Leggett & Platt Inc
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −1.54%.
Did LEG Beat Earnings? Q4 2025 Results
Leggett & Platt delivered a narrow miss on both top and bottom lines in Q4 2025, as persistent soft demand and the absence of its divested Aerospace business weighed on results. Adjusted EPS of $0.22 came in just below the $0.23 consensus estimate, a 3.30% shortfall, while revenue of $938.60 million fell essentially in line with the $938.74 estimate but marked an 11.2% decline from a year earlier, with divestitures accounting for five percentage points of that drop and organic sales sliding 6%. The most consequential drag was volume, which fell 9% amid weakness at a specific customer, retailer-driven changes in Adjustable Bed and Specialty Foam, and automotive supply chain disruptions. On a brighter note, metal margin expansion in trade rod helped Bedding Products nearly double its adjusted EBIT despite the segment's own sales decline. Looking to 2026, the company guided for sales of $3.80 billion to $4.00 billion and adjusted EPS of $1.00 to $1.20, with new global tariff uncertainty adding a fresh layer of risk to an already cautious demand outlook.
- Metal margin expansion in trade rod
- Restructuring benefit from substantially completed 2024 plan
- Working capital improvements driving higher operating cash flow
- Lower volume from weak residential demand and customer-specific issues
- Aerospace divestiture reduced Specialized Products sales by 17%
- Sales weakness at a certain customer and retailer merchandising changes in Adjustable Bed and Specialty Foam
- Supply chain disruptions affecting Automotive customers
- Start-up costs at new Home Furniture facility in Vietnam
“Throughout 2025, our teams executed our strategic priorities, including strengthening our balance sheet, improving operational efficiency, and positioning the company for long-term growth. We made significant progress on our deleveraging efforts, reducing our debt and lowering our net debt leverage ratio to 2.4x. This was a tremendous step toward achieving our long-term target of 2.0x, making Leggett more agile and enabling us to shift our focus to pursuing opportunities for growth and returning capital to shareholders.”
Leggett & Platt CEO, on the earnings call
Forward Guidance & Outlook
For 2026, Leggett & Platt expects sales of $3.8–$4.0 billion, down 1% to 6% versus 2025, with 2025 divestitures reducing sales by 3% and volume expected flat to down low-single digits. EPS is guided at $0.92–$1.38 (GAAP) and $1.00–$1.20 (adjusted). The adjusted EPS midpoint reflects improvement versus 2025 from operational efficiency, disciplined cost management, favorable sales mix, and full-year metal margin expansion benefit, partially offset by lower volume. Additional 2026 expectations include: D&A of $115 million, net interest expense of $50 million, effective tax rate of 26%, operating cash flow of $225–$275 million, and capital expenditures of $100–$115 million. The company expects approximately $5 million of incremental restructuring EBIT benefit and $5 million of incremental sales attrition in 2026, plus $20–$30 million of cash proceeds from real estate sales. The guidance also includes $0.05–$0.08 per share of costs associated with the unsolicited offer from Somnigroup.
LEG YoY Financials
LEG Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.