Steelcase (SCS) investor relations material

Executive summary

• Revenue increased 5% year-over-year to $897.1 million, driven by large corporate customers in the Americas and strong growth in India, China, and the UK.

• Adjusted earnings per share rose to $0.45 from $0.39, with adjusted operating income improving to $75.3 million from $68.5 million.

• Net income for Q2 2026 was $35.0 million ($0.29 per share), down from $63.1 million ($0.53 per share) in the prior year, due to higher restructuring and merger costs.

• Order growth of 6% in Q2, with 8% in the Americas, led by financial services and technology sectors.

• Announced $2.2 billion merger agreement with HNI Corporation, expected to close by year-end 2025, subject to shareholder and regulatory approvals.

Financial highlights

• Q2 2026 revenue was $897.1 million, above prior guidance, with gross margin at 34.4% and operating margin at 5.9%.

• Adjusted operating margin improved to 8.4%, and adjusted EBITDA for the trailing four quarters was $278.3 million (8.5% of revenue).

• Operating income fell to $53.1 million from $90.0 million, impacted by $11.9 million in restructuring and $7.1 million in merger costs.

• Organic revenue grew 4% year-over-year: 3% in Americas, 8% internationally.

• Orders grew 6% year-over-year, led by 8% growth in the Americas.

Outlook and guidance

• The merger with HNI is expected to close by the end of 2025, pending regulatory and shareholder approvals.

• No forward-looking financial guidance provided due to the pending merger.

• Ongoing investment in business transformation, including ERP system implementation, with $78 million capitalized to date.