Steelcase (SCS) Tops Q4 EPS by 5c, Offers Guidance

Steelcase (NYSE: SCS) reported Q4 EPS of $0.26, $0.05 better than the analyst estimate of $0.21. Revenue for the quarter came in at $788 million versus the consensus estimate of $781.63 million.

GUIDANCE:

Steelcase sees Q1 2026 EPS of $0.10-$0.14, versus the consensus of $0.12. Steelcase sees Q1 2026 revenue of $760-785 million, versus the consensus of $745 million.

• At the end of the fourth quarter, the company’s backlog was approximately $694 million, which was 11 percent higher than the prior year. The company expects first quarter fiscal 2026 revenue to be in the range of $760 to $785 million. The company reported revenue of $727.3 million in the first quarter of fiscal 2025. The projected revenue range translates to growth of 4 to 8 percent compared to the prior year, or organic growth of 5 to 9 percent.
• The company expects to report earnings per share of between $0.10 to $0.14 for the first quarter of fiscal 2026 and adjusted earnings per share of between $0.13 to $0.17. The company reported earnings per share of $0.09 and adjusted earnings per share of $0.16 in the first quarter of fiscal 2025.

The first quarter estimates include:

• gross margin of approximately 33 percent, which includes an assumption of $9 million of higher tariff costs as compared to the prior year,
• projected operating expenses of between $230 to $235 million, which includes $4.3 million of amortization of purchased intangible assets,
• projected interest expense, net of investment income and other income, net, of approximately $2 million, and
• a projected effective tax rate of approximately 27 percent.
• For fiscal 2026, the company is targeting mid-single digit organic revenue growth and modest improvement in its adjusted operating income margin compared to fiscal 2025, assuming a relatively stable macroeconomic environment.
• The fiscal 2026 targets reflect the following assumptions and expectations, as compared to fiscal 2025:
• a mid-single digit order growth rate, including continued growth from large corporate customers, and benefits from the strong beginning backlog of customer orders,
• benefits from pricing actions offsetting the impacts of higher tariffs and related inflationary cost increases,
• increased operating expenses, driven primarily by investments for strategic initiatives, and
• projected interest expense, investment income and other income, net, of approximately $10 million, and
• a projected effective tax rate of 27 percent.

For earnings history and earnings-related data on Steelcase (SCS) click here.

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