Steelcase (SCS) Q1 2026 earnings summary

Executive summary

• Revenue increased 7% year-over-year to $779.0 million, driven by 9% growth in the Americas and a 1% increase in International, with strong order growth from large corporate customers offsetting declines in government and education sectors.

• Adjusted EPS rose 25% year-over-year to $0.20, and net income increased to $13.6 million from $10.9 million, with adjusted operating margin at 5%.

• Achieved the 12th consecutive quarter of year-over-year gross margin expansion, with gross margin improving to 33.9% from 32.2%.

• Restructuring actions in the Americas targeted $20 million in annualized savings, incurring $9 million in related costs, and further cost reductions are planned in Europe.

• Strategic focus remains on workplace transformation, market expansion, profitability improvement, and sustainability, with a commitment to net-zero carbon emissions by 2050.

Financial highlights

• Q1 revenue reached $779 million, with adjusted EPS of $0.20 and gross margin up 170 basis points to 33.9% year-over-year.

• Operating income increased 45% to $25.5 million; adjusted operating income rose to $39.0 million.

• Trailing four-quarter adjusted EBITDA was $266 million, or 8.3% of revenue.

• Cash and cash equivalents declined to $183.9 million, mainly due to seasonal disbursements and investments.

• Net cash used in operating activities was $141.1 million, primarily for variable compensation and inventory build.

Outlook and guidance

• Q2 revenue expected between $860–$890 million, representing flat to 4% organic growth year-over-year.

• Q2 adjusted EPS guidance is $0.36–$0.40, with gross margin expected at 33–33.5%.

• Full-year targets remain mid-single-digit organic revenue growth and adjusted operating margin expansion.

• Liquidity, credit facilities, and cash flow are expected to be sufficient for foreseeable needs, including capital expenditures and dividends.

• Ongoing restructuring and cost reduction initiatives are expected to further improve profitability, especially in response to weak demand in Germany and France.