Steelcase(US:SCS)2024-12-18 21:06Revenue Performance - Revenue for Q3 2025 was $794.9 million, a 2% increase from $777.9 million in Q3 2024, with a 5% growth in the Americas and a 6% decline in International[2][3] - Revenue for the quarter was $794.9 million, compared to $777.9 million in the previous quarter, reflecting a growth of 2.5%[25] - Revenue for the fiscal year 2024 reached $3.2 billion, with a quarterly revenue of $794.9 million for November 2024, compared to $777.9 million in November 2023[40] - Projected revenue for Q4 2025 is estimated to be between $770 million and $795 million, indicating an organic decline of 4% to 7% compared to Q4 2024[24] Earnings and Income - Adjusted earnings per share for Q3 2025 were $0.30, compared to $0.29 in Q3 2024, while net income was $19.1 million, down from $30.8 million[2][20] - Net income for the quarter ended November 22, 2024, was $19.1 million, a decrease from $30.8 million in the previous quarter[23] - Basic earnings per share increased to $0.79 for the nine months ended November 2024, up from $0.50 in the prior year, reflecting a 58% growth[41] Operating Performance - Operating income for Q3 2025 was $41.0 million, a decrease of $2.8 million compared to the prior year, while adjusted operating income was $47.3 million, down $2.0 million[7][9] - Operating income for the latest quarter was $46.5 million, representing a 7.6% increase compared to $37.2 million in the same quarter last year[26] - Adjusted operating income was $49.7 million, reflecting an 8.1% increase from $39.9 million year-over-year[26] Margins and Costs - Gross margin improved by 100 basis points to 33.4% in Q3 2025, driven by revenue growth in the Americas and cost reduction initiatives[8][11] - The company reported a gross profit margin of 33.4% for the quarter ended November 22, 2024, compared to 32.4% in the previous quarter[25] - Gross profit for the latest quarter was $265.4 million, up from $252.3 million in the same quarter last year[40] - Operating expenses increased by $17.3 million to $223.8 million in Q3 2025, primarily due to higher employee costs[9] Liquidity and Debt - Total liquidity increased by $152 million to $576.6 million at the end of Q3 2025, with total debt at $446.9 million[11] - Total current assets rose to $1,065.1 million as of November 2024, compared to $959.4 million in February 2024, marking an increase of 11%[41] - Total liabilities increased to $1,388.5 million as of November 2024, up from $1,349.6 million in February 2024, indicating a growth of 2.9%[42] - Total long-term liabilities decreased to $710.9 million as of November 2024, down from $742.5 million in February 2024, a reduction of 4.2%[42] Cash Flow and Investments - The company reported a net cash provided by operating activities of $147.9 million for the nine months ended November 2024, compared to $251.3 million in the prior year, a decrease of 41%[43] - Capital expenditures for the period were $28.0 million, compared to $5.2 million in the previous year, indicating an increase in investment[43] Strategic Outlook - The company expects Q4 2025 revenue to be between $770 million and $795 million, reflecting a potential decline of 1% to growth of 3% compared to the prior year[13] - The backlog at the end of Q3 2025 was approximately $664 million, 5% lower than the prior year, but orders in the first three weeks of Q4 grew by 15%[13] - The company anticipates continued growth in organic revenue, excluding the impact of acquisitions and divestitures[30] - Steelcase is focused on expanding its market presence and enhancing product offerings through innovation and strategic partnerships[39]