Steelcase reported QQ2 2026 revenue of $897.1 million, up 4.8% year over year and 15.2% quarter over quarter, signaling continued demand for its workplace furniture and design offerings. Gross margin stood at 34.8% (gross profit $312.1 million), while operating income was $53.1 million, yielding an operating margin of 5.9%. The quarter was characterized by a substantial non-operating expense component totaling $259.0 million, which suppresses operating profitability and depresses net income relative to the top-line strength. After accounting for these charges, net income was $35.0 million with earnings per share of $0.29, a mix of YoY declines and quarterly bounce depending on non-cash or one-time items.
On the balance sheet, Steelcase maintained a solid liquidity position and a conservative leverage profile. Cash and cash equivalents were $216.8 million, with total debt of $620.5 million and net debt of $403.7 million. Free cash flow generated was $40.8 million, supported by $58.9 million of operating cash flow and modest capital expenditure of $18.1 million. The company continues to generate positive operating cash flow despite the profitability headwinds from the sizable non-operating charge, underscoring underlying cash-generative capabilities and balance-sheet resilience. Investors should monitor continued leverage management, the trajectory of core operating margins (absent the sizable non-operating item), and the pace of cash conversion as the business cycles through its typical seasonality.
Compared with industrials peers in the office-furniture space, Steelcase’s revenue growth is modest but positive, and gross margins sit within a reasonable range for the sector. The company’s strategic emphasis on premium design, an expansive dealer network, and continued market penetration in the Americas and Europe remains a key driver of long-term value, even as near-term profitability is pressured by non-operating costs. The investment thesis rests on margin normalization as non-operating items unwind, continued share of wallet gains in North America and EMEA, and the potential for accretive capital allocation and operating-expenditure discipline.