Steelcase Inc. Reports Q1 Fiscal 2026 Results with 7% Revenue Growth and Increased Net Income

Steelcase Inc. reported its financial results for the first quarter of fiscal year 2026, ending May 30, 2025, revealing a net income of $13.6 million, or $0.11 per diluted share, compared to $10.9 million, or $0.09 per diluted share, in the same period last year. The company’s revenue increased by 7% to $779.0 million from $727.3 million, driven primarily by a 9% increase in the Americas segment, which accounted for 77.5% of total revenue. The International segment saw a modest 1% increase, aided by favorable currency translation effects.

The financial performance reflects significant operational changes, including a restructuring initiative that resulted in $9.2 million in costs during the quarter, up from $6.3 million in the prior year. The restructuring actions, which included workforce reductions, are aimed at prioritizing investments in strategic growth areas. Operating income rose to $25.5 million from $17.6 million, attributed to higher sales volume and cost reduction initiatives, despite increased operating expenses.

Steelcase's operational metrics indicate a strong order backlog, approximately 11% higher than the previous year, which contributed to the revenue growth. However, the company noted a decline in orders from education and government sectors in the Americas, influenced by changes in federal funding policies. The International segment faced challenges, particularly in Germany and France, where macroeconomic factors negatively impacted small-to-midsize businesses.

In terms of cash flow, Steelcase reported a net cash outflow of $141.1 million from operating activities, compared to $59.1 million in the prior year, largely due to increased employee compensation liabilities and inventory purchases. The company’s liquidity position remains strong, with total liquidity sources amounting to $714.4 million as of May 30, 2025. Looking ahead, Steelcase anticipates continued focus on restructuring efforts and strategic investments to enhance profitability, while navigating the challenges posed by market conditions and customer demand fluctuations.