Q3 2025 Steelcase Inc Earnings Call Transcript
Key Points
- Steelcase Inc (SCS) reported a 3% organic revenue growth in Q3, with adjusted earnings of $0.30 per share, exceeding expectations.
- The Americas segment showed strong performance with 7% organic revenue growth and an adjusted operating margin of 8.1%.
- Steelcase Inc (SCS) has achieved year-over-year gross margin expansion for the tenth consecutive quarter.
- The company has seen improved order trends from large corporate customers and increased activity from technology customers.
- Steelcase Inc (SCS) is making significant progress in its healthcare business, delivering strong revenue growth and supporting health organizations with evidence-based solutions.
- The international segment underperformed with an 8% decline in revenue, primarily due to soft orders and customer-driven project shipment delays.
- Steelcase Inc (SCS) is facing competitive discounting pressures in international markets, particularly in Western Europe.
- The company is navigating supply chain disruptions due to a laminate supplier affected by Hurricane Helene, which could impact future revenue.
- There is a projected increase in capital expenditures to approximately $100 million for fiscal 2025, partly due to ERP system development.
- Steelcase Inc (SCS) anticipates inefficiencies during the ERP system cutover, which may affect gross margin improvements in fiscal 2026.
Good morning. My name is Rob, and I will be your conference operator today. At this time, I would like to welcome everyone to the Steelcase third quarter fiscal 2025 conference call. (Operator instructions)
Mr. O'Meara, you may begin your conference.
' -
Thank you, Rob. Good morning, everyone. Thank you for joining us for the recap of our third quarter fiscal 2025 financial results.
Here with me today are Sara Armbruster, our President and Chief Executive Officer; and Dave Sylvester, our Senior Vice President and Chief Financial Officer. Our third-quarter earnings release, which crossed the wires yesterday, is accessible on our website.
This conference call is being webcast, and this webcast is a copyrighted production of Steelcase Inc. A replay of this webcast will be posted to ir.steelcase.com later today.
Our discussion today may include references to non-GAAP financial measures and forward-looking statements.
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