Steelcase Inc (SCS, Financial) announced its third-quarter financial results for fiscal year 2025, reporting a revenue of $794.9 million, a 2% increase from the previous year. The company achieved a net income of $19.1 million, or $0.16 per share, with adjusted earnings per share at $0.30. The results were driven by a 5% revenue growth in the Americas, offsetting a 6% decline in international markets. The press release was issued on December 18, 2024.
Positive Highlights
- Revenue growth of 2% year-over-year, with a 5% increase in the Americas.
- Gross margin improved by 100 basis points.
- Total liquidity increased by $152 million, reaching $576.6 million.
- Adjusted earnings per share exceeded company targets for fiscal 2025.
Negative Highlights
- International revenue declined by 6%, with significant drops in Asia Pacific and France.
- Operating income decreased by $2.8 million compared to the previous year.
- Order growth in the Americas was modest, with a 2% increase.
Financial Analyst Perspective
Steelcase's financial performance in Q3 2025 reflects a robust recovery in the Americas, which has been pivotal in offsetting international challenges. The company's focus on cost reduction and restructuring has contributed to improved margins, despite a decline in operating income. The increase in liquidity and adjusted EBITDA indicates a strong financial position, providing a buffer against ongoing international market volatility.
Market Research Analyst Perspective
The growth in the Americas, particularly from government and large corporate clients, underscores Steelcase's strategic alignment with sectors showing resilience. However, the decline in international markets highlights the need for a more diversified global strategy. The company's proactive restructuring efforts and focus on new solutions to adapt to changing work patterns are crucial for sustaining growth and competitiveness in a dynamic market environment.
Frequently Asked Questions
Q: What was Steelcase's revenue for Q3 2025?
A: Steelcase reported a revenue of $794.9 million for Q3 2025.
Q: How did the Americas perform in terms of revenue growth?
A: The Americas saw a 5% revenue growth compared to the previous year.
Q: What was the impact on international revenue?
A: International revenue declined by 6%, with significant decreases in Asia Pacific and France.
Q: What is the outlook for fiscal 2025?
A: Steelcase expects adjusted earnings per share for fiscal 2025 to exceed company targets, with a focus on developing new solutions to adapt to changing work patterns.
Read the original press release here.
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