Steelcase Inc. (NYSE: SCS) has reported its first-quarter fiscal 2026 results, showing a 7% increase in revenue compared to the prior year. The revenue for this quarter was $779.0 million, up from $727.3 million in the prior year. The gross margin also improved to 33.9%, representing a 170 basis points increase from the prior year.
Operating income increased by 45% compared to the prior year, reaching $25.5 million. Adjusted operating income for the same period was $39.0 million, reflecting a $10.8 million increase compared to the prior year. This improvement was primarily driven by higher revenue in the Americas.
The company's organic revenue growth in the Americas was 9%, while international organic revenue experienced a 1% decline. Orders from large corporate customers in the Americas grew, but this was offset by declines from government and education customers. In the international segment, growth in India, the UK, and China offset declines in Germany and France.
Steelcase's total liquidity, comprised of cash and cash equivalents, short-term investments, and the cash surrender value of company-owned life insurance, increased to $391.5 million at the end of the first quarter, representing a $13.7 million increase compared to the prior year.
The company's backlog at the end of the first quarter was approximately $801 million, which was 2% higher than the prior year. For the second quarter of fiscal 2026, Steelcase expects revenue to be in the range of $860 to $890 million, translating to approximately flat to 4% growth compared to the prior year.
The company is also forecasting earnings per share of between $0.27 to $0.31 for the second quarter, including the impact of amortization of purchased intangible assets and projected restructuring costs, and adjusted earnings per share of between $0.36 to $0.40.
Steelcase's board of directors has declared a quarterly cash dividend of $0.10 per share to be paid on or before July 21, 2025, to shareholders of record as of July 7, 2025.
These results indicate a positive start to the fiscal year for Steelcase Inc. with significant improvements in revenue and operating income compared to the prior year. As a result of these announcements, the company's shares have moved -2.63% on the market, and are now trading at a price of $10.545. For the full picture, make sure to review STEELCASE INC's 8-K report.
