Steelcase Inc (NYSE:SCS) stock rose 0.18% (As on September 25, 11:27:03 AM UTC-4, Source: Google Finance) after the company reported better-than-expected second quarter results, with earnings and revenue surpassing analyst estimates as large corporate customers drove growth. Orders grew 6% compared to the prior year, with particularly strong 8% growth in the Americas segment, driven by demand from large corporate customers and small to midsized businesses. The company’s revenue growth was led by a 3% organic increase in the Americas and 8% organic growth in International markets. The Americas growth was driven by strong growth from large corporate customers, partially offset by a decline from education customers. The International growth was driven by India, China and the United Kingdom, partially offset by declines in France and Germany.

Moreover, gross margin was 34.4% in the second quarter represented a decrease of 10 basis points compared to the prior year driven by higher tariff costs, unfavorable business mix, higher discounts in EMEA and $1.7 million of higher restructuring costs, which were mostly offset by pricing benefits, cost reduction initiatives, and lower variable compensation (driven by the lower gains on the sale of land). Adjusted operating income increased to $75.3 million from $68.5 million in the prior year. Total liquidity, which is comprised of cash and cash equivalents, short-term investments and the cash surrender value of company-owned life insurance, aggregated to $426.8 million at the end of the second quarter and represented a decrease of $80.3 million compared to the prior year. Total debt was $447.4 million. Trailing four quarter adjusted EBITDA was $278.3 million, or 8.5 percent of revenue.

Meanwhile, Steelcase is currently in the process of being acquired by HNI Corporation in a cash and stock transaction valued at approximately $2.2 billion. The transaction is expected to close by the end of 2025, subject to shareholder and regulatory approvals. Additionally, the company has declared a quarterly cash dividend of $0.10 per share, to be paid on or before October 20, 2025, to shareholders of record as of October 6, 2025.

SCS in the second quarter of FY 26 has reported the adjusted earnings per share of 45 cents, beating the analysts’ estimates for the adjusted earnings per share of 37 cents. The company had reported the adjusted revenue growth of 5 percent to $897.1 million in the second quarter of FY 26, beating the analysts’ estimates for revenue of $873.6 million, according to Factset.