Steelcase Reports Fourth Quarter and Fiscal 2025 Results
Steelcase (NYSE: SCS) reported strong Q4 and fiscal 2025 results, with Q4 revenue of $788.0 million and net income of $27.6 million ($0.23 per share). Orders grew 9% in Q4, driven by 12% growth in Americas, marking the sixth consecutive quarter of year-over-year growth in this region.
For fiscal 2025, the company achieved revenue of $3.2 billion and net income of $120.7 million ($1.02 per share). Key highlights include: gross margin improvement of 110 basis points, operating income margin reaching 5.0%, and $84 million returned to shareholders.
Looking ahead to fiscal 2026, Steelcase expects Q1 revenue between $760-785 million (4-8% growth) and earnings per share of $0.10-0.14. The company targets mid-single digit organic revenue growth and modest improvement in adjusted operating income margin for fiscal 2026.
Steelcase (NYSE: SCS) ha riportato risultati solidi per il quarto trimestre e per l'anno fiscale 2025, con un fatturato nel Q4 di 788,0 milioni di dollari e un utile netto di 27,6 milioni di dollari (0,23 dollari per azione). Gli ordini sono cresciuti del 9% nel Q4, sostenuti da una crescita del 12% nelle Americhe, segnando il sesto trimestre consecutivo di crescita anno su anno in questa regione.
Per l'anno fiscale 2025, l'azienda ha raggiunto un fatturato di 3,2 miliardi di dollari e un utile netto di 120,7 milioni di dollari (1,02 dollari per azione). Tra i punti salienti ci sono: un miglioramento del margine lordo di 110 punti base, un margine di utile operativo che ha raggiunto il 5,0% e 84 milioni di dollari restituiti agli azionisti.
Guardando al futuro, per l'anno fiscale 2026, Steelcase prevede un fatturato Q1 compreso tra 760 e 785 milioni di dollari (crescita del 4-8%) e utili per azione di 0,10-0,14 dollari. L'azienda punta a una crescita organica del fatturato a medio singolo e a un modesto miglioramento del margine di utile operativo rettificato per l'anno fiscale 2026.
Steelcase (NYSE: SCS) reportó resultados sólidos en el cuarto trimestre y para el año fiscal 2025, con ingresos en el Q4 de 788,0 millones de dólares y una ganancia neta de 27,6 millones de dólares (0,23 dólares por acción). Los pedidos crecieron un 9% en el Q4, impulsados por un crecimiento del 12% en las Américas, marcando el sexto trimestre consecutivo de crecimiento interanual en esta región.
Para el año fiscal 2025, la compañía logró ingresos de 3,2 mil millones de dólares y una ganancia neta de 120,7 millones de dólares (1,02 dólares por acción). Los puntos destacados incluyen: mejora del margen bruto de 110 puntos base, margen de ingresos operativos alcanzando el 5,0%, y 84 millones de dólares devueltos a los accionistas.
De cara al año fiscal 2026, Steelcase espera ingresos del Q1 entre 760 y 785 millones de dólares (crecimiento del 4-8%) y ganancias por acción de 0,10-0,14 dólares. La compañía tiene como objetivo un crecimiento orgánico de ingresos de un solo dígito medio y una mejora modesta en el margen de ingresos operativos ajustados para el año fiscal 2026.
Steelcase (NYSE: SCS)는 2025 회계연도 4분기 및 연간 실적이 강력하다고 보고하며, 4분기 매출은 7억 8,800만 달러, 순이익은 2,760만 달러(주당 0.23달러)로 나타났습니다. 주문은 9% 증가했습니다 4분기 동안, 이는 아메리카 지역에서 12% 성장에 의해 주도되어, 해당 지역에서 6분기 연속으로 전년 대비 성장을 기록했습니다.
2025 회계연도 동안, 회사는 32억 달러의 매출과 1억 2,070만 달러의 순이익(주당 1.02달러)을 달성했습니다. 주요 하이라이트에는 110 베이시스 포인트의 총 마진 개선, 운영 소득 마진 5.0% 도달, 주주에게 8,400만 달러 반환이 포함됩니다.
2026 회계연도를 바라보며, Steelcase는 1분기 매출이 7억 6천만에서 7억 8천5백만 달러 사이 (4-8% 성장)와 주당 0.10-0.14달러의 수익을 예상하고 있습니다. 회사는 2026 회계연도 동안 중간 단일 자릿수의 유기적 매출 성장과 조정된 운영 소득 마진의 완만한 개선을 목표로 하고 있습니다.
Steelcase (NYSE: SCS) a annoncé de solides résultats pour le quatrième trimestre et l'exercice 2025, avec un chiffre d'affaires de 788,0 millions de dollars et un bénéfice net de 27,6 millions de dollars (0,23 dollar par action) pour le Q4. Les commandes ont augmenté de 9% au Q4, soutenues par une croissance de 12% en Amérique, marquant le sixième trimestre consécutif de croissance d'une année sur l'autre dans cette région.
Pour l'exercice 2025, la société a réalisé un chiffre d'affaires de 3,2 milliards de dollars et un bénéfice net de 120,7 millions de dollars (1,02 dollar par action). Les points forts incluent : une amélioration de la marge brute de 110 points de base, une marge de bénéfice d'exploitation atteignant 5,0% et 84 millions de dollars retournés aux actionnaires.
En regardant vers l'exercice 2026, Steelcase prévoit un chiffre d'affaires du Q1 compris entre 760 et 785 millions de dollars (croissance de 4 à 8%) et des bénéfices par action de 0,10 à 0,14 dollar. L'entreprise vise une croissance organique à un chiffre moyen et une amélioration modeste de la marge de bénéfice d'exploitation ajustée pour l'exercice 2026.
Steelcase (NYSE: SCS) hat starke Ergebnisse für das 4. Quartal und das Geschäftsjahr 2025 gemeldet, mit einem Umsatz im 4. Quartal von 788,0 Millionen Dollar und einem Nettogewinn von 27,6 Millionen Dollar (0,23 Dollar pro Aktie). Die Bestellungen wuchsen um 9% im 4. Quartal, angetrieben durch ein Wachstum von 12% in den Amerikas, was das sechste aufeinanderfolgende Quartal mit einem Jahr-zu-Jahr-Wachstum in dieser Region markiert.
Für das Geschäftsjahr 2025 erzielte das Unternehmen Umsätze von 3,2 Milliarden Dollar und einen Nettogewinn von 120,7 Millionen Dollar (1,02 Dollar pro Aktie). Zu den wichtigsten Highlights gehören: eine Verbesserung der Bruttomarge um 110 Basispunkte, eine Erreichung der operativen Gewinnmarge von 5,0% und 84 Millionen Dollar, die an die Aktionäre zurückgegeben wurden.
Für das Geschäftsjahr 2026 erwartet Steelcase Umsätze im 1. Quartal zwischen 760 und 785 Millionen Dollar (Wachstum von 4-8%) und einen Gewinn pro Aktie von 0,10-0,14 Dollar. Das Unternehmen strebt ein organisches Umsatzwachstum im mittleren einstelligen Bereich und eine bescheidene Verbesserung der bereinigten operativen Gewinnmarge für das Geschäftsjahr 2026 an.
- Orders grew 9% in Q4 2025, with 12% growth in Americas
- Gross margin improved 110 basis points in fiscal 2025
- Operating income margin reached 5.0%, up 130 basis points YoY
- Total liquidity strengthened by $73 million
- Backlog increased 11% YoY to $694 million
- International revenue declined 7% in Q4
- Operating income decreased $16.2 million in Q4 compared to prior year
- Higher operating expenses and unfavorable business mix impact
- Weakness in German and UK markets
- Expected $9 million increase in tariff costs for Q1 2026
Insights
Steelcase's Q4 and full-year results demonstrate positive operational momentum, particularly in their largest market. The 9% order growth in Q4 (12% in Americas) signals healthy demand, especially from large corporate and government customers—suggesting workplace investments are increasing as more companies bring employees back to offices.
The financial performance shows encouraging trends with gross margin improvement of 70 basis points in Q4 and 110 basis points for fiscal 2025. Full-year operating income reached 5.0% of revenue, up 130 basis points year-over-year, demonstrating the effectiveness of cost reduction initiatives despite mixed revenue results. The company's $558.3 million liquidity position (up $72.8 million for the year) provides significant financial flexibility.
However, the International segment remains challenging with a 10% organic revenue decline in Q4, driven by weakness in key European markets. Management's comments about potential additional cost reduction measures for International operations indicate ongoing concerns about this segment.
Looking forward, Steelcase's fiscal 2026 guidance of mid-single digit organic revenue growth and margin improvement is reasonable given the strong order backlog (11% higher year-over-year) and six consecutive quarters of order growth in Americas. The projected $9 million in higher tariff costs for Q1 is a notable headwind that bears watching, though pricing actions are expected to offset these increases over time.
Steelcase's results reveal a bifurcated strategic position between regions. The Americas business is clearly executing well with six consecutive quarters of order growth and 12% Q4 order growth across multiple customer segments. This suggests their product portfolio and go-to-market approach are resonating in this region despite a challenging office furniture market.
The International performance demands intervention, as acknowledged by management's consideration of "additional actions to lower our cost structure." The contrasting regional performance indicates potential need for market-specific strategies rather than a one-size-fits-all approach. The weakness in Germany, France, and UK against strength in India and Spain highlights regional economic divergence that requires tailored approaches.
Steelcase's broader strategy appears to be working toward their stated mid-term targets (4-6% revenue growth, 6-7% operating margin). Current operating margin of 5.0% shows progress toward these goals. The company's continued share repurchases (2.1 million shares for $26.5 million) alongside consistent dividends demonstrates balanced capital allocation.
Management's commentary links their growth to workplace return trends, positioning Steelcase to benefit from companies reconfiguring office spaces. Their focus on "innovative solutions" for returning workers aligns with market needs. The business transformation initiative mentioned (driving higher IT costs) suggests ongoing investment in operational infrastructure that could yield future efficiency, though the company should closely monitor return on these investments against International segment challenges.
- Fourth quarter results compared to prior year:
- Orders grew
9% , driven by12% broad-based growth in the Americas - Gross margin improved 70 basis points
- Orders grew
- Fiscal 2025 results:
- Orders grew
4% , driven by6% growth in the Americas compared to prior year - Gross margin improved 110 basis points compared to prior year, including benefits from cost reduction initiatives
- Operating income margin reached
5.0% , an improvement of 130 basis points compared to the prior year - Adjusted earnings per share exceeded company targets
- Returned
$84 million to shareholders - Total liquidity strengthened by
$73 million
- Orders grew
- Company provides financial targets for fiscal 2026 of mid-single digit organic revenue growth and modest adjusted operating margin expansion
GRAND RAPIDS, Mich., March 26, 2025 (GLOBE NEWSWIRE) -- Steelcase Inc. (NYSE: SCS) today reported fourth quarter revenue of
Revenue and order growth (decline) compared to the prior year were as follows:
| Q4 2025 vs. Q4 2024 | ||||||||
| Revenue Growth (Decline) | Revenue Growth (Decline) | Organic Order Growth | ||||||
| Americas | 5 | % | (3) | % | 12 | % | ||
| International | (7) | % | (10) | % | 1 | % | ||
| Steelcase Inc. | 2 | % | (5) | % | 9 | % | ||
Revenue grew 2 percent in the fourth quarter compared to the prior year, with 5 percent growth in the Americas and a 7 percent decline in International. On an organic basis (including adjusting for the impact of an additional week in the current quarter), revenue declined 5 percent, with a 3 percent decline in the Americas and a 10 percent decline in International. The Americas decline was driven by a lower beginning backlog compared to the prior year, the impact of which was offset in part by growth from government and large corporate customers. The International decline was driven by Germany, France, and India (which posted a decline compared to 40 percent growth in the prior year).
Orders (adjusted for currency translation effects and the impact of an additional week in the current quarter) grew 9 percent in the fourth quarter compared to the prior year and included 12 percent growth in the Americas and 1 percent growth in International. The order growth in the Americas reflected growth from large corporate, government, small and midsize businesses and healthcare customers. In International, strong growth in India and Spain was largely offset by weakness in Germany and the UK.
"Our 12 percent order growth in the Americas was broad-based, driven by most of our customer segments, with especially strong growth from our large corporate and government customers," said Sara Armbruster, president and CEO. "This was our sixth consecutive quarter of year-over-year order growth in the Americas, reflecting our continued gains in market share. With more organizations bringing their employees back to the office, we are well positioned to serve their needs with our innovative solutions."
Operating income (loss) and adjusted operating income (loss) were as follows:
| Operating income (loss) | Adjusted operating income (loss) | |||||||||||||
| (Unaudited) | (Unaudited) | |||||||||||||
| Three months ended | Three months ended | |||||||||||||
| February 28, 2025 | February 23, 2024 | February 28, 2025 | February 23, 2024 | |||||||||||
| Americas | $ | 15.8 | $ | 26.8 | $ | 19.2 | $ | 31.3 | ||||||
| International | (6.3 | ) | (1.1 | ) | (4.8 | ) | 3.1 | |||||||
| $ | 9.5 | $ | 25.7 | $ | 14.4 | $ | 34.4 | |||||||
Operating income of
"Our fourth quarter International results did not meet our expectations," said Dave Sylvester, senior vice president and CFO. "Although we continue to win new business and see some signs of increased activity levels from large national and global accounts, we believe our volume levels from small and midsize businesses are being impacted by the challenging geopolitical and weaker macroeconomic environments in many of our global markets. As we aim to minimally achieve breakeven adjusted operating income levels in our International segment in fiscal 2026, while navigating the demand environment, we're considering additional actions to lower our cost structure."
Gross margin of 31.9 percent in the fourth quarter represented an improvement of 70 basis points compared to the prior year, driven by the benefits of cost reduction initiatives in the Americas offset in part by unfavorable shifts in business mix.
Operating expenses of
Other income, net of
The company recorded an income tax benefit of
Fiscal 2025 Results
For fiscal 2025, the company recorded
Revenue was approximately flat in fiscal 2025 compared to the prior year, with a 2 percent increase in the Americas and a 5 percent decrease in International. On an organic basis, fiscal 2025 revenue was approximately flat compared to the prior year, with a 2 percent increase in the Americas and a 7 percent decrease in International. Orders grew 4 percent in fiscal 2025 compared to the prior year, with 6 percent growth in the Americas and a 4 percent decline in International.
Operating income for fiscal 2025 of
“We believe our fiscal 2025 order growth of 6 percent in the Americas (including 12 percent growth in the fourth quarter) is supportive of our mid-term revenue growth targets of 4 to 6 percent,” said Dave Sylvester. “In addition, our fiscal 2025 adjusted operating margin demonstrates continued progress toward our mid-term targets of 6 to 7 percent, even though demand levels improved at a slower pace than expected.”
Total liquidity, which is comprised of cash and cash equivalents, short-term investments and the cash surrender value of company-owned life insurance, aggregated to
During fiscal 2025, the company repurchased 2.1 million shares of its Class A Common Stock under its repurchase authorization for a total cost of
The Board of Directors has declared a quarterly cash dividend of
Outlook
At the end of the fourth quarter, the company’s backlog was approximately
The company expects to report earnings per share of between
The first quarter estimates include:
- gross margin of approximately 33 percent, which includes an assumption of
$9 million of higher tariff costs as compared to the prior year, - projected operating expenses of between
$230 t o$235 million , which includes$4.3 million of amortization of purchased intangible assets, - projected interest expense, net of investment income and other income, net, of approximately
$2 million , and - a projected effective tax rate of approximately 27 percent.
For fiscal 2026, the company is targeting mid-single digit organic revenue growth and modest improvement in its adjusted operating income margin compared to fiscal 2025, assuming a relatively stable macroeconomic environment.
The fiscal 2026 targets reflect the following assumptions and expectations, as compared to fiscal 2025:
- a mid-single digit order growth rate, including continued growth from large corporate customers, and benefits from the strong beginning backlog of customer orders,
- benefits from pricing actions offsetting the impacts of higher tariffs and related inflationary cost increases,
- increased operating expenses, driven primarily by investments for strategic initiatives, and
- projected interest expense, investment income and other income, net, of approximately
$10 million , and - a projected effective tax rate of 27 percent.
“Building on recent order strength and continued earnings expansion over the last two years, we're targeting additional progress toward our mid-term financial targets in fiscal 2026,” said Sara Armbruster. "Our balance sheet remains strong, and as we navigate the near-term uncertainty, we remain focused on executing our strategy and fulfilling our purpose of helping the world work better."
| Business Segment Results | |||||||||||||||||
| (in millions) | |||||||||||||||||
| (Unaudited) | (Unaudited) | ||||||||||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||||||||
| February 28, 2025 | February 23, 2024 | % Change | February 28, 2025 | February 23, 2024 | % Change | ||||||||||||
| Revenue | |||||||||||||||||
| Americas (1) | $ | 608.1 | $ | 581.6 | 5 | % | $ | 2,465.2 | $ | 2,419.8 | 2 | % | |||||
| International (2) | 179.9 | 193.6 | (7 | )% | 700.8 | 739.8 | (5 | )% | |||||||||
| $ | 788.0 | $ | 775.2 | 2 | % | $ | 3,166.0 | $ | 3,159.6 | — | % | ||||||
| Revenue mix | |||||||||||||||||
| Americas | 77.2 % | 75.0 % | 77.9 % | 76.6 % | |||||||||||||
| International | 22.8 % | 25.0 % | 22.1 % | 23.4 % | |||||||||||||
| Operating income (loss) | |||||||||||||||||
| Americas | $ | 15.8 | $ | 26.8 | $ | 182.8 | $ | 143.8 | |||||||||
| International | (6.3) | (1.1) | (24.7) | (26.0) | |||||||||||||
| $ | 9.5 | $ | 25.7 | $ | 158.1 | $ | 117.8 | ||||||||||
| Operating margin | 1.2 % | 3.3 % | 5.0 % | 3.7 % | |||||||||||||
Business Segment Footnotes
- The Americas segment serves customers in the U.S., Canada, the Caribbean Islands and Latin America with a comprehensive portfolio of furniture, architectural, textile and surface imaging products that are marketed to corporate, government, education, healthcare and retail customers primarily through the Steelcase, AMQ, Coalesse, Designtex, HALCON, Orangebox, Smith System and Viccarbe brands.
- The International segment serves customers in EMEA and Asia Pacific with a comprehensive portfolio of furniture and architectural products that are marketed to corporate, government, education, healthcare and retail customers primarily through the Steelcase, Coalesse, Orangebox, Smith System and Viccarbe brands.
| QUARTER OVER QUARTER ORGANIC REVENUE GROWTH (DECLINE) BY SEGMENT | |||||||||||
| Q4 2025 vs. Q4 2024 | |||||||||||
| (Unaudited) | |||||||||||
| Steelcase Inc. | Americas | International | |||||||||
| Q4 2024 revenue | $ | 775.2 | $ | 581.6 | $ | 193.6 | |||||
| Currency translation effects | (8.0 | ) | (1.7 | ) | (6.3 | ) | |||||
| Q4 2024 revenue, adjusted | $ | 767.2 | $ | 579.9 | $ | 187.3 | |||||
| Q4 2025 revenue | $ | 788.0 | $ | 608.1 | $ | 179.9 | |||||
| Impact of additional week | (58.5 | ) | (46.4 | ) | (12.1 | ) | |||||
| Q4 2025 revenue, adjusted | $ | 729.5 | $ | 561.7 | $ | 167.8 | |||||
| Organic growth (decline) $ | $ | (37.7 | ) | $ | (18.2 | ) | $ | (19.5 | ) | ||
| Organic growth (decline) % | (5 | )% | (3 | )% | (10 | )% | |||||
| YEAR OVER YEAR ORGANIC REVENUE GROWTH (DECLINE) BY SEGMENT | |||||||||||
| 2025 vs. 2024 | |||||||||||
| (Unaudited) | |||||||||||
| Steelcase Inc. | Americas | International | |||||||||
| 2024 revenue | $ | 3,159.6 | $ | 2,419.8 | $ | 739.8 | |||||
| Divestiture | (35.2 | ) | (35.2 | ) | — | ||||||
| Currency translation effects | (5.2 | ) | (2.6 | ) | (2.6 | ) | |||||
| 2024 revenue, adjusted | $ | 3,119.2 | $ | 2,382.0 | $ | 737.2 | |||||
| 2025 revenue | $ | 3,166.0 | $ | 2,465.2 | $ | 700.8 | |||||
| Impact of additional week | (58.5 | ) | (46.4 | ) | (12.1 | ) | |||||
| 2025 revenue, adjusted | $ | 3,107.5 | $ | 2,418.8 | $ | 688.7 | |||||
| Organic growth (decline) $ | $ | (11.7 | ) | $ | 36.8 | $ | (48.5 | ) | |||
| Organic growth (decline) % | — | % | 2 | % | (7 | )% | |||||
| ADJUSTED EARNINGS PER SHARE | |||||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||||||
| February 28, 2025 | February 23, 2024 | February 28, 2025 | February 23, 2024 | ||||||||||||
| Diluted earnings per share | $ | 0.23 | $ | 0.18 | $ | 1.02 | $ | 0.68 | |||||||
| Amortization of purchased intangible assets, per share | 0.04 | 0.03 | 0.15 | 0.15 | |||||||||||
| Income tax effect of amortization of purchased intangible assets, per share | (0.01 | ) | (0.01 | ) | (0.04 | ) | (0.04 | ) | |||||||
| Restructuring costs, per share | — | 0.04 | 0.09 | 0.19 | |||||||||||
| Income tax effect of restructuring costs, per share | — | (0.01 | ) | (0.03 | ) | (0.05 | ) | ||||||||
| Gains on the sale of land, net of variable compensation impacts, per share | — | — | (0.23 | ) | (0.01 | ) | |||||||||
| Income tax effect of gains on the sale of land, net of variable compensation impacts, per share | — | — | 0.06 | — | |||||||||||
| Loss on pension plan settlement, per share | — | — | 0.13 | — | |||||||||||
| Income tax effect of loss on pension plan settlement, per share | — | — | (0.03 | ) | — | ||||||||||
| Adjusted earnings per share | $ | 0.26 | $ | 0.23 | $ | 1.12 | $ | 0.92 | |||||||
| ADJUSTED EBITDA | |||||||||||||||||||
| (Unaudited) | |||||||||||||||||||
| Three Months Ended | Trailing Four Quarters Ended | ||||||||||||||||||
| May 24, 2024 | August 23, 2024 | November 22, 2024 | February 28, 2025 | February 28, 2025 | |||||||||||||||
| Net income | $ | 10.9 | $ | 63.1 | $ | 19.1 | $ | 27.6 | $ | 120.7 | |||||||||
| Income tax expense (benefit) | 3.2 | 22.8 | 7.0 | (19.5 | ) | 13.5 | |||||||||||||
| Interest expense | 6.2 | 6.4 | 6.3 | 6.8 | 25.7 | ||||||||||||||
| Depreciation and amortization | 20.2 | 20.0 | 20.0 | 20.6 | 80.8 | ||||||||||||||
| Share-based compensation | 14.5 | 2.9 | 1.5 | 4.6 | 23.5 | ||||||||||||||
| Restructuring costs | 6.3 | 2.2 | 2.0 | 0.3 | 10.8 | ||||||||||||||
| Gains on the sale of land, net of variable compensation impacts | — | (27.9 | ) | — | — | (27.9 | ) | ||||||||||||
| Loss on pension plan settlement | — | — | 15.2 | — | 15.2 | ||||||||||||||
| Adjusted EBITDA | $ | 61.3 | $ | 89.5 | $ | 71.1 | $ | 40.4 | $ | 262.3 | |||||||||
| Revenue | $ | 727.3 | $ | 855.8 | $ | 794.9 | $ | 788.0 | $ | 3,166.0 | |||||||||
| Adjusted EBITDA as a percentage of revenue | 8.4 | % | 10.5 | % | 8.9 | % | 5.1 | % | 8.3 | % | |||||||||
| PROJECTED ORGANIC REVENUE GROWTH | ||||
| Q1 2026 vs. Q1 2025 | ||||
| Steelcase Inc. | ||||
| Q1 2025 revenue | $ | 727.3 | ||
| Currency translation effects | (5.8 | ) | ||
| Q1 2025 revenue, adjusted | $ | 721.5 | ||
| Q1 2026 revenue, projected | $ | 760 - 785 | ||
| Organic growth $ | $ | 39 - 64 | ||
| Organic growth % | 5 - 9 | % | ||
| PROJECTED ADJUSTED EARNINGS PER SHARE | |||||||
| Three Months Ended | |||||||
| May 30, 2025 | May 24, 2024 | ||||||
| Earnings per share | $ | 0.10 - 0.14 | $ | 0.09 | |||
| Amortization of purchased intangible assets, per share | 0.04 | 0.04 | |||||
| Income tax effect of amortization of purchased intangible assets, per share | (0.01 | ) | (0.01 | ) | |||
| Restructuring costs, per share | — | 0.05 | |||||
| Income tax effect of restructuring costs, per share | — | (0.01 | ) | ||||
| Adjusted earnings per share | $ | 0.13 - 0.17 | $ | 0.16 | |||
| Steelcase Inc. | ||||||||||||||||||||||||||||
| (Unaudited) | (Unaudited) | |||||||||||||||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||||||||||
| February 28, 2025 | February 23, 2024 | February 28, 2025 | February 23, 2024 | |||||||||||||||||||||||||
| Revenue | $ | 788.0 | 100.0 | % | $ | 775.2 | 100.0 | % | $ | 3,166.0 | 100.0 | % | $ | 3,159.6 | 100.0 | % | ||||||||||||
| Cost of sales | 536.6 | 68.1 | 531.6 | 68.6 | 2,109.1 | 66.6 | 2,142.8 | 67.9 | ||||||||||||||||||||
| Restructuring costs | 0.1 | — | 1.5 | 0.2 | 10.4 | 0.3 | 4.4 | 0.1 | ||||||||||||||||||||
| Gross profit | 251.3 | 31.9 | 242.1 | 31.2 | 1,046.5 | 33.1 | 1,012.4 | 32.0 | ||||||||||||||||||||
| Operating expenses | 241.6 | 30.7 | 213.5 | 27.5 | 888.0 | 28.1 | 876.5 | 27.7 | ||||||||||||||||||||
| Restructuring costs | 0.2 | — | 2.9 | 0.4 | 0.4 | — | 18.1 | 0.6 | ||||||||||||||||||||
| Operating income | 9.5 | 1.2 | 25.7 | 3.3 | 158.1 | 5.0 | 117.8 | 3.7 | ||||||||||||||||||||
| Interest expense | (6.8 | ) | (0.9 | ) | (6.3 | ) | (0.8 | ) | (25.7 | ) | (0.8 | ) | (25.9 | ) | (0.8 | ) | ||||||||||||
| Investment income | 4.5 | 0.6 | 2.9 | 0.4 | 13.8 | 0.4 | 6.5 | 0.2 | ||||||||||||||||||||
| Other income (expense), net | 0.9 | 0.1 | 4.3 | 0.5 | (12.0 | ) | (0.4 | ) | 8.7 | 0.3 | ||||||||||||||||||
| Income before income tax expense (benefit) | 8.1 | 1.0 | 26.6 | 3.4 | 134.2 | 4.2 | 107.1 | 3.4 | ||||||||||||||||||||
| Income tax expense (benefit) | (19.5 | ) | (2.5 | ) | 5.3 | 0.7 | 13.5 | 0.4 | 26.0 | 0.8 | ||||||||||||||||||
| Net income | $ | 27.6 | 3.5 | % | $ | 21.3 | 2.7 | % | $ | 120.7 | 3.8 | % | $ | 81.1 | 2.6 | % | ||||||||||||
| Operating income | $ | 9.5 | 1.2 | % | $ | 25.7 | 3.3 | % | $ | 158.1 | 5.0 | % | $ | 117.8 | 3.7 | % | ||||||||||||
| Amortization of purchased intangible assets | 4.6 | 0.6 | 4.3 | 0.5 | 17.4 | 0.6 | 17.2 | 0.6 | ||||||||||||||||||||
| Restructuring costs | 0.3 | — | 4.4 | 0.6 | 10.8 | 0.3 | 22.5 | 0.7 | ||||||||||||||||||||
| Gains on the sale of land, net of variable compensation impacts | — | — | — | — | (27.9 | ) | (0.9 | ) | (0.8 | ) | — | |||||||||||||||||
| Adjusted operating income | $ | 14.4 | 1.8 | % | $ | 34.4 | 4.4 | % | $ | 158.4 | 5.0 | % | $ | 156.7 | 5.0 | % | ||||||||||||
| Americas | |||||||||||||||||||||||||
| (Unaudited) | (Unaudited) | ||||||||||||||||||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||||||||||||||||
| February 28, 2025 | February 23, 2024 | February 28, 2025 | February 23, 2024 | ||||||||||||||||||||||
| Revenue | $ | 608.1 | 100.0 | % | $ | 581.6 | 100.0 | % | $ | 2,465.2 | 100.0 | % | $ | 2,419.8 | 100.0 | % | |||||||||
| Cost of sales | 406.4 | 66.8 | 393.6 | 67.7 | 1,608.2 | 65.2 | 1,618.5 | 66.9 | |||||||||||||||||
| Restructuring costs | — | — | 1.2 | 0.2 | 5.8 | 0.3 | 2.2 | 0.1 | |||||||||||||||||
| Gross profit | 201.7 | 33.2 | 186.8 | 32.1 | 851.2 | 34.5 | 799.1 | 33.0 | |||||||||||||||||
| Operating expenses | 185.9 | 30.6 | 159.8 | 27.5 | 668.0 | 27.1 | 654.2 | 27.0 | |||||||||||||||||
| Restructuring costs | — | — | 0.2 | — | 0.4 | — | 1.1 | 0.1 | |||||||||||||||||
| Operating income | 15.8 | 2.6 | 26.8 | 4.6 | 182.8 | 7.4 | 143.8 | 5.9 | |||||||||||||||||
| Amortization of purchased intangible assets | 3.4 | 0.6 | 3.1 | 0.6 | 12.6 | 0.5 | 12.5 | 0.5 | |||||||||||||||||
| Restructuring costs | — | — | 1.4 | 0.2 | 6.2 | 0.3 | 3.3 | 0.2 | |||||||||||||||||
| Gains on the sale of land, net of variable compensation impacts | — | — | — | — | (30.7 | ) | (1.3 | ) | (0.9 | ) | — | ||||||||||||||
| Adjusted operating income | $ | 19.2 | 3.2 | % | $ | 31.3 | 5.4 | % | $ | 170.9 | 6.9 | % | $ | 158.7 | 6.6 | % | |||||||||
| International | |||||||||||||||||||||||||||
| (Unaudited) | (Unaudited) | ||||||||||||||||||||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||||||||||||||||||
| February 28, 2025 | February 23, 2024 | February 28, 2025 | February 23, 2024 | ||||||||||||||||||||||||
| Revenue | $ | 179.9 | 100.0 | % | $ | 193.6 | 100.0 | % | $ | 700.8 | 100.0 | % | $ | 739.8 | 100.0 | % | |||||||||||
| Cost of sales | 130.2 | 72.4 | 138.0 | 71.3 | 500.9 | 71.5 | 524.3 | 70.9 | |||||||||||||||||||
| Restructuring costs | 0.1 | — | 0.3 | 0.1 | 4.6 | 0.6 | 2.2 | 0.3 | |||||||||||||||||||
| Gross profit | 49.6 | 27.6 | 55.3 | 28.6 | 195.3 | 27.9 | 213.3 | 28.8 | |||||||||||||||||||
| Operating expenses | 55.7 | 31.0 | 53.7 | 27.8 | 220.0 | 31.4 | 222.3 | 30.0 | |||||||||||||||||||
| Restructuring costs | 0.2 | 0.1 | 2.7 | 1.4 | — | — | 17.0 | 2.3 | |||||||||||||||||||
| Operating loss | (6.3 | ) | (3.5 | ) | (1.1 | ) | (0.6 | ) | (24.7 | ) | (3.5 | ) | (26.0 | ) | (3.5 | ) | |||||||||||
| Amortization of purchased intangible assets | 1.2 | 0.7 | 1.2 | 0.7 | 4.8 | 0.7 | 4.7 | 0.6 | |||||||||||||||||||
| Restructuring costs | 0.3 | 0.1 | 3.0 | 1.5 | 4.6 | 0.6 | 19.2 | 2.6 | |||||||||||||||||||
| Gains on the sale of land, net of variable compensation impacts | — | — | — | — | 2.8 | 0.4 | 0.1 | — | |||||||||||||||||||
| Adjusted operating income (loss) | $ | (4.8 | ) | (2.7 | )% | $ | 3.1 | 1.6 | % | $ | (12.5 | ) | (1.8 | )% | $ | (2.0 | ) | (0.3 | )% | ||||||||
Webcast
Steelcase will discuss fourth quarter results and business outlook on a conference call at 8:30 a.m. Eastern time tomorrow. Listeners may access the conference call at http://ir.steelcase.com.
Non-GAAP Financial Measures
This earnings release contains certain non-GAAP financial measures. A “non-GAAP financial measure” is defined as a numerical measure of a company’s financial performance that excludes or includes amounts so as to be different than the most directly comparable measure calculated and presented in accordance with GAAP in the condensed consolidated statements of income, balance sheets or statements of cash flows of the company. The non-GAAP financial measures used are (1) organic revenue growth (decline), (2) adjusted operating income (loss), (3) adjusted earnings per share and (4) adjusted EBITDA. The company has provided a reconciliation of each of the non-GAAP financial measures to the most directly comparable GAAP financial measure in the tables above. These measures are supplemental to, and should be used in conjunction with, the most comparable GAAP measures. Management uses these non-GAAP financial measures to monitor and evaluate financial results and trends.
Organic Revenue Growth (Decline)
The company defines organic revenue growth (decline) as revenue growth (decline) excluding the impact of acquisitions and divestitures, foreign currency translation effects and the impact of the additional week in 2025. Organic revenue growth (decline) is calculated by (1) adjusting prior year revenue to include revenues of acquired companies prior to the date of the company's acquisition, to exclude revenues of divested companies and to use current year average exchange rates in the calculation of foreign-denominated revenue and (2) adjusting current year revenue to exclude the estimated revenues associated with the additional week in 2025. The company believes organic revenue growth (decline) is a meaningful metric to investors as it provides a more consistent comparison of the company's revenue to prior periods as well as to industry peers.
Adjusted Operating Income (Loss) and Adjusted Earnings Per Share
The company defines adjusted operating income (loss) as operating income (loss) excluding amortization of purchased intangible assets, restructuring costs (benefits) and gains (losses) on the sale of land, net of variable compensation impacts. The company defines adjusted earnings per share as earnings per share, on a diluted basis, excluding amortization of purchased intangible assets, restructuring costs (benefits), gains (losses) on the sale of land, net of variable compensation impacts, and gains (losses) on pension plan settlements, and the related income tax effects of these items.
Amortization of purchased intangible assets: The company may record intangible assets (such as backlog, dealer relationships, trademarks, know-how and designs and proprietary technology) when it acquires companies. The company allocates the fair value of purchase consideration to net tangible and intangible assets acquired based on their estimated fair values. The fair value estimates for these intangible assets require management to make significant estimates and assumptions, which include the useful lives of intangible assets. The company believes that adjusting for amortization of purchased intangible assets provides a more consistent comparison of its operating performance to prior periods as well as to industry peers.
Restructuring costs (benefits): Restructuring costs (benefits) may be recorded as the company's business strategies change or in response to changing market trends and economic conditions. The company believes that adjusting for restructuring costs (benefits), which are primarily associated with business exit and workforce reduction costs, provides a more consistent comparison of its operating performance to prior periods as well as to industry peers.
Gains (losses) on the sale of land, net of variable compensation impacts: The company may sell land when conditions are favorable. Gains and losses on the sale of land may increase or decrease, respectively, variable compensation expense. The company believes adjusting for these items provides a more consistent comparison of its operating performance to prior periods as well as to industry peers. In Q2 2025, the company began adjusting for these items, as the company realized a significant gain on the sale of land during the quarter which had a significant impact on variable compensation expense, and the company has adjusted the prior periods presented for consistency and comparability.
Gains (losses) on pension plan settlements: The company realizes gains or losses previously reported as unrealized in Accumulated other comprehensive income (loss) in Other income (expense), net, in connection with pension plan settlements when all risks related to the benefit obligations to plan participants and plan assets are transferred. The company believes adjusting for the gains or losses on pension plan settlements provides a more consistent comparison of its operating performance to prior periods as well as to industry peers.
Adjusted EBITDA
The company defines adjusted EBITDA as earnings before interest, taxes, depreciation and amortization ("EBITDA") adjusted to exclude share-based compensation, restructuring costs (benefits), gains (losses) on the sale of land, net of variable compensation impacts, and gains (losses) on pension plan settlements. The company believes adjusted EBITDA provides investors with useful information regarding the operating profitability of the company as well as a useful comparison to other companies. EBITDA is a measurement commonly used in capital markets to value companies and is used by the company's lenders and rating agencies to evaluate its performance. The company adjusts EBITDA for share-based compensation as it represents a significant non-cash item which impacts its earnings. The company also adjusts EBITDA for restructuring costs, gains (losses) on the sale of land, net of variable compensation impacts, and gains (losses) on pension plan settlements to provide a more consistent comparison of its earnings to prior periods as well as to industry peers.
Forward-looking Statements
From time to time, in written and oral statements, the company discusses its expectations regarding future events and its plans and objectives for future operations. These forward-looking statements discuss goals, intentions and expectations as to future trends, plans, events, results of operations or financial condition, or state other information relating to the company, based on current beliefs of management as well as assumptions made by, and information currently available to, the company. Forward-looking statements generally are accompanied by words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “forecast,” “intend,” “may,” “possible,” “potential,” “predict,” “project," "target” or other similar words, phrases or expressions. Although the company believes these forward-looking statements are reasonable, they are based upon a number of assumptions concerning future conditions, any or all of which may ultimately prove to be inaccurate. Forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements and vary from the company's expectations because of factors such as, but not limited to, competitive and general economic conditions domestically and internationally; acts of terrorism, war, governmental action, natural disasters, pandemics and other Force Majeure events; cyberattacks; changes in the legal and regulatory environment; changes in raw material, commodity and other input costs; currency fluctuations; changes in customer demand; and the other risks and contingencies detailed in the company's most recent Annual Report on Form 10-K and its other filings with the Securities and Exchange Commission. Steelcase undertakes no obligation to update, amend, or clarify forward-looking statements, whether as a result of new information, future events, or otherwise.
About Steelcase Inc.
Steelcase (NYSE: SCS) is a global design and thought leader in the world of work. Our purpose is to help the world work better. Along with more than 30 creative and technology partner brands, we research, design and manufacture furnishings and solutions for many of the places where work happens — including offices, homes, and learning and health environments. Together with our 11,300 employees, we’re working toward better futures for the wellbeing of people and the planet. Our solutions come to life through our global community of expert Steelcase dealers in approximately 790 locations, store.steelcase.com and other retail partners. For more information, visit Steelcase.com.
| STEELCASE INC. | |||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) | |||||||||||||||
| (in millions, except per share data) | |||||||||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||||||
| February 28, 2025 | February 23, 2024 | February 28, 2025 | February 23, 2024 | ||||||||||||
| Revenue | $ | 788.0 | $ | 775.2 | $ | 3,166.0 | $ | 3,159.6 | |||||||
| Cost of sales | 536.6 | 531.6 | 2,109.1 | 2,142.8 | |||||||||||
| Restructuring costs | 0.1 | 1.5 | 10.4 | 4.4 | |||||||||||
| Gross profit | 251.3 | 242.1 | 1,046.5 | 1,012.4 | |||||||||||
| Operating expenses | 241.6 | 213.5 | 888.0 | 876.5 | |||||||||||
| Restructuring costs | 0.2 | 2.9 | 0.4 | 18.1 | |||||||||||
| Operating income | 9.5 | 25.7 | 158.1 | 117.8 | |||||||||||
| Interest expense | (6.8 | ) | (6.3 | ) | (25.7 | ) | (25.9 | ) | |||||||
| Investment income | 4.5 | 2.9 | 13.8 | 6.5 | |||||||||||
| Other income (expense), net | 0.9 | 4.3 | (12.0 | ) | 8.7 | ||||||||||
| Income before income tax expense (benefit) | 8.1 | 26.6 | 134.2 | 107.1 | |||||||||||
| Income tax expense (benefit) | (19.5 | ) | 5.3 | 13.5 | 26.0 | ||||||||||
| Net income | $ | 27.6 | $ | 21.3 | $ | 120.7 | $ | 81.1 | |||||||
| Earnings per share: | |||||||||||||||
| Basic | $ | 0.23 | $ | 0.18 | $ | 1.02 | $ | 0.68 | |||||||
| Diluted | $ | 0.23 | $ | 0.18 | $ | 1.02 | $ | 0.68 | |||||||
| Weighted average shares outstanding - basic | 117.6 | 118.9 | 117.9 | 118.6 | |||||||||||
| Weighted average shares outstanding - diluted | 118.8 | 120.1 | 118.9 | 119.1 | |||||||||||
| Dividends declared and paid per common share | $ | 0.100 | $ | 0.100 | $ | 0.400 | $ | 0.400 | |||||||
| STEELCASE INC. | |||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
| (in millions) | |||||||
| (Unaudited) | |||||||
| February 28, 2025 | February 23, 2024 | ||||||
| ASSETS | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 346.3 | $ | 318.6 | |||
| Short-term investments | 41.6 | — | |||||
| Accounts receivable, net of allowance of | 323.1 | 338.3 | |||||
| Inventories, net | 245.7 | 231.0 | |||||
| Prepaid expenses | 37.5 | 31.9 | |||||
| Other current assets | 34.8 | 39.6 | |||||
| Total current assets | 1,029.0 | 959.4 | |||||
| Property, plant and equipment, net of accumulated depreciation of | 328.1 | 352.9 | |||||
| Company-owned life insurance ("COLI") | 170.4 | 166.9 | |||||
| Deferred income taxes | 166.8 | 115.8 | |||||
| Goodwill | 273.5 | 274.8 | |||||
| Other intangible assets, net of accumulated amortization of | 77.0 | 94.6 | |||||
| Investments in unconsolidated affiliates | 53.3 | 55.7 | |||||
| Right-of-use operating lease assets | 141.2 | 168.6 | |||||
| Other assets | 91.1 | 48.0 | |||||
| Total assets | $ | 2,330.4 | $ | 2,236.7 | |||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 228.2 | $ | 211.3 | |||
| Current operating lease obligations | 39.7 | 45.1 | |||||
| Employee compensation | 187.3 | 166.1 | |||||
| Employee benefit plan obligations | 49.7 | 39.9 | |||||
| Accrued promotions | 23.5 | 19.4 | |||||
| Customer deposits | 43.0 | 44.8 | |||||
| Other current liabilities | 97.7 | 80.5 | |||||
| Total current liabilities | 669.1 | 607.1 | |||||
| Long-term liabilities: | |||||||
| Long-term debt | 447.1 | 446.3 | |||||
| Employee benefit plan obligations | 100.7 | 104.5 | |||||
| Long-term operating lease obligations | 113.9 | 138.6 | |||||
| Other long-term liabilities | 47.9 | 53.1 | |||||
| Total long-term liabilities | 709.6 | 742.5 | |||||
| Total liabilities | 1,378.7 | 1,349.6 | |||||
| Shareholders’ equity: | |||||||
| Additional paid-in capital | 29.3 | 41.2 | |||||
| Accumulated other comprehensive income (loss) | (63.5 | ) | (66.9 | ) | |||
| Retained earnings | 985.9 | 912.8 | |||||
| Total shareholders’ equity | 951.7 | 887.1 | |||||
| Total liabilities and shareholders’ equity | $ | 2,330.4 | $ | 2,236.7 | |||
| STEELCASE INC. | |||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) | |||||||
| (in millions) | |||||||
| Twelve Months Ended | |||||||
| February 28, 2025 | February 23, 2024 | ||||||
| OPERATING ACTIVITIES | |||||||
| Net income | $ | 120.7 | $ | 81.1 | |||
| Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||||||
| Depreciation and amortization | 80.8 | 83.6 | |||||
| Restructuring costs | 10.8 | 22.5 | |||||
| Gains on sales of fixed assets, net | (41.0 | ) | (10.9 | ) | |||
| Deferred income taxes | (56.7 | ) | 2.1 | ||||
| Share-based compensation | 24.5 | 26.0 | |||||
| Other | 11.2 | (17.1 | ) | ||||
| Changes in operating assets and liabilities, net of acquisitions and divestitures | |||||||
| Accounts receivable | 11.8 | 21.7 | |||||
| Inventories | (16.3 | ) | 88.3 | ||||
| Cloud computing arrangements expenditures | (46.3 | ) | (7.9 | ) | |||
| Income taxes receivable | 3.7 | (6.2 | ) | ||||
| Other assets | (5.2 | ) | 0.4 | ||||
| Accounts payable | 17.1 | 9.9 | |||||
| Employee compensation liabilities | 16.6 | 31.1 | |||||
| Income taxes payable | 19.6 | (2.3 | ) | ||||
| Customer deposits | (1.4 | ) | (4.1 | ) | |||
| Accrued expenses and other liabilities | (1.4 | ) | (9.5 | ) | |||
| Net cash provided by operating activities | 148.5 | 308.7 | |||||
| INVESTING ACTIVITIES | |||||||
| Capital expenditures | (47.1 | ) | (47.1 | ) | |||
| Proceeds from disposal of fixed assets | 44.4 | 49.4 | |||||
| Purchases of short-term investments | (48.4 | ) | — | ||||
| Liquidations of short-term investments | 7.5 | — | |||||
| Other | 8.8 | 3.8 | |||||
| Net cash provided by (used in) investing activities | (34.8 | ) | 6.1 | ||||
| FINANCING ACTIVITIES | |||||||
| Dividends paid | (47.6 | ) | (47.6 | ) | |||
| Common stock repurchases | (36.4 | ) | (4.2 | ) | |||
| Borrowings on global committed bank facility | — | 69.0 | |||||
| Repayments on global committed bank facility | — | (69.0 | ) | ||||
| Repayments on note payable | — | (32.2 | ) | ||||
| Other | — | (1.9 | ) | ||||
| Net cash used in financing activities | (84.0 | ) | (85.9 | ) | |||
| Effect of exchange rate changes on cash and cash equivalents | (1.8 | ) | (0.2 | ) | |||
| Net increase in cash, cash equivalents and restricted cash | 27.9 | 228.7 | |||||
| Cash and cash equivalents and restricted cash, beginning of period (1) | 325.9 | 97.2 | |||||
| Cash and cash equivalents and restricted cash, end of period (2) | $ | 353.8 | $ | 325.9 | |||
| (1) These amounts include restricted cash of | |||||||
| (2) These amounts include restricted cash of | |||||||
| Restricted cash primarily represents funds held in escrow for potential future workers’ compensation and product liability claims. The restricted cash balance is included as part of Other assets on the Condensed Consolidated Balance Sheets. | |||||||
| CONTACT: | Investor Contact: |
| Mike O'Meara | |
| Investor Relations | |
| ir@steelcase.com | |
| Media Contact: | |
| Brodie Bertrand | |
| Corporate Communications | |
| communications@steelcase.com | |
| Source: Steelcase | |
| SC-ERR |
FAQ
What was Steelcase's (SCS) Q4 2025 order growth rate and what drove it?
How much revenue and earnings per share did SCS report for fiscal 2025?
What are Steelcase's (SCS) financial targets for Q1 fiscal 2026?
How much did Steelcase (SCS) return to shareholders in fiscal 2025?
What is SCS's backlog at the end of Q4 2025?
