To The Moon

$Steelcase(SCS)$ is scheduled to report its fiscal Q2 2026 earnings on Wednesday, September 24, 2025, after the market closes. The company will hold its conference call the following day, on Thursday, September 25, 2025.

Revenue: The consensus revenue estimate is approximately $878.73 million to $873.60 million.

EPS: The consensus earnings per share (EPS) estimate is approximately $0.37.

Summary of Fiscal Q1 2026 Earnings

Steelcase (SCS) reported a strong start to its fiscal year, with Q1 2026 results surpassing analyst expectations. The company demonstrated notable financial and operational improvements, primarily driven by its performance in the Americas region.

Revenue and EPS: Steelcase reported revenue of $779 million, a 7% increase year-over-year, and adjusted earnings per share of $0.20, which was a 25% increase from the prior year and well above the consensus forecast.

Americas vs. International: The strong performance was largely attributable to the Americas segment, which saw 9% organic growth. The International segment, however, remained a weak spot, with a 1% organic decline, facing challenges in key European markets like Germany and France.

Profitability: The company achieved its 12th consecutive quarter of year-over-year gross margin expansion, improving it by 170 basis points. This was a result of strong volume growth and cost reduction initiatives.

Lessons from Fiscal Q2 2026 Guidance

The guidance provided by Steelcase for Q2 2026 offered several key lessons for investors:

Positive Momentum is Focused on the Americas: The company's guidance for Q2 revenue in the range of $860 to $890 million reflects management's confidence that the positive trends, especially from large corporate customers in the Americas, will continue. This signals that the return-to-office and workplace transformation trend is a durable tailwind, but it's not a universal one.

International Weakness Persists: The guidance and management commentary indicate that the International segment remains a drag on overall performance. The company expects the segment to be unprofitable in the first half of fiscal 2026, with a return to profitability only in the second half. This highlights the ongoing challenge of managing a global business with varying economic conditions.

Margin Expansion is a Strategic Priority: The company's focus on cost reduction and disciplined pricing is a key takeaway. The guidance suggests that this trend of gross and operating margin expansion will continue, which is crucial for profitability even with only modest revenue growth in some segments.

The company’s mid-term financial targets include 4-6% average annual organic revenue growth, 6-7% adjusted operating income margin, and approximately 5% free cash flow as a percentage of revenue. A key component of this strategy is achieving $50+ million in operational cost reductions from FY2023 levels.

Strategic Investments are Critical for the Future: Commentary on new product launches and investments in its Enterprise Resource Planning (ERP) system shows that the company is actively positioning itself for long-term efficiency and growth, despite near-term headwinds in some international markets.

Analysis of Key Metrics

SCS's performance in recent quarters has been influenced by a combination of a shifting work environment, ongoing return-to-office trends, and macroeconomic factors. Here are the key metrics investors should watch:

1. Revenue and Orders:

Backlog and Orders: Look for growth in new orders, especially from large corporate clients. In previous quarters, Steelcase has noted a positive trend in this area, which is a leading indicator for future revenue. Any signs of softening in order trends could be a cause for concern.

Segment Revenue: Pay close attention to the performance of the Americas versus International segments. The Americas segment has been a primary driver of growth, while the international business has faced headwinds from macroeconomic challenges. A narrowing of this gap would be a positive sign.

2. Profitability and Margins:

Gross Margin: Steelcase has been on a long streak of year-over-year gross margin expansion. Investors will want to see if this trend continues. Factors like disciplined pricing, cost reduction initiatives, and a favorable product mix contribute to this.

Operating Margin: The company's ability to translate top-line growth into higher profitability will be key. Look for operating margin expansion, which would indicate effective cost management.

3. Forward Guidance:

Fiscal Q3 2026 Outlook: This is arguably the most critical component of the earnings report. The company's guidance for the next quarter will provide a window into management's confidence in future demand and their ability to navigate potential economic headwinds. Investors will be looking for a strong outlook on both revenue and margins.

Return-to-Office Commentary: Any commentary on the evolving hybrid work model and its impact on office furniture demand will be important. Management's perspective on the sustained need for workplace transformation will shape investor sentiment.

Steelcase (SCS) Price Target

Based on 4 analysts from Tiger Brokers offering 12 month price targets for Steelcase in the last 3 months. The average price target is $16.25 with a high forecast of $18.00 and a low forecast of $15.00. The average price target represents a -3.85% change from the last price of $16.90.

Opportunities for Short-Term Trading

Steelcase's stock has shown high volatility around earnings reports.

Positive Scenario: A significant beat on revenue and EPS, coupled with a bullish outlook for the next quarter, could lead to a strong upward move. A positive surprise, particularly in the International segment or from large corporate order trends, could propel the stock higher.

Negative Scenario: A miss on either revenue or earnings, or weak forward guidance, could result in a sharp sell-off. The market has become accustomed to Steelcase's margin expansion, so a halt to that trend would likely be punished.

Volatility Trading: Given the stock's tendency for post-earnings price swings, options traders may look to capitalize on the implied volatility. Strategies such as long straddles or strangles could be considered, though it's important to remember that these strategies have risks and are suitable for those who can tolerate potential losses.

Steelcase Inc. (SCS) had 60-Day Historical Volatility (Close-to-Close) of 1.1998 for 2025-09-19.

Technical Analysis - Exponential Moving Average (EMA)

We are seeing SCS trading in a consolidation and with a positive momentum, and there might be a possible breakout if SCS can show a strong improvement in its cost reduction plan, and also the segment revenue have a significant increase.

We could be seeing a nice price surge if that happen, so this might be an opportunity to look at taking a small position in this stock.

Summary

Steelcase is scheduled to report its fiscal Q2 2026 earnings on September 24, 2025, with high expectations from investors. The key metrics to watch are revenue and profitability, especially the gross margin.

The company's performance has been a tale of two markets: the strong recovery in the Americas driven by the return-to-office trend, versus persistent weakness in its International segment. Investors will scrutinize the report for a continuation of strong order growth in the Americas and any signs of stabilization or improvement internationally.

The most critical factor will be Steelcase's forward guidance for fiscal Q3 2026. A bullish outlook on revenue and margin expansion would confirm the company's ability to capitalize on the ongoing workplace transformation. Conversely, a weak forecast or any hint of a slowdown could lead to a significant sell-off, as the stock has already priced in a lot of good news from the robust Q1 report. Due to the high-stakes nature of this report, short-term trading opportunities are likely to emerge post-earnings, driven by potential volatility.

Appreciate if you could share your thoughts in the comment section whether you think SCS could post a stronger margins which is helped by better cost reduction plan.

@TigerStars @Daily_Discussion @Tiger_Earnings @TigerWire @MillionaireTiger appreciate if you could feature this article so that fellow tiger would benefit from my investing and trading thoughts.

Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.