# Steelcase Inc. (SCS) Q2 2026 Financial Results Summary
Steelcase Inc. (NYSE: SCS) released its second quarter fiscal 2026 financial results on September 24, 2025. Below is a detailed summary of their performance for the quarter ended August 29, 2025.
### Key Financial Highlights
– **Revenue:**
– Total revenue for Q2 2026 was **$897.1 million**, reflecting a **5% increase** from **$855.8 million** in Q2 2025.
– Organic revenue growth was **4%**, with the Americas segment growing by **3%** and International by **8%**.
– **Net Income:**
– Net income decreased to **$35.0 million** or **$0.29 per share**, down from **$63.1 million** or **$0.53 per share** a year ago, representing a **44% decline**.
– **Adjusted Earnings per Share:**
– Adjusted earnings per share rose to **$0.45**, an increase of **15%** from **$0.39** in the prior year.
– **Gross Margin:**
– Gross margin was **34.4%**, a slight decrease by **10 basis points** compared to **34.5%** in the previous year.
– **Operating Income:**
– Operating income fell to **$53.1 million**, a decrease of **$36.9 million** or **41%** from the prior year’s **$90.0 million**.
– Adjusted operating income improved to **$75.3 million**, up **9.9%**, compared to **$68.5 million** a year earlier.
### Regional Performance
– **Americas:**
– Revenue increased by **3%** to **$707.1 million** from **$688.0 million**.
– Organic order growth is reported at **8%**.
– **International:**
– Revenue saw a **13%** increase to **$190.0 million** from **$167.8 million**, with a **1% decline** in organic orders.
### Operational Insights
– **Orders:**
– Total orders grew by **6%**, with **8% growth in the Americas** counterbalanced by a **1% decline** in international orders.
– **Operating Expenses:**
– Operating expenses rose to **$247.1 million**, an increase of **$42 million** from **$205.1 million** in Q2 2025.
### Other Financial Metrics
– **Other Income:** Net other income improved by **$3.6 million**, resulting in **$3.0 million** profit in Q2 2026 compared to a **$0.6 million loss** in Q2 2025.
– **Total Liquidity:** Total liquidity stood at **$426.8 million**, a decrease of **$80.3 million** compared to the prior year.
– **Total Debt:** Total debt was **$447.4 million**.
### Shareholder Actions
– The Board of Directors declared a **quarterly cash dividend of $0.10 per share**, payable on or before October 20, 2025, to shareholders of record as of October 6, 2025.
– Additionally, Steelcase repurchased **$5.2 million worth of common stock** during this quarter.
### Summary of Strategic Context
– Steelcase is in the process of merging with HNI Corporation in a transaction valued at approximately **$2.2 billion**, expected to close by the end of calendar year 2025.
– The company continues to focus on meeting the needs of its large corporate customers, especially as they adapt workspaces for employee collaboration.
Overall, Steelcase’s Q2 financial results showcase a mix of growth in revenue and orders, alongside challenges in net income and operating margins amidst a strategic merger process.
| (Unaudited) | Three Months | Six Months | (in millions, except per share data) | Ended August 29, 2025 | Ended August 23, 2024 | Ended August 29, 2025 | Ended August 23, 2024 |
|---|---|---|---|---|---|---|---|
| Revenue | $897.1 | $855.8 | $1,676.1 | $1,583.1 | |||
| Cost of sales | 585.0 | 558.5 | 1,099.2 | 1,044.4 | |||
| Restructuring costs | 3.6 | 1.9 | 4.6 | 8.9 | |||
| Gross profit | 308.5 | 295.4 | 572.3 | 529.8 | |||
| Operating expenses | 247.1 | 205.1 | 477.2 | 422.6 | |||
| Restructuring costs (benefits) | 8.3 | 0.3 | 16.5 | (0.4) | |||
| Operating income | 53.1 | 90.0 | 78.6 | 107.6 | |||
| Interest expense | (6.3) | (6.4) | (12.6) | (12.6) | |||
| Investment income | 2.3 | 2.9 | 5.2 | 5.3 | |||
| Other income (expense), net | 3.0 | (0.6) | (0.3) | (0.3) | |||
| Income before income tax expense | 52.1 | 85.9 | 70.9 | 100.0 | |||
| Income tax expense | 17.1 | 22.8 | 22.3 | 26.0 | |||
| Net income | $35.0 | $63.1 | $48.6 | $74.0 | |||
| Earnings per share: Basic | $0.29 | $0.53 | $0.41 | $0.63 | |||
| Diluted | $0.29 | $0.53 | $0.41 | $0.62 | |||
| Weighted average shares outstanding – basic | 119.0 | 118.1 | 118.6 | 118.2 | |||
| Weighted average shares outstanding – diluted | 119.7 | 118.8 | 119.3 | 119.0 | |||
| Dividends declared and paid per common share | $0.100 | $0.100 | $0.200 | $0.200 |
| (in millions) | August 29, 2025 | February 28, 2025 |
|---|---|---|
| Current assets: Cash and cash equivalents | $216.8 | $346.3 |
| Short-term investments | 41.1 | 41.6 |
| Accounts receivable, net of allowance of $7.2 and $4.7 | 369.8 | 323.1 |
| Inventories, net | 288.0 | 245.7 |
| Prepaid expenses | 42.5 | 37.5 |
| Other current assets | 48.9 | 34.8 |
| Total current assets | 1,007.1 | 1,029.0 |
| Property, plant and equipment, net of accumulated depreciation of $1,184.4 and $1,132.8 | 343.0 | 328.1 |
| Company-owned life insurance (“COLI”) | 168.9 | 170.4 |
| Deferred income taxes | 154.9 | 166.8 |
| Goodwill | 276.5 | 273.5 |
| Other intangible assets, net of accumulated amortization of $118.1 and $106.3 | 70.0 | 77.0 |
| Investments in unconsolidated affiliates | 56.0 | 53.3 |
| Right-of-use operating lease assets | 160.8 | 141.2 |
| Other assets | 114.8 | 91.1 |
| Total assets | $2,352.0 | $2,330.4 |
| Current liabilities: Accounts payable | $234.0 | $228.2 |
| Current operating lease obligations | 40.3 | 39.7 |
| Employee compensation | 133.9 | 187.3 |
| Employee benefit plan obligations | 36.0 | 49.7 |
| Accrued promotions | 28.5 | 23.5 |
| Customer deposits | 58.4 | 43.0 |
| Other current liabilities | 76.0 | 97.7 |
| Total current liabilities | 607.1 | 669.1 |
| Long-term liabilities: Long-term debt | 447.4 | 447.1 |
| Employee benefit plan obligations | 98.3 | 100.7 |
| Long-term operating lease obligations | 132.8 | 113.9 |
| Other long-term liabilities | 50.0 | 47.9 |
| Total long-term liabilities | 728.5 | 709.6 |
| Total liabilities | 1,335.6 | 1,378.7 |
| Shareholders’ equity: Additional paid-in capital | 41.5 | 29.3 |
| Accumulated other comprehensive income (loss) | (35.5) | (63.5) |
| Retained earnings | 1,010.4 | 985.9 |
| Total shareholders’ equity | 1,016.4 | 951.7 |
| Total liabilities and shareholders’ equity | $2,352.0 | $2,330.4 |
