Steelcase Reports Fourth Quarter and Fiscal 2025 Results

Core Viewpoint - Steelcase Inc. reported a fourth quarter revenue increase of 2% year-over-year, driven by a 5% growth in the Americas, while facing a 7% decline in international revenue. The company also highlighted strong order growth in the Americas, indicating a positive outlook for future performance [1][2][5]. Financial Performance - Fourth quarter revenue was $788.0 million, net income was $27.6 million, or $0.23 per share, and adjusted earnings per share were $0.26. The results included $21.8 million of favorable tax items, which increased net income by $13.4 million [1][10]. - For fiscal 2025, the company recorded $3.2 billion in revenue, net income of $120.7 million, and adjusted earnings per share of $1.12, reflecting stable performance compared to the previous year [10][11]. Revenue and Orders - Revenue growth in Q4 2025 was 2% compared to Q4 2024, with a 5% increase in the Americas and a 7% decline in international markets. Organic revenue declined by 5% [2][11]. - Orders grew by 9% in Q4, with a 12% increase in the Americas, driven by large corporate and government customers [3][5]. Gross Margin and Operating Income - Gross margin improved by 70 basis points to 31.9% in Q4, attributed to cost reduction initiatives [7][8]. - Operating income for Q4 was $9.5 million, a decrease of $16.2 million compared to the prior year, primarily due to lower international revenue and higher operating expenses [6][8]. Shareholder Returns and Liquidity - The company returned $84 million to shareholders and strengthened total liquidity by $73 million, ending the quarter with $558.3 million in total liquidity [5][13]. - Steelcase repurchased 2.1 million shares for a total cost of $26.5 million, with $79.9 million remaining under its share repurchase authorization [14]. Outlook - The company expects first quarter fiscal 2026 revenue to be between $760 million and $785 million, translating to a growth of 4% to 8% compared to the prior year [15][16]. - Fiscal 2026 targets include mid-single digit organic revenue growth and modest improvement in adjusted operating income margin [17][19].