Leggett & Platt Inc

Leggett & Platt delivered a deeply disappointing first quarter of 2026, missing on both the top and bottom lines as broad demand weakness and the strategic upheaval of a pending acquisition clouded the results. Adjusted EPS came in at $0.15, falling 38.14% short of the $0.24 consensus estimate, while revenue of $918.20 million trailed expectations by 3.02% and declined 10.2% year-over-year, undercut by a sharp 9% volume drop across most end markets. The most consequential drag was a severe pullback in residential bedding, where the U.S. mattress market is believed to have contracted by high single to low double digits, pressured by weak consumer sentiment, weather disruptions, and economic uncertainty tied to the war in Iran. Compounding the operational headwinds, the Furniture, Flooring and Textile Products segment saw adjusted EBIT collapse roughly 79% on currency pressures and startup costs. Meanwhile, Leggett withdrew its full-year 2026 guidance following its April merger agreement with Somnigroup International, leaving investors with little forward visibility as Truist Financial subsequently trimmed its price target to $11.00, maintaining a hold rating.