Leggett & Platt Announces 3rd Quarter Financial Results

October 27, 2025  by Karen Parrish in Business Strategy, Industry   

THIRD QUARTER HIGHLIGHTS

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."

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%

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.

The conference call may be accessed through Leggett's Investor Relations website, via the Leggett & Platt Q325 Webcast & Earnings Conference Call.