Steelcase Reports Second Quarter Fiscal 2025 Results
Steelcase (NYSE: SCS) reported its Q2 FY2025 results with revenue at $855.8 million, up slightly from $854.6 million last year. Net income rose to $63.1 million ($0.53 per share) from $27.5 million ($0.23 per share). Adjusted EPS increased to $0.39 from $0.31. The company's gross margin improved by 130 basis points to 34.5%.
Sequentially, operating income increased by $49 million, adjusted operating income by $15 million, and total liquidity strengthened by $193 million. The Americas saw 3% order growth, while international orders declined by 11% due to weakness in China.
For Q3, Steelcase projects a 1-4% revenue growth and EPS between $0.18 and $0.22. The fiscal 2025 target for adjusted EPS remains $0.85 to $1.00. The company declared a dividend of $0.10 per share, payable on October 15, 2024.
Steelcase (NYSE: SCS) ha riportato i risultati del secondo trimestre dell'anno fiscale 2025 con un fatturato di 855,8 milioni di dollari, in lieve aumento rispetto ai 854,6 milioni dell'anno scorso. L'utile netto è salito a 63,1 milioni di dollari (0,53 dollari per azione) rispetto ai 27,5 milioni di dollari (0,23 dollari per azione). L'EPS rettificato è aumentato a 0,39 dollari rispetto a 0,31 dollari. Il margine lordo dell'azienda è migliorato di 130 punti base, raggiungendo il 34,5%.
In termini sequenziali, l'utile operativo è aumentato di 49 milioni di dollari, l'utile operativo rettificato di 15 milioni di dollari e la liquidità totale è aumentata di 193 milioni di dollari. Le Americhe hanno registrato una crescita degli ordini del 3%, mentre gli ordini internazionali sono diminuiti dell'11% a causa della debolezza in Cina.
Per il terzo trimestre, Steelcase prevede una crescita dei ricavi tra l'1% e il 4% e un EPS compreso tra 0,18 e 0,22 dollari. L'obiettivo per l'anno fiscale 2025 per l'EPS rettificato rimane tra 0,85 e 1,00 dollari. L'azienda ha dichiarato un dividendo di 0,10 dollari per azione, pagabile il 15 ottobre 2024.
Steelcase (NYSE: SCS) reportó sus resultados del segundo trimestre del año fiscal 2025, con ingresos de 855,8 millones de dólares, un ligero aumento con respecto a los 854,6 millones del año pasado. El ingreso neto aumentó a 63,1 millones de dólares (0,53 dólares por acción) desde 27,5 millones de dólares (0,23 dólares por acción). El EPS ajustado creció a 0,39 dólares desde 0,31 dólares. El margen bruto de la compañía mejoró en 130 puntos básicos, alcanzando el 34,5%.
Secuencialmente, el ingreso operativo aumentó en 49 millones de dólares, el ingreso operativo ajustado en 15 millones de dólares, y la liquidez total se fortaleció en 193 millones de dólares. Las Américas vieron un crecimiento del 3% en pedidos, mientras que los pedidos internacionales cayeron un 11% debido a la debilidad en China.
Para el tercer trimestre, Steelcase proyecta un crecimiento del 1% al 4% en ingresos y un EPS entre 0,18 y 0,22 dólares. El objetivo para el EPS ajustado del año fiscal 2025 sigue siendo de 0,85 a 1,00 dólares. La compañía declaró un dividendo de 0,10 dólares por acción, pagadero el 15 de octubre de 2024.
스틸케이스(Steelcase) (NYSE: SCS)는 2025 회계연도 2분기 실적을 발표했으며, 매출은 8억 5,580만 달러로 작년 8억 5,460만 달러에서 소폭 증가했습니다. 순이익은 6,310만 달러(주당 0.53 달러)로 2,750만 달러(주당 0.23 달러)에서 증가했습니다. 조정 EPS는 0.39 달러로 0.31 달러에서 증가했습니다. 회사의 총 매출 총이익률은 130bp 개선되어 34.5%에 도달했습니다.
순차적으로 운영 수익은 4,900만 달러 증가하였고, 조정 운영 수익은 1,500만 달러 증가했으며, 총 유동성은 1억 9,300만 달러 강화되었습니다. 미국에서는 3%의 주문 성장이 있었지만, 중국의 부진으로 국제 주문은 11% 감소하였습니다.
3분기 위해 스틸케이스는 1-4%의 매출 성장을 예상하며, EPS는 0.18 달러에서 0.22 달러 사이일 것으로 보입니다. 회계 연도 2025의 조정 EPS 목표는 0.85에서 1.00 달러 사이입니다. 회사는 주당 0.10 달러의 배당금을 선언했으며, 이는 2024년 10월 15일에 지급될 예정입니다.
Steelcase (NYSE: SCS) a annoncé ses résultats pour le deuxième trimestre de l'exercice 2025, avec des revenus de 855,8 millions de dollars, en légère augmentation par rapport à 854,6 millions de dollars l'année dernière. Le bénéfice net a augmenté à 63,1 millions de dollars (0,53 dollar par action) contre 27,5 millions de dollars (0,23 dollar par action). Le BPA ajusté a augmenté à 0,39 dollar contre 0,31 dollar. La marge brute de l'entreprise s'est améliorée de 130 points de base, atteignant 34,5 %.
De manière séquentielle, le résultat d'exploitation a augmenté de 49 millions de dollars, le résultat d'exploitation ajusté de 15 millions de dollars et la liquidité totale a été renforcée de 193 millions de dollars. En Amérique, la croissance des commandes a été de 3 %, tandis que les commandes internationales ont diminué de 11 % en raison de la faiblesse en Chine.
Pour le 3e trimestre, Steelcase prévoit une croissance des revenus de 1 à 4 % et un BPA compris entre 0,18 et 0,22 dollar. L'objectif pour le BPA ajusté pour l'exercice 2025 reste entre 0,85 et 1,00 dollar. L'entreprise a déclaré un dividende de 0,10 dollar par action, payable le 15 octobre 2024.
Steelcase (NYSE: SCS) berichtete seine Ergebnisse für das 2. Quartal des Geschäftsjahres 2025 mit einem Umsatz von 855,8 Millionen Dollar, der leicht von 854,6 Millionen Dollar im Vorjahr gestiegen ist. Der Nettogewinn stieg auf 63,1 Millionen Dollar (0,53 Dollar pro Aktie) von 27,5 Millionen Dollar (0,23 Dollar pro Aktie). Der bereinigte Gewinn pro Aktie (EPS) erhöhte sich auf 0,39 Dollar von 0,31 Dollar. Die Bruttomarge des Unternehmens verbesserte sich um 130 Basispunkte auf 34,5%.
Im Vergleich zum Vorquartal erhöhte sich das Betriebsergebnis um 49 Millionen Dollar, das bereinigte Betriebsergebnis um 15 Millionen Dollar und die Liquidität insgesamt um 193 Millionen Dollar. In den USA gab es ein Bestellwachstum von 3%, während die internationalen Bestellungen um 11% zurückgingen aufgrund der Schwäche in China.
Für das 3. Quartal prognostiziert Steelcase ein Umsatzwachstum von 1-4% und einen EPS zwischen 0,18 und 0,22 Dollar. Das Ziel für das bereinigte EPS für das Geschäftsjahr 2025 bleibt bei 0,85 bis 1,00 Dollar. Das Unternehmen erklärte eine Dividende von 0,10 Dollar pro Aktie, zahlbar am 15. Oktober 2024.
- Net income increased to $63.1 million from $27.5 million.
- Adjusted EPS rose to $0.39 from $0.31.
- Gross margin improved by 130 basis points to 34.5%.
- Operating income increased by $49 million.
- Adjusted operating income rose by $15 million.
- Liquidity strengthened by $193 million.
- Americas order growth of 3%.
- Q3 revenue forecasted to grow by 1-4%.
- International orders declined by 11%.
- EPS forecast for Q3 is lower than last year's $0.26.
- Strong results compared to prior year including:
- Operating income increased
$49 million - Adjusted operating income increased
$15 million - Gross margin improved 130 basis points
- Total liquidity strengthened by
$193 million
- Operating income increased
- Americas posted order growth of
3% compared to prior year - Third quarter outlook projects 1 to
4% revenue growth compared to prior year
GRAND RAPIDS, Mich., Sept. 18, 2024 (GLOBE NEWSWIRE) -- Steelcase Inc. (NYSE: SCS) today reported second quarter revenue of
Revenue and order growth (decline) compared to the prior year were as follows:
| Q2 2025 vs. Q2 2024 | ||||||||
| Revenue Growth (Decline) | Organic Revenue Growth (Decline) | Organic Order Growth (Decline) | ||||||
| Americas | 1 | % | 3 | % | 3 | % | ||
| International | (4 | )% | (4 | )% | (11 | )% | ||
| Steelcase Inc. | - | % | 2 | % | (1 | )% | ||
Revenue was approximately flat in the second quarter compared to the prior year, with a 1 percent increase in the Americas and a 4 percent decrease in International. On an organic basis, revenue grew 2 percent, with 3 percent growth in the Americas and a 4 percent decline in International. The Americas growth was driven by higher volume from large corporate, education, and government customers, while the International decline was primarily driven by continued weakness in China.
Orders (adjusted for the impact of a divestiture and currency translation effects) declined modestly in the second quarter compared to the prior year, including 3 percent growth in the Americas and an 11 percent decline in International. The order growth in the Americas was primarily driven by government, education, and healthcare customers, while orders from large corporate customers declined compared to the prior year after several quarters of strong year-over-year growth. The order decline in International was driven by declines across most major markets with the exception of India.
"Our business continued to improve this quarter as our adjusted earnings grew
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 | ||||||||||||||
| August 23, 2024 | August 25, 2023 | August 23, 2024 | August 25, 2023 | ||||||||||||
| Americas | $ | 102.0 | $ | 60.0 | $ | 76.1 | $ | 63.3 | |||||||
| International | (12.0 | ) | (19.0 | ) | (7.6 | ) | (10.0 | ) | |||||||
| $ | 90.0 | $ | 41.0 | $ | 68.5 | $ | 53.3 | ||||||||
Operating income of
"The Americas delivered an
Gross margin of 34.5 percent in the second quarter represented an improvement of 130 basis points compared to the prior year driven by favorable business mix and benefits from operational performance and cost reduction initiatives.
Operating expenses of
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
The Board of Directors has declared a quarterly cash dividend of
Outlook
At the end of the second quarter, the company’s backlog was approximately
The company expects to report earnings per share of between
The third quarter estimates include:
- gross margin of approximately 32.5 to 33.0 percent,
- projected operating expenses of between
$225 t o$230 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.
"Based on our results through the first half of the year and our third quarter outlook, we continue to have confidence of potentially achieving the higher end of the range of our fiscal 2025 target for adjusted earnings per share of between
"We are pleased with our results through the first half of fiscal 2025 in which our adjusted earnings per share increased by nearly
| Business Segment Results | |||||||||||||||||
| (in millions) | |||||||||||||||||
| (Unaudited) | (Unaudited) | ||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||
| August 23, 2024 | August 25, 2023 | % Change | August 23, 2024 | August 25, 2023 | % Change | ||||||||||||
| Revenue | |||||||||||||||||
| Americas (1) | $ | 688.0 | $ | 679.3 | 1 | % | $ | 1,242.4 | $ | 1,252.1 | (1 | )% | |||||
| International (2) | 167.8 | 175.3 | (4 | )% | 340.7 | 354.4 | (4 | )% | |||||||||
| $ | 855.8 | $ | 854.6 | — | % | $ | 1,583.1 | $ | 1,606.5 | (1 | )% | ||||||
| Revenue mix | |||||||||||||||||
| Americas | 80.4 | % | 79.5 | % | 78.5 | % | 77.9 | % | |||||||||
| International | 19.6 | % | 20.5 | % | 21.5 | % | 22.1 | % | |||||||||
| Operating income (loss) | |||||||||||||||||
| Americas | $ | 102.0 | $ | 60.0 | $ | 120.5 | $ | 79.8 | |||||||||
| International | (12.0 | ) | (19.0 | ) | (12.9 | ) | (31.5 | ) | |||||||||
| $ | 90.0 | $ | 41.0 | $ | 107.6 | $ | 48.3 | ||||||||||
| Operating margin | 10.5 | % | 4.8 | % | 6.8 | % | 3.0 | % | |||||||||
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, healthcare, education 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, healthcare, education and retail customers primarily through the Steelcase, Coalesse, Orangebox, Smith System and Viccarbe brands.
| QUARTER OVER QUARTER ORGANIC REVENUE GROWTH (DECLINE) BY SEGMENT | |||||||||||
| Q2 2025 vs. Q2 2024 | |||||||||||
| (Unaudited) | |||||||||||
| Steelcase Inc. | Americas | International | |||||||||
| Q2 2024 revenue | $ | 854.6 | $ | 679.3 | $ | 175.3 | |||||
| Divestiture | (12.2 | ) | (12.2 | ) | — | ||||||
| Currency translation effects | (1.6 | ) | (0.7 | ) | (0.9 | ) | |||||
| Q2 2024 revenue, adjusted | $ | 840.8 | $ | 666.4 | $ | 174.4 | |||||
| Q2 2025 revenue | $ | 855.8 | $ | 688.0 | $ | 167.8 | |||||
| Organic growth (decline) $ | $ | 15.0 | $ | 21.6 | $ | (6.6 | ) | ||||
| Organic growth (decline) % | 2 | % | 3 | % | (4 | )% | |||||
| ADJUSTED EARNINGS PER SHARE | |||||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||
| August 23, 2024 | August 25, 2023 | August 23, 2024 | August 25, 2023 | ||||||||||||
| Earnings per share | $ | 0.53 | $ | 0.23 | $ | 0.62 | $ | 0.24 | |||||||
| Amortization of purchased intangible assets, per share | 0.03 | 0.03 | 0.07 | 0.07 | |||||||||||
| Income tax effect of amortization of purchased intangible assets, per share | (0.01 | ) | (0.01 | ) | (0.02 | ) | (0.02 | ) | |||||||
| Restructuring costs, per share | 0.02 | 0.07 | 0.07 | 0.14 | |||||||||||
| Income tax effect of restructuring costs, per share | (0.01 | ) | (0.01 | ) | (0.02 | ) | (0.03 | ) | |||||||
| Gains on the sale of land, net of variable compensation impacts, per share | (0.23 | ) | — | (0.23 | ) | — | |||||||||
| Income tax effect of gains on the sale of land, net of variable compensation impacts, per share | 0.06 | — | 0.06 | — | |||||||||||
| Adjusted earnings per share | $ | 0.39 | $ | 0.31 | $ | 0.55 | $ | 0.40 | |||||||
| ADJUSTED EBITDA | |||||||||||||||||||
| (Unaudited) | |||||||||||||||||||
| Three Months Ended | Trailing Four Quarters Ended | ||||||||||||||||||
| November 24, 2023 | February 23, 2024 | May 24, 2024 | August 23, 2024 | August 23, 2024 | |||||||||||||||
| Net income | $ | 30.8 | $ | 21.3 | $ | 10.9 | $ | 63.1 | $ | 126.1 | |||||||||
| Income tax expense | 9.8 | 5.3 | 3.2 | 22.8 | 41.1 | ||||||||||||||
| Interest expense | 6.4 | 6.3 | 6.2 | 6.4 | 25.3 | ||||||||||||||
| Depreciation and amortization | 21.1 | 20.8 | 20.2 | 20.0 | 82.1 | ||||||||||||||
| Share-based compensation | 3.4 | 3.6 | 14.5 | 2.9 | 24.4 | ||||||||||||||
| Restructuring costs | 2.1 | 4.4 | 6.3 | 2.2 | 15.0 | ||||||||||||||
| Gains on the sale of land, net of variable compensation impacts | (0.8 | ) | — | — | (27.9 | ) | (28.7 | ) | |||||||||||
| Adjusted EBITDA | $ | 72.8 | $ | 61.7 | $ | 61.3 | $ | 89.5 | $ | 285.3 | |||||||||
| Revenue | $ | 777.9 | $ | 775.2 | $ | 727.3 | $ | 855.8 | $ | 3,136.2 | |||||||||
| Adjusted EBITDA as a percentage of revenue | 9.4 | % | 8.0 | % | 8.4 | % | 10.5 | % | 9.1 | % | |||||||||
| ADJUSTED EBITDA | |||||||||||||||||||
| (Unaudited) | |||||||||||||||||||
| Three Months Ended | Trailing Four Quarters Ended | ||||||||||||||||||
| November 25, 2022 | February 24, 2023 | May 26, 2023 | August 25, 2023 | August 25, 2023 | |||||||||||||||
| Net income | $ | 11.4 | $ | 15.7 | $ | 1.5 | $ | 27.5 | $ | 56.1 | |||||||||
| Income tax expense | 5.2 | 8.7 | 1.4 | 9.5 | 24.8 | ||||||||||||||
| Interest expense | 7.6 | 7.2 | 6.6 | 6.6 | 28.0 | ||||||||||||||
| Depreciation and amortization | 23.5 | 22.8 | 20.4 | 21.3 | 88.0 | ||||||||||||||
| Share-based compensation | 2.1 | 3.6 | 13.7 | 4.2 | 23.6 | ||||||||||||||
| Restructuring costs | 10.6 | 3.9 | 8.1 | 7.9 | 30.5 | ||||||||||||||
| Gains on the sale of land, net of variable compensation impacts | — | (4.0 | ) | — | — | (4.0 | ) | ||||||||||||
| Adjusted EBITDA | $ | 60.4 | $ | 57.9 | $ | 51.7 | $ | 77.0 | $ | 247.0 | |||||||||
| Revenue | $ | 826.9 | $ | 801.7 | $ | 751.9 | $ | 854.6 | $ | 3,235.1 | |||||||||
| Adjusted EBITDA as a percentage of revenue | 7.3 | % | 7.2 | % | 6.9 | % | 9.0 | % | 7.6 | % | |||||||||
| PROJECTED ORGANIC REVENUE GROWTH | |||
| Q3 2025 vs. Q3 2024 | |||
| Steelcase Inc. | |||
| Q3 2024 revenue | $ | 777.9 | |
| Divestiture | (10.6 | ) | |
| Currency translation effects | 7.0 | ||
| Q3 2024 revenue, adjusted | $ | 774.3 | |
| Q3 2025 revenue, projected | $ | 785 - 810 | |
| Organic growth $ | $ | 11 - 36 | |
| Organic growth % | 1 - 5 | % | |
| PROJECTED ADJUSTED EARNINGS PER SHARE | |||||||
| Three Months Ended | |||||||
| November 22, 2024 | November 24, 2023 | ||||||
| Earnings per share | $ | 0.18 - 0.22 | $ | 0.26 | |||
| 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 | — | 0.02 | |||||
| Income tax effect of restructuring costs, per share | — | (0.01 | ) | ||||
| Gains on the sale of land, net of variable compensation impacts, per share | — | (0.01 | ) | ||||
| Income tax effect of gains on the sale of land, net of variable compensation impacts, per share | — | — | |||||
| Adjusted earnings per share | $ | 0.21 - 0.25 | $ | 0.29 | |||
| FISCAL 2025 TARGETS | |||
| Twelve Months Ended | |||
| February 28, 2025 | |||
| Earnings per share | $ | 0.86 - 1.01 | |
| Amortization of purchased intangible assets, per share | 0.15 | ||
| Income tax effect of amortization of purchased intangible assets, per share | (0.04 | ) | |
| Restructuring costs, per share | 0.07 | ||
| Income tax effect of restructuring costs, per share | (0.02 | ) | |
| Gains on the sale of land, net of variable compensation impacts, per share | (0.23 | ) | |
| Income tax effect of gains on the sale of land, net of variable compensation impacts, per share | 0.06 | ||
| Adjusted earnings per share | $ | 0.85 - 1.00 | |
| Steelcase Inc. | |||||||||||||||||||||||||||
| (Unaudited) | (Unaudited) | ||||||||||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||
| August 23, 2024 | August 25, 2023 | August 23, 2024 | August 25, 2023 | ||||||||||||||||||||||||
| Revenue | $ | 855.8 | 100.0 | % | $ | 854.6 | 100.0 | % | $ | 1,583.1 | 100.0 | % | $ | 1,606.5 | 100.0 | % | |||||||||||
| Cost of sales | 558.5 | 65.3 | 569.8 | 66.7 | 1,044.4 | 66.0 | 1,085.7 | 67.6 | |||||||||||||||||||
| Restructuring costs | 1.9 | 0.2 | 1.4 | 0.1 | 8.9 | 0.5 | 2.8 | 0.2 | |||||||||||||||||||
| Gross profit | 295.4 | 34.5 | 283.4 | 33.2 | 529.8 | 33.5 | 518.0 | 32.2 | |||||||||||||||||||
| Operating expenses | 205.1 | 24.0 | 235.9 | 27.6 | 422.6 | 26.7 | 456.5 | 28.4 | |||||||||||||||||||
| Restructuring costs (benefits) | 0.3 | — | 6.5 | 0.8 | (0.4 | ) | — | 13.2 | 0.8 | ||||||||||||||||||
| Operating income | 90.0 | 10.5 | 41.0 | 4.8 | 107.6 | 6.8 | 48.3 | 3.0 | |||||||||||||||||||
| Interest expense | (6.4 | ) | (0.7 | ) | (6.6 | ) | (0.8 | ) | (12.6 | ) | (0.8 | ) | (13.2 | ) | (0.8 | ) | |||||||||||
| Investment income | 2.9 | 0.3 | 0.8 | 0.1 | 5.3 | 0.3 | 1.3 | 0.1 | |||||||||||||||||||
| Other income (expense), net | (0.6 | ) | (0.1 | ) | 1.8 | 0.2 | (0.3 | ) | — | 3.5 | 0.2 | ||||||||||||||||
| Income before income tax expense | 85.9 | 10.0 | 37.0 | 4.3 | 100.0 | 6.3 | 39.9 | 2.5 | |||||||||||||||||||
| Income tax expense | 22.8 | 2.6 | 9.5 | 1.1 | 26.0 | 1.6 | 10.9 | 0.7 | |||||||||||||||||||
| Net income | $ | 63.1 | 7.4 | % | $ | 27.5 | 3.2 | % | $ | 74.0 | 4.7 | % | $ | 29.0 | 1.8 | % | |||||||||||
| Operating income | $ | 90.0 | 10.5 | % | $ | 41.0 | 4.8 | % | $ | 107.6 | 6.8 | % | $ | 48.3 | 3.0 | % | |||||||||||
| Amortization of purchased intangible assets | 4.2 | 0.5 | 4.4 | 0.5 | 8.5 | 0.5 | 8.7 | 0.5 | |||||||||||||||||||
| Restructuring costs | 2.2 | 0.2 | 7.9 | 0.9 | 8.5 | 0.5 | 16.0 | 1.0 | |||||||||||||||||||
| Gains on the sale of land, net of variable compensation impacts | (27.9 | ) | (3.2 | ) | — | — | (27.9 | ) | (1.7 | ) | — | — | |||||||||||||||
| Adjusted operating income | $ | 68.5 | 8.0 | % | $ | 53.3 | 6.2 | % | $ | 96.7 | 6.1 | % | $ | 73.0 | 4.5 | % | |||||||||||
| Americas | |||||||||||||||||||||||||
| (Unaudited) | (Unaudited) | ||||||||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||||
| August 23, 2024 | August 25, 2023 | August 23, 2024 | August 25, 2023 | ||||||||||||||||||||||
| Revenue | $ | 688.0 | 100.0 | % | $ | 679.3 | 100.0 | % | $ | 1,242.4 | 100.0 | % | $ | 1,252.1 | 100.0 | % | |||||||||
| Cost of sales | 437.0 | 63.5 | 443.4 | 65.3 | 801.9 | 64.5 | 832.0 | 66.5 | |||||||||||||||||
| Restructuring costs | 1.5 | 0.2 | — | — | 5.6 | 0.5 | 0.6 | — | |||||||||||||||||
| Gross profit | 249.5 | 36.3 | 235.9 | 34.7 | 434.9 | 35.0 | 419.5 | 33.5 | |||||||||||||||||
| Operating expenses | 147.3 | 21.5 | 175.8 | 25.9 | 314.0 | 25.3 | 338.9 | 27.0 | |||||||||||||||||
| Restructuring costs | 0.2 | — | 0.1 | — | 0.4 | — | 0.8 | 0.1 | |||||||||||||||||
| Operating income | 102.0 | 14.8 | 60.0 | 8.8 | 120.5 | 9.7 | 79.8 | 6.4 | |||||||||||||||||
| Amortization of purchased intangible assets | 3.1 | 0.5 | 3.2 | 0.5 | 6.2 | 0.5 | 6.3 | 0.5 | |||||||||||||||||
| Restructuring costs | 1.7 | 0.2 | 0.1 | — | 6.0 | 0.5 | 1.4 | 0.1 | |||||||||||||||||
| Gains on the sale of land, net of variable compensation impacts | (30.7 | ) | (4.4 | ) | — | — | (30.7 | ) | (2.5 | ) | — | — | |||||||||||||
| Adjusted operating income | $ | 76.1 | 11.1 | % | $ | 63.3 | 9.3 | % | $ | 102.0 | 8.2 | % | $ | 87.5 | 7.0 | % | |||||||||
| International | |||||||||||||||||||||||||||
| (Unaudited) | (Unaudited) | ||||||||||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||
| August 23, 2024 | August 25, 2023 | August 23, 2024 | August 25, 2023 | ||||||||||||||||||||||||
| Revenue | $ | 167.8 | 100.0 | % | $ | 175.3 | 100.0 | % | $ | 340.7 | 100.0 | % | $ | 354.4 | 100.0 | % | |||||||||||
| Cost of sales | 121.5 | 72.4 | 126.4 | 72.1 | 242.5 | 71.2 | 253.7 | 71.6 | |||||||||||||||||||
| Restructuring costs | 0.4 | 0.2 | 1.4 | 0.8 | 3.3 | 0.9 | 2.2 | 0.6 | |||||||||||||||||||
| Gross profit | 45.9 | 27.4 | 47.5 | 27.1 | 94.9 | 27.9 | 98.5 | 27.8 | |||||||||||||||||||
| Operating expenses | 57.8 | 34.5 | 60.1 | 34.3 | 108.6 | 31.9 | 117.6 | 33.2 | |||||||||||||||||||
| Restructuring costs (benefits) | 0.1 | 0.1 | 6.4 | 3.6 | (0.8 | ) | (0.2 | ) | 12.4 | 3.5 | |||||||||||||||||
| Operating income (loss) | (12.0 | ) | (7.2 | ) | (19.0 | ) | (10.8 | ) | (12.9 | ) | (3.8 | ) | (31.5 | ) | (8.9 | ) | |||||||||||
| Amortization of purchased intangible assets | 1.1 | 0.7 | 1.2 | 0.7 | 2.3 | 0.7 | 2.4 | 0.7 | |||||||||||||||||||
| Restructuring costs | 0.5 | 0.3 | 7.8 | 4.4 | 2.5 | 0.7 | 14.6 | 4.1 | |||||||||||||||||||
| Gains on the sale of land, net of variable compensation impacts | 2.8 | 1.7 | — | — | 2.8 | 0.8 | — | — | |||||||||||||||||||
| Adjusted operating income (loss) | $ | (7.6 | ) | (4.5 | )% | $ | (10.0 | ) | (5.7 | )% | $ | (5.3 | ) | (1.6 | )% | $ | (14.5 | ) | (4.1 | )% | |||||||
Webcast
Steelcase will discuss second 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. Pursuant to the requirements of Regulation G, 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 and foreign currency translation effects. Organic revenue growth (decline) is calculated by 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. 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 excluding amortization of purchased intangible assets, restructuring costs (benefits) and gains (losses) on the sale of land, net of variable compensation impacts, 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: We may sell land when conditions are favorable. Gains and losses on the sale of land may increase or decrease, respectively, our variable compensation expense. We believe adjusting for these items provides a more consistent comparison of our operating performance to prior periods as well as to industry peers. In Q2 2025, we began adjusting for these items, as we realized a significant gain on the sale of land during the quarter which had a significant impact on our variable compensation expense, and we have adjusted the prior periods presented for consistency and comparability.
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) and gains (losses) on the sale of land, net of variable compensation impacts. 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 and gains (losses) on the sale of land, net of variable compensation impacts, 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.
Established in 1912, Steelcase is a global design, research and thought leader in the world of work. We help people do their best work by creating places that work better. Along with more than 30 creative and technology partner brands, we design and manufacture furnishings and solutions for the many places where work happens — including learning, health and work from home. Our solutions come to life through our community of expert Steelcase dealers in approximately 770 locations, as well as our online Steelcase store and other retail partners. Founded in Grand Rapids, Michigan, Steelcase is a publicly traded company with fiscal year 2024 revenue of
| STEELCASE INC. | |||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) | |||||||||||||||
| (in millions, except per share data) | |||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||
| August 23, 2024 | August 25, 2023 | August 23, 2024 | August 25, 2023 | ||||||||||||
| Revenue | $ | 855.8 | $ | 854.6 | $ | 1,583.1 | $ | 1,606.5 | |||||||
| Cost of sales | 558.5 | 569.8 | 1,044.4 | 1,085.7 | |||||||||||
| Restructuring costs | 1.9 | 1.4 | 8.9 | 2.8 | |||||||||||
| Gross profit | 295.4 | 283.4 | 529.8 | 518.0 | |||||||||||
| Operating expenses | 205.1 | 235.9 | 422.6 | 456.5 | |||||||||||
| Restructuring costs (benefits) | 0.3 | 6.5 | (0.4 | ) | 13.2 | ||||||||||
| Operating income | 90.0 | 41.0 | 107.6 | 48.3 | |||||||||||
| Interest expense | (6.4 | ) | (6.6 | ) | (12.6 | ) | (13.2 | ) | |||||||
| Investment income | 2.9 | 0.8 | 5.3 | 1.3 | |||||||||||
| Other income (expense), net | (0.6 | ) | 1.8 | (0.3 | ) | 3.5 | |||||||||
| Income before income tax expense | 85.9 | 37.0 | 100.0 | 39.9 | |||||||||||
| Income tax expense | 22.8 | 9.5 | 26.0 | 10.9 | |||||||||||
| Net income | $ | 63.1 | $ | 27.5 | $ | 74.0 | $ | 29.0 | |||||||
| Earnings per share: | |||||||||||||||
| Basic | $ | 0.53 | $ | 0.23 | $ | 0.63 | $ | 0.24 | |||||||
| Diluted | $ | 0.53 | $ | 0.23 | $ | 0.62 | $ | 0.24 | |||||||
| Weighted average shares outstanding - basic | 118.1 | 118.8 | 118.2 | 118.4 | |||||||||||
| Weighted average shares outstanding - diluted | 118.8 | 119.1 | 119.0 | 118.6 | |||||||||||
| Dividends declared and paid per common share | $ | 0.100 | $ | 0.100 | $ | 0.200 | $ | 0.200 | |||||||
| STEELCASE INC. | |||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
| (in millions) | |||||||
| (Unaudited) | |||||||
| August 23, 2024 | February 23, 2024 | ||||||
| ASSETS | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 296.6 | $ | 318.6 | |||
| Short-term investments | 39.2 | — | |||||
| Accounts receivable, net of allowance of | 354.4 | 338.3 | |||||
| Inventories, net | 241.9 | 231.0 | |||||
| Prepaid expenses | 35.9 | 31.9 | |||||
| Other current assets | 32.5 | 39.6 | |||||
| Total current assets | 1,000.5 | 959.4 | |||||
| Property, plant and equipment, net of accumulated depreciation of | 344.5 | 352.9 | |||||
| Company-owned life insurance ("COLI") | 171.3 | 166.9 | |||||
| Deferred income taxes | 117.8 | 115.8 | |||||
| Goodwill | 275.4 | 274.8 | |||||
| Other intangible assets, net of accumulated amortization of | 86.8 | 94.6 | |||||
| Investments in unconsolidated affiliates | 53.6 | 55.7 | |||||
| Right-of-use operating lease assets | 149.9 | 168.6 | |||||
| Other assets | 71.3 | 48.0 | |||||
| Total assets | $ | 2,271.1 | $ | 2,236.7 | |||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 233.0 | $ | 211.3 | |||
| Current operating lease obligations | 42.0 | 45.1 | |||||
| Employee compensation | 135.2 | 166.1 | |||||
| Employee benefit plan obligations | 30.3 | 39.9 | |||||
| Accrued promotions | 24.6 | 19.4 | |||||
| Customer deposits | 49.9 | 44.8 | |||||
| Other current liabilities | 102.6 | 80.5 | |||||
| Total current liabilities | 617.6 | 607.1 | |||||
| Long-term liabilities: | |||||||
| Long-term debt | 446.7 | 446.3 | |||||
| Employee benefit plan obligations | 101.4 | 104.5 | |||||
| Long-term operating lease obligations | 122.1 | 138.6 | |||||
| Other long-term liabilities | 50.3 | 53.1 | |||||
| Total long-term liabilities | 720.5 | 742.5 | |||||
| Total liabilities | 1,338.1 | 1,349.6 | |||||
| Shareholders’ equity: | |||||||
| Additional paid-in capital | 28.9 | 41.2 | |||||
| Accumulated other comprehensive income (loss) | (58.7 | ) | (66.9 | ) | |||
| Retained earnings | 962.8 | 912.8 | |||||
| Total shareholders’ equity | 933.0 | 887.1 | |||||
| Total liabilities and shareholders’ equity | $ | 2,271.1 | $ | 2,236.7 | |||
| STEELCASE INC. | |||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) | |||||||
| (in millions) | |||||||
| Six Months Ended | |||||||
| August 23, 2024 | August 25, 2023 | ||||||
| OPERATING ACTIVITIES | |||||||
| Net income | $ | 74.0 | $ | 29.0 | |||
| Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||||||
| Depreciation and amortization | 40.2 | 41.7 | |||||
| Share-based compensation | 18.0 | 18.5 | |||||
| Restructuring costs | 8.5 | 16.0 | |||||
| Gains on sales of fixed assets, net | (41.7 | ) | (5.1 | ) | |||
| Other | (3.2 | ) | (3.4 | ) | |||
| Changes in operating assets and liabilities: | |||||||
| Accounts receivable | (13.7 | ) | 2.7 | ||||
| Inventories | (9.3 | ) | 48.6 | ||||
| Cloud computing arrangements expenditures | (22.6 | ) | — | ||||
| Other assets | 3.7 | (10.1 | ) | ||||
| Accounts payable | 17.3 | 22.5 | |||||
| Employee compensation liabilities | (39.8 | ) | (17.9 | ) | |||
| Employee benefit obligations | (14.5 | ) | (10.9 | ) | |||
| Accrued expenses and other liabilities | 32.1 | (0.4 | ) | ||||
| Net cash provided by operating activities | 49.0 | 131.2 | |||||
| INVESTING ACTIVITIES | |||||||
| Capital expenditures | (24.6 | ) | (24.3 | ) | |||
| Proceeds from disposal of fixed assets | 44.3 | 15.7 | |||||
| Purchases of short-term investments | (40.3 | ) | — | ||||
| Liquidations of short-term investments | 1.7 | — | |||||
| Other | 3.0 | (1.3 | ) | ||||
| Net cash used in investing activities | (15.9 | ) | (9.9 | ) | |||
| FINANCING ACTIVITIES | |||||||
| Dividends paid | (24.0 | ) | (23.9 | ) | |||
| Common stock repurchases | (30.3 | ) | (3.3 | ) | |||
| Borrowings on global committed bank facility | — | 69.0 | |||||
| Repayments on global committed bank facility | — | (69.0 | ) | ||||
| Repayments on note payable | — | (32.2 | ) | ||||
| Other | — | 1.7 | |||||
| Net cash used in financing activities | (54.3 | ) | (57.7 | ) | |||
| Effect of exchange rate changes on cash and cash equivalents | (0.8 | ) | (0.2 | ) | |||
| Net decrease in cash, cash equivalents and restricted cash | (22.0 | ) | 63.4 | ||||
| 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) | $ | 303.9 | $ | 160.6 | |||
(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 were Steelcase's Q2 FY2025 earnings?
How did Steelcase's revenue perform in Q2 FY2025?
What is Steelcase's projected revenue growth for Q3 FY2025?
What is SCS's EPS forecast for Q3 FY2025?
What was Steelcase's adjusted EPS for Q2 FY2025?
How much did Steelcase's liquidity increase in Q2 FY2025?
What contributed to the growth in the Americas for Steelcase in Q2 FY2025?
Why did Steelcase experience a decline in international orders in Q2 FY2025?
