Research from Water Tower Research, Water Tower Research

Water Tower Research

Water Tower Research is a leading equity research firm that provides research on micro, small and mid cap companies.

Water Tower Research was founded by Wall Street veterans after witnessing a fundamental shift in the investment research industry with the result being a declining knowledge base among investors, a lack of awareness and a shrinking pool of fundamental research being conducted on companies across the small-cap and micro-cap spectrum. The same issues are now increasingly occurring in the mid-cap space. This sea change within the investment community is impacting not only the companies themselves but also current shareholders and potential investors. With significantly less active sell-side sponsorship by Wall Street, a substantial information gap has developed between companies and various constituents in the financial community. The net result is fewer channels for insight and information to flow between companies and investors.

Research from Water Tower Research

Equity Research Firm

Equity Bottom-Up

<ul><li>2Q25 adjusted EPS of $1.11 came in significantly ahead of our estimate of $0.87 on solid growth in both segments despite ongoing macro headwinds and continued margin expansion even as tariff headwinds and investment in growth made themselves felt.</li><li>HNI posted growth in both segments (WF and RBP), with the growth in contract within WF particularly notable.</li><li>WF organic revenue was up 8%. While some of the 2Q gains were attributable to demand pull-forward in the face of tariffs (about $18 million or $0.10-0.12 in EPS), the 15% gains in contract and the positive leading indicators speak to a general uptick in demand within contract that we have seen over the past several quarters as return-to-office continues to gain traction.</li></ul>

2Q25 adjusted EPS of $1.11 came in significantly ahead of our estimate of $0.87 on solid growth in both segments despite ongoing macro headwinds and continued margin expansion even as tariff headwinds and investment in growth made themselves felt.HNI posted growth in both segments (WF and RBP), with the growth in contract within WF particularly notable.WF organic revenue was up 8%. While some of the 2Q gains were attributable to demand pull-forward in the face of tariffs (about $18 million or $0.10-0.12 in EPS), the 15% gains in contract and the positive leading indicators speak to a general uptick in demand within contract that we have seen over the past several quarters as return-to-office continues to gain traction.

HNI Corporation: 2Q25 조정 주당순이익(EPS) 1.11달러, 마진 확대 및 성장으로 수혜