Leggett & Platt Reports 3Q 2025 Results

CARTHAGE, Mo., Oct. 27, 2025 /PRNewswire/ --

• 3Q sales of $1.0 billion, a 6% decrease vs 3Q24
• 3Q EPS of $0.91, 3Q adjusted¹ EPS of $0.29, a $0.03 decrease vs adjusted¹ 3Q24 EPS
• 3Q operating cash flow of $126 million, a $30 million increase vs 3Q24
• Strengthened balance sheet by reducing debt $296 million using Aerospace proceeds and operating cash flow
• Reaffirmed the midpoint of 2025 sales and adjusted EPS guidance; narrowed guidance range

President and CEO Karl Glassman commented, "We are pleased to report solid results for the quarter, achieved amid ongoing macroeconomic challenges. Our performance reflects continued progress on strategic priorities and disciplined execution across the company. During the quarter, we successfully completed the sale of our Aerospace business, further sharpening our focus on core operations.

"Looking forward, the strength and resilience demonstrated across our business gives us the confidence to reaffirm the midpoint of our full year sales and adjusted EPS guidance. The dedication and hard work of our employees is creating a stronger, more agile company positioned for profitable growth. We remain focused on generating strong cash flow, strengthening our balance sheet, and creating long-term shareholder value."

THIRD QUARTER RESULTS

Net trade sales were $1.0 billion, a 6%² decrease versus third quarter 2024

• Organic sales³ were down 4%
  • Volume was down 6%, primarily from continued soft demand in residential end markets, Automotive, and Hydraulic Cylinders. These declines were partially offset by growth in Textiles and Work Furniture.
  • Raw material-related selling price increases and currency benefit increased sales 2%
• Divestitures decreased sales 2%

EBIT was $171 million, a $93 million increase from third quarter 2024. Adjusted¹ EBIT was $73 million, a $3 million decrease from third quarter 2024 adjusted¹ EBIT.

• 3Q 2025 adjustments include: $4 million of restructuring charges, $87 million gain from the Aerospace divestiture, $13 million gain from net insurance proceeds related to a storage facility fire in the Bedding Products segment, and $2 million gain from the sale of real estate
• 3Q 2024 adjustments include: $12 million of restructuring charges and a $14 million gain from the sale of real estate
• Adjusted¹ EBIT decreased primarily from lower volume partially offset by metal margin expansion in trade rod and restructuring benefit

EBIT margin was 16.5%, up from 7.1% in the third quarter of 2024, and adjusted¹ EBIT margin was 7.0%, up from 6.9%.

EPS was $0.91, a $0.58 increase versus third quarter 2024 EPS of $0.33. Third quarter adjusted¹ EPS was $0.29, down $0.03 versus third quarter 2024 adjusted¹ EPS of $0.32.

DEBT, CASH FLOW, AND LIQUIDITY

• Net Debt¹ was 2.6x trailing 12-month adjusted EBITDA¹
• Debt at September 30
  • Reduced debt by $296 million in third quarter, and $367 million year-to-date
  • Total debt of $1.5 billion in three tranches of long-term bonds at $500 million each
• Operating cash flow was $126 million in the third quarter, an increase of $30 million versus third quarter 2024, primarily driven by working capital improvements
• Capital expenditures were $16 million
• Dividends were $7 million
  • In August, Leggett & Platt's Board of Directors declared a third quarter dividend of $0.05 per share, flat versus last year's third quarter dividend
• Total liquidity was $974 million at September 30
  • $461 million cash on hand
  • $513 million in capacity remaining under revolving credit facility

RESTRUCTURING PLAN UPDATE

• Annualized EBIT benefit of $60–$70 million still expected to be realized after initiatives are fully implemented
  • Realized $10 million of incremental⁴ EBIT benefit in third quarter 2025
• Anticipate approximately $60 million of annual sales attrition after initiatives are fully implemented versus our prior estimate of $65 million
  • Realized $9 million of incremental⁴ sales attrition in third quarter 2025, including $3 million from the divestiture of a small U.S. machinery business in the Bedding Products segment
• Estimate real estate proceeds of $70–$80 million
  • Realized $43 million of cash proceeds from inception and now anticipate up to an additional $17 million in the fourth quarter of 2025 with the balance in 2026
• Expect restructuring and restructuring-related costs from inception of approximately $75 million

2025 GUIDANCE

• Reaffirmed the midpoint of 2025 sales and adjusted EPS while narrowing the range
• Sales are now expected to be $4.0–$4.1 billion (versus $3.9–$4.2 billion previously), down 6% to 9% versus 2024
  • Volume is expected to be down mid to high single digits
  • Volume at the midpoint:
    • Down mid-teens in Bedding Products segment
    • Down mid-single digits in Specialized Products segment
    • Down low single digits in Furniture, Flooring & Textile Products segment
  • Raw material-related price increases and currency benefit are expected to be up low single digits
  • Divestitures to reduce sales by 2%
• EPS is now expected to be $1.52–$1.72 (versus $1.43–$1.72 previously)
  • Earnings per share adjustments include the following:
    • $0.13 impact from restructuring costs
    • $0.02 impact from a special tax item related to recent U.S. corporate tax law changes
    • $0.11 fourth quarter impact from a non-cash settlement charge related to the termination of a pension plan
    • ($0.13) to ($0.23) gain from sales of real estate, consisting of real estate from restructuring initiatives and idle real estate
    • ($0.58) gain from the Aerospace divestiture
    • ($0.07) gain from net insurance proceeds
• Adjusted EPS is now expected to be $1.00–$1.10 (versus $0.95–$1.15 previously)
  • At the midpoint, flat versus 2024 due primarily to metal margin expansion and restructuring benefit offset by lower volume
• Based on this framework, 2025 EBIT margin is expected to be 8.4%–9.0%; adjusted EBIT margin is expected to be 6.4%–6.6%
• Additional expectations:
  • Depreciation and amortization $120 million
  • Net interest expense $65 million
  • Effective tax rate 27%
  • Fully diluted shares 140 million
  • Operating cash flow $300 million
  • Capital expenditures $60–$70 million
  • Minimal acquisitions and share repurchases

SEGMENT RESULTS – Third Quarter 2025 (versus 3Q 2024)

Bedding Products –

• Trade sales decreased 10%
  • Volume decreased 13%, primarily due to customer weakness and retailer merchandising changes in Adjustable Bed and Specialty Foam, lower trade rod sales, and restructuring-related sales attrition
  • Raw material-related selling price increases and currency benefit added 4% to sales
  • Divestiture of a small U.S. machinery business, as part of our restructuring plan, reduced sales 1%
• EBIT increased $11 million and adjusted¹ EBIT increased $7 million
  • 3Q 2025 adjustments include: $3 million of restructuring charges and a $13 million gain on net insurance proceeds
  • 3Q 2024 adjustments include: $8 million of restructuring charges and a $14 million gain from the sale of real estate
• Adjusted¹ EBIT increased primarily from metal margin expansion in trade rod and restructuring benefit partially offset by lower volume in Adjustable Bed and Specialty Foam

Specialized Products –

• Trade sales decreased 7%
  • Volume decreased 4% from declines in Automotive and Hydraulic Cylinders
  • Raw material-related selling price increases and currency benefit added 2% to sales
  • Divestiture of Aerospace reduced sales 5%
• EBIT increased $88 million and adjusted¹ EBIT decreased $2 million
  • 3Q 2025 adjustments include: $1 million of restructuring charges and an $87 million gain from sale of Aerospace
  • 3Q 2024 adjustment includes: $4 million of restructuring charges
• Adjusted¹ EBIT decreased primarily from lower volume and earnings associated with the divested Aerospace business partially offset by restructuring benefit

Furniture, Flooring & Textile Products –

• Trade sales were flat year over year
  • Volume increased 1% from growth in Textiles and Work Furniture partially offset by declines in Home Furniture and Flooring
  • Raw material-related selling price decreases, net of currency benefit, reduced sales 1%
• EBIT decreased $5 million and adjusted¹ EBIT decreased $8 million
  • 3Q 2025 adjustment includes: $3 million gain from the sale of real estate
  • 3Q 2024 adjustment includes: $1 million of restructuring charges
• Adjusted¹ EBIT decreased primarily from pricing adjustments, particularly in Flooring and Textiles, and other smaller items

SLIDES AND CONFERENCE CALL

A set of slides containing summary financial information, tariff overview, and restructuring update is available from the Investor Relations section of Leggett's website at www.leggett.com. Management will host a conference call at 7:30 a.m. Central (8:30 a.m. Eastern) on Tuesday, October 28.  The conference call may be accessed through Leggett's Investor Relations website, via Leggett & Platt Q325 Webcast & Earnings Conference Call. 

FOR MORE INFORMATION: Visit Leggett's website at www.leggett.com.

COMPANY DESCRIPTION: Leggett & Platt (NYSE:LEG) is a diversified manufacturer that designs and produces a broad variety of engineered components and products that can be found in many homes and automobiles. The 142-year-old Company is a leading supplier of bedding components and private label finished goods; automotive seat comfort and convenience systems; home and work furniture components; geo components; flooring underlayment; and hydraulic cylinders for material handling and heavy construction applications.

FORWARD-LOOKING STATEMENTS: This press release contains "forward-looking statements," identified by the context in which they appear or words such as "expect," "anticipated," "estimate," and "guidance," including, but not limited to volume; sales, EPS, adjusted EPS; capital expenditures; depreciation and amortization; net interest expense; fully diluted shares; operating cash flow;  EBIT margin; adjusted EBIT margin; effective tax rate; dividends; raw material related price increases; currency benefit; minimal acquisitions and share repurchases; market mattress consumption; Restructuring Plan (the "Plan") impacts including the timing and amount of annualized and incremental sales attrition and EBIT benefit, proceeds and gains from real estate sales, and restructuring and restructuring related cash and non-cash costs; non-cash pension settlement charge; and tariffs providing a net positive for our business. Such statements are expressly qualified by cautionary statements described in this provision and reflect only the beliefs, expectations, and assumptions of Leggett at the time the statement is made. Because all forward-looking statements deal with the future, they are subject to risks, uncertainties and developments which might cause actual events or results to differ materially from those envisioned or reflected in any forward-looking statement. Moreover, we do not have, and do not undertake, any duty to update or revise any forward-looking statement to reflect events or circumstances after the date on which the statement was made. Some of these risks include: increased trade costs, including tariffs; regarding the Restructuring Plan, the possibility that estimates may change, our ability to timely implement the Plan, receive anticipated benefits, and  timely receive expected proceeds from real estate sales,  our ability to accurately forecast sales and earnings; the adverse impact on our sales, earnings, liquidity, margins, cash flow, costs, and financial condition caused by: global inflationary and deflationary impacts; the demand for our products and our customers' products; our manufacturing facilities' ability to obtain necessary raw materials, parts, and labor, and to ship finished products; the impairment of goodwill and long-lived assets; our ability to access the commercial paper market or borrow under our credit facility; supply chain shortages and disruptions; our ability to manage working capital; our ability to collect receivables; price and product competition; cost of raw materials, labor and energy; cash generation sufficient to pay our debts or the dividend; cash repatriation from foreign accounts; our ability to pass along cost increases through increased selling prices; conflict between China and Taiwan; our ability to maintain profit margins if customers change the quantity or mix of our products; political risks; tax audits and rates; foreign operating risks; cybersecurity incidents; customer losses and insolvencies; disruption to our steel rod mill and wire mills and other operations because of severe weather-related events, natural disaster, fire, explosion, terrorism, pandemic, or governmental action; ability to develop innovative products; foreign currency fluctuation; share repurchases; anti-dumping duties on innersprings, steel wire rod and mattresses; data privacy; sustainability obligations; litigation risks; and risk factors in the "Forward-Looking Statements" and "Risk Factors" sections in Leggett's Form 10-K and subsequent Form 10-Qs.  

INVESTOR CONTACTS:

Steve West, Vice President, Investor Relations

Katelyn J. Pierce, Analyst, Investor Relations

(417) 358-8131

[email protected] 

 

 

 

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SOURCE Leggett & Platt Incorporated