Steelcase reported a resilient QQ4 2025 despite a softer macro environment, delivering revenue of $788 million and an 11th consecutive quarter of gross margin expansion. Management highlighted meaningful momentum in the Americas, led by large corporate and government customers, with Q4 order growth of 9% and a 12% surge in the Americas segment for the full year. Full-year adjusted EPS came in at $1.12, ending above the top end of prior guidance, aided by a 100 basis point gross margin improvement and efficiency initiatives. The company also emphasized strategic progress in its workplace transformation, dealer analytics initiatives, and ongoing ERP modernization, while signaling continued tariff-related pricing actions and ERP-related cloud investments into calendar 2026.
Looking ahead, Steelcase provided a cautious but constructive near-term view. Q1 2026 revenue guidance is $760–$785 million with adjusted EPS guidance of $0.13–$0.17 and a gross margin target around 33%, incorporating roughly $9 million of higher tariff costs year-over-year. For FY2026, the company targets mid-single-digit organic revenue growth, a modest lift in adjusted operating margin, and breakeven adjusted operating income in International. Management also announced a June list-price increase in the Americas and a tariff recovery charge for orders received after today, underscoring the ongoing inflation/tariff headwinds and the need for pricing actions. The balance sheet remains solid with liquidity of about $558 million, and the company continues to invest in growth avenues including AMQ (small-to-mid) and GCC-driven international expansion, while absorbing ERP-related costs and capex of roughly $70–$80 million planned for 2026.