Steelcase sees FY25 EPS 85c-$1.00, consensus 92c

The company said, “For fiscal 2025, the company is targeting organic revenue growth of 1 to 5 percent compared to fiscal 2024, adjusted operating income of between $150 to $175 million and adjusted earnings per share of between $0.85 to $1.00. Fiscal 2025 includes an additional week compared to fiscal 2024, which is excluded from the organic revenue growth target. The fiscal 2025 targets reflect the following assumptions and expectations, as compared to fiscal 2024: a mid-single digit order growth rate, including continued growth from large corporate customers, offset by the beginning backlog of customer orders which was 8 percent below the prior year, an improvement in gross margin to between 32.5 and 33.5 percent, increased operating expenses driven by higher investments in the company’s business transformation initiative, strategic growth initiatives and employee costs (the year-over-year comparison is also impacted by $20.4 million of benefits in the prior year related to gains on the sales of fixed assets and an earnout liability adjustment), and projected interest expense, investment income and other income, net, of approximately $11 million and an effective tax rate of 27 percent.”