HNI Corporation (HNI): PESTLE Analysis [Nov-2025 Updated]

You need to know exactly where HNI Corporation stands today, and the short answer is they're in a complex transition: they're leveraging the Kimball International acquisition and manufacturing efficiencies to drive growth, but the near-term is defintely complicated by rising US trade tariffs and a major shareholder lawsuit over the pending Steelcase deal. The company's future hinges on successfully integrating these acquisitions while managing external cost pressures and the fundamental shift in how people use office space. Let's map out the six macro forces shaping their next move.

Political Forces

The political landscape is driving up HNI Corporation's input costs directly. The increased US trade tariffs, specifically the 50% tariffs on steel and aluminum, are creating significant raw material cost pressure. This isn't theoretical; management expects tariff-related pricing actions to impact Q4 2025 net sales growth in both the Workplace Furnishings and Residential Building Products segments. Still, there's an upside: stronger sales volume comes from state and local government contracts, though you must factor in that these contracts often carry higher discounts, which squeezes margins. Navigating trade policy is now a core part of the supply chain strategy. Plus, the pending Steelcase acquisition requires careful navigation of complex US regulatory approval processes, which adds execution risk.

Economic Forces

HNI Corporation is showing resilience, but the economic picture is mixed. For the third quarter of 2025, net sales reached $683.8 million, which is a modest 1.7% year-over-year increase. Here's the quick math on the upside: synergy benefits from the Kimball International acquisition and the Mexico facility ramp-up are expected to contribute $0.75 to $0.80 to diluted non-GAAP Earnings Per Share (EPS) through 2026. But honestly, raw material cost inflation, defintely in plastics and petrochemicals, remains a constant threat to margins. Anyway, the Residential Building Products segment shows a key trend: remodel-retrofit orders are outpacing new construction orders in 2025, reflecting persistent homeowner investment over speculative new builds. Efficiency gains are fighting a tough battle against inflation.

Sociological Forces

The fundamental shift in how people work is the biggest sociological driver for HNI Corporation. Hybrid work models now dominate, which drives a shift in office space demand toward collaboration hubs, fundamentally changing furniture requirements. This means the focus is less on cubicles and more on flexible, shared spaces. Also, growing consumer preference for sustainable and ergonomic home-office furniture is a key market driver, pushing product development. The office is now a destination, not just a desk farm. To be fair, Workplace Furnishings orders from small-to-medium-sized businesses (SMBs) are slower than those from large contract customers, suggesting smaller firms are still figuring out their long-term space needs. Plus, the company's community investment, including a $1 million donation to the Muscatine Mulberry Health Clinic, helps with local stakeholder relations.

Technological Forces

Technology is mainly about operational efficiency and market reach for HNI Corporation. Significant savings are being realized through improved net productivity and profit transformation initiatives, which directly counter cost inflation. Continued investment in the Mexico facility ramp-up enhances manufacturing efficiency and supply chain resilience, a critical advantage in a volatile market. Manufacturing efficiency is the new moat. Furthermore, the push for e-commerce growth is a critical channel for reaching the expanding home-office customer base, so the digital storefront is as important as the physical one. Integrating technology into furniture design, like advanced ergonomic features, is essential for premium product differentiation and justifying higher price points.

Legal Forces

The legal environment presents immediate, high-stakes risks for HNI Corporation. A shareholder lawsuit was filed in November 2025 regarding the Steelcase merger, alleging fiduciary duty breaches and securities law violations. Litigation risk is currently high and requires immediate attention. Beyond the merger, compliance with chemical transparency standards, including publishing Health Product Declarations (HPDs), is a competitive necessity, not just a legal one. What this estimate hides is the operational complexity of operating across multiple countries (US, Canada, Mexico, Singapore, China), which increases exposure to varied labor and tax laws. Also, the company must adhere to new product safety and material sourcing regulations, like those governing per- and polyfluoroalkyl substances (PFAS), which means constant material review.

Environmental Forces

HNI Corporation has made measurable progress on the environmental front. The company was named to Newsweek's 2025 Most Responsible Companies list, ranking No. 36 overall, which boosts brand credibility with institutional investors and consumers. They have achieved a 79% reduction in absolute combined Scope 1 and 2 greenhouse gas (GHG) emissions since 2010, showing long-term commitment. Sustainability is a proven competitive advantage, not just a compliance cost. Furthermore, ten manufacturing sites have achieved zero waste to landfill status, improving operational efficiency and brand image. The elimination of expanded polystyrene foam packaging across multiple segments addresses supply chain waste, a tangible action that resonates with environmentally conscious customers.

HNI Corporation (HNI) - PESTLE Analysis: Political factors

Increased US trade tariffs, like the 50% steel and aluminum tariffs, pressure raw material costs.

You're watching trade policy closely, and you're defintely right to do so. The political landscape around tariffs is directly increasing HNI Corporation's raw material costs. Specifically, the US government increased tariffs on steel and aluminum imports from 25% to 50% ad valorem, effective June 4, 2025. This is a significant doubling of the import tax on core materials for both the Workplace Furnishings and Residential Building Products segments. This action, taken under Section 232 of the Trade Expansion Act of 1962, is designed to protect domestic industries but it immediately pushes up the cost of goods sold for companies like HNI.

Here's the quick math: A 25% tariff on a $1 million shipment becomes a $500,000 cost at the 50% rate. HNI has been proactive, stating their plan is to fully offset the majority of any tariff-driven inflationary pressures, often by applying surcharges to customers. Still, this political action created a temporary $3-$4 million tariff drag on earnings per share (EPS) in the first quarter of 2025, though the company expects to recoup this over the balance of the year.

Tariff-related pricing actions are expected to impact Q4 2025 net sales growth in both segments.

The political pressure from tariffs forces a pricing action response, and that always affects sales dynamics. While HNI implements price increases to offset the higher material costs, the overall net sales outlook for the fourth quarter of 2025 remains strong, which is a testament to their pricing power and demand. The company expects net sales in both the Workplace Furnishings and Residential Building Products segments to grow at a high single-digit percentage year-over-year in Q4 2025. This forecast includes the impact of tariff-related pricing adjustments and the benefit of an extra week in the quarter.

For context, the company's Q3 2025 consolidated net sales increased 1.7 percent from the prior-year quarter to $683.8 million, with organic net sales up 2.6 percent, driven by these very pricing actions. The management team is confident, projecting a fourth consecutive year of double-digit non-GAAP EPS growth for the full 2025 fiscal year, which shows they are managing the political cost headwind well.

Stronger sales volume comes from state and local government contracts, though these often carry higher discounts.

Government spending is a reliable, if low-margin, source of volume. HNI benefits from stronger sales volume driven by state and local government contracts, especially in the Workplace Furnishings segment. This is a stable political revenue stream, but it comes with a trade-off: these contracts typically carry higher discounts.

This higher discount structure was a direct factor in the financial reporting for the first quarter of 2025. The stronger volume from these government customers was explicitly noted as being dilutive to the segment operating margin, which saw a compression year-over-year on both a GAAP and non-GAAP basis. So, while the political channel provides volume stability, it requires tight cost control to prevent margin erosion.

The pending Steelcase acquisition requires navigating complex US regulatory approval processes.

The single largest political and regulatory hurdle HNI faces right now is the pending acquisition of Steelcase, announced on August 4, 2025. This transaction, valued at approximately $2.2 billion to Steelcase common shareholders, is expected to close by the end of calendar year 2025.

The closing is contingent on several political and regulatory steps. The most critical is the receipt of required regulatory clearances in the US, which involves complex antitrust review due to the combined company's significant market share in the commercial furniture space. This is a high-stakes process that demands substantial management time and legal resources.

The immediate next step in this political-regulatory process is the shareholder election deadline on December 4, 2025, for Steelcase shareholders to choose their form of merger consideration. The filing of the joint proxy statement/prospectus with the SEC on November 5, 2025, confirms the transaction is in the final, complex stages of regulatory and shareholder navigation.

• Announced acquisition date: August 4, 2025.
• Expected closing timeline: By end of calendar year 2025.
• Key political/regulatory condition: Receipt of required regulatory clearances.
• Shareholder election deadline: December 4, 2025.

HNI Corporation (HNI) - PESTLE Analysis: Economic factors

You're looking at HNI Corporation's economic position, and the picture is one of strategic maneuvering to offset macroeconomic headwinds. The core takeaway is that while top-line revenue growth is modest, aggressive cost-saving and acquisition synergies are driving outsized earnings per share (EPS) growth, which is a strong signal of operational health.

Net sales for the third quarter of 2025 reached $683.8 million, a 1.7% year-over-year increase.

HNI Corporation's consolidated net sales for the third quarter of 2025 came in at $683.8 million, which marks a 1.7% increase year-over-year. That's a solid, if not spectacular, growth rate, but the organic net sales-which excludes the impact of acquisitions and divestitures-was stronger at a 2.6% year-over-year increase. This shows that the underlying business, particularly the Workplace Furnishings segment, is holding up despite broader economic uncertainty and the divestiture of HNI India, which reduced sales by $5.6 million in the quarter. The company is managing to push through price increases and see volume growth in key areas.

Here's the quick math on the third quarter's revenue drivers:

Synergy benefits from the Kimball International acquisition and the Mexico facility ramp-up are expected to contribute $0.75 to $0.80 to diluted non-GAAP EPS through 2026.

The real story for investors is the elevated earnings visibility through 2026, driven by operational efficiencies. The integration of Kimball International and the ramp-up of HNI's new Mexico manufacturing facility are delivering significant cost savings, known as synergies. These two initiatives combined are expected to contribute a total of $0.75 to $0.80 to diluted non-GAAP EPS (Earnings Per Share) over the 2025-2026 period. This is a huge lever for profit growth, especially when you consider that the total benefit from these efforts is an estimated $45 million to $50 million impacting the bottom line during that same timeframe.

This focus on operational leverage is what separates strong performers in a slow-growth economy. It's not just about selling more; it's about making every sale more profitable.

• Kimball International synergies alone are now expected to reach $60 million by the end of 2026.
• The Mexico facility ramp-up is projected to contribute an incremental $20 million to $25 million in net savings by the end of 2026.
• The total expected benefit of $70 million to $75 million is more than 20% growth from the 2024 EPS.

Raw material cost inflation, defintely in plastics and petrochemicals, is a constant threat to margins.

While HNI is doing a lot right on cost control, the shadow of raw material cost inflation still looms large. The Workplace Furnishings segment, in particular, saw its operating profit margin partially offset by an unfavorable price-cost dynamic in Q3 2025. The furniture business relies heavily on materials like steel, wood, and, critically, plastics and petrochemicals for components and finishes.

New tariffs on plastic resin imports from China (a 10% tariff) and on petrochemical feedstocks from the Middle East (a 15% tariff) are set to increase costs for U.S. manufacturers. Manufacturers relying on imported raw materials could see cost increases ranging between 12-20%, depending on their supply chain adjustments. HNI's ability to maintain margins will depend on its pricing power and its success in sourcing from tariff-free regions or increasing the use of recycled materials.

Residential Building Products' remodel-retrofit orders are outpacing new construction orders in 2025, reflecting homeowner investment.

The Residential Building Products segment, which includes hearth products, is showing a clear shift in demand. In Q3 2025, the segment's net sales saw a small 0.1% decrease overall, but that figure hides an important trend: sales in new construction were down, while sales in the remodel-retrofit channel were up. This is a direct reflection of homeowners choosing to invest in their existing properties rather than buying new ones, largely due to higher mortgage rates and decreased housing affordability.

For the first nine months of 2025, the segment's net sales increased by 3.9%, driven by price realization and higher volume in that remodel-retrofit channel. This trend is likely to persist as an aging housing stock supports increased remodeling activity, and it's a high-margin, high-return business for HNI.

HNI Corporation (HNI) - PESTLE Analysis: Social factors

Hybrid work models dominate, driving a shift in office space to collaboration hubs, which changes furniture demand.

The lasting impact of the pandemic is the normalization of the hybrid work model (a mix of in-office and remote work), which fundamentally alters the demand for traditional office furniture. This isn't just about buying fewer desks; it's a shift from individual workstations to collaborative spaces-think more lounge seating, modular systems, and tech-integrated conference furniture. The Commercial Office Furniture Market, which HNI Corporation operates in, is projected to grow from $75 billion in 2024 to an estimated $110 billion by 2033, reflecting a compound annual growth rate (CAGR) of 5.2% during the 2026-2033 period, largely fueled by this workplace modernization. [cite: 10 from previous search]

HNI's strategic focus on brands like Allsteel and Gunlocke, which offer versatile, human-centric designs, directly addresses the need for 'collaboration hubs' and adaptable workspaces. This is a critical pivot. If you're not selling flexible, easily reconfigurable product lines, you're defintely missing the market's biggest opportunity.

Growing consumer preference for sustainable and ergonomic home-office furniture is a key market driver.

The social demand for health, well-being, and environmental responsibility (ESG) is no longer a niche trend; it's a core purchasing criterion for both corporate and home-office buyers. The global ergonomic office chair market alone is expected to reach approximately $23.71 billion by 2034, growing at a CAGR of 5.40% from 2025. [cite: 17 from previous search] HNI is actively capitalizing on this through its Corporate Responsibility (CR) initiatives, which are seen as a competitive advantage.

Here's the quick math on HNI's commitment to this trend:

• Material Transparency: Significant progress toward evaluating 100% of materials and chemical substances in products for human and environmental health. [cite: 8 from previous search]
• Waste Reduction: Ten manufacturing sites achieved zero waste to landfill as of the April 2025 CR Report. [cite: 8 from previous search]
• Recognition: Ranked No. 36 on Newsweek's 2025 list of America's Most Responsible Companies. [cite: 7 from previous search]

The acquisition of Kimball International, a company well-known for its sustainable and ergonomic designs, further strengthens HNI's portfolio in this high-growth area. [cite: 16 from previous search]

The company's community investment, including a $1 million donation to the Muscatine Mulberry Health Clinic, helps local stakeholder relations.

Strong community relations are vital for talent acquisition and maintaining a social license to operate, especially in a company's headquarters region. HNI Corporation demonstrates this commitment through its charitable foundation. The $1 million donation to the Muscatine Mulberry Health Clinic Project in Iowa, where HNI is headquartered, is a concrete example of this investment. [cite: 2, 6 from previous search]

This donation was part of a broader commitment to local communities. The clinic itself is a $20 million, three-floor facility that became fully operational in January 2025, significantly improving healthcare access in a rural area. [cite: 19, 20 from previous search] Overall, HNI's 2025 Corporate Responsibility Report highlighted total community investments of $1.5 million, which also included a $500,000 pledge to the Regional Wellness Center in Jasper, Indiana. [cite: 3, 8 from previous search] This kind of local, tangible support builds deep, long-term goodwill.

Workplace Furnishings orders from small-to-medium-sized businesses are slower than large contract customers.

In the Workplace Furnishings segment, HNI serves two primary customer channels: the Small-to-Medium-Sized Business (SMB) market, primarily through its HON brand, and the large Contract market, through brands like Allsteel and Gunlocke. Historically, the SMB market can be more volatile due to its sensitivity to short-term economic sentiment. However, HNI's Q3 2025 results show a more balanced picture than the premise suggests.

For the third quarter ended September 27, 2025, HNI reported that its brands focused on SMBs and its Contract brands delivered similar organic growth rates. This indicates that the SMB segment is holding up well, which is important because more than half of HNI's North American Workplace Furnishings revenue comes from this segment. [cite: 9 from previous search] The overall Workplace Furnishings segment organic net sales increased 3% year-over-year in Q3 2025.

The table below summarizes the key financial dynamics for the Workplace Furnishings segment as of Q3 2025, showing the segment's reliance on the SMB channel and its current performance:

The challenge remains that while current growth rates are similar, the SMB segment's lack of large, multi-year contracts makes its order flow inherently less predictable than the Contract channel. You must watch those SMB order rates month-to-month.

HNI Corporation (HNI) - PESTLE Analysis: Technological factors

You need to see HNI Corporation's technology strategy not as a separate IT cost center, but as a core driver of manufacturing efficiency and premium product margin. The numbers from 2025 show that technology integration-from the factory floor to the customer's digital shopping cart-is directly translating into bottom-line earnings per share (EPS) growth. It's a clear map from capital expenditure to profit.

Honestly, the biggest technological opportunity is the integration of physical and digital channels, but the near-term risk is underestimating the investment needed to maintain the new, higher operating margins established this year.

Significant savings are being realized through improved net productivity and profit transformation initiatives.

HNI's focus on 'profit transformation initiatives' is essentially a technology-enabled push for superior operational efficiency (net productivity). You can see the impact directly in the company's 2025 margins. The non-GAAP operating margin in Q3 2025 reached an all-time high for the third quarter at 10.8%, driven by these initiatives and core productivity gains. For the Workplace Furnishings segment, the non-GAAP operating profit margin expanded by 120 basis points (1.2%) in Q2 2025, a clear sign that technology-driven process improvements are working.

Here's the quick math on the expected earnings benefit from these large-scale efficiency projects:

This visible earnings growth is why the Corporation is projecting double-digit EPS growth for the full year 2025.

Continued investment in the Mexico facility ramp-up enhances manufacturing efficiency and supply chain resilience.

The new Mexico facility is a strategic technological investment in supply chain resilience (nearshoring) and manufacturing efficiency. The plant is specifically designed to lower costs and mitigate tariff risks, which is a massive operational advantage in the current geopolitical climate. This ramp-up is a core part of the combined initiative that is expected to contribute up to $0.80 in incremental non-GAAP EPS through 2026. Capital expenditures in Q1 2025 rose to $16.3 million, reflecting the necessary reinvestment in facilities and technology to support this kind of large-scale, modern manufacturing infrastructure.

This is defintely a long-term technology bet on a more flexible and cost-effective North American supply chain.

The push for e-commerce growth is a critical channel for reaching the expanding home-office customer base.

The shift to hybrid work has made the home office furniture market a structural growth area, and e-commerce is the dominant distribution channel. The global home office furniture market is estimated to be $38.40 billion in 2025, with the online distribution channel capturing 42.47% of the market share in 2024. HNI sells its products through e-commerce retailers, and its Workplace Furnishings segment is positioned to serve the full spectrum of work environments, including the home office.

The technological imperative here is twofold:

• Digital Shelf Optimization: Ensure product data and imagery meet the high standards of major e-commerce retailers.
• Direct-to-Consumer (DTC) Capabilities: While HNI uses e-commerce retailers, the broader DTC sales model is projected to expand at a 14.75% Compound Annual Growth Rate (CAGR) through 2030, a clear signal for future investment.

What this estimate hides is the intense competition from smaller, design-focused challengers who scale rapidly through pure direct-to-consumer models.

Integrating technology into furniture design, like ergonomic features, is essential for premium product differentiation.

In the high-end office furniture market, technology is the product differentiator, not just a manufacturing tool. HNI's brand portfolio, including Allsteel, focuses on innovative office furniture designs that incorporate advanced technologies and materials. The industry-wide push for ergonomic solutions is driving demand, with the seating segment holding around 35.3% of the home office market share in 2024.

HNI uses technology to ensure quality and user health, not just in the final product but also on the factory floor, having implemented a software system for Industrial Ergonomics to standardize its process across multiple locations. This focus is critical because the US Home Office Furniture Market, projected to reach $14.77 billion by 2025, is seeing growth fueled by a greater awareness of ergonomic well-being. Investing in research and development to explore new technologies, materials, and design concepts is how HNI stays competitive.

HNI Corporation (HNI) - PESTLE Analysis: Legal factors

Shareholder Lawsuit on the Steelcase Merger

The most immediate legal risk for HNI Corporation centers on its pending acquisition of Steelcase Inc., which is an approximately $2.2 billion deal. On November 18, 2025, a purported shareholder of Steelcase filed a lawsuit, known as the Michigan Action, against Steelcase, its board of directors, and HNI.

This lawsuit asserts claims for breach of fiduciary duties and a violation of Michigan's Uniform Securities Act against HNI, specifically alleging that the transaction undervalues Steelcase. The plaintiff seeks an injunction to prevent the shareholder vote, which is scheduled for December 5, 2025, until supplemental disclosures are issued. The combined entity is projected to have pro forma annual revenue of approximately $5.8 billion, so any delay or required change in terms could significantly impact the financial and strategic benefits of the merger.

Compliance with Chemical Transparency Standards

The pressure for chemical transparency is no longer just a trend; it's a competitive requirement, particularly in the commercial furnishings market. HNI has responded by advancing its chemical transparency efforts, including the publication of Health Product Declarations (HPDs) and Declare labels.

This proactive stance is crucial for securing contracts with institutional and government clients who mandate these certifications for green building projects (like LEED). Honestly, without HPDs, you're locked out of a huge part of the commercial market. The company reported in April 2025 that it is making significant progress toward evaluating 100% of materials and chemical substances in products for human and environmental health.

Operating Across Multiple Countries and Jurisdictional Risk

Operating in the US, Canada, Mexico, Singapore, and China exposes HNI to a complex web of varied labor, tax, and trade laws. The most significant near-term legal-financial risk is the volatility in cross-border trade policy. For instance, in February 2025, new US tariffs (IEEPA Duties) were imposed on goods from key manufacturing partners:

• Canada: Additional duties of up to 25%.
• Mexico: Additional duties of up to 25%.
• China: Additional duties of 10%.

This trade action, which took effect on February 4, 2025, directly increases the cost of goods imported from these manufacturing hubs, requiring immediate supply chain and pricing adjustments. Plus, HNI must adhere to the California Transparency in Supply Chains Act, which requires disclosures about efforts to eradicate forced labor in its global supply chain, a critical consideration for its operations in China.

New Product Safety and Material Sourcing Regulations (PFAS)

The regulatory landscape for per- and polyfluoroalkyl substances (PFAS), often called 'forever chemicals,' is tightening fast, especially in the US. HNI is taking steps to identify and eliminate PFAS from its products, which is defintely a smart move to stay ahead of the law. Here's the quick math on the compliance timeline:

The Colorado and Minnesota bans directly impact the materials used in HNI's core furniture products, particularly fabrics and upholstery, forcing a rapid, costly material substitution across the entire product line to maintain market access. This is a clear, near-term operational constraint.

HNI Corporation (HNI) - PESTLE Analysis: Environmental factors

You're looking for a clear read on HNI Corporation's environmental risk and opportunity profile, and the data shows a company that has moved past rhetoric into measurable, significant action. The biggest takeaway here is that HNI Corporation is dramatically de-risking its operations from a climate and waste perspective, which is a material advantage over peers still figuring out their environmental, social, and governance (ESG) strategy.

Their progress on carbon emissions and waste diversion is not just good PR; it translates directly into lower long-term operating costs and regulatory insulation. Honestly, their commitment to a 79% absolute reduction in core emissions is a defintely strong signal to the market.

HNI Corporation's Standing as a Responsible Company in 2025

HNI Corporation's commitment to sustainability is now a core part of its brand equity, which matters when major corporate buyers are using ESG criteria in procurement. The company was named to Newsweek's 2025 Most Responsible Companies list, ranking No. 36 overall among the top 600 U.S. companies. That's a strong showing. Plus, they were ranked number three within the highly competitive Retail and Consumer Goods category, marking the sixth consecutive year they've made this list. This recognition is based on quantitative data across over 30 key performance indicators (KPIs), so it's not just a feel-good award; it reflects tangible performance.

Deep Reductions in Greenhouse Gas Emissions

The core of HNI Corporation's climate strategy is its aggressive decarbonization. The firm has achieved a massive 79% reduction in absolute combined Scope 1 (direct) and Scope 2 (indirect from purchased energy) greenhouse gas (GHG) emissions since the 2010 baseline. This goal significantly outpaces many industry peers and demonstrates a real operational shift, not just carbon offsets.

Here's the quick math on their near-term progress: they lowered their Scope 1 and 2 GHG emissions by 29% just since 2022. This is driven by their commitment to source 100% renewable electricity for global operations, aligning with the global RE100 initiative. They are also actively investing in on-site generation, with a planned solar array at their largest Muscatine, Iowa, facility expected to generate over 1,500 MWh annually.

Zero Waste and Packaging Innovation

Waste management is a clear operational priority, moving beyond simple recycling to a circularity model. The company's zero waste to landfill initiative has reached a critical mass, with ten manufacturing sites achieving this status as of the latest report. Two of those sites have even earned the rigorous, third-party TRUE certification (Total Resource Use and Efficiency), which is a key differentiator in the market.

This focus on waste diversion is supported by a clear internal goal: HNI Corporation is aiming for a 95 percent diversion rate at each of its sites, with a target to move all facilities to zero-waste-to-landfill status by 2030. This kind of operational efficiency directly improves their bottom line by reducing disposal costs and enhancing material recovery.

• Eliminated expanded polystyrene foam packaging across Kimball International.
• Eliminated expanded polystyrene foam packaging across Residential Building Products.
• Two zero-waste sites earned third-party TRUE certification.
• Goal to move all facilities to zero-waste-to-landfill status by 2030.

Furthermore, the elimination of expanded polystyrene (EPS) foam packaging across multiple segments, specifically Kimball International and Residential Building Products, is a smart move. This addresses a major supply chain waste issue and proactively mitigates the risk from the growing wave of state and local bans on EPS, like those that took effect in states like California and Oregon in early 2025. It's a clear example of anticipating regulatory and consumer trends.