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Steelcase
🇺🇸 NYSE:SCS
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Aug 23, 2024

Steelcase Q2 2025 Earnings Report

Reported second quarter revenue with increased net income and adjusted earnings per share.

Key Takeaways

Steelcase reported second quarter revenue of $855.8 million, a slight increase from the prior year. Net income increased significantly to $63.1 million, or $0.53 per share, and adjusted earnings per share grew to $0.39. The Americas saw revenue and order growth, driven by education and government customers, while International experienced a decline due to weakness in China.

Revenue was approximately flat compared to the prior year, with growth in the Americas offset by a decline in International.

Adjusted earnings per share increased by 26% driven by the seasonal strength of our education business and the continued progress of our profitability improvement initiatives.

Operating income increased significantly due to a gain on the sale of land and lower restructuring costs.

The company expects order patterns from our largest corporate customers to return to growth in the second half of the year.

Total Revenue
$856M
Previous year: $855M
+0.1%
EPS
$0.39
Previous year: $0.31
+25.8%
Gross Margin
34.5%
Gross Profit
$295M
Previous year: $284M
+4.1%
Cash and Equivalents
$507M
Previous year: $154M
+230.1%
Free Cash Flow
$95.6M
Previous year: $107M
-10.9%
Total Assets
$2.27B
Previous year: $2.2B
+3.3%

Steelcase

Steelcase

Steelcase Revenue by Segment

Steelcase Revenue by Geographic Location

Forward Guidance

The company expects third quarter fiscal 2025 revenue to be in the range of $785 to $810 million and earnings per share of between $0.18 to $0.22 for the third quarter of fiscal 2025 and adjusted earnings per share of between $0.21 to $0.25.

Positive Outlook

  • Revenue growth of 1 to 4 percent compared to the prior year.
  • Organic revenue growth of 1 to 5 percent.
  • 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.
  • Continued focus on developing innovative solutions to help our customers transform their workplaces
  • Diversifying the customer and market segments we serve.

Challenges Ahead

  • Third quarter estimates include a $0.09 benefit in the prior year related to the reversal of an accrued earnout liability and gains from the sale of fixed assets.
  • Backlog was approximately flat compared to the prior year
  • Third quarter fiscal 2025 revenue to be in the range of $785 to $810 million
  • Company expects to report earnings per share of between $0.18 to $0.22 for the third quarter of fiscal 2025
  • Adjusted earnings per share of between $0.21 to $0.25

Company Overview

Full financial data and analysis

View Steelcase