Steelcase Inc.

Second-quarter revenue was $897 million, up 5% year over year, with organic revenue growth of 4% and adjusted EPS of $0.45. Adjusted operating margin was 8.4%, up 40 basis points year over year, and Americas adjusted operating margin was 11.0%. Orders grew 6% overall, including 8% in the Americas and a 1% decline in International. International revenue grew 13% year over year, or 8% on an organic basis. On cash flow, cash and short-term investments increased $32 million from Q1; the quarter included $100 million of adjusted EBITDA, $28 million of seasonal accounts receivable growth, $18 million of capital expenditures, and a $12 million quarterly dividend. Total liquidity was $427 million and total debt was $447 million. The company provided no forward guidance due to the pending HNI combination.

Sara Armbruster said the quarter extended recent momentum, with growth in revenue, earnings and orders all supported by large corporate customers. She emphasized that customers are redesigning office space around new ways of working, with more focus on privacy, collaboration, connection and technology as employees return to the office. She also framed the proposed HNI combination as a strategic expansion of reach and said the deal should create value for stakeholders.

Dave Sylvester highlighted that Q2 revenue of $897 million and adjusted EPS of $0.45 both came in above the company’s earlier estimated range, helped by stronger-than-expected large corporate orders, favorable shipment timing, and gross margin benefits from mix. He said adjusted operating margin improved to 8.4% versus last year, with International benefiting from revenue growth and cost reductions; Americas margin was 11.0%. On the balance sheet, cash and short-term investments rose $32 million from Q1, liquidity was $427 million, and debt was $447 million. He also said $10 million of International restructuring costs were incurred in the quarter and that the restructuring program should finish in fiscal 2027.

Analysts focused on the drivers of upside, asking how much came from price versus volume, whether tariff and inflation costs had been fully offset, and how demand trends compared with earlier expectations. Management said most Americas order growth was volume-driven, that pricing actions offset year-over-year tariff and inflation costs in Q2, and that it will likely take a couple more quarters to fully catch up on a cumulative basis because pricing lagged the tariff hit. They also said large corporate demand is running stronger than expected, while education is still a headwind because of federal funding policy.