Steelcase Inc. (NYSE: SCS) is a global leader in the office furniture industry, specializing in the design and manufacture of innovative workspace solutions. The company reported its fourth quarter and fiscal 2025 results, indicating a stable performance environment.

In the fourth quarter, Steelcase generated revenue of $788 million, a 2% increase from $775 million in the prior year. Adjusted earnings per share were $0.26, up from $0.23 year-over-year, reflecting an increase of $0.03. Fiscal 2025 saw revenue reach $3.2 billion, showing no substantial change from $3.16 billion in fiscal 2024. The company’s adjusted earnings per share for the fiscal year was $1.12, exceeding the prior year’s $0.92.

Order growth in the fourth quarter was 9%, driven primarily by a 12% increase in the Americas segment, marking Steelcase’s sixth consecutive quarter of year-over-year order growth. However, organic revenue experienced a decline of 5%, driven by a 3% decline in the Americas and a larger 10% drop in International segments. The International segment’s decline was attributed to challenges in markets such as Germany, France, and India.

Gross margin in Q4 improved by 70 basis points year-over-year to 31.9%. The operating income margin for fiscal 2025 was reported at 5.0%, up 130 basis points compared to the prior fiscal year. Operating expenses increased by $28.1 million in Q4 to reach $241.6 million, influenced by higher employee costs and expenses related to technology initiatives.

In terms of cash flow, Steelcase generated $100 million in free cash flow and returned $84 million to shareholders through dividends and share repurchases. The company recorded a total liquidity of $558 million, exceeding total debt of $447 million.

Looking ahead, Steelcase anticipates first quarter fiscal 2026 revenue to fall between $760 million to $785 million, representing organic growth of 5% to 9%. This projection aligns with the company’s guidance of targeting mid-single-digit organic revenue growth for fiscal 2026, underscoring a commitment to modest margin improvements despite ongoing tariff pressures and rising operational costs.