Steelcase Inc. (NYSE: SCS) has reported its second quarter fiscal 2025 results, highlighting strong performance compared to the prior year. The company's operating income increased by $49 million, with adjusted operating income increasing by $15 million. Gross margin improved by 130 basis points, and total liquidity strengthened by $193 million.
In the second quarter of fiscal 2025, Steelcase reported revenue of $855.8 million, a slight increase from the prior year's $854.6 million. The net income also saw a significant jump, reaching $63.1 million compared to $27.5 million in the prior year. Adjusted earnings per share increased to $0.39 from $0.31 in the prior year.
The Americas segment posted a 3% organic order growth compared to the prior year, while the international segment experienced a 4% decline in organic order growth. Despite the overall revenue being flat, the Americas segment saw a 1% increase, driven by higher volume from large corporate, education, and government customers. In contrast, the international decline was primarily due to weakness in China.
The company's operating income of $90.0 million represented a significant increase of $49.0 million compared to the prior year. This growth was driven by a $27.9 million benefit from a gain on the sale of land, lower restructuring costs, improved gross margin in the Americas, and reduced operating expenses internationally.
Steelcase Inc.'s total liquidity, comprising cash and equivalents, short-term investments, and cash surrender value of company-owned life insurance, stood at $507.1 million at the end of the second quarter, marking a $192.6 million increase from the prior year.
Looking ahead, the company expects third quarter fiscal 2025 revenue to be in the range of $785 to $810 million, translating to a growth of 1 to 4 percent compared to the prior year.
Today the company's shares have moved 0.7% to a price of $14.11. For the full picture, make sure to review Steelcase's 8-K report.
