HNI Corporation Q2 FY2026 Earnings Call
With Jeff Lorenger (Chairman, President, and CEO) and VP Berger (EVP and CFO).
At HNI Corporation, we go beyond simply building great desks, chairs, file cabinets and fireplaces. We're focused on building relationships by delivering solutions.
More about HNI Corporation
With deeply held values that were born with the corporation's founding in 1944, we are a collection of individuals, called members, united by a dedication to integrity, quality, innovation, service and continuous improvement. HNI Corporation's growth strategy centers on three imperatives: building leading brands, taking care of end users and achieving operational excellence. The corporation's manufacturing and supply chain expertise consistently translates to the highest quality products, provided with the fastest and most dependable turnaround in its industries. HNI Corporation is a group of companies, each representing a family of leading brands, products and services for the office and home. In HNI Corporation's unique and powerful member-owner environment, every member has an opportunity to share in making the business better. Everyone is rewarded for individual and collective performance through stock ownership, profit sharing and other compensation systems. Our culture is built around Rapid Continuous Improvement (RCI) and the notion that every member has something unique and valuable to contribute. We have found that when our people share their ideas, and management acts on those ideas, we achieve something powerful: 18,000-plus individuals working actively to make the company better.
1Prepared remarks3 speakers
Good morning. My name is Matt McCall. I am Vice President, Investor Relations and Corporate Development for HNI Corporation. Thank you for joining us to discuss our second quarter 2026 results. With me today are Jeff Lorenger, Chairman, President, and CEO, and VP Berger, Executive Vice President and CFO. Copies of our financial news release and non-GAAP reconciliations are posted on our website. Statements made during this call that are not strictly historical facts are forward-looking statements, which are…
Good morning. Thank you for joining us. Second quarter demonstrates the focus of our members, indicates an improving demand environment, and supports expectations of stronger 2026 earnings growth. Through focused cost management and the net benefits of price cost and productivity, we were able to deliver second quarter results that were in line with our expectations. Encouragingly, our internal leading indicators improved further in the quarter.
The positive momentum of our strategies, both revenue and…
Thanks, Jeff. I'll start with some additional comments about the second quarter. GAAP diluted EPS for the second quarter was $0.70. On a non-GAAP basis, diluted EPS totaled $1.27, which was ahead of our internal expectations. The net tariff impact on operating margin in the quarter was about 150 basis points, and we expect approximately 40 basis points of benefit for the full year. From an EPS perspective, the net tariff benefit in the second quarter was approximately $0.25. Organic volume in the quarter was…
Thanks, VP. Our members continue to manage our businesses well, we delivered another solid quarter. Order patterns showed noticeable improvement during the quarter as expected, especially in Workplace. As we look forward to the remainder of 2026, we expect year-over-year volume growth in Workplace Furnishings, while Building Products volume pressure…