Why Invest

Investment Thesis

Our two differentiated business segments each possess cyclical, secular, and company-specific growth drivers. These diversified revenue streams should be complemented by multiple margin expansion opportunities, strong free cash flow potential, and modest financial leverage.

1
Enhancing two differentiated business segments
Revenue to benefit from cyclical recovery, secular post-pandemic drivers, and company-specific initiatives.
2
Improving overall company margin profile
Maintain industry-leading profitability in Residential Building Products; focus on margin expansion in Workplace Furnishings as part of our Strategic Framework.
3
Continuing to drive strong cash flow
Free cash flow consistently exceeds net income; supporting growth investments and shareholder returns.
4
Taking advantage of balance sheet flexibility
Cash flow profile and balance sheet strength supports growth investment, dividend growth, M&A, and share repurchase.
5
Seasoned management team
CEO Jeff Lorenger: 25 years with HNI, CFO Marshall Bridges: 21 years with HNI; top five leaders: total of 90 years of pertinent industry experience.
6
Attractive valuation and dividend yield
Support from: diversified revenue streams, exposure to faster-growing markets and secular trends, cash flow and dividend consistency, and balance sheet strength.

HNI Corporation At-A-Glance (KPI)

$2.0B
Market cap
(as of Q1 2024)
$2.4B
Enterprise Value
(as of Q1 2024)
$2.6B
TTM Revenue* (as of Q1 2024)
$318M
TTM Non-GAAP EBITDA* (as of Q1 2024)
$435M
Net Debt (as of Q1 2024)

* Proforma inclusive of synergies and assuming 12 months of Kimball International

*As of Q4:23, proforma inclusive of synergies and assuming 12 months of Kimball International; segment EBITDA excludes General Corporate Expense; adjusted for Lamex sale and eCommerce restructuring in 2022

**Other includes HNI International, HNI India, Design Public Group, and Kimball Hospitality