Steelcase's Q4 2025: Exploring Contradictions in International Profitability, Demand Trends, and Corporate Orders

These are the key contradictions discussed in Steelcase's latest 2025 Q4 earnings call, specifically including: International segment profitability expectations, order and demand trends in the West Coast, international market performance and outlook, and large corporate customer orders:



Revenue and Order Growth:
- Steelcase Inc. reported revenue of $788 million for Q4, aligning with the upper end of their estimated range, driven by stronger-than-expected order growth in the Americas.
- This growth was primarily due to increased demand from large corporate, government, and healthcare customers.

International Segment Challenges:
- The International segment experienced a decline, with an organic revenue drop of 10%, largely due to a decline in Germany, France, and India.
- The decline was attributed to unfavorable business mix and higher manufacturing costs.

Tariffs and Trade Uncertainty:
- Steelcase implemented a tariff recovery charge in the Americas, effective on orders received after a certain date, to offset inflationary costs.
- The company is navigating new tariffs and global trade uncertainty, requiring pricing actions and supply chain shifts.

Profitability and Cost Structure:
- The company's adjusted operating income declined by $20 million, primarily due to lower International revenue and higher operating expenses.
- Steelcase is considering additional actions to lower its cost structure, particularly in the International segment, to improve profitability.