Fri, Jun 21, 2:32 PM (78 days ago)
Steelcase Inc.'s Q1 2025 financial report shows an improvement in net income to $10.9 million, up from $1.5 million in Q1 2024, despite a 3% decline in revenue to $727.3 million. The revenue decrease was primarily due to lower volume, divestitures, and unfavorable currency translation effects. However, pricing benefits helped offset these declines. Gross profit remained stable at $234.4 million, with an improvement in gross margin due to pricing benefits. Operating expenses decreased slightly to $217.5 million, reflecting savings from prior restructuring actions, but were partially offset by higher variable compensation and IT costs related to a new ERP system. The company reported $6.3 million in restructuring costs for Q1 2025, down from $8.1 million in the prior year. Adjusted operating income increased to $28.2 million from $19.7 million, and adjusted earnings per share rose to $0.16 from $0.09. Cash flow from operations was negative at $59.1 million, primarily due to higher payments for variable compensation and retirement plan contributions. Cash and cash equivalents decreased to $173.2 million from $318.6 million. The company remains focused on optimizing operations and implementing its ERP system.