scs-20250530

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

___________________________________________________________

FORM 10-Q


☑						QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended May 30, 2025


or
☐						TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number 1-13873

___________________________________________________________

STEELCASE INC.

(Exact name of registrant as specified in its charter)


Michigan		38-0819050
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)
901 44th Street SE
Grand Rapids,	Michigan	49508
(Address of principal executive offices)		(Zip Code)

(616) 247-2710

(Registrant's telephone number, including area code)

None

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading symbol(s)	Name of each exchange on which registered
Class A Common Stock	SCS	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☑ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☑

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☑

As of June 24, 2025, Steelcase Inc. had 95,762,563 shares of Class A Common Stock and 18,945,438 shares of Class B Common Stock outstanding.

Table of Contents


STEELCASE INC. FORM 10-Q FOR THE QUARTERLY PERIOD ENDED May 30, 2025 INDEX


		Page No.

PART I	Financial Information	1
Item 1.	Financial Statements (Unaudited)	1
	Condensed Consolidated Statements of Income for the Three Months Ended May 30, 202 5 and May 24 , 202 4	1
	Condensed Consolidated Statements of Comprehensive Income for the Three Months Ended May 30 , 202 5 and M ay 24, 202 4	2
	Condensed Consolidated Balance Sheets as of May 30 , 202 5 and February 2 8 , 202 5	3
	Condensed Consolidated Statements of Changes in Shareholders' Equity for the Three Months Ended May 30 , 202 5 and May 24, 2024	4
	Condensed Consolidated Statements of Cash Flows for the Three Months Ended May 30, 2025 and May 24, 202 4	5
	Notes to Condensed Consolidated Financial Statements	6
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	16
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	24
Item 4.	Controls and Procedures	24

PART II	Other Information	25
Item 1A.	Risk Factors	25
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	25
Item 6.	Exhibits	26
Signatures		27

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PART I. FINANCIAL INFORMATION

Item 1.Financial Statements:

STEELCASE INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

(in millions, except per share data)


	Three Months Ended
	May 30, 2025		May 24, 2024
Revenue	$	779.0	$	727.3
Cost of sales	514.2		485.9
Restructuring costs	1.0		7.0
Gross profit	263.8		234.4
Operating expenses	230.1		217.5
Restructuring costs (benefits)	8.2		(0.7)
Operating income	25.5		17.6
Interest expense	(6.3)		(6.2)
Investment income	2.9		2.4
Other income (expense), net	(3.3)		0.3
Income before income tax expense	18.8		14.1
Income tax expense	5.2		3.2
Net income	$	13.6	$	10.9
Earnings per share:
Basic	$	0.11	$	0.09
Diluted	$	0.11	$	0.09
Dividends declared and paid per common share	$	0.100	$	0.100

See accompanying notes to the condensed consolidated financial statements.

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STEELCASE INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)

(in millions)


	Three Months Ended
	May 30, 2025		May 24, 2024
Net income	$	13.6	$	10.9
Other comprehensive income (loss), net:
Unrealized gain (loss) on investments	(0.2)		0.1
Pension and other post-retirement liability adjustments	(0.1)		(0.4)
Derivative amortization	0.2		0.2
Foreign currency translation adjustments	21.6		0.4
Total other comprehensive income, net	21.5		0.3
Comprehensive income	$	35.1	$	11.2

See accompanying notes to the condensed consolidated financial statements.

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STEELCASE INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in millions)


	(Unaudited)
	May 30, 2025		February 28, 2025
ASSETS
Current assets:
Cash and cash equivalents	$	183.9	$	346.3
Short-term investments	42.1		41.6
Accounts receivable, net of allowance of $5.6 and $4.7	340.1		323.1
Inventories, net	286.6		245.7

Prepaid expenses	43.4		37.5


Other current assets	42.6		34.8
Total current assets	938.7		1,029.0
Property, plant and equipment, net of accumulated depreciation of $1,163.7 and $1,132.8	337.0		328.1
Company-owned life insurance ("COLI")	165.5		170.4
Deferred income taxes	166.0		166.8
Goodwill	275.7		273.5
Other intangible assets, net of accumulated amortization of $113.3 and $106.3	74.1		77.0
Investments in unconsolidated affiliates	53.9		53.3
Right-of-use operating lease assets	142.4		141.2
Other assets	102.1		91.1
Total assets	$	2,255.4	$	2,330.4
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	241.5	$	228.2

Current operating lease obligations	39.6		39.7
Employee compensation	89.8		187.3
Employee benefit plan obligations	25.3		49.7
Accrued promotions	24.7		23.5
Customer deposits	54.0		43.0


Other current liabilities	93.6		97.7
Total current liabilities	568.5		669.1
Long-term liabilities:
Long-term debt	447.3		447.1
Employee benefit plan obligations	93.0		100.7
Long-term operating lease obligations	115.0		113.9
Other long-term liabilities	48.9		47.9
Total long-term liabilities	704.2		709.6
Total liabilities	1,272.7		1,378.7
Shareholders’ equity:

Additional paid-in capital	37.4		29.3
Accumulated other comprehensive income (loss)	(42.0)		(63.5)
Retained earnings	987.3		985.9
Total shareholders’ equity	982.7		951.7
Total liabilities and shareholders’ equity	$	2,255.4	$	2,330.4

See accompanying notes to the condensed consolidated financial statements.

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STEELCASE INC.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (Unaudited)

(in millions, except share and per share data)


	Three Months Ended
	May 30, 2025		May 24, 2024
Changes in common shares outstanding:
Common shares outstanding, beginning of period	113,733,433		114,227,372
Common stock issuances	20,021		21,552
Common stock repurchases	(431,717)		(2,201,146)
Performance and restricted stock units issued as common stock	1,321,895		2,063,401
Common shares outstanding, end of period	114,643,632		114,111,179

Changes in additional paid-in capital (1):
Additional paid-in capital, beginning of period	$	29.3	$	41.2
Common stock issuances	0.2		0.3
Common stock repurchases	(5.0)		(27.7)
Performance and restricted stock units expense	12.9		14.5
Additional paid-in capital, end of period	37.4		28.3

Changes in accumulated other comprehensive income (loss):
Accumulated other comprehensive income (loss), beginning of period	(63.5)		(66.9)
Other comprehensive income, net	21.5		0.3

Accumulated other comprehensive income (loss), end of period	(42.0)		(66.6)

Changes in retained earnings:
Retained earnings, beginning of period	985.9		912.8
Net income	13.6		10.9
Dividends paid	(12.2)		(12.3)


Retained earnings, end of period	987.3		911.4
Total shareholders' equity	$	982.7	$	873.1

_______________________________________

(1)Shares of our Class A and Class B common stock have no par value; thus, there are no balances for common stock.

See accompanying notes to the condensed consolidated financial statements.

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STEELCASE INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

(in millions)


	Three Months Ended
	May 30, 2025		May 24, 2024
OPERATING ACTIVITIES
Net income	$	13.6	$	10.9
Depreciation and amortization	17.6		20.2
Share-based compensation	13.1		14.8
Restructuring costs	9.2		6.3




Other	1.9		(0.9)
Changes in operating assets and liabilities:
Accounts receivable	(10.1)		13.6
Inventories	(37.3)		(16.7)

Cloud computing arrangements expenditures	(10.7)		(10.9)
Other assets	(10.3)		(10.8)
Accounts payable	9.9		11.6
Employee compensation liabilities	(111.0)		(81.7)
Employee benefit obligations	(33.8)		(25.9)

Accrued expenses and other liabilities	6.8		10.4
Net cash used in operating activities	(141.1)		(59.1)
INVESTING ACTIVITIES
Capital expenditures	(14.0)		(12.1)


Purchases of short-term investments	(5.1)		(36.2)
Liquidations of short-term investments	4.6		0.5
Other	8.6		1.2
Net cash used in investing activities	(5.9)		(46.6)
FINANCING ACTIVITIES
Dividends paid	(12.2)		(12.3)
Common stock repurchases	(5.0)		(27.7)




Net cash used in financing activities	(17.2)		(40.0)
Effect of exchange rate changes on cash and cash equivalents	0.9		0.1
Net decrease in cash, cash equivalents and restricted cash	(163.3)		(145.6)
Cash and cash equivalents and restricted cash, beginning of period (1)	353.8		325.9
Cash and cash equivalents and restricted cash, end of period (2)	$	190.5	$	180.3

_______________________________________

(1)These amounts include restricted cash of $7.5 and $7.3 as of February 28, 2025 and February 23, 2024, respectively.

(2)These amounts include restricted cash of $6.6 and $7.1 as of May 30, 2025 and May 24, 2024, respectively.

Restricted cash primarily represents funds held in escrow for potential future workers’ compensation and product liability claims. The restricted cash balance is included as part of Other assets on the Condensed Consolidated Balance Sheets.

See accompanying notes to the condensed consolidated financial statements.

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STEELCASE INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

1.BASIS OF PRESENTATION

The accompanying condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions in Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals and adjustments) considered necessary for a fair presentation of the condensed consolidated financial statements have been included. Results for interim periods should not be considered indicative of results to be expected for a full year. Reference should be made to the consolidated financial statements and notes thereto contained in our Annual Report on Form 10-K for the fiscal year ended February 28, 2025 (“Form 10-K”). The Condensed Consolidated Balance Sheet as of February 28, 2025 was derived from the audited Consolidated Balance Sheet included in our Form 10-K.

As used in this Quarterly Report on Form 10-Q, unless otherwise expressly stated or the context otherwise requires, all references to “Steelcase,” “we,” “our,” “Company” and similar references are to Steelcase Inc. and its subsidiaries in which a controlling interest is maintained. Unless the context otherwise indicates, reference to a year relates to the fiscal year, ended in February of the year indicated, rather than a calendar year. Additionally, Q1, Q2, Q3 and Q4 reference the first, second, third and fourth quarter, respectively, of the fiscal year indicated. All amounts are in millions, except share and per share data, data presented as a percentage or as otherwise indicated.

2.NEW ACCOUNTING STANDARDS

We evaluate all Accounting Standards Updates ("ASUs") issued by the Financial Accounting Standards Board ("FASB") for consideration of their applicability to our consolidated financial statements. We have assessed all ASUs issued but not yet adopted and concluded that those not disclosed are either not applicable to us or are not expected to have a material effect on our consolidated financial statements.

Adoption of New Accounting Standards

In 2025, we adopted ASU No. 2023-07, Segment Reporting (Topic 280) - Improvements to Reportable Segment Disclosures, which is intended to improve disclosures related to significant segment expenses and the information used by the chief operating decision maker ("CODM") to assess segment performance and to allocate resources. We adopted this guidance on a retrospective basis, which modified our annual disclosures beginning in 2025 and our interim disclosures beginning in 2026 but did not have a material effect on our consolidated financial statements. See Note 9 to the condensed consolidated financial statements for additional information.

Accounting Standards Issued But Not Yet Adopted

In November 2024, the FASB issued ASU No. 2024-03, Income Statement (Subtopic 220-40) - Reporting Comprehensive Income - Expense Disaggregation Disclosures, which is intended to improve disclosures through disaggregation of certain commonly presented expense captions. The guidance is effective for annual reporting periods beginning after December 15, 2026 and interim reporting periods beginning after December 15, 2027, which was clarified in ASU 2025-01. We expect the adoption of this guidance will modify our disclosures, but we do not expect it to have a material effect on our consolidated financial statements.

In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740) - Improvements to Income Tax Disclosures, which is intended to improve income tax disclosures, specifically related to additional detail required in the effective tax rate reconciliation and the disaggregation of income taxes paid. The guidance is effective for annual reporting periods beginning after December 15, 2024. We expect the adoption of this guidance will modify our disclosures, but we do not expect it to have a material effect on our consolidated financial statements.

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STEELCASE INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

3.REVENUE

Disaggregation of Revenue

The following table provides information about disaggregated revenue by product category for each of our reportable segments:


Product Category Data	Three Months Ended
	May 30, 2025		May 24, 2024
Americas
Desking, benching, systems and storage	$	294.6	$	255.5
Seating	159.1		144.6
Other (1)	149.9		154.3
International
Desking, benching, systems and storage	57.1		56.8
Seating	68.5		64.5
Other (1)	49.8		51.6
	$	779.0	$	727.3

_______________________________________

(1)The other product category data by segment consists primarily of third-party products, textiles and surface materials, worktools, architecture and other uncategorized product lines and services, less promotions and incentives on all product categories.

Reportable geographic information is as follows:


Reportable Geographic Revenue	Three Months Ended
	May 30, 2025		May 24, 2024
United States ("U.S.")	$	560.4	$	513.3
Foreign locations	218.6		214.0
	$	779.0	$	727.3

Contract Balances

At times, we receive payments from customers before revenue is recognized, resulting in the recognition of a contract liability (Customer deposits) presented on the Condensed Consolidated Balance Sheets.

Changes in the Customer deposits balance for the three months ended May 30, 2025 are as follows:


Roll-Forward of Contract Liability for Customer Deposits	Customer Deposits
Balance as of February 28, 2025	$	43.0
Recognition of revenue related to beginning of year customer deposits	(24.9)
Customer deposits received, net of revenue recognized during the period	35.9

Balance as of May 30, 2025	$	54.0

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STEELCASE INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

4.EARNINGS PER SHARE

Earnings per share is computed using the two-class method. The two-class method determines earnings per share for each class of common stock and participating securities according to dividends or dividend equivalents and their respective participation rights in undistributed earnings. Participating securities represent restricted stock units in which the participants have non-forfeitable rights to dividend equivalents during the performance period. Diluted earnings per share includes the effects of certain performance units in which the participants have forfeitable rights to dividend equivalents during the performance period.


Computation of Earnings Per Share	Three Months Ended May 30, 2025						Three Months Ended May 24, 2024
	Net Income		Basic Shares (in millions)		Diluted Shares (in millions)		Net Income		Basic Shares (in millions)		Diluted Shares (in millions)
Amounts used in calculating earnings per share	$	13.6	118.3		119.0		$	10.9	118.4		119.1
Impact of participating securities	(0.4)		(3.8)		(3.8)		(0.3)		(3.6)		(3.6)
Amounts used in calculating earnings per share, excluding participating securities	$	13.2	114.5		115.2		$	10.6	114.8		115.5

Earnings per share			$	0.11	$	0.11			$	0.09	$	0.09

There were no anti-dilutive performance units excluded from the computation of diluted earnings per share for the three months ended May 30, 2025 and May 24, 2024.

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STEELCASE INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

5.ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

The following table summarizes the changes in accumulated balances of other comprehensive income (loss) for the three months ended May 30, 2025:


	Unrealized gain (loss) on investments		Pension and other post-retirement liability adjustments		Derivative amortization		Foreign currency translation adjustments		Total
Balance as of February 28, 2025	$	1.0	$	15.2	$	(3.8)	$	(75.9)	$	(63.5)
Other comprehensive income (loss) before reclassifications	(0.2)		0.3		—		21.6		21.7
Amounts reclassified from accumulated other comprehensive income (loss)	—		(0.4)		0.2		—		(0.2)
Net other comprehensive income (loss) during the period	(0.2)		(0.1)		0.2		21.6		21.5
Balance as of May 30, 2025	$	0.8	$	15.1	$	(3.6)	$	(54.3)	$	(42.0)

SEC Form 10-Q filed by Steelcase Inc.