Steelcase Inc is a furniture company based in the United States. Its brands such as Steelcase, AMQ, Coalesse, Designtex, and others offer a portfolio of furniture and architectural products and services designed to help customers create workplaces. It markets its products and services to businesses and organizations predominantly through a network of dealers and also sells to consumers in markets around the world through web-based and retail distribution channels. The company's reportable segments include the Americas which generates key revenue, and International.
Performance Overview
Steelcase Inc (SCS, Financial) reported second quarter revenue of $855.8 million, nearly flat compared to the $854.6 million reported in the same quarter last year. Net income for the quarter was $63.1 million, or $0.53 per share, significantly higher than the $27.5 million, or $0.23 per share, reported in the prior year. Adjusted earnings per share came in at $0.39, surpassing the analyst estimate of $0.34.
Segment Performance
The Americas segment saw a 1% increase in revenue, driven by higher volume from large corporate, education, and government customers. However, the International segment experienced a 4% decline, primarily due to continued weakness in China. On an organic basis, revenue grew 2%, with the Americas up 3% and International down 4%.
Financial Achievements
Operating income for the quarter was $90.0 million, an increase of $49.0 million compared to the prior year. This was driven by a $27.9 million benefit from a gain on the sale of land, lower restructuring costs, and improved gross margins in the Americas. Adjusted operating income was $68.5 million, up $15.2 million from the previous year.
Our business continued to improve this quarter as our adjusted earnings grew 26% and we drove 3% order growth in the Americas," said Sara Armbruster, president and CEO.
Key Financial Metrics
Gross margin improved by 130 basis points to 34.5%, driven by favorable business mix and operational performance. Operating expenses decreased by $30.8 million to $205.1 million, reflecting gains from the sale of land and lower spending in International.
Metric | Q2 2025 | Q2 2024 |
---|---|---|
Revenue | $855.8 million | $854.6 million |
Net Income | $63.1 million | $27.5 million |
EPS | $0.53 | $0.23 |
Adjusted EPS | $0.39 | $0.34 |
Outlook
Steelcase Inc (SCS, Financial) expects third quarter fiscal 2025 revenue to be in the range of $785 to $810 million, translating to a growth of 1 to 4% compared to the prior year. The company projects earnings per share of between $0.18 to $0.22 and adjusted earnings per share of between $0.21 to $0.25.
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 $0.85 to $1.00," said Dave Sylvester, senior vice president and CFO.
For more detailed information, please refer to the full 8-K filing.
Explore the complete 8-K earnings release (here) from Steelcase Inc for further details.