Leggett & Platt Inc
Q2 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +3.54%.
Did LEG Beat Earnings? Q2 2025 Results
Leggett & Platt delivered a modest earnings miss in the second quarter of 2025, posting adjusted EPS of $0.30 against a consensus estimate of $0.30, a shortfall of 1.64%, while revenue of $1.06 billion came in essentially in line but still edged below expectations and fell 6.3% from the year-ago period. The top-line decline was driven primarily by a 7% volume drop tied to soft demand across residential end markets, Automotive, and Hydraulic Cylinders, underscoring the persistent macro headwinds the diversified manufacturer continues to navigate. Yet beneath the headline weakness, the company showed tangible operational progress, with adjusted EBIT rising to $76 million from $72 million a year ago, supported by metal margin expansion and restructuring benefits. Some analysts have noted that statutory profit figures obscure the company's underlying earnings power, given the drag from one-time items. Management held its full-year 2025 guidance steady, targeting sales of $4.00 billion to $4.30 billion and adjusted EPS of $1.00 to $1.20, though volume expectations for Bedding Products were trimmed to down mid-teens, reflecting continued softness in residential markets.
- Metal margin expansion
- Restructuring benefit of $13 million incremental EBIT in Q2 2025
- Disciplined cost management
- Selling & administrative expenses decreased 10% year-over-year
- Lower depreciation and amortization due to Aerospace meeting held-for-sale criteria
“We are pleased to report another quarter of profitability improvement. We further strengthened our balance sheet by reducing debt and favorably amending our revolving credit facility. We also remain on track to complete the sale of our Aerospace business this year. The continued progress on our strategic initiatives is a direct reflection of the dedication and talent of our employees.”
Leggett & Platt CEO, on the earnings call
Forward Guidance & Outlook
Leggett & Platt maintained its 2025 sales and adjusted EPS guidance. Sales are expected to be $4.0–$4.3 billion, down 2% to 9% versus 2024, with volume expected down low single to low double digits. Adjusted EPS is expected to be $1.00–$1.20. GAAP EPS guidance was narrowed to $0.88–$1.17, reflecting $.08–$.13 per share restructuring costs, a $.11 per share Q4 non-cash pension settlement charge, and $.12–$.16 per share gain from real estate sales. Adjusted EBIT margin is expected at 6.5%–6.9%. Additional expectations include depreciation and amortization of $125 million, net interest expense of $70 million, effective tax rate of 26%, operating cash flow of $275–$325 million, capital expenditures of $80–$90 million, and minimal acquisitions and share repurchases. The company expects to complete the Aerospace divestiture this year.
LEG YoY Financials
LEG Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.