Steelcase (SCS, Financial) anticipates revenue for the second quarter of fiscal 2026 to fall between $860 million and $890 million, aligning with the consensus estimate of $878.73 million. This forecast represents a steady performance to a possible increase of 4% compared to the same period last year, or up to 3% on an organic basis. Last year, the company recorded $855.8 million in revenue for the same quarter.
The backlog for Steelcase (SCS, Financial) at the close of the first quarter stood at approximately $801 million, showing a 2% increase from the previous year. Earnings per share (EPS) for the upcoming quarter are expected to range from $0.27 to $0.31, factoring in amortization of purchased intangible assets and anticipated restructuring expenses. Adjusted EPS is projected at $0.36 to $0.40. In the prior year’s second quarter, the company reported an EPS of $0.53 and an adjusted EPS of $0.39.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 3 analysts, the average target price for Steelcase Inc (SCS, Financial) is $16.67 with a high estimate of $18.00 and a low estimate of $16.00. The average target implies an upside of 56.94% from the current price of $10.62. More detailed estimate data can be found on the Steelcase Inc (SCS) Forecast page.
Based on the consensus recommendation from 2 brokerage firms, Steelcase Inc's (SCS, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Steelcase Inc (SCS, Financial) in one year is $12.41, suggesting a upside of 16.85% from the current price of $10.62. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Steelcase Inc (SCS) Summary page.
SCS Key Business Developments
Release Date: March 27, 2025
- Revenue: $788 million for Q4, within the upper end of the estimated range.
- Adjusted Earnings Per Share (EPS): $0.26 for Q4, above the estimated range.
- Adjusted Operating Margin: 5% for the full fiscal year, including 7% in the Americas.
- Gross Margin Improvement: Over 500 basis points expansion since fiscal 2022.
- Order Growth: 9% in Q4, led by 12% growth in the Americas.
- Free Cash Flow: $100 million for the fiscal year.
- Shareholder Returns: $84 million returned to shareholders.
- Organic Revenue Decline: 5% for Q4, including a 3% decline in the Americas and 10% decline internationally.
- Adjusted Operating Income: Declined by $20 million year-over-year.
- Liquidity: Total liquidity of $558 million, exceeding total debt of $447 million.
- Fiscal 2026 Revenue Target: Mid single-digit organic revenue growth.
- Fiscal 2026 Capital Expenditures: Targeting $70 to $80 million.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Steelcase Inc (SCS, Financial) reported a full-year adjusted earnings per share of $1.12, exceeding the top end of their initial targets.
- The company achieved an adjusted operating margin of 5%, with a notable 7% in the Americas.
- Steelcase Inc (SCS) experienced its 11th consecutive quarter of year-over-year gross margin expansion, improving over 500 basis points since fiscal 2022.
- Order growth in the fourth quarter was 9%, led by a 12% increase in the Americas, marking the sixth consecutive quarter of year-over-year order growth in this region.
- The company reported strong demand from large corporate and government customers, with positive signals in corporate real estate and increased US office leasing activity.
Negative Points
- Despite strong order growth, adjusted earnings fell below the estimated range due to shortfalls in both the Americas and International segments.
- The international segment experienced a 10% revenue decline, driven by weaknesses in Germany, France, and India.
- Higher manufacturing costs and operating expenses, including a bad debt provision and severance costs, impacted the international segment's performance.
- Steelcase Inc (SCS) is facing new tariffs and global trade uncertainty, which may require pricing actions and supply chain adjustments.
- The company anticipates losses in the international segment in the first half of fiscal 2026, with profitability expected only in the second half.
