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Feb 23, 2024

Steelcase Q4 2024 Earnings Report

Reported fourth quarter results with revenue of $775.2 million and EPS of $0.18.

Key Takeaways

Steelcase reported Q4 revenue of $775.2 million, net income of $21.3 million, and EPS of $0.18. Adjusted EPS was $0.23. Revenue decreased 3% compared to the prior year, while orders grew 4% adjusted for divestitures and currency translation.

Revenue decreased by 3% year-over-year, with a 2% decline in the Americas and a 6% decline internationally.

Orders grew by 4% year-over-year, with an 8% increase in the Americas and a 6% decrease internationally.

Gross margin increased by 140 basis points to 31.2%, driven by higher pricing benefits and operational improvements.

Total liquidity increased by $60.9 million from the end of the third quarter, reaching $485.5 million.

Total Revenue
$775M
Previous year: $802M
-3.3%
EPS
$0.23
Previous year: $0.19
+21.1%
Gross Margin
31.2%
Previous year: 29.8%
+4.7%
Operating Income Margin
3.3%
Gross Profit
$242M
Previous year: $239M
+1.2%
Cash and Equivalents
$486M
Previous year: $90.4M
+437.1%
Free Cash Flow
$47.7M
Previous year: $71.7M
-33.5%
Total Assets
$2.24B
Previous year: $2.2B
+1.5%

Steelcase

Steelcase

Steelcase Revenue by Segment

Steelcase Revenue by Geographic Location

Forward Guidance

The company expects first quarter fiscal 2025 revenue to be in the range of $715 to $740 million and earnings per share of between $0.05 to $0.09 for the first quarter of fiscal 2025 and adjusted earnings per share of between $0.08 to $0.12.

Positive Outlook

  • Targeting mid-single digit order growth in fiscal 2025.
  • Executing strategies to lead the workplace transformation.
  • Diversifying the customer and market segments.
  • Progress made in fiscal 2024 to improve profitability.
  • Momentum seen with large corporate customers.

Challenges Ahead

  • Backlog of customer orders was approximately 8% lower than the prior year.
  • First quarter fiscal 2025 revenue is expected to decline of 2 to 5 percent compared to the prior year.
  • The company expects to report earnings per share of between $0.05 to $0.09 for the first quarter of fiscal 2025
  • The company expects to report adjusted earnings per share of between $0.08 to $0.12 for the first quarter of fiscal 2025.
  • The first quarter estimates include:

Revenue & Expenses

Visualization of income flow from segment revenue to net income