Leggett & Platt Release Fourth Quarter & Full Year Results

February 12, 2026  by Karen Parrish in Business Strategy, Industry   

Fourth Quarter Highlights

- 4Q sales of $939 million, an 11% decrease vs 4Q24

- 4Q EPS of $.18, 4Q adjusted¹ EPS of $.22, a $.01 increase vs adjusted¹ 4Q24 EPS

- 2025 sales of $4.05 billion, a 7% decrease vs. 2024

- 2025 EPS of $1.69, 2025 adjusted¹ EPS of $1.05, flat vs adjusted¹ 2024 EPS

- 2025 operating cash flow of $338 million, a $33 million increase vs 2024

- 2026 guidance: sales of $3.8–$4.0 billion, EPS of $0.92–$1.38; adjusted¹ EPS of $1.00–$1.20

President and CEO Karl Glassman commented, "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.

"We are pleased the restructuring plan we launched in early 2024 was substantially completed by the end of 2025, resulting in greater EBIT benefit with lower costs than originally expected. We are confident the significant improvements made over the past two years are sustainable, will support improved profitability and cash flow, and position us to benefit from the future recovery in residential market demand."

FOURTH QUARTER RESULTS

Fourth quarter sales were $939 million, an 11%² decrease versus fourth quarter last year

Divestitures decreased sales 5%

Organic sales³ were down 6%

Volume was down 9%, primarily from sales weakness at a certain customer and retailer merchandising changes in Adjustable Bed and Specialty Foam, continued soft demand in residential end markets, customers' supply chain disruptions in Automotive, and lower demand in Hydraulic Cylinders. These declines were partially offset by growth in Textiles, Work Furniture, and higher trade wire and rod sales.

Raw material-related selling price increases and currency benefit increased sales 3%

Fourth quarter EBIT was $32 million, down $12 million from fourth quarter 2024 EBIT of $44 million. Adjusted¹ EBIT was $48 million, an $8 million decrease from fourth quarter 2024 adjusted¹ EBIT.

Adjusted¹ EBIT decreased primarily from lower volume and earnings associated with the divested Aerospace business, partially offset by metal margin expansion and restructuring benefit

EBIT margin was 3.4%, down from 4.1% in the fourth quarter of 2024, and adjusted¹ EBIT margin was 5.1%, down from 5.3%.

Fourth quarter EPS was $.18, a $.08 increase versus fourth quarter 2024 EPS of $.10. Fourth quarter adjusted¹ EPS was $.22, up $.01 versus fourth quarter 2024 adjusted¹ EPS of $.21.

FULL YEAR RESULTS
2025 sales were $4.05 billion, a 7%⁴ decrease versus 2024

Divestitures decreased sales 2%

Organic sales³ were down 5%

Volume was down 6%, primarily from continued weak demand in residential end markets, sales weakness at a certain customer and retailer merchandising changes in Adjustable Bed and Specialty Foam, lower demand in Automotive and Hydraulic Cylinders, and restructuring-related sales attrition. These declines were partially offset by growth in Textiles and Work Furniture and higher trade wire and rod sales.

Raw material-related selling price increases and currency benefit increased sales 1%

2025 EBIT was $356 million, up $786 million from 2024 EBIT of ($430) million. Adjusted¹ EBIT was $263 million, a $4 million decrease from 2024 adjusted¹ EBIT.

Adjusted¹ EBIT decreased primarily from lower volume, partially offset by restructuring benefit and metal margin expansion.

EBIT margin was 8.8%, up from (9.8%) in 2024, and adjusted¹ EBIT margin was 6.5%, up from 6.1%.

2025 EPS was $1.69, a $5.42 increase versus 2024 EPS of ($3.73). 2025 adjusted¹ EPS was $1.05, flat versus 2024 adjusted¹ EPS of $1.05.

RESTRUCTURING PLAN

Realized $5 million of incremental⁵ EBIT benefit in fourth quarter 2025, $41 million of incremental⁵ EBIT benefit in 2025 and $63 million of EBIT benefit from inception

Expect approximately $5 million of incremental⁵ EBIT benefit in 2026

Realized $5 million of incremental⁵ sales attrition in fourth quarter 2025, including $3 million from the divestiture of a small U.S. machinery business in our Bedding Products segment and realized $38 million of incremental⁵ sales attrition in 2025, including $12 million from the divestiture of the machinery business. Realized $53 million of sales attrition from inception.

Expect approximately $5 million of incremental⁵ sales attrition in 2026

Realized $48 million of cash proceeds from real estate sales from inception

Anticipate an additional $20–$30 million of cash proceeds in 2026

Realized $19 million of restructuring and restructuring-related costs in fourth quarter 2025, $30 million of restructuring and restructuring-related costs in 2025, and $78 million of restructuring and restructuring-related costs from inception

Expect an additional $2 million of restructuring and restructuring-related costs in 2026

2026 GUIDANCE

Sales are expected to be $3.8–$4.0 billion, down 1% to 6% versus 20252025 divestitures to reduce sales by 3%

Volume is expected to be flat to down low-single digits

Volume at the midpoint:

Down low-single digits in Bedding Products segment

Down low-single digits in Specialized Products segment

Flat in Furniture, Flooring & Textile Products segment

Raw material-related price increases and currency benefit combined expected to increase sales low-single digits

EPS is expected to be $0.92–$1.38

Earnings expectations include:

$.02 to $.11 per share impact from restructuring costs, primarily related to cost improvement and footprint optimization opportunities identified across the company that are currently being evaluated

$.05 to $.08 per share impact from costs associated with the unsolicited offer from Somnigroup

$.11 to $.25 per share gain from sales of real estate

Adjusted EPS is expected to be $1.00–$1.20

At the midpoint, increase versus 2025 due primarily to operational efficiency improvements, disciplined cost management, favorable sales mix, and full year benefit of metal margin expansion that started in Q2 2025, partially offset by lower volume

Based on this framework, 2026 EBIT margin is expected to be 5.9%–7.8%; adjusted EBIT margin is expected to be 6.3%–7.0%

Additional expectations:

Depreciation and amortization $115 million

Net interest expense $50 million

Effective tax rate 26%

Operating cash flow $225–$275 million

Capital expenditures $100–$115 million

Fully diluted shares 141 million

Share repurchases to offset share issuances, resulting in minimal dilution

SLIDES AND CONFERENCE CALL
A set of slides containing summary financial information is available from the Investor Relations section of Leggett's website at www.leggett.com. The webcast can be accessed from Leggett's website, via Leggett & Platt Q425 Webcast & Earnings Conference Call. 

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