Steelcase Inc. (NYSE:SCS) Q3 2025 Earnings Conference Call December 19, 2024 8:30 AM ET

Company Participants

Mike O'Meara - IR
Sara Armbruster - President & CEO
David Sylvester - SVP & CFO

Conference Call Participants

Reuben Garner - Benchmark
Steven Ramsey - Thompson Research Group
Gregory Burns - Sidoti
Joseph Gomes - NOBLE Capital Markets

Operator

Good morning. My name is Rob, and I will be your conference operator today. At this time, I would like to welcome everyone to the Steelcase Third Quarter Fiscal 2025 Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. [Operator Instructions]

Thank you. Mr. O'Meara, you may begin your conference.

Mike O'Meara

Thank you, Rob. Good morning, everyone. Thank you for joining us for the recap of our third quarter fiscal 2025 financial results. Here with me today are Sara Armbruster, our President and Chief Executive Officer; and Dave Sylvester, our Senior Vice President and Chief Financial Officer.

Our third quarter earnings release, which crossed the wires yesterday, is accessible on our website. This conference call is being webcast, and this webcast is a copyrighted production of Steelcase Inc. A replay of this webcast will be posted to ir.steelcase.com later today.

Our discussion today may include references to non-GAAP financial measures and forward-looking statements. Reconciliations to the most comparable GAAP measures and details regarding the risks associated with the use of forward-looking statements are included in our earnings release, and we are incorporating by reference into this conference call the text of our Safe Harbor statement included in the release. Following our prepared remarks, we will respond to questions from investors and analysts.

I'll now turn the call over to our President and Chief Executive Officer, Sara Armbruster.

Sara Armbruster

Thanks, Mike. Hi, everyone, and thanks for joining today's call. So today, I'll cover the highlights of our third quarter financial results and offer a few remarks explaining how we continue to make progress against our strategy.

So to start, we're proud of our third quarter results and where we expect to finish the fiscal year. Despite our industry not growing as expected, our full year adjusted earnings per share are projected to finish above the top end of the targets we communicated at the beginning of the year.

In Q3, we delivered 3% organic revenue growth and stronger-than-expected adjusted earnings of $0.30 per share. And for the 10th consecutive quarter, we drove year-over-year gross margin expansion as our teams delivered solid cost improvement results, and we captured the benefit of higher revenue.