HNI Corp (HNI) 2025 Q1 法說會逐字稿

Thank you for standing by. My name is Eric and I will be a conference operator today. At this time I would like to welcome everyone to the HNI Corporation first quarter fiscal 2025 results conference call.

感謝您的支持。我叫 Eric，今天我將擔任會議主持人。現在，我歡迎大家參加 HNI 公司 2025 財年第一季業績電話會議。

All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time [Operator Instructions].

所有線路均已靜音，以防止任何背景噪音。演講者發言後，將進行問答環節。如果您想在這段時間內提問[操作員指示]。

I would now like to turn the call over to Mr. McCall. Please go ahead.

現在我想把電話轉給麥考爾先生。請繼續。

Good morning. My name is Matt McCall. I'm Vice President of Investor relations and corporate development for H&I Corporation. Thank you for joining us to discuss our first quarter fiscal year 2025 results.

早安.我的名字是馬特·麥考爾。我是 H&I 公司的投資者關係和企業發展副總裁。感謝您加入我們討論 2025 財年第一季的業績。

With me today are Jeffrey Lorenger, Chairman, President and CEO and Vincent Berger, Executive Vice President and CFO.

今天與我一起的有董事長、總裁兼執行長 Jeffrey Lorenger 和執行副總裁兼財務長 Vincent Berger。

Copies of our financial news release and non-gap reconciliations are posted on our website. Statements made during this call that are not strictly historical facts or forward-looking statements, which are subject to known and unknown risk. Actual results could differ materially.

我們的財務新聞稿和非缺口對帳表的副本已發佈在我們的網站上。本次電話會議所作的陳述並非嚴格意義上的歷史事實或前瞻性陳述，有已知且未知的風險。實際結果可能存在重大差異。

The financial news release posted on our website includes additional factors that could affect actual results. The corporation assumes no obligation to update any forward-looking statements made during the call. I'm now pleased to turn the call over to Jeff Lawrence. Jeff.

我們網站上發布的財務新聞稿包含可能影響實際結果的其他因素。該公司不承擔更新電話會議期間所作任何前瞻性陳述的義務。我現在很高興將電話轉給傑夫勞倫斯。傑夫。

Thanks Matt. Good morning and thank you for joining us.

謝謝馬特。早安，感謝您加入我們。

I'm going to divide my commentary today into three sections. First, I will provide some comments on our first quarter results. Non-gap EPS increased nearly 20% year over year, with revenue growth returning in both segments.

我將把今天的評論分成三個部分。首先，我將對我們的第一季業績發表一些評論。非間隙每股收益年增近 20%，兩個部門的收入均恢復成長。

Next, I will discuss our expectations for 2025. Our earnings outlook remains unchanged from what we provided on last quarter's call. We continue to anticipate a fourth consecutive year of double digit non-gap earnings improvement.

接下來，我將討論我們對2025年的期望。我們的獲利前景與上個季度電話會議上給出的預測相比保持不變。我們繼續預期非差距獲利將連續第四年實現兩位數的成長。

And finally, I'll provide additional detail about our EPS growth visibility and discuss how we see our markets playing out over the remainder of the year. In general, we are proceeding with caution, but also with confidence in our strategies.

最後，我將提供有關我們的每股盈餘成長可見度的更多細節，並討論我們如何看待今年剩餘時間內的市場趨勢。總的來說，我們行事謹慎，但對我們的策略也充滿信心。

Following those highlights, BP will provide more detail around our second quarter and full year 2025 outlook. He will also comment on our strong balance sheet. I will conclude with some closing comments before we open the call to your questions.

繼這些亮點之後，BP 將提供有關我們第二季和 2025 年全年展望的更多細節。他也將對我們強勁的資產負債表發表評論。在我們開始回答你們的問題之前，我將作一些結束語。

Let's start with the first quarter. Our members delivered $0.44 of non-gap earnings per share. The 19% year over year growth was better than we anticipated. Year on year revenue growth returned with both segments reporting improvement. And both modestly exceeding the ranges we discussed last quarter.

讓我們從第一季開始。我們的成員每股的非差距收益為 0.44 美元。19%的年成長比我們的預期好。兩個部門的收入均出現年增，且均有所改善。並且兩者都略微超出了我們上個季度討論的範圍。

Workplace furnishings revenue increased slightly versus the same period of 2024. And residential building products revenue grew 7% year over year. Profitability was also better than we anticipated.

與 2024 年同期相比，辦公家具收入略有增加。其中住宅建築產品收入較去年同期成長7%。獲利能力也優於我們的預期。

Consolidated non-gap gross and operating margins expanded on a year on year basis to 40% and 5.3% respectively. Driven by incremental productivity gains, synergy, capture, and volume growth. Our non-gap operating margin reached the highest first quarter level since 2007.

合併非差距毛利率和營業利益率較去年同期分別擴大至 40% 和 5.3%。受生產力逐步提高、協同效應、捕獲和產量成長的推動。我們的非缺口營業利潤率達到了 2007 年以來第一季的最高水準。

During the quarter, revenue from contract customers increased 4% year over year. While shipments to small and medium sized customers declined approximately 5% versus the same period of 2024. Within SMB we experience continued soft transactional purchase activity.

本季度，來自合約客戶的營收年增4%。而對中小型客戶的出貨量與 2024 年同期相比下降了約 5%。在中小企業中，我們經歷了持續疲軟的交易購買活動。

As a reminder, these purchases are highly sensitive and react quickly to macroeconomic changes. From a profitability perspective, workplace furnishing segment, non-gap even margin compressed 20 basis points year over year.

提醒一下，這些購買非常敏感，對宏觀經濟變化反應迅速。從獲利能力角度來看，工作場所家具部門的非差距均等利潤率較去年同期壓縮了20個基點。

Our profit transformation efforts and realization of KI synergies continue to benefit first quarter results. However, stronger volume from several large projects in both the commercial and state and local government spaces, which tend to carry higher discounts, was diluted to segment profit margins.

我們的利潤轉型努力和 KI 協同效應的實現繼續為第一季的業績帶來好處。然而，商業、州和地方政府領域的幾個大型項目的交易量較大，往往帶來更高的折扣，從而稀釋了部門利潤率。

As we reviewed the quarter, this slight compression is a result of a different mix of business during the quarter than we had planned, and in our view, not an indication of increasing competitive discounting.

當我們回顧本季時，這種輕微的壓縮是由於本季度的業務組合與我們計劃的不同，並且我們認為，並不表示競爭性折扣的增加。

Finally, in residential building products, first quarter revenue increased 7% year over year. Despite challenging housing market dynamics, our new construction revenue increased 3% versus the same period of 2024.

最後，在住宅建築產品方面，第一季營收年增7%。儘管房地產市場充滿挑戰，但我們的新建築收入與 2024 年同期相比成長了 3%。

Our remodel retrofit business generated solid year on year revenue growth during the first quarter, increasing 13% versus the prior year period. Segment profitability was also strong in the quarter. Operating profit grew 16% year over year.

我們的改造業務在第一季實現了同比穩健的收入成長，比去年同期成長了 13%。本季度分部獲利能力也十分強勁。營業利潤較去年同期成長16%。

Segment even margin expanded 130 basis points from the same period of 2024 to 15.7%. The consistently strong profit margins in this segment are evidence of the business' unmatched price point, breadth and channel reach, along with the benefits of its vertically integrated business model and overall operational agility.

分部均等利潤率較 2024 年同期擴大 130 個基點，達到 15.7%。該部門持續強勁的利潤率證明了該業務無與倫比的價格點、廣度和通路覆蓋範圍，以及其垂直整合業務模式和整體營運靈活性的優勢。

To summarize the first quarter, the return of growth in both segments, despite heightened macroeconomic uncertainty, is evidence of the strength of our strategies and customer first business model, along with the resilience of our members.

總結第一季度，儘管宏觀經濟不確定性加劇，但兩個部門都恢復了成長，證明了我們的策略和客戶至上商業模式的實力，以及我們會員的韌性。

Our margin expansion further demonstrates our ability to manage through varying economic conditions. Going forward, we expect continued earnings improvement driven by our margin expansion efforts and continued revenue growth as we move through the year.

我們的利潤率擴大進一步證明了我們應對不同經濟條件的能力。展望未來，我們預計，隨著利潤率的提高和收入的持續成長，我們的獲利將繼續改善。

While we see the likelihood of demand volatility across our businesses over the near term. We remain focused on our strategies and are prepared to adapt to changes in the operating environment. That leads to my comments about our expectations for the remainder of 2025.

雖然我們看到短期內我們業務的需求可能會出現波動。我們始終專注於我們的策略，並準備適應營運環境的變化。這引出了我對 2025 年剩餘時間的預期的評論。

As I referenced earlier, we are proceeding with caution, but also with confidence. First, in our workplace furnishings business, while segment orders were relatively unchanged versus the first quarter of 2024, order trends improved as the quarter progressed.

正如我之前提到的，我們謹慎行事，但充滿信心。首先，在我們的辦公家具業務中，雖然分部訂單與 2024 年第一季相比相對沒有變化，但隨著本季的進展，訂單趨勢有所改善。

Broadly, our internal metrics support our outlook for revenue growth this year, and we continue to focus our investments on driving growth in this segment. However, tariff uncertainty and rising inflation expectations provide reasons to expect ongoing demand volatility, as well as temporary margin pressure.

總體而言，我們的內部指標支持我們對今年營收成長的展望，我們將繼續集中投資推動這一領域的成長。然而，關稅的不確定性和不斷上升的通膨預期使得人們有理由預期需求將持續波動，利潤率也將暫時承壓。

From a customer perspective, contract customer orders increased 4% year on year in the first quarter.

從客戶角度，第一季合約客戶訂單年增4%。

Excluding hospitality, contract orders increased 15% versus the same period of 2024. We are excluding hospitality to provide a view of the trends within the commercial market. Hospitality can be lumpy quarter to quarter, and the prior year quarter was especially strong.

不包括酒店業，合約訂單比 2024 年同期增長了 15%。我們沒有將酒店業納入考慮範圍，以便提供商業市場趨勢的概覽。飯店業每季的業績都存在波動，而去年同期的業績尤其強勁。

This thus far in the second quarter, we experienced solid contract order trends reflective of supportive demand backdrop along with some pull forward activity ahead of tariff related pricing actions. In summary, we continue to see supporting trends in our workplace furnishing segment.

到目前為止，第二季度我們的合約訂單趨勢穩健，這反映了支持性需求背景以及關稅相關定價行動之前的一些提前活動。總而言之，我們繼續看到工作場所家具領域的支援趨勢。

Internally, total segment backlog is up 19% year over year. Externally, office sublease activity is a leading indicator for office furniture demand is moving in the right direction.

從內部來看，總分部積壓訂單年增 19%。從外部來看，辦公室轉租活動是辦公家具需求朝正確方向發展的領先指標。

Return to office continues to present an opportunity and we view elevated levels of non-viable space as a positive indicator for future furniture events. So we continue to see encouraging signs that support our view of volume improvement while at the same time we are increasingly focusing our investments and driving revenue growth in this segment.

重返辦公室繼續帶來機遇，我們認為不適用空間的增加是未來家具活動的積極指標。因此，我們繼續看到令人鼓舞的跡象，這些跡象支持我們對銷售改善的看法，同時我們越來越集中投資並推動該領域的營收成長。

Moving to residential building products, orders in the first quarter increased 8% year over year. Remodel retrofit order growth was up double digits versus the same period of 2024, while new construction orders declined slightly.

轉向住宅建築產品，第一季訂單年增8％。與 2024 年同期相比，改造訂單成長率實現了兩位數成長，而新建築訂單則略有下降。

It is clear any real housing recovery continues to push out as mortgage rates remain elevated and consumer sentiment is trending the wrong way. As is well documented, the dynamics in the housing market remain difficult, though the sentiment continues to reflect the impacts of elevated interest rates, ongoing affordability issues, and weaker consumer confidence.

顯然，由於抵押貸款利率居高不下且消費者情緒呈現錯誤趨勢，任何真正的房地產復甦都將繼續受到阻礙。眾所周知，房地產市場的動態仍然很困難，儘管市場情緒繼續反映出利率上升、持續的負擔能力問題以及消費者信心減弱的影響。

Despite the current environment, we believe in the long term opportunities tied to the broader housing market and in the strength of our market leading positions and profitable operating model, and we will continue to invest accordingly.

儘管當前環境如此，我們仍然相信更廣泛的房地產市場所帶來的長期機會，以及我們市場領先地位和獲利營運模式的優勢，並將繼續進行相應的投資。

I will finish by making a few comments about our view of our markets and provide additional detail around our elevated 2025 EPS growth visibility.

最後，我將就我們對市場的看法發表一些評論，並提供有關我們提升的 2025 年每股收益成長前景的更多細節。

On last quarter's call, we highlighted an increased focus on investing to drive growth in both businesses. Our first quarter revenue strength and encouraging leading indicators provide added support for these initiatives.

在上個季度的電話會議上，我們強調要更加重視投資以推動兩項業務的成長。我們第一季的營收強勁和令人鼓舞的領先指標為這些措施提供了額外的支持。

However, we are paying close attention to the macroeconomic environment and associated risks, and we are approaching the current environment with very intentional initiatives while staying flexible.

然而，我們密切關注宏觀經濟環境和相關風險，並在保持靈活性的同時，採取非常有針對性的措施來應對當前環境。

As we look at our workplace furnishing segment, we experience slow activity in the S&B portion in the first quarter, driven primarily by macroeconomic headwinds.

當我們審視我們的工作場所家具部門時，我們發現第一季 S&B 部分的活動緩慢，這主要是受到宏觀經濟逆風的影響。

SMB is an area of unique strength for us and has delivered consistent order growth in recent years, and we remain bullish about the fundamentals of this business.

中小企業是我們獨特的優勢領域，近年來訂單持續成長，我們仍然看好業務的基本面。

We believe our strength in the SMB space and our broad price point breadth continue to be competitive differentiators, especially as more cost conscious customers embrace price mixing across projects, increasingly mingling SMB projects products in the contract settings.

我們相信，我們在中小企業領域的優勢和廣泛的價格範圍將繼續成為我們的競爭優勢，特別是當更多注重成本的客戶接受跨項目的價格混合，並在合約設定中越來越多地混合中小企業專案產品時。

In our contract business, we see growth continuing. We see encouraging signs associated with larger projects across our key verticals. The workplace, health, and education and markets saw order out performance in the first quarter and we see signs of longer term demand improvement.

在我們的合約業務中，我們看到成長持續進行。我們在關鍵垂直領域的大型專案中看到了令人鼓舞的跡象。工作場所、醫療衛生、教育和市場在第一季的訂單表現良好，我們看到了長期需求改善的跡象。

While underlying demand drivers are encouraging in the contract space, the level of macro uncertainty will continue to affect how quickly opportunities translate to orders.

儘管合約領域的潛在需求驅動因素令人鼓舞，但宏觀不確定性的程度將繼續影響機會轉化為訂單的速度。

Looking ahead, we believe we are particularly well positioned to benefit as the workplace furnishings market continues to improve.

展望未來，我們相信，隨著工作場所家具市場的持續改善，我們將特別有利地受益。

We have a portfolio of brands with unmatched product and pricing breadth and depth, allowing us to meet any future need a customer has. We have products that work for customers ranging from small businesses to the largest multinationals. Our brands are distributed widely across geographies, from tertiary markets to the top MSAs.

我們擁有一系列品牌，其產品和定價廣度和深度無與倫比，使我們能夠滿足客戶未來的任何需求。我們的產品適用於從小型企業到大型跨國公司的各種客戶。我們的品牌廣泛分佈於各個地區，從三級市場到頂級 MSA。

And we can broadly meet the needs of workplaces, schools, health care facilities, and hotels.

我們可以廣泛滿足工作場所、學校、醫療保健設施和飯店的需求。

Moving to residential building products, we continue to believe in the positive long-term market fundamentals. The near term remains challenging given current housing market dynamics, and no doubt a market-driven revenue recovery will take some time. We are however, optimistic about our opportunities to increase revenue through our growth initiatives.

轉向住宅建築產品，我們仍然相信長期積極的市場基本面。鑑於目前的房地產市場動態，短期內仍面臨挑戰，毫無疑問，市場驅動的收入復甦將需要一段時間。然而，我們對透過成長舉措增加收入的機會持樂觀態度。

Specifically, we continue to invest in developing market leading new products that offer customers more options and features. We are driving new programs to increase consumer awareness of the fireplace options.

具體來說，我們繼續投資開發市場領先的新產品，為客戶提供更多選擇和功能。我們正在推行新計劃來提高消費者對壁爐選擇的認識。

Ensuring our products are considered in all remodel and new construction construction projects, and we are strengthening our already strong relationships with builders across the country, helping them deliver the best overall value to the homeowner.

確保我們的產品在所有改造和新建築施工項目中得到考慮，並且我們正在加強與全國各地建築商的牢固關係，幫助他們為房主提供最佳的整體價值。

While we invest in growth, we will continue to deliver attractive margins and strong profits in this business.

在我們投資成長的同時，我們將繼續在該業務中實現誘人的利潤率和強勁的利潤。

Longer term, single family housing remains under supply, and demographics will support additional demand growth. The results of our ongoing investments which will enhance our connection to customers and build on our leading brands, will fortify our position of strength in the industry.

從長期來看，獨棟住宅仍然供應不足，人口結構將支持額外的需求成長。我們持續投資的成果將增強我們與客戶的聯繫、鞏固我們的領先品牌，並鞏固我們在產業中的優勢地位。

Finally, and importantly, we continue to have elevated earnings visibility this year and next. Our earnings expectation for 2025 is unchanged. And includes revenue improvement in both segments.

最後，也是最重要的一點，我們今年和明年的獲利前景持續保持成長。我們對 2025 年的獲利預期保持不變。並且包括兩個部門的收入成長。

We continue to have high visibility to significant profit growth driven by operational efficiencies. As a reminder, we have two initiatives underway Mexico and KII synergies that will deliver a total of $0.70 to $0.80 of additional EPS in 2026.

我們繼續高度關注由營運效率推動的顯著利潤成長。提醒一下，我們正在進行兩項計劃，即墨西哥和 KII 協同效應，這將在 2026 年帶來總計 0.70 至 0.80 美元的額外每股收益。

That represents approximately 25% EPS growth on top of our 2024 earnings, with the savings expected to be divided roughly equally over the next two years.

這意味著我們的每股盈餘將在 2024 年收益的基礎上成長約 25%，預計節省的資金將在未來兩年內大致平均分配。

Taking all these factors into account without help from the cycle, we expect our double digit earnings growth to extend to at least five years. I will now turn the call over to BP to discuss our outlook for 2025. Thanks, Jeff.

考慮到所有這些因素，即使沒有週期的影響，我們預計我們的兩位數獲利成長將持續至少五年。現在我將把電話轉給 BP，討論我們對 2025 年的展望。謝謝，傑夫。

I'll start by discussing our outlook for revenue and profit, beginning with the top line. Second quarter revenue in workplace furnishings is expected to increase at a mid-single digit rate year over year, one including the impact of tariff-related pricing actions. The benefits of improving orders and backlog are expected to drive revenue growth again in the second quarter for 2025.

我將首先討論我們的收入和利潤前景，從營收開始。預計第二季辦公家具收入將年增中個位數，其中包括關稅相關定價行動的影響。訂單和積壓訂單改善的好處預計將在 2025 年第二季再次推動營收成長。

For residential building products second quarter 2025 net sales are projected to increase at a low single digit rate compared to the same period in 2024.

就住宅建築產品而言，預計 2025 年第二季淨銷售額將與 2024 年同期相比以低個位數成長。

We expect pricing actions to drive the majority of the growth with remodel retrofit and new home construction volume growth returning in the back half of the year.

我們預計定價行動將推動大部分成長，而改造和新房屋建設量的成長將在下半年恢復。

We'll be watching several key housing market drivers, including interest rates, home affordability and consumer confidence as the year progresses.

隨著時間的推移，我們將關注幾個關鍵的房地產市場驅動因素，包括利率、住房負擔能力和消費者信心。

Shifting to our second quarter profit outlook, similar to last quarter, we expect temporary price/cost pressure related to tariffs. First quarter pressure was lower than previously expected given the delays of tariff implementation. However, we now expect total tariff related price/cost margin pressure in the 2nd quarter to total $3 million to $5 million.

轉向我們第二季的利潤展望，與上一季類似，我們預期與關稅相關的暫時價格/成本壓力。由於關稅實施延遲，第一季的壓力低於先前預期。不過，我們現在預計第二季與關稅相關的價格/成本利潤壓力總計將達到 300 萬至 500 萬美元。

As we look to the full year and based on what we know today, we continue to expect to offset the majority of the first half drag in the second half of 2025. And even when including the anticipated impact of tariffs, we are still expecting non-gap earnings per share in the second quarter of 2025 to increase solidly from 2024 levels.

展望全年，根據我們目前掌握的情況，我們仍然預計 2025 年下半年將抵消上半年的大部分拖累。即使考慮到關稅的預期影響，我們仍預期 2025 年第二季的非缺口每股盈餘將較 2024 年的水準穩定成長。

This projected improvement is driven by productivity benefits and volume growth partially offset by investments. The tariff situation remains fluid. However, we have the flexibility to adjust and expect to be able to manage the estimated impact for the full year. We have utilized the surcharge to allow us to adjust quickly to the dynamic environment. Going forward, we are also implementing list price adjustments in combination with the surcharge approach.

這一預計的改善是由生產力效益和產量成長所推動的，但被投資部分抵消。關稅情勢依然不穩定。然而，我們有調整的靈活性，並期望能夠控制全年預計的影響。我們利用附加費使我們能夠快速適應動態環境。展望未來，我們也將結合附加費方法實施標價調整。

In the second quarter, we expect operating margin in workplace furnishings to be relatively flat year over year as the dilutive impact of tariffs offset volume improvement and continued profit transformational benefits. Residential building products operating margin is expected to compress slightly year over year in the second quarter as a result of lower volume, increased investments and tariffs. Again, when including the anticipated impact of tariffs, we're still expecting the non-gap earnings per share in the second quarter of 2025 to increase solidly from 2024 levels.

在第二季度，我們預計工作場所家具的營業利潤率將與去年同期相比相對持平，因為關稅的稀釋效應抵消了銷售的改善和持續的利潤轉型效益。由於銷量下降、投資增加和關稅增加，預計第二季度住宅建築產品營業利潤率將比去年同期略有壓縮。同樣，當將關稅的預期影響納入考慮時，我們仍然預計 2025 年第二季度的非缺口每股收益將較 2024 年的水平穩步增長。

Moving to the full year of 2025 for the full year, we continue to expect volume growth in both segments. In workplace furnishings, we expect quarterly, year over year revenue growth rates in the mid-single digits, excluding the benefit of an extra week in the fourth quarter. In residential building products, we expect quarterly year over year revenue growth rates in the low to mid single digits, excluding the benefit of the extra week.

展望 2025 年全年，我們預計這兩個部門的銷售仍將實現成長。在辦公家具方面，我們預期季度將年比營收成長率達到中等個位數，這還不包括第四季額外一週的收益。在住宅建築產品方面，我們預期季度年比收入成長率將在低至中等個位數之間（不包括額外一週的收益）。

From an earnings perspective, our outlook is unchanged from what we provided last quarter. We expect another year of double digit non-gap EPS growth driven by KII synergies, the ramp up of our Mexico facility, and increased profits from volume growth.

從獲利角度來看，我們的展望與上個季度的展望相比沒有變化。我們預計，受 KII 協同效應、墨西哥工廠規模擴大以及銷售成長帶來的利潤成長的推動，今年每股收益將再創兩位數成長。

Our projections for 2025 net sales and earnings are based on current order patterns and leading indicators, with an acknowledgement that both are subject to elevated levels of uncertainty given the current conditions.

我們對 2025 年淨銷售額和收益的預測是基於當前的訂單模式和領先指標，並承認，鑑於當前情況，這兩者都面臨較高的不確定性。

I'll wrap up with a few comments on our balance sheet and cash flow. Quarter ending gross debt leverage was 1.3 times as calculated in accordance with our debt agreements. The ratio was up modestly from the end of the fourth quarter of 2024, consistent with normal seasonal borrowing patterns.

最後，我將對我們的資產負債表和現金流量發表一些評論。根據我們的債務協議計算，本季末總負債槓桿為 1.3 倍。該比率自 2024 年第四季末起略有上升，與正常的季節性借貸模式一致。

During the quarter, we continue to deploy cash through our long-standing quarterly dividend and through the repurchase of stock in the amount of $40 million demonstrating our continued confidence in our future earnings and cash flow generation.

在本季度，我們繼續透過長期的季度股利和 4,000 萬美元的股票回購來部署現金，顯示我們對未來收益和現金流產生的持續信心。

The combination of our strong balance sheet and consistent cash flow generation will continue to provide a high degree of financial flexibility and capacity for investment. Our capital priorities remain reinvesting in the business, paying dividends, pursuing share buybacks, and exploring M&A opportunities. I'll now turn the call back over to Jeff.

我們強勁的資產負債表和持續的現金流相結合，將繼續提供高度的財務靈活性和投資能力。我們的資本重點仍然是對業務進行再投資、支付股利、進行股票回購以及探索併購機會。我現在將電話轉回給傑夫。

Thanks, VB. We remain focused on investing to drive revenue growth and on expanding margins. No doubt the operating environment is dynamic. However, we have multiple avenues to drive growth and are prepared to manage through demand uncertainty and expect to extend our track record of consecutive years of double digit EPS growth.

謝謝，VB。我們仍然專注於投資以推動收入成長和擴大利潤率。毫無疑問，營運環境是動態的。然而，我們有多種途徑來推動成長，並準備好應對需求不確定性，並期望延續連續幾年兩位數每股收益成長的記錄。

And beyond 2025, we are positioned for continued success. We have elevated earnings growth visibility through 2026, broad and diverse product and market coverage and workplace furnishings.

2025年以後，我們將繼續取得成功。我們提高了到 2026 年的獲利成長可見度、廣泛而多樣化的產品和市場覆蓋範圍以及辦公家具。

Market leading positions in residential building products. And we continue to invest to drive growth. All this is supported by a strong balance sheet and the ability to generate continued free cash flow.

在住宅建築產品領域佔據市場領先地位。我們將繼續投資以推動成長。所有這些都得益於強勁的資產負債表和產生持續自由現金流的能力。

I want to thank each and every HNI member for their continued dedication and focus to succeed and congratulate them on another strong quarter. We will now open the call to your questions.

我要感謝每一位 HNI 成員的持續奉獻和對成功的專注，並祝賀他們又一個季度表現強勁。我們現在開始回答你們的問題。

At this time, I would like to remind everyone in order to ask a question, press star followed by the number one on your telephone keypad.

此時，我想提醒大家，要想提問，請在電話鍵盤上按星號，然後按數字 1。

Your first question comes from the line of Greg Burns with Sidori. Please go ahead.

您的第一個問題來自 Sidori 的 Greg Burns。請繼續。

Morning, just first, I think you mentioned that, contract orders were up 4%. What was the SMB order number just last quarter?

早上好，首先，我想您提到過，合約訂單增加了 4%。上個季度的 SMB 訂單數量是多少？

Slight.

輕微。

Slightly down, 5% for Q1 orders at SMB.

中小企業第一季訂單略有下降，下降了 5%。

Okay, and it doesn't sound like there's been any kind of meaningful change in order patterns or buying activity, but are you hearing anything given kind of the increase uncertainty that we're seeing out there? Is there anything that maybe gives you pause where you might expect maybe contract.

好的，聽起來訂單模式或購買活動並沒有發生任何有意義的變化，但是考慮到我們所看到的不確定性增加，您是否聽到了什麼消息？是否有任何事讓您在預期可能簽訂合約時猶豫不決。

Demand to slow or catch down to what you're seeing in the S&B market.

需求放緩或趕上您在 S&B 市場看到的情況。

Greg, look, there's, let's start with there is a lot of uncertainty out there, but I would tell you our funnel looks good, it's encouraging backlog is encouraging. We've been talking quite a bit about how some of these customers have been.

格雷格，你看，首先，外面有很多不確定性，但我想告訴你，我們的漏斗看起來不錯，積壓訂單令人鼓舞。我們已經討論過很多關於這些顧客的情況。

Revising, revamping, relook at these, their offices and their moves, their orders, and so right now we we feel that we've got a, it's a bit mixed but look those customers are committed. What we see is a lot of people making decisions for the long term those customers tend.

修改、改造、重新審視這些，他們的辦公室、他們的舉動、他們的訂單，所以現在我們覺得我們得到了一些，有點混亂，但看起來那些客戶是忠誠的。我們看到，許多人都在為顧客的長期利益做決定。

To invest in their businesses, have more wherewithal to invest in their businesses and maybe some of the smaller SMB who turn on and off quickly. So it could change, but right now, what we see is that momentum, holding up in the near term and customers are are hanging in there and are ready to invest in their business.

投資他們的業務，擁有更多的資金來投資他們的業務，也許還有一些快速啟動和關閉的小型 SMB。所以它可能會改變，但是現在，我們看到的是這種勢頭在短期內保持下去，客戶也堅持下去並準備投資於他們的業務。

Okay, great. And then, I guess.

好的，太好了。然後，我想。

Maybe not on the hospitality side you mentioned, there's kind of more lumpiness of volatility there was it just against the tough comp this quarter or are you seeing any change in demand, environment in the hospitality space?

也許不是您提到的酒店業方面，波動性更大，只是與本季度的艱難競爭相比，還是您看到酒店業的需求和環境有任何變化？

Yeah, look, one it was a really tough comp this quarter. That's a big chunk of it, and the demand is, it's kind of a tale of 22 cities here. There's been some pull forward and then some delay. I would say, that business really breaks in two ways what we call program business. And then custom business the program business is is kind of set those things are are really kind of continuing to to move forward some of the custom stuff is we've seen some pause on and some reflection on timing and when people want to pull the trigger so.

是的，看，本季的競爭確實很艱難。這是其中很大一部分，而且需求是，這就像是關於這裡 22 個城市的故事。有一些提前，然後又有一些延遲。我想說，我們所說的程序業務實際上分為兩種。然後定制業務，程序業務是一種設置，這些事情實際上是在繼續向前推進，一些定制的東西是我們已經看到一些暫停和一些對時間的反思，以及人們何時想要扣動扳機。

You know that that that business will will probably see that choppiness continue here for a bit, less the tough comp in the first quarter.

您知道，該業務可能會繼續出現波動，而不會像第一季那樣艱難。

Okay, thank you.

好的，謝謝。

The next question comes from the line of Ruben Garner with Benchmark. Please go ahead.

下一個問題來自 Benchmark 的 Ruben Garner。請繼續。

Thank you. Good morning, everyone.

謝謝。大家早安。

Morning.

早晨。

A question on two questions on the SMB business. Did you see any improvement in the transactional part of that in April when the tariffs were pulled back or is it kind of remained muted and then secondarily, I think if I recall correctly, the low end of that business, historically would kind of compete with some product coming in from China, is that Is that an opportunity for you guys or do you have to bring in enough yourself that it's more of a neutral impact on you?

關於中小企業業務的兩個問題。四月關稅取消後，您是否看到交易部分有任何改善，還是仍然保持低調？其次，如果我沒記錯的話，該業務的低端，歷史上會與來自中國的一些產品競爭，這對你們來說是一個機會嗎？還是你們必須自己引進足夠的產品，以便對你們產生中性的影響？

I think Ruben, a couple of answers there I guess. The first, the SMB we talked about Q1 orders being down 5%. Transactional obviously in there. It's a piece of it, a small piece of it but it's also the business that goes in first like we talked about last quarter, when there's macro uncertainty that, our quick buying decisions doesn't require a lot of design help.

我想 Ruben，我想那裡有幾個答案。首先，我們談到的中小企業第一季訂單下降了 5%。顯然其中有交易性。這是其中的一部分，一小部分，但這也是首先開展的業務，就像我們上個季度討論的那樣，當存在宏觀不確定性時，我們的快速購買決策不需要太多的設計幫助。

Those are the quickest to go in, but they're also the quickest to go out. So you're About April we actually did see orders start to pick back up over the last five weeks in that business. So it shows you it's the resiliency of it, and Jeff mentioned how important it is to us and we're actually seeing some signs that there's some light to that as it relates to products, we can take that on our own.

這些是進入最快的，但也是出去最快的。大約在四月份，我們確實看到該行業的訂單在過去五週內開始回升。所以它向你展示了它的彈性，傑夫提到了它對我們有多重要，我們實際上看到了一些跡象，表明它與產品有關，我們可以自己處理它。

So a lot of most of the product, if not the majority of that is stuff that we can build ourselves. We're not dependent on China. For those products, so we feel like our go to market and support there is not indicative or needed depending on anything that happens in Asia. We can handle that right here.

因此，大部分的產品（如果不是大多數的話）都是我們可以自己製造。我們並不依賴中國。對於那些產品，我們覺得我們進入市場和提供支援並不具有指示性，也不需要取決於亞洲發生的任何事情。我們可以在這裡處理。

Okay, and then the change in the tariff impact to you or the. Impact in the second quarter, it was that mostly related to the change in the percentage on China or was there other factors, maybe produced surcharges or others that that led to that?

好的，那麼關稅的變化對您有什麼影響呢？第二季的影響主要與中國百分比的變化有關，還是有其他因素，也許是產生了附加費或其他導致這種情況的因素？

I think the easiest way to describe that, it's really a delay from what we talked about three months ago and what happened with tariff delays and then our order backlog built and as the order backlog built we're honoring those orders that are in backlog.

我認為最簡單的描述方式是，這實際上與我們三個月前談論的關稅延遲有關，然後我們的訂單積壓就增加了，隨著訂單積壓的增加，我們正在履行那些積壓的訂單。

We're not actually applying it to them, so it's really no fundamental change we talked about before except we have a bigger order book and then we have. We're protecting that for our customers. The good news is we have the orders, so I mentioned the drag of $3 million to $5 million. We still fully expect that the actions that we've taken between surcharge and list across all the businesses will cover that from a full year standpoint.

我們實際上並沒有將其應用於他們，因此這實際上並不是我們之前談到的根本性變化，只是我們擁有了更大的訂單。我們正在為我們的客戶保護這一點。好消息是我們收到了訂單，所以我提到了 300 萬到 500 萬美元的拖累。我們仍然完全相信，從全年的角度來看，我們在所有業務中採取的附加費和清單之間的行動將涵蓋這個問題。

And Ruben, I think, the 80/20 to your question is it's China that second quarter was China driven for sure.

魯本，我認為，你問題的 80/20 機率是中國，第二季肯定是由中國推動的。

Got it. Very helpful. And last one, I'm going to sneak one more in if I can but the residential outlook for the second half some I guess loose peers in the building product space have kind of been reducing end market assumptions for both new housing and R&R, certainly new housing, maybe less so R&R, but can you talk about what your end market assumptions are for the second half, In other words, what do you have in your control because of the easier comparisons with inventory and the growth investments that you've got internally?

知道了。非常有幫助。最後一個問題，如果可以的話，我想再偷偷問一個，但對於下半年的住宅前景，我猜建築產品領域的一些同行已經降低了對新住宅和 R&R 的終端市場假設，當然是新住宅，R&R 可能不那麼高，但你能談談你對下半年的終端市場假設是什麼嗎？換句話說，由於更容易與庫存和內部成長投資進行比較，你能控制什麼？

Yeah, I think there's a couple things. We don't see a lot of help in the market in NCC. Ruben. Permits have been down in the last four months, low single digits so we're not predicting any help there and we weren't predicting a lot of help on the remodel side from a retail standpoint, but we also didn't see it as a negative. So the way we see our growth there, Ruben is our strategic initiatives are kicking in. We started those investments last year. You saw in the first quarter we grew. 7% primarily in the remodel retrofit market, as the year progresses, we put out their low single digits.

是的，我認為有幾件事。我們沒有看到 NCC 對市場有多大幫助。魯本。過去四個月許可證數量一直在下降，僅為個位數，因此我們預測這不會帶來任何幫助，而且從零售的角度來看，我們預測改造方面也不會帶來太大幫助，但我們也不認為這會帶來負面影響。因此，從我們在那裡看到的成長來看，魯本的策略性舉措正在發揮作用。我們去年就開始了這些投資。您在第一季看到了我們的成長。 7%主要成長在改造市場，隨著時間的推移，我們的成長率達到了較低的個位數。

The new construction piece of that will be on the lower end of that, and the remodel side will be on the mid single digits, and we see that just based on the initiatives that we have in place and where we've made the investment. So limited market help, yet we still expect low single digit growth in Q2 and mid single digit for the full year.

其中，新建築部分的成本將處於較低水平，而改造部分的成本將處於個位數的中間水平，我們根據現有的舉措和投資情況得出這一結論。儘管市場幫助有限，但我們仍預期第二季的成長率將達到低個位數，全年成長率將達到中等個位數。

Great, thank you guys.

太好了，謝謝大家。

For the help. I appreciate it.

尋求幫助。我很感激。

The next question comes from line of Steven Ramsey with Thompson Research Group. Please go ahead.

下一個問題來自湯普森研究小組的史蒂文·拉姆齊。請繼續。

Hey, good morning. Maybe to start out building on that residential topic, one of the focal points at the builder show a couple of months ago was the higher price point products with Compelling features for the higher end consumer. Can you talk about this rollout thus far, the traction you're getting and in this macro environment, do you expect that to be resilient, or do you do you expect any kind of pullback in the near term but maybe not changing your long term view of where that product set can go?

嘿，早安。也許從住宅主題開始，幾個月前的建築商展會上的焦點之一就是針對高端消費者推出具有引人注目功能的高價位產品。您能否談談迄今為止推出的產品、您獲得的吸引力以及在這種宏觀環境下，您是否預計它會具有彈性，或者您是否預計短期內會出現任何形式的回調，但可能不會改變您對該產品系列未來走向的長期看法？

Yeah, Steve and I think that's good that's good insight. I think we do believe that's a strong platform for us, and we see that nothing's nothing's totally recession proof, so to speak, but that business, that piece of business has. Up nicely and the rate at which we are deploying that platform into the market has been well received. A lot of that product line is well received and so we think that can provide, we'll continue to provide support for us going forward.

是的，史蒂夫和我認為這是很好的見解。我認為我們確實相信這對我們來說是一個強大的平台，而且我們看到，可以說沒有什麼可以完全抵禦經濟衰退，但那項業務，那部分業務卻可以。進展順利，我們將該平台部署到市場的速度也得到了好評。該產品線中的許多產品都廣受好評，因此我們認為這可以提供支持，我們將繼續為我們未來的發展提供支持。

Yeah.

是的。

I mean it's going in a lot of custom homes and those are relatively resilient, so I agree.

我的意思是，很多客製化住宅都採用這種技術，而且這些住宅相對來說具有彈性，所以我同意。

Okay, that's helpful. And then one to pull up high level, think about Mexico production and with the changing or evolving geopolitical situation, is there anything that kind of changes your strategic outlook around your production based there in the near term or long term?

好的，這很有幫助。然後從高層次考慮，考慮墨西哥的生產情況，隨著地緣政治形勢的變化或發展，有什麼事情會在短期或長期內改變您對那裡生產的戰略展望嗎？

Stephen, no it really doesn't, we did that for, supporting our growth initiative, when we went down there and that's still the case. We built a seating center of excellence there and we take the long term view and so we have not. We continue to invest and we see that as a really big part of our story and we like our position there so we don't, we haven't really changed our view as we often say we we're long term investors and it, it's helping our visibility story that we keep talking about as well this year and next.

史蒂芬，事實並非如此，我們這樣做是為了支持我們的成長計劃，當我們去那裡時，情況仍然如此。我們在那裡建立了一個座椅卓越中心，我們著眼於長遠，所以我們沒有這樣做。我們將繼續投資，我們認為這是我們故事中非常重要的一部分，我們喜歡我們在其中的地位，所以我們不會，我們並沒有真正改變我們的觀點，因為我們經常說我們是長期投資者，而且它有助於我們今年和明年繼續談論的知名度故事。

Okay, great. And then last one for me thinking about the earnings visibility that you have for this year and into next year, very solid. How do you expect that to translate into free cash flow over the next couple of years? I know you've got investments you're making, including CapEx, but curious how that translates into free cash flow.

好的，太好了。最後，我想說一下您今年和明年的獲利前景，非常樂觀。您預計這將如何轉化為未來幾年的自由現金流？我知道您正在進行投資，包括資本支出，但很好奇這些投資如何轉化為自由現金流。

Yeah, I know we've put the number of $45 million to $50 million that are going to come from those two transformational efforts that'll obviously generate that from a free cash flow standpoint. We expect that to be split between 25 and 26, and all it's going to do is allow us to continue our current.

是的，我知道我們已經確定了 4500 萬到 5000 萬美元的收入來自這兩項轉型努力，從自由現金流的角度來看，這顯然會產生這些收入。我們預計這一數字將在 25 至 26 之間分配，而這只會讓我們繼續目前的狀況。

It'll make more investments. It'll allow us to evaluate if we want to do more stock, buybacks. So I think it just continues to create the financial flexibility and the fact that those projects are underway, we're actually able to plan to have that cash flow and what we're doing.

它將進行更多投資。它將使我們能夠評估是否要進行更多股票回購。因此，我認為它只是繼續創造財務靈活性，而且這些項目正在進行中，我們實際上能夠計劃獲得現金流以及我們正在做的事情。

Great, thank you.

太好了，謝謝。

The next question comes from the line of Brian Gordon with Water Tower Research. Please go ahead.

下一個問題來自 Water Tower Research 的 Brian Gordon。請繼續。

Good morning everyone and congratulations on the quarter. I guess I have a tale of two cities question myself. If we take a look at the softness, especially on the order side with SMB and TRY and contrast that with the strength. You guys had in renovations for RVP.

大家早安，恭喜本季取得佳績。我想我自己也有一個關於「兩個城市的故事」的問題。如果我們看一下柔軟度，特別是 SMB 和 TRY 的順序方面，並將其與強度進行比較。你們對 RVP 進行了翻新。

What do you make of that in terms of what it says about where Main Street and the consumer is because they they seem to be kind of leading us in in slightly different directions.

您如何看待它所代表的主街和消費者的位置，因為它們似乎在引導我們走向略有不同的方向。

Yeah, I think, part of that is probably, you look at the, people with mortgages under 4% remaining in place, I think.

是的，我認為部分原因可能是，你看看那些抵押貸款利率低於 4% 的人是否仍在償還貸款。

High equity in their homes, and they are, the remodel activity has been fairly robust.

他們的房屋淨值很高，而且改造活動相當活躍。

I think we've seen that and so it's a little bit of a different, I wouldn't say they're, I understand your question, I wouldn't say they're exactly the same. They may have a Small business that they go to work at and they want to pull back because they're nervous but at home they feel more confident to do that remodel project they've been talking about that's kind of how I see it and and we've seen this in the past as well. This one I would tell you is a little bit more unique relative to the remodel side just because the housing thing has been.

我想我們已經看到了這一點，所以它有點不同，我不會說它們，我理解你的問題，我不會說它們完全相同。他們可能有一家小公司，他們去上班，他們想要退出，因為他們很緊張，但在家裡，他們更有信心去做他們一直在談論的改造項目，這就是我的看法，我們過去也見過這種情況。我想告訴你的是，這一點相對於改造方面來說更加獨特，因為住房問題已經存在。

Has been, it's more of a, in place long long standing situation relative to people not moving, we've all know that that secondary home market's been kind of locked up and in the other SMB business it's behaving exactly like it behaves every time we see a kind of a shock to the system and the economy and so that doesn't surprise us at all.

一直以來，這更像是一種長期存在的狀況，相對於人們不願意搬家，我們都知道，二級住房市場已經被鎖定了，而在其他中小企業業務中，它的表現就像每次我們看到系統和經濟受到某種衝擊時的表現一樣，所以這並不讓我們感到驚訝。

Great, thanks. That definitely makes sense. I guess my second question, and this is kind of shifting focus to supply chains that you guys have as tariffs have started to, affect things, are there any constraints that have come up that have been unexpected and and kind of where are you in in terms of like the adjustments that you need to make to hit your your full year, guidance.

太好了，謝謝。這絕對有道理。我的第二個問題是，隨著關稅開始對供應鏈產生影響，焦點已經轉移到你們的供應鏈上，是否有任何意想不到的限制，以及你們在需要做出哪些調整才能達到全年預期方面處於什麼位置。

Yeah, I would say we haven't run in any constraints. In fact, we've got a pretty resilient supply chain where we're able to, move product to other countries.

是的，我想說我們沒有遇到任何限制。事實上，我們擁有一條非常有彈性的供應鏈，能夠將產品運送到其他國家。

We've talked about this really isn't just about price. There's cost reductions. There's concessions from suppliers, and there's actually our ability to move stuff. So I would say that that hasn't been an issue as it relates to, how we're managing and it was just important to get our heads around what it is. You know what it is today is actually different than it was 90 days ago.

我們討論的其實不只是價格問題。成本有所降低。供應商做出了讓步，我們實際上也具備了運輸貨物的能力。所以我想說，這與我們如何管理無關，重要的是弄清楚它是什麼。你知道今天的情況其實與 90 天前不同。

That's allowed us to be proactive with our trade and communicate with them. That's important. With them so they can actually give good cost estimates with projects and all of that's allowing us to be able to navigate it, I would say and like we mentioned, we expect to offset the cost that we've already seen in the drag in the first half throughout the remainder of the year.

這使我們能夠積極主動地進行貿易並與他們溝通。這很重要。有了他們，他們實際上可以對專案成本進行良好的估算，所有這些都使我們能夠順利完成任務，我想說，就像我們所提到的那樣，我們預計在今年剩餘時間內可以抵消上半年已經看到的成本拖累。

Great.

偉大的。

Thank you.

謝謝。

I'll now turn the call back over to Mr. Langer for closing remarks. Please go ahead.

現在我將把電話轉回給蘭格先生，請他作最後發言。請繼續。

Great, thanks for everybody taking the time out of their day to join us and get the update on the first quarter. Have a great day.

太好了，感謝大家抽出時間來參加我們的活動並了解第一季的最新消息。祝你有美好的一天。

Ladies and gentlemen, this concludes today's call.

女士們、先生們，今天的電話會議到此結束。

Thank you all for joining and you may now disconnect.

感謝大家的加入，現在可以斷開連線了。