MUSCATINE, Iowa – HNI Corp. reported net income of $17.7 million on first quarter sales of $588 million.

The 22.7% year-over-year revenue increase was attributed to sales generated by Kimball International, which HNI acquired last June. Kimball contributed $147.5 million to HNI’s Workplace Furnishings’ Q1 2024 revenue tally of $439.8 million.

HNI’s Residential Building Products segment posted total sales of $148.2 million in Q1 vs. $179.4 million for the same period in 2023.

“Our teams continue to build upon the strong progress we have made over the past two years,” said Jeff Lorenger, chairman, president, and CEO of HNI. “We delivered earnings that were nearly triple the prior-year period, with EPS and operating margin reaching first quarter levels not seen since 2007.

“Our strong results continued to be fueled by our Workplace Furnishings profit transformation plan and the inclusion of Kimball International, which combined to deliver the highest first quarter Workplace Furnishings profit margin since 2016.

“In Residential Building Products, our recent cost actions helped support profitability despite ongoing market weakness. Longer-term we remain bullish about the prospects of the housing market, broadly, and our market leading position, specifically.”

Commenting on expectations, the company said it projects full-year earnings will increase strongly from 2023 levels driven by continued margin expansion in Workplace Furnishings and the full-year benefit of accretion from Kimball. In addition, HNI expects Workplace Furnishings organic revenue to increase at a low-single digit rate.

HNI further said that Residential Building Products segment revenue trends are expected to improve as the year progresses, with year-over-year growth returning in the second half. Residential Building Products full year revenue is expected to be flat-to-slightly down versus 2023 levels.