HNI Corporation

Thank you for standing by. My name is Kate and I will be your conference operator today. At this time, I would like to welcome everyone to the HNI Corporation first quarter 2026 results conference call. 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, simply press start followed by the number one on your telephone keypad. If you would like to withdraw your question, press star 1 again. Thank you. I would now like to turn the call over to Mr. McColl. Please go ahead.

Good morning. My name is Matt McColl. I'm Vice President, Investor Relations and Corporate Development for H&I Corporation. Thank you for joining us to discuss our first quarter of 2026 results. With me today are Jeff Loringer, Chairman, President, and CEO, and BP Berger, Executive Vice President and CFO. Copies of the 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 subject to known and unknown risk. Actual results could differ materially. 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 Warnertrip.

Jeff? Thanks, Matt. Good morning. Thank you for joining us. Our members delivered solid first quarter results that exceeded our internal expectations in a difficult and dynamic environment. The momentum of our strategies, the benefits of our diversified revenue and profit streams, our ongoing focus on items within our control, and the merits of our customer-first business model continued to deliver strong shareholder value. The takeaway from today's call is we expect a strong year in 2026 with a fifth straight year of double digit earnings improvement and modest revenue growth in both segments. On today's call, I will break my comments into three sections. First, our quarterly results. Again, we delivered solid results despite ongoing geopolitical and macro uncertainty. Second, the remainder of 2026. Despite softer than anticipated revenue patterns to start the year, We expect net sales to grow in 2026 with another year of double-digit non-GAAP EPS growth anticipated. And third, our outlook beyond 2026. We project double-digit EPS growth again next year as we maintain multiple years of elevated earnings visibility beyond 2027. Following those comments, VP will provide more details about the first quarter, our outlook, and our cash flow and balance sheet. I will close with some additional color commentary before we open the call to your questions. I will start with some highlights from the first quarter. Our members continue to focus on controlling the controllables. Through focused cost management and benefits from price-cost... This was despite demand softness to begin the year, especially in workplace furnishings, amid concerns related to the conflict in the Middle East, the U.S. economy broadly, and the impact of tariffs specifically. In our legacy workplace furnishings businesses, first quarter net sales were down about 5% year over year on an organic basis, with modest growth in our businesses focused on small and medium-sized customers. We saw weakness early in the quarter with large corporate customers, as the impacts of global macro uncertainty were most prevalent during January and February. However, we saw organic segment orders turn positive in March, with additional acceleration thus far in the second quarter. This supports our bullishness for the remainder of the year, which I will discuss more in a moment. As we finish the quarter, it is important to note the integration of Steelcase is going well. Synergy capture and accretion are on track, and our cultures are melding nicely. Including Steelcase, workplace furnishings segment non-GAAP operating profit in the first quarter totaled almost $49 million, nearly double the prior year level. We continue to expect modest accretion from Steelcase in 2026, and we remain confident in our projected total synergy-driven accretion of $1.20 when fully mature. In residential building products, revenue increased more than 2% versus prior year period. These are strong results given the ongoing weakness in the new home market. Our growth investments are bearing fruit, and we are outperforming the market. Our new construction revenue was down mid single digits year on year, which compares favorably to single family permits, which declined in the high single digits. Our remodel retrofit revenue was up 13% on a year over year basis. First quarter segment operating profit margin expanded 190 basis points year over year, reaching 17.6. Despite expectations of ongoing uncertainty, we remain encouraged by our opportunities and we continue to invest to grow our operating model and revenue streams. In summary, H&I's first quarter performance demonstrates the strength of our strategies, our ability to manage daily uncertainty through varying macroeconomic conditions, all while remaining focused on investing for the future. And we continue to expect strong results in the full year, driven by margin expansion and modest revenue growth. That leads me to my comments on our outlook for the remainder of 2026. I will start with legacy workplace furnishings, where we expect segment revenue to increase at a low single-digit pace for the full year, with high single-digit growth in the back half. Additionally, for the steelcase business, we expect full-year revenue to grow slightly. Our outlook is supported by external industry metrics and by our internal pipeline data. Specifically, in addition to strengthening orders over the past month and a half, our bid quotes, design activity all improved later in the quarter. From an earnings perspective, we expect Steelcase to be net neutral in the first half and turn modestly accretive in the second half and for the full year. In residential building products, our structural changes organizing around the customer and consumer, along with our growth investments, are expected to drive continued market outperformance. For 2026, we expect modest price-driven revenue growth in the second half, despite expectations of ongoing housing markets office. From a profitability perspective, we expect both our workplace furnishings and our residential building products businesses to expand margins in 2026. While we are optimistic about the year and expect another year of double-digit non-GAAP EPS growth, we will remain focused, conservative, and ready to adjust as required. Our earnings outlook is supported by the anticipated benefits of our ongoing visibility story and our proven ability to manage through changing economic conditions. Moving on to my third point, a few comments on our outlook beyond 2026. We project double-digit EPS growth again in 2027, driven primarily by expected synergies from Steelcase and legacy network optimization projects. Further, we continue to have multiple years of elevated earnings growth visibility beyond 2027. During the first quarter, we made certain key decisions pertaining to the Steelcase integration that will have positive longer-term implications. As an example, we terminated Steelcase's multi-year ERP implementation project. This move is part of a broader effort at Steelcase to streamline priorities to focus on profitable growth while also avoiding disruption, eliminating substantial future ERP investment, and redeploying resources back into the business toward customer-focused initiatives. Also during the quarter, we began smartly managing costs across all our businesses in response to a softer start to the year driven by the current geopolitical backdrop. These new actions are in addition to the previously announced $120 million of synergies associated with the integration of Steelcase, which, as I stated earlier, are on track. At the same time, our current synergy projections are focused on the Americans business only and assume no revenue synergies. And importantly, we remain laser focused on minimizing any front end disruption across our workplace furnishings businesses. Finally, as we discussed last quarter, we continue to expect an additional 30 million of savings from network optimization in our legacy workplace furnishing businesses over the next three years. The combination of our discipline cost management, steel case synergies, and our ongoing legacy network optimization projects continue to strengthen our earnings visibility story. Now I will turn the call over to VP to provide more details about the first quarter, our outlook, and our cash flow and balance sheet. I will then provide a longer-term perspective on the opportunities surrounding our businesses before we open the call to your questions. VP?