressure, especially within the Workplace Furnishings segment.
3. Industry and Competitive Conditions: HNI Corporation's business, operating results, and financial condition could be adversely affected by unfavorable industry and competitive factors. Sales in the workplace, healthcare, and hospitality furnishings industries are influenced by various macroeconomic factors, including service-sector employment levels, corporate profits, business confidence, commercial construction, and office vacancy rates. The company also faces risks related to industry and competitive conditions, including the consolidation and concentration of its customers and its reliance on a network of independent dealers.

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The permanent shift towards remote and hybrid work models significantly reduces the demand for traditional office furniture and necessitates new types of collaborative and flexible workspace solutions. This trend challenges HNI's core business model of furnishing large, conventional office spaces.

The accelerated electrification and decarbonization of homes and buildings, driven by regulatory changes, building codes, and consumer preferences, directly threatens the market for HNI's gas and wood-burning hearth products. This trend encourages the adoption of electric heating solutions and heat pumps, diminishing the need for traditional fireplaces and stoves.

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HNI Corporation (NYSE: HNI) operates in two primary business segments: Workplace Furnishings and Residential Building Products.

Workplace Furnishings

This segment encompasses office desks, workstations, seating solutions, and storage products.

• U.S. Market: The U.S. office furniture market was valued at approximately USD 16.64 billion in 2024, with projections to reach around USD 17.43 billion in 2025. It is expected to grow at a Compound Annual Growth Rate (CAGR) of 5.0% from 2025 to 2030, reaching USD 22.24 billion by 2030. Another estimate for the U.S. market was USD 16.18 billion in 2025, forecasted to reach USD 22.48 billion by 2030, with a CAGR of 6.80% for 2024-2030.
• Global Market: The global office furniture market was valued at approximately USD 107.26 billion in 2024 and is expected to grow to USD 180.20 billion by 2032, exhibiting a CAGR of 6.70% from 2025 to 2032. Another report estimates the global market size at USD 65.62 billion in 2024, projected to reach USD 88.58 billion by 2033 with a CAGR of 3.36% from 2025-2033.

Residential Building Products

This segment includes hearth products such as gas, electric, wood, and pellet-burning fireplaces, inserts, stoves, and accessories.

• U.S. Market: The U.S. hearth market is projected to be approximately USD 4.85 billion in 2025. The U.S. hearth industry accounted for about 72% of the North American revenue share in 2024.
• North American Market: The North America hearth market was valued at approximately USD 4.12 billion in 2023 and is projected to reach USD 7.33 billion by 2031, growing at a CAGR of roughly 7.5% during that period. North America held 43.24% of the global hearth revenue in 2024.
• Global Market: The global hearth market size was estimated at USD 20.84 billion in 2024 and is projected to reach USD 27.43 billion by 2030, with a CAGR of 4.8% from 2025 to 2030. Another estimate places the global hearth market at USD 15.65 billion in 2025, expanding to USD 27.54 billion by 2034, with a CAGR of 6.48% from 2025 to 2034.

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HNI Corporation (HNI) is anticipated to drive future revenue growth over the next 2-3 years through several key strategies and market trends:

1. Strategic Acquisitions and Synergies: The company expects significant revenue expansion from its strategic acquisitions. The integration of Kimball International continues to yield synergies, contributing to overall performance. More notably, the anticipated acquisition of Steelcase, expected to close by the end of 2025, is projected to be a major catalyst. This acquisition is set to generate substantial synergies, expand HNI's market presence, and diversify revenue streams, particularly within the healthcare, education, and hospitality sectors. The combined entity is projected to achieve $5.8 billion in annual sales.
2. New Product Development and Innovation: HNI is actively investing in developing market-leading new products, especially those focused on ergonomic design, health, and flexible workspace solutions. This investment aims to meet evolving customer demands and position the company to command premium pricing, thereby supporting both revenue growth and margin expansion.
3. Positive Office Space Demand and Return-to-Office Trends: A positive shift in office space demand and the ongoing return-to-office movement are expected to fuel growth in the Workplace Furnishings segment. Data indicating high occupancy rates in Class A buildings in top markets suggests an emerging new office growth cycle, which HNI is positioned to capitalize on.
4. Pricing Actions and Volume Growth: HNI anticipates that strategic pricing actions will be a primary driver of growth, particularly within its Residential Building Products segment. Furthermore, the company expects overall volume growth across both its Workplace Furnishings and Residential Building Products segments.
5. Operational Efficiencies and Cost Savings: While primarily impacting profitability, the significant cost savings and operational efficiencies derived from the Kimball International integration and the ramp-up of HNI's new Mexico facility are expected to free up capital. These savings contribute to improved earnings, which can then be reinvested into growth initiatives, indirectly supporting revenue expansion. These initiatives are expected to contribute between $0.75 and $0.80 to diluted non-GAAP EPS for the 2025-2026 period.

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Share Repurchases

• HNI Corporation repurchased approximately $220.85 million of its common stock from 2020 to 2024, with specific amounts including $0.65 million in 2020, $60.5 million in 2021, $63.9 million in 2022, $0.4 million in 2023, and $95.4 million in 2024.
• In the first half of 2024, the company accelerated share buyback activity, repurchasing over $10 million.
• The company's revolving credit facility provides financial capacity for repurchases of common stock.

Share Issuance

• HNI issued more than 6 million shares in 2023 to partially finance the acquisition of Kimball International.
• The pending acquisition of Steelcase, expected to close before the end of 2025, includes stock-and-cash election mechanics, indicating further share issuance.

Outbound Investments

• In June 2023, HNI acquired Kimball International for $503.7 million, strengthening its product offerings, go-to-market strategies, and manufacturing capabilities.
• HNI entered a definitive agreement to acquire Steelcase for approximately $2.1 billion, with the transaction expected to close before the end of 2025.
• In the second quarter of 2025, HNI divested its HNI India business, receiving $8.1 million in net proceeds.

Capital Expenditures

• HNI's capital expenditures were $78.1 million in 2023 and $50.6 million in 2024.
• For the first nine months of 2025, capital expenditures totaled $49.6 million, with expected full-year 2025 capital expenditures projected to be between $75 and $80 million.
• These capital expenditures are primarily focused on investments in the business, including category awareness, new product innovation, online capabilities, expansion of its installing distributor footprint, and the ramp-up of its Mexico facility.