Steelcase Reports Third Quarter Fiscal 2025 Results
Steelcase (NYSE: SCS) reported Q3 FY2025 results with revenue of $794.9 million, up 2% year-over-year, and net income of $19.1 million ($0.16 per share). Adjusted earnings per share reached $0.30, compared to $0.29 in the prior year.
The Americas segment showed strong performance with 5% revenue growth and 2% order growth, while International segment declined 6% in revenue and 8% in orders. Gross margin improved by 100 basis points to 33.4%. Total liquidity strengthened by $152 million to $576.6 million.
For Q4 FY2025, the company expects revenue between $770-795 million and adjusted earnings per share of $0.20-0.24. The backlog at quarter-end was $664 million, 5% lower than the prior year, though early Q4 orders showed 15% growth.
Steelcase (NYSE: SCS) ha riportato i risultati del terzo trimestre dell'anno fiscale 2025 con un fatturato di $794,9 milioni, in aumento del 2% rispetto all'anno precedente, e un utile netto di $19,1 milioni ($0,16 per azione). L'utile per azione rettificato ha raggiunto $0,30, rispetto a $0,29 dell'anno scorso.
Il segmento Americhe ha mostrato performance solide con una crescita del fatturato del 5% e una crescita degli ordini del 2%, mentre il segmento Internazionale ha registrato un calo del 6% nel fatturato e dell'8% negli ordini. Il margine lordo è migliorato di 100 punti base, raggiungendo il 33,4%. La liquidità totale è aumentata di $152 milioni, arrivando a $576,6 milioni.
Per il quarto trimestre dell'anno fiscale 2025, l'azienda prevede un fatturato compreso tra $770 e $795 milioni e un utile per azione rettificato tra $0,20 e $0,24. Il portafoglio ordini a fine trimestre era di $664 milioni, il 5% in meno rispetto all'anno precedente, anche se gli ordini precoci del quarto trimestre hanno mostrato una crescita del 15%.
Steelcase (NYSE: SCS) informó los resultados del tercer trimestre del año fiscal 2025 con unos ingresos de $794,9 millones, un aumento del 2% en comparación con el año anterior, y una ganancia neta de $19,1 millones ($0,16 por acción). Las ganancias ajustadas por acción alcanzaron $0,30, frente a $0,29 del año pasado.
El segmento de América mostró un sólido desempeño con un crecimiento de los ingresos del 5% y un crecimiento de los pedidos del 2%, mientras que el segmento Internacional disminuyó un 6% en ingresos y un 8% en pedidos. El margen bruto mejoró en 100 puntos base, alcanzando el 33,4%. La liquidez total se fortaleció en $152 millones, llegando a $576,6 millones.
Para el cuarto trimestre del año fiscal 2025, la compañía espera ingresos entre $770 y $795 millones y ganancias ajustadas por acción de $0,20 a $0,24. La cartera de pedidos al final del trimestre era de $664 millones, un 5% inferior al año anterior, aunque los pedidos anticipados del cuarto trimestre mostraron un crecimiento del 15%.
Steelcase (NYSE: SCS)는 2025 회계연도 3분기 결과를 보고하며 매출이 7억 9490만 달러로 전년 대비 2% 증가했으며, 순이익이 1910만 달러(주당 0.16달러)라고 발표했습니다. 조정 주당 수익은 0.30달러로, 작년의 0.29달러에 비해 증가했습니다.
미주 부문은 매출이 5% 성장하고 주문이 2% 증가하여 견조한 성과를 보였으나, 국제 부문은 매출이 6% 감소하고 주문이 8% 감소했습니다. 총 매출 총이익률은 100포인트 개선되어 33.4%에 도달했습니다. 총 유동성은 1억 5200만 달러 증가하여 5억 7660만 달러로 강화되었습니다.
2025 회계연도 4분기에 대해 회사는 매출을 7억 7000만 달러에서 7억 9500만 달러로 예상하며, 조정 주당 수익은 0.20달러에서 0.24달러 범위로 예상하고 있습니다. 분기 말 대기주문은 6억 6400만 달러로, 작년 대비 5% 감소하였으나, 4분기 초 주문은 15% 성장세를 보였습니다.
Steelcase (NYSE: SCS) a annoncé les résultats du troisième trimestre de l'exercice 2025 avec un chiffre d'affaires de 794,9 millions de dollars, en hausse de 2% par rapport à l'année précédente, et un bénéfice net de 19,1 millions de dollars (0,16 dollars par action). Les bénéfices ajustés par action ont atteint 0,30 dollars, contre 0,29 dollars l'année précédente.
Le segment Amériques a montré de solides performances avec une croissance des revenus de 5% et une croissance des commandes de 2%, tandis que le segment international a reculé de 6% en revenus et de 8% en commandes. La marge brute s'est améliorée de 100 points de base, atteignant 33,4%. La liquidité totale s'est renforcée de 152 millions de dollars, atteignant 576,6 millions de dollars.
Pour le quatrième trimestre de l'exercice 2025, l'entreprise s'attend à un chiffre d'affaires compris entre 770 et 795 millions de dollars et à un bénéfice ajusté par action compris entre 0,20 et 0,24 dollars. Le carnet de commandes à la fin du trimestre s'élevait à 664 millions de dollars, soit une baisse de 5% par rapport à l'année précédente, bien que les commandes anticipées au début du quatrième trimestre aient montré une croissance de 15%.
Steelcase (NYSE: SCS) hat die Ergebnisse für das dritte Quartal des Geschäftsjahres 2025 bekannt gegeben, mit einem Umsatz von 794,9 Millionen Dollar, was einem Anstieg von 2% im Vergleich zum Vorjahr entspricht, und einem Nettogewinn von 19,1 Millionen Dollar (0,16 Dollar pro Aktie). Der bereinigte Gewinn pro Aktie betrug 0,30 Dollar, verglichen mit 0,29 Dollar im Vorjahr.
Der Segment Amerikas zeigte eine starke Leistung mit einem Umsatzwachstum von 5% und einem Auftragswachstum von 2%, während das internationale Segment einen Rückgang von 6% beim Umsatz und 8% bei den Aufträgen verzeichnete. Die Bruttomarge verbesserte sich um 100 Basispunkte auf 33,4%. Die gesamte Liquidität erhöhte sich um 152 Millionen Dollar auf 576,6 Millionen Dollar.
Für das vierte Quartal des Geschäftsjahres 2025 erwartet das Unternehmen Einnahmen zwischen 770 und 795 Millionen Dollar sowie einen bereinigten Gewinn pro Aktie von 0,20 bis 0,24 Dollar. Der Auftragsbestand zum Ende des Quartals betrug 664 Millionen Dollar, was einem Rückgang von 5% im Vergleich zum Vorjahr entspricht, obwohl die frühen Aufträge im vierten Quartal ein Wachstum von 15% aufwiesen.
- Revenue growth of 2% to $794.9 million
- Americas segment revenue grew 5% with 2% order growth
- Gross margin improved 100 basis points to 33.4%
- Total liquidity increased by $152 million
- Early Q4 orders grew 15% year-over-year
- Net income decreased to $19.1 million from $30.8 million year-over-year
- International segment revenue declined 6% with 8% order decline
- Backlog decreased 5% compared to prior year
- Operating income decreased to $41.0 million from $43.8 million
Insights
- Strong results compared to prior year including:
- Revenue growth of
2% driven by5% growth in the Americas - Gross margin improvement of 100 basis points
- Total liquidity strengthened by
$152 million
- Revenue growth of
- Americas posted order growth of
2% compared to prior year - Outlook for fiscal 2025 adjusted earnings per share exceeds company targets
GRAND RAPIDS, Mich., Dec. 18, 2024 (GLOBE NEWSWIRE) -- Steelcase Inc. (NYSE: SCS) today reported third quarter revenue of
Revenue and order growth (decline) compared to the prior year were as follows:
| Q3 2025 vs. Q3 2024 | ||||||||
| Revenue Growth (Decline) | Organic Revenue Growth (Decline) | Organic Order Growth (Decline) | ||||||
| Americas | 5 | % | 7 | % | 2 | % | ||
| International | (6)% | (8)% | (8)% | |||||
| Steelcase Inc. | 2 | % | 3 | % | (1)% | |||
Revenue grew 2 percent in the third quarter compared to the prior year, with 5 percent growth in the Americas and a 6 percent decline in International. On an organic basis, revenue grew 3 percent, with 7 percent growth in the Americas and an 8 percent decline in International. The Americas growth benefited from a higher percentage of the beginning backlog shipping during the quarter compared to the prior year and included higher revenue from government, large corporate, healthcare and education customers, while the International decline was driven by most markets in Asia Pacific, except India, and France.
Orders (adjusted for the impact of a divestiture and currency translation effects) declined modestly in the third quarter compared to the prior year, and included 2 percent growth in the Americas and an 8 percent decline in International. The order growth in the Americas was driven by government customers. Orders from large corporate customers strengthened in the last month of the quarter, but modestly declined overall in the third quarter compared to the prior year. The order decline in International was driven by most markets in Asia Pacific and France, net of growth in Germany and some smaller markets in EMEA.
"Our Americas business posted
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 | ||||||||||||
| November 22, 2024 | November 24, 2023 | November 22, 2024 | November 24, 2023 | ||||||||||
| Americas | $ | 46.5 | $ | 37.2 | $ | 49.7 | $ | 39.9 | |||||
| International | (5.5 | ) | 6.6 | (2.4 | ) | 9.4 | |||||||
| $ | 41.0 | $ | 43.8 | $ | 47.3 | $ | 49.3 | ||||||
Operating income of
"Our International results in the third quarter were below our expectations and were impacted by demand and some customer-driven shipment delays," said Dave Sylvester, senior vice president and CFO. "We implemented additional restructuring actions and other cost reduction measures during the third quarter, which together are projected to drive approximately
Gross margin of 33.4 percent in the third quarter represented an improvement of 100 basis points compared to the prior year driven by the benefits of revenue growth in the Americas and cost reduction initiatives, including savings from our previously announced restructuring actions.
Operating expenses of
Other expense, net 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 third quarter, the company’s backlog was approximately
The company expects to report earnings per share of between
The fourth quarter estimates include:
- gross margin of approximately 33.5 percent,
- 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
$1 million and - a projected effective tax rate of approximately 27 percent.
“As work and work patterns continue to change, we remain focused on developing new solutions and evolving our capabilities to better serve our customers and dealers,” said Sara Armbruster. "Our teams have successfully driven higher levels of profitability all year and we are pleased that our fiscal 2025 adjusted earnings per share are projected to finish above our target."
| Business Segment Results | ||||||||||||||||||||||
| (in millions) | ||||||||||||||||||||||
| (Unaudited) | (Unaudited) | |||||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||
| November 22, 2024 | November 24, 2023 | % Change | November 22, 2024 | November 24, 2023 | % Change | |||||||||||||||||
| Revenue | ||||||||||||||||||||||
| Americas (1) | $ | 614.7 | $ | 586.1 | 5 | % | $ | 1,857.1 | $ | 1,838.2 | 1 | % | ||||||||||
| International (2) | 180.2 | 191.8 | (6 | )% | 520.9 | 546.2 | (5 | )% | ||||||||||||||
| $ | 794.9 | $ | 777.9 | 2 | % | $ | 2,378.0 | $ | 2,384.4 | — | % | |||||||||||
| Revenue mix | |||||||||||||||||
| Americas | 77.3 | % | 75.3 | % | 78.1 | % | 77.1 | % | |||||||||
| International | 22.7 | % | 24.7 | % | 21.9 | % | 22.9 | % | |||||||||
| Operating income (loss) | |||||||||||||||||||||
| Americas | $ | 46.5 | $ | 37.2 | $ | 167.0 | $ | 117.0 | |||||||||||||
| International | (5.5 | ) | 6.6 | (18.4 | ) | (24.9 | ) | ||||||||||||||
| $ | 41.0 | $ | 43.8 | $ | 148.6 | $ | 92.1 | ||||||||||||||
| Operating margin | 5.2 | % | 5.6 | % | 6.2 | % | 3.9 | % | |||||||||||||
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 | ||||||||||||
| Q3 2025 vs. Q3 2024 | ||||||||||||
| (Unaudited) | ||||||||||||
| Steelcase Inc. | Americas | International | ||||||||||
| Q3 2024 revenue | $ | 777.9 | $ | 586.1 | $ | 191.8 | ||||||
| Divestiture | (10.6 | ) | (10.6 | ) | — | |||||||
| Currency translation effects | 4.7 | (0.1 | ) | 4.8 | ||||||||
| Q3 2024 revenue, adjusted | $ | 772.0 | $ | 575.4 | $ | 196.6 | ||||||
| Q3 2025 revenue | $ | 794.9 | $ | 614.7 | $ | 180.2 | ||||||
| Organic growth (decline) $ | $ | 22.9 | $ | 39.3 | $ | (16.4 | ) | |||||
| Organic growth (decline) % | 3 | % | 7 | % | (8 | )% | ||||||
| ADJUSTED EARNINGS PER SHARE | ||||||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||
| November 22, 2024 | November 24, 2023 | November 22, 2024 | November 24, 2023 | |||||||||||||
| Diluted earnings per share | $ | 0.16 | $ | 0.26 | $ | 0.78 | $ | 0.50 | ||||||||
| Amortization of purchased intangible assets, per share | 0.04 | 0.04 | 0.11 | 0.11 | ||||||||||||
| Income tax effect of amortization of purchased intangible assets, per share | (0.01 | ) | (0.01 | ) | (0.03 | ) | (0.03 | ) | ||||||||
| Restructuring costs, per share | 0.02 | 0.02 | 0.09 | 0.16 | ||||||||||||
| Income tax effect of restructuring costs, per share | (0.01 | ) | (0.01 | ) | (0.03 | ) | (0.04 | ) | ||||||||
| Gains on the sale of land, net of variable compensation impacts, per share | — | (0.01 | ) | (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 | — | 0.13 | — | ||||||||||||
| Income tax effect of loss on pension plan settlement, per share | (0.03 | ) | — | (0.03 | ) | — | ||||||||||
| Adjusted earnings per share | $ | 0.30 | $ | 0.29 | $ | 0.85 | $ | 0.69 | ||||||||
| ADJUSTED EBITDA | ||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| Three Months Ended | Trailing Four Quarters Ended | |||||||||||||||||||
| February 23, 2024 | May 24, 2024 | August 23, 2024 | November 22, 2024 | November 22, 2024 | ||||||||||||||||
| Net income | $ | 21.3 | $ | 10.9 | $ | 63.1 | $ | 19.1 | $ | 114.4 | ||||||||||
| Income tax expense | 5.3 | 3.2 | 22.8 | 7.0 | 38.3 | |||||||||||||||
| Interest expense | 6.3 | 6.2 | 6.4 | 6.3 | 25.2 | |||||||||||||||
| Depreciation and amortization | 20.8 | 20.2 | 20.0 | 20.0 | 81.0 | |||||||||||||||
| Share-based compensation | 3.6 | 14.5 | 2.9 | 1.5 | 22.5 | |||||||||||||||
| Restructuring costs | 4.4 | 6.3 | 2.2 | 2.0 | 14.9 | |||||||||||||||
| 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 | $ | 61.7 | $ | 61.3 | $ | 89.5 | $ | 71.1 | $ | 283.6 | ||||||||||
| Revenue | $ | 775.2 | $ | 727.3 | $ | 855.8 | $ | 794.9 | $ | 3,153.2 | ||||||||||
| Adjusted EBITDA as a percentage of revenue | 8.0 | % | 8.4 | % | 10.5 | % | 8.9 | % | 9.0 | % | ||||||||||
| ADJUSTED EBITDA | ||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| Three Months Ended | Trailing Four Quarters Ended | |||||||||||||||||||
| February 24, 2023 | May 26, 2023 | August 25, 2023 | November 24, 2023 | November 24, 2023 | ||||||||||||||||
| Net income | $ | 15.7 | $ | 1.5 | $ | 27.5 | $ | 30.8 | $ | 75.5 | ||||||||||
| Income tax expense | 8.7 | 1.4 | 9.5 | 9.8 | 29.4 | |||||||||||||||
| Interest expense | 7.2 | 6.6 | 6.6 | 6.4 | 26.8 | |||||||||||||||
| Depreciation and amortization | 22.8 | 20.4 | 21.3 | 21.1 | 85.6 | |||||||||||||||
| Share-based compensation | 3.6 | 13.7 | 4.2 | 3.4 | 24.9 | |||||||||||||||
| Restructuring costs | 3.9 | 8.1 | 7.9 | 2.1 | 22.0 | |||||||||||||||
| Gains on the sale of land, net of variable compensation impacts | (4.0 | ) | — | — | (0.8 | ) | (4.8 | ) | ||||||||||||
| Adjusted EBITDA | $ | 57.9 | $ | 51.7 | $ | 77.0 | $ | 72.8 | $ | 259.4 | ||||||||||
| Revenue | $ | 801.7 | $ | 751.9 | $ | 854.6 | $ | 777.9 | $ | 3,186.1 | ||||||||||
| Adjusted EBITDA as a percentage of revenue | 7.2 | % | 6.9 | % | 9.0 | % | 9.4 | % | 8.1 | % | ||||||||||
| PROJECTED ORGANIC REVENUE DECLINE | ||||
| Q4 2025 vs. Q4 2024 | ||||
| Steelcase Inc. | ||||
| Q4 2024 revenue | $ | 775.2 | ||
| Impact of additional week | 55.0 | |||
| Currency translation effects | (6.1 | ) | ||
| Q4 2024 revenue, adjusted | $ | 824.1 | ||
| Q4 2025 revenue, projected | $ | 770 - 795 | ||
| Organic decline $ | $ | (54) - (29 | ) | |
| Organic decline % | (7) - (4 | )% | ||
| PROJECTED ADJUSTED EARNINGS PER SHARE | ||||||||
| Three Months Ended | ||||||||
| February 28, 2025 | February 23, 2024 | |||||||
| Earnings per share | $ | 0.17 - 0.21 | $ | 0.18 | ||||
| Amortization of purchased intangible assets, per share | 0.04 | 0.03 | ||||||
| Income tax effect of amortization of purchased intangible assets, per share | (0.01 | ) | (0.01 | ) | ||||
| Restructuring costs, per share | — | 0.04 | ||||||
| Income tax effect of restructuring costs, per share | — | (0.01 | ) | |||||
| Adjusted earnings per share | $ | 0.20 - 0.24 | $ | 0.23 | ||||
| Steelcase Inc. | ||||||||||||||||||||||||||||
| (Unaudited) | (Unaudited) | |||||||||||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||
| November 22, 2024 | November 24, 2023 | November 22, 2024 | November 24, 2023 | |||||||||||||||||||||||||
| Revenue | $ | 794.9 | 100.0 | % | $ | 777.9 | 100.0 | % | $ | 2,378.0 | 100.0 | % | $ | 2,384.4 | 100.0 | % | ||||||||||||
| Cost of sales | 528.1 | 66.4 | 525.5 | 67.6 | 1,572.5 | 66.1 | 1,611.2 | 67.6 | ||||||||||||||||||||
| Restructuring costs | 1.4 | 0.2 | 0.1 | — | 10.3 | 0.5 | 2.9 | 0.1 | ||||||||||||||||||||
| Gross profit | 265.4 | 33.4 | 252.3 | 32.4 | 795.2 | 33.4 | 770.3 | 32.3 | ||||||||||||||||||||
| Operating expenses | 223.8 | 28.1 | 206.5 | 26.5 | 646.4 | 27.2 | 663.0 | 27.8 | ||||||||||||||||||||
| Restructuring costs | 0.6 | 0.1 | 2.0 | 0.3 | 0.2 | — | 15.2 | 0.6 | ||||||||||||||||||||
| Operating income | 41.0 | 5.2 | 43.8 | 5.6 | 148.6 | 6.2 | 92.1 | 3.9 | ||||||||||||||||||||
| Interest expense | (6.3 | ) | (0.8 | ) | (6.4 | ) | (0.8 | ) | (18.9 | ) | (0.8 | ) | (19.6 | ) | (0.8 | ) | ||||||||||||
| Investment income | 4.0 | 0.5 | 2.3 | 0.3 | 9.3 | 0.4 | 3.6 | 0.1 | ||||||||||||||||||||
| Other income (expense), net | (12.6 | ) | (1.6 | ) | 0.9 | 0.1 | (12.9 | ) | (0.5 | ) | 4.4 | 0.2 | ||||||||||||||||
| Income before income tax expense | 26.1 | 3.3 | 40.6 | 5.2 | 126.1 | 5.3 | 80.5 | 3.4 | ||||||||||||||||||||
| Income tax expense | 7.0 | 0.9 | 9.8 | 1.2 | 33.0 | 1.4 | 20.7 | 0.9 | ||||||||||||||||||||
| Net income | $ | 19.1 | 2.4 | % | $ | 30.8 | 4.0 | % | $ | 93.1 | 3.9 | % | $ | 59.8 | 2.5 | % | ||||||||||||
| Operating income | $ | 41.0 | 5.2 | % | $ | 43.8 | 5.6 | % | $ | 148.6 | 6.2 | % | $ | 92.1 | 3.9 | % | ||||||||||||
| Amortization of purchased intangible assets | 4.3 | 0.5 | 4.2 | 0.5 | 12.8 | 0.5 | 12.9 | 0.6 | ||||||||||||||||||||
| Restructuring costs | 2.0 | 0.3 | 2.1 | 0.3 | 10.5 | 0.5 | 18.1 | 0.7 | ||||||||||||||||||||
| Gains on the sale of land, net of variable compensation impacts | — | — | (0.8 | ) | (0.1 | ) | (27.9 | ) | (1.1 | ) | (0.8 | ) | (0.1 | ) | ||||||||||||||
| Adjusted operating income | $ | 47.3 | 6.0 | % | $ | 49.3 | 6.3 | % | $ | 144.0 | 6.1 | % | $ | 122.3 | 5.1 | % | ||||||||||||
| Americas | ||||||||||||||||||||||||||||
| (Unaudited) | (Unaudited) | |||||||||||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||
| November 22, 2024 | November 24, 2023 | November 22, 2024 | November 24, 2023 | |||||||||||||||||||||||||
| Revenue | $ | 614.7 | 100.0 | % | $ | 586.1 | 100.0 | % | $ | 1,857.1 | 100.0 | % | $ | 1,838.2 | 100.0 | % | ||||||||||||
| Cost of sales | 399.9 | 65.1 | 392.9 | 67.0 | 1,201.8 | 64.7 | 1,224.9 | 66.6 | ||||||||||||||||||||
| Restructuring costs | 0.2 | — | 0.4 | 0.1 | 5.8 | 0.3 | 1.0 | 0.1 | ||||||||||||||||||||
| Gross profit | 214.6 | 34.9 | 192.8 | 32.9 | 649.5 | 35.0 | 612.3 | 33.3 | ||||||||||||||||||||
| Operating expenses | 168.1 | 27.3 | 155.5 | 26.6 | 482.1 | 26.0 | 494.4 | 26.9 | ||||||||||||||||||||
| Restructuring costs | — | — | 0.1 | — | 0.4 | — | 0.9 | — | ||||||||||||||||||||
| Operating income | 46.5 | 7.6 | 37.2 | 6.3 | 167.0 | 9.0 | 117.0 | 6.4 | ||||||||||||||||||||
| Amortization of purchased intangible assets | 3.0 | 0.5 | 3.1 | 0.6 | 9.2 | 0.6 | 9.4 | 0.5 | ||||||||||||||||||||
| Restructuring costs | 0.2 | — | 0.5 | 0.1 | 6.2 | 0.3 | 1.9 | 0.1 | ||||||||||||||||||||
| Gains on the sale of land, net of variable compensation impacts | — | — | (0.9 | ) | (0.2 | ) | (30.7 | ) | (1.7 | ) | (0.9 | ) | (0.1 | ) | ||||||||||||||
| Adjusted operating income | $ | 49.7 | 8.1 | % | $ | 39.9 | 6.8 | % | $ | 151.7 | 8.2 | % | $ | 127.4 | 6.9 | % | ||||||||||||
| International | ||||||||||||||||||||||||||||
| (Unaudited) | (Unaudited) | |||||||||||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||
| November 22, 2024 | November 24, 2023 | November 22, 2024 | November 24, 2023 | |||||||||||||||||||||||||
| Revenue | $ | 180.2 | 100.0 | % | $ | 191.8 | 100.0 | % | $ | 520.9 | 100.0 | % | $ | 546.2 | 100.0 | % | ||||||||||||
| Cost of sales | 128.2 | 71.1 | 132.6 | 69.2 | 370.7 | 71.2 | 386.3 | 70.7 | ||||||||||||||||||||
| Restructuring costs (benefits) | 1.2 | 0.7 | (0.3 | ) | (0.2 | ) | 4.5 | 0.8 | 1.9 | 0.4 | ||||||||||||||||||
| Gross profit | 50.8 | 28.2 | 59.5 | 31.0 | 145.7 | 28.0 | 158.0 | 28.9 | ||||||||||||||||||||
| Operating expenses | 55.7 | 31.0 | 51.0 | 26.6 | 164.3 | 31.5 | 168.6 | 30.9 | ||||||||||||||||||||
| Restructuring costs (benefits) | 0.6 | 0.3 | 1.9 | 1.0 | (0.2 | ) | — | 14.3 | 2.6 | |||||||||||||||||||
| Operating income (loss) | (5.5 | ) | (3.1 | ) | 6.6 | 3.4 | (18.4 | ) | (3.5 | ) | (24.9 | ) | (4.6 | ) | ||||||||||||||
| Amortization of purchased intangible assets | 1.3 | 0.8 | 1.1 | 0.6 | 3.6 | 0.7 | 3.5 | 0.6 | ||||||||||||||||||||
| Restructuring costs | 1.8 | 1.0 | 1.6 | 0.8 | 4.3 | 0.8 | 16.2 | 3.0 | ||||||||||||||||||||
| Gains on the sale of land, net of variable compensation impacts | — | — | 0.1 | 0.1 | 2.8 | 0.5 | 0.1 | 0.1 | ||||||||||||||||||||
| Adjusted operating income (loss) | $ | (2.4 | ) | (1.3 | )% | $ | 9.4 | 4.9 | % | $ | (7.7 | ) | (1.5 | )% | $ | (5.1 | ) | (0.9 | )% | |||||||||
Webcast
Steelcase will discuss third 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), 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: 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.
Gains (losses) on pension plan settlements: We realize 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. We believe adjusting for the gains or losses on pension plan settlements provides a more consistent comparison of our 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.
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 | Nine Months Ended | |||||||||||||||
| November 22, 2024 | November 24, 2023 | November 22, 2024 | November 24, 2023 | |||||||||||||
| Revenue | $ | 794.9 | $ | 777.9 | $ | 2,378.0 | $ | 2,384.4 | ||||||||
| Cost of sales | 528.1 | 525.5 | 1,572.5 | 1,611.2 | ||||||||||||
| Restructuring costs | 1.4 | 0.1 | 10.3 | 2.9 | ||||||||||||
| Gross profit | 265.4 | 252.3 | 795.2 | 770.3 | ||||||||||||
| Operating expenses | 223.8 | 206.5 | 646.4 | 663.0 | ||||||||||||
| Restructuring costs | 0.6 | 2.0 | 0.2 | 15.2 | ||||||||||||
| Operating income | 41.0 | 43.8 | 148.6 | 92.1 | ||||||||||||
| Interest expense | (6.3 | ) | (6.4 | ) | (18.9 | ) | (19.6 | ) | ||||||||
| Investment income | 4.0 | 2.3 | 9.3 | 3.6 | ||||||||||||
| Other income (expense), net | (12.6 | ) | 0.9 | (12.9 | ) | 4.4 | ||||||||||
| Income before income tax expense | 26.1 | 40.6 | 126.1 | 80.5 | ||||||||||||
| Income tax expense | 7.0 | 9.8 | 33.0 | 20.7 | ||||||||||||
| Net income | $ | 19.1 | $ | 30.8 | $ | 93.1 | $ | 59.8 | ||||||||
| Earnings per share: | ||||||||||||||||
| Basic | $ | 0.16 | $ | 0.26 | $ | 0.79 | $ | 0.50 | ||||||||
| Diluted | $ | 0.16 | $ | 0.26 | $ | 0.78 | $ | 0.50 | ||||||||
| Weighted average shares outstanding – basic | 117.8 | 118.9 | 118.1 | 118.5 | ||||||||||||
| Weighted average shares outstanding – diluted | 118.8 | 119.4 | 118.9 | 119.0 | ||||||||||||
| Dividends declared and paid per common share | $ | 0.100 | $ | 0.100 | $ | 0.300 | $ | 0.300 | ||||||||
| STEELCASE INC. | ||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
| (in millions) | ||||||||
| (Unaudited) | ||||||||
| November 22, 2024 | February 23, 2024 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 365.2 | $ | 318.6 | ||||
| Short-term investments | 41.1 | — | ||||||
| Accounts receivable, net of allowance of | 340.3 | 338.3 | ||||||
| Inventories, net | 246.0 | 231.0 | ||||||
| Prepaid expenses | 33.6 | 31.9 | ||||||
| Other current assets | 38.9 | 39.6 | ||||||
| Total current assets | 1,065.1 | 959.4 | ||||||
| Property, plant and equipment, net of accumulated depreciation of | 333.7 | 352.9 | ||||||
| Company-owned life insurance ("COLI") | 170.3 | 166.9 | ||||||
| Deferred income taxes | 120.7 | 115.8 | ||||||
| Goodwill | 273.8 | 274.8 | ||||||
| Other intangible assets, net of accumulated amortization of | 81.6 | 94.6 | ||||||
| Investments in unconsolidated affiliates | 55.7 | 55.7 | ||||||
| Right-of-use operating lease assets | 139.1 | 168.6 | ||||||
| Other assets | 81.1 | 48.0 | ||||||
| Total assets | $ | 2,321.1 | $ | 2,236.7 | ||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 249.3 | $ | 211.3 | ||||
| Current operating lease obligations | 40.4 | 45.1 | ||||||
| Employee compensation | 167.3 | 166.1 | ||||||
| Employee benefit plan obligations | 41.8 | 39.9 | ||||||
| Accrued promotions | 29.5 | 19.4 | ||||||
| Customer deposits | 49.6 | 44.8 | ||||||
| Other current liabilities | 99.7 | 80.5 | ||||||
| Total current liabilities | 677.6 | 607.1 | ||||||
| Long-term liabilities: | ||||||||
| Long-term debt | 446.9 | 446.3 | ||||||
| Employee benefit plan obligations | 102.9 | 104.5 | ||||||
| Long-term operating lease obligations | 111.9 | 138.6 | ||||||
| Other long-term liabilities | 49.2 | 53.1 | ||||||
| Total long-term liabilities | 710.9 | 742.5 | ||||||
| Total liabilities | 1,388.5 | 1,349.6 | ||||||
| Shareholders’ equity: | ||||||||
| Additional paid-in capital | 24.6 | 41.2 | ||||||
| Accumulated other comprehensive income (loss) | (62.1 | ) | (66.9 | ) | ||||
| Retained earnings | 970.1 | 912.8 | ||||||
| Total shareholders’ equity | 932.6 | 887.1 | ||||||
| Total liabilities and shareholders’ equity | $ | 2,321.1 | $ | 2,236.7 | ||||
| STEELCASE INC. | ||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) | ||||||||
| (in millions) | ||||||||
| Nine Months Ended | ||||||||
| November 22, 2024 | November 24, 2023 | |||||||
| OPERATING ACTIVITIES | ||||||||
| Net income | $ | 93.1 | $ | 59.8 | ||||
| Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||||||
| Depreciation and amortization | 60.2 | 62.8 | ||||||
| Share-based compensation | 19.7 | 22.1 | ||||||
| Restructuring costs | 10.5 | 18.1 | ||||||
| Gains on sales of fixed assets, net | (41.5 | ) | (10.5 | ) | ||||
| Change in fair value of contingent consideration | — | (9.5 | ) | |||||
| Other | (0.5 | ) | (1.9 | ) | ||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | (4.7 | ) | 5.8 | |||||
| Inventories | (15.8 | ) | 59.8 | |||||
| Cloud computing arrangements expenditures | (32.9 | ) | (1.1 | ) | ||||
| Other assets | (0.5 | ) | (3.2 | ) | ||||
| Accounts payable | 35.1 | 30.2 | ||||||
| Employee compensation liabilities | (6.8 | ) | 17.3 | |||||
| Accrued expenses and other liabilities | 32.0 | 1.6 | ||||||
| Net cash provided by operating activities | 147.9 | 251.3 | ||||||
| INVESTING ACTIVITIES | ||||||||
| Capital expenditures | (35.6 | ) | (37.4 | ) | ||||
| Proceeds from disposal of fixed assets | 44.4 | 28.2 | ||||||
| Purchases of short-term investments | (44.0 | ) | — | |||||
| Liquidations of short-term investments | 3.3 | — | ||||||
| Other | 3.9 | 4.0 | ||||||
| Net cash used in investing activities | (28.0 | ) | (5.2 | ) | ||||
| FINANCING ACTIVITIES | ||||||||
| Dividends paid | (35.8 | ) | (35.7 | ) | ||||
| Common stock repurchases | (36.3 | ) | (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 | (72.1 | ) | (74.0 | ) | ||||
| Effect of exchange rate changes on cash and cash equivalents | (1.3 | ) | (0.2 | ) | ||||
| Net increase in cash, cash equivalents and restricted cash | 46.5 | 171.9 | ||||||
| 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) | $ | 372.4 | $ | 269.1 | ||||
| (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 ofOther assetson 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) revenue growth in Q3 2025?
How did Steelcase's Americas segment perform in Q3 2025?
What is Steelcase's Q4 2025 revenue guidance?
How much did Steelcase's gross margin improve in Q3 2025?
What was Steelcase's backlog at the end of Q3 2025?
