MUSCATINE, Iowa - HNI Corporation (NYSE: NYSE:HNI), a leading manufacturer of office furniture and hearth products, announced a forthcoming change in its executive team. Senior Vice President and Chief Financial Officer Marshall H. Bridges is set to retire on December 28, 2024, after more than two decades with the company.
Vincent Paul Berger II, currently serving as Executive Vice President and President of Hearth and Home Technologies, will succeed Bridges as the new CFO starting December 29, 2024. Berger, 52, brings over 30 years of experience in finance and leadership roles to his new position. A seasoned HNI member for 27 years, Berger is also a certified public accountant.
Jeff Lorenger, Chairman, President, and CEO of HNI, expressed gratitude for Bridges' significant contributions over his 23-year tenure. Lorenger also conveyed confidence in Berger's ability to lead the financial operations of the company, emphasizing Berger's deep knowledge of the business and commitment to the company's culture.
Upon his retirement, Bridges will continue to work with HNI Corporation in a part-time capacity, focusing on strategic projects within the field of artificial intelligence.
HNI Corporation has a longstanding history of over 75 years in the industry and operates through two segments: Workplace Furnishings and Residential Building Products. The company is recognized for its extensive range of commercial furnishings and hearth products.
This executive transition is based on a press release statement from HNI Corporation.
In other recent news, HNI Corporation reported a significant increase in Q2 2024 earnings, exceeding consensus expectations. The company's EBITDA and EPS were particularly noteworthy, despite revenue falling short of forecasts. This strong performance was attributed to HNI's internal efforts to transform profits and sales from its Hearth & Home Technologies division.
Benchmark analyst Reuben Garner has subsequently upgraded the price target for HNI Corp to $63.00, reflecting the firm's confidence in HNI's earnings momentum and market position. Benchmark expects an increase in year-over-year sales for both of HNI's primary segments in the second half of 2024, contributing to a record-setting full-year EPS for the company.
Additionally, HNI Corporation has reported a 44% increase in its non-GAAP earnings per share for Q2 2024. The company's Workplace Furnishings and Residential Building Products segments saw significant year-over-year non-GAAP operating profit increases of 67% and 17% respectively.
Furthermore, the successful merger with Kimball International is expected to deliver $50 million in cost synergies. HNI Corporation projects continued revenue growth and elevated profit growth visibility through 2026, primarily driven by margin expansion and investment in growth opportunities. These recent developments highlight HNI Corporation's strong financial position and strategic growth plans.
InvestingPro Insights
As HNI Corporation prepares for this significant leadership transition, InvestingPro data provides valuable context for investors. The company's market capitalization stands at $2.49 billion, reflecting its substantial presence in the office furniture and hearth products industry.
HNI's financial performance has been robust, with revenue growth of 17.78% over the last twelve months as of Q2 2024, reaching $2.6 billion. This growth is complemented by a strong EBITDA growth of 63.34% over the same period, indicating improved operational efficiency.
Investors may find comfort in HNI's dividend history. According to InvestingPro Tips, the company has maintained dividend payments for 54 consecutive years and has raised its dividend for 13 consecutive years. This commitment to shareholder returns is further evidenced by the current dividend yield of 2.5%.
The market has responded positively to HNI's performance, with a one-year price total return of 59.42%. This aligns with the InvestingPro Tip highlighting HNI's high return over the last year.
As the company navigates this leadership change, it's worth noting that HNI operates with a moderate level of debt, which could provide financial flexibility during the transition period. Additionally, analysts predict the company will remain profitable this year, suggesting a stable foundation for the incoming CFO.
For investors seeking a deeper understanding of HNI's financial health and prospects, InvestingPro offers 11 additional tips, providing a comprehensive analysis to inform investment decisions.
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