Leggett & Platt Report First Quarter Financial Results Ahead of Somnigroup Acquisition

May 7, 2026  by Karen Parrish in Business Strategy, Industry   

First Quarter Highlights

- 1Q sales of $918 million, a 10% decrease vs 1Q25, including a 5% decrease from divestitures

- 1Q EPS of $.14, 1Q adjusted EPS of $.15, a $.09 decrease vs adjusted Q25 EPS

- Withdrawing previously issued 2026 guidance due to the pending acquisition by Somnigroup International

Glassman continues, "At the same time, first quarter results reflected lower market demand across most of our businesses compared to the prior year, particularly in residential end markets. Demand in our domestic bedding business was lower than anticipated, as the overall health of the U.S. industry remains challenged across both manufacturers and retailers due to continued weakness in consumer activity. Market conditions were stable early in the quarter, and the President's Day promotional period generally met expectations. As the quarter progressed, however, weather-related closures, economic uncertainty, and lower consumer sentiment driven by the war in Iran weighed on demand. As a result, we believe the U.S. mattress market declined by high single to low double digits in the first quarter.

"In addition to weak demand, our teams navigated a dynamic global environment related to the war in Iran, which drove higher transportation costs and increased transit times late in the quarter, as well as higher chemical prices that will begin to impact our costs in the second quarter. The combination of lower volume and continued cost pressures – most notably in our Furniture, Flooring & Textile Products segment – resulted in lower margins. We are mitigating these pressures through product and sourcing actions and by passing through price increases where appropriate.  

Glassman concludes, "Despite these macroeconomic challenges and disruptions, we remain focused on our long-term priorities. As previously announced, we signed a merger agreement with Somnigroup, a valued long–standing customer and partner, that provides Leggett & Platt shareholders with an opportunity to participate in the future growth and value creation of a leading global company. For more than 140 years, Leggett & Platt has been defined by innovation, quality, and strong customer partnerships. We believe this combination positions us well to continue delivering compelling strategic and financial value for our customers, employees and shareholders."

FIRST QUARTER RESULTS

First quarter sales were $918 million, a 10% decrease versus first quarter last year

- 2025 divestitures decreased sales 5%

- Organic sales were down 5%

- Volume was down 9%, primarily from continued weak demand across most of our end markets and retailer merchandising changes in Adjustable Bed

- Raw material-related selling price increases added 2% to sales

- Currency benefit increased sales 2%

First quarter EBIT was $45 million, down from $63 million in first quarter 2025. Adjusted EBIT was $43 million, down from first quarter 2025 adjusted EBIT of $67 million.

- Adjusted EBIT decreased primarily from lower volume, earnings associated with the divested Aerospace business, and continued margin compression in our Flooring business driven by higher costs combined with pricing pressure resulting from the soft demand environment, partially offset by metal margin expansion in trade rod. Additionally, higher stock-based compensation expense and an increase in bad debt reserves related to Bedding customers contributed to the year-over-year decline.

EBIT margin was 4.8%, down from 6.2% in the first quarter of 2025, and adjusted EBIT margin was 4.7%, down from 6.5%.

First quarter EPS was $.14, an $.08 decrease versus first quarter 2025 EPS of $.22. First quarter adjusted¹ EPS was $.15, down $.09 versus first quarter 2025 adjusted¹ EPS of $.24.

DEBT AND CASH FLOW

- Net Debt was 2.8x trailing 12-month adjusted EBITDA

- Debt at March 31

- Total debt of $1.5 billion in three tranches of long-term bonds at $500 million each

- Operating cash flow was negative $56 million in the first quarter, a decrease of $63 million versus first quarter 2025, reflecting an expected larger use of working capital and lower earnings

- Capital expenditures were $24 million

- Dividends were $7 million

- In February, Leggett & Platt's Board of Directors declared a first quarter dividend of $.05 per share, flat versus last year's first quarter dividend.

SEGMENT RESULTS – First Quarter 2026 (versus 1Q 2025)

Bedding Products –

-Trade sales decreased 7%

- Volume decreased 12%, primarily due to retailer merchandising changes in Adjustable Bed, volume softness in Specialty Foam, and the decision during the fourth quarter to walk away from a financially challenged customer in U.S. Spring. These declines were partially offset by higher trade rod and wire sales.

- Raw material-related selling price increases and currency benefit added 6% to sales

- 2025 divestiture of a small U.S. machinery business reduced sales 1%

- EBIT increased $16 million and adjusted¹ EBIT increased $8 million

- Adjusted¹ EBIT increased primarily from metal margin expansion in trade rod and restructuring benefit partially offset by lower volume

- We believe the U.S. mattress market was down high single to low double digits and domestic production was down high single digits in the first quarter

Specialized Products –

- Trade sales decreased 19%

- 2025 divestiture of Aerospace reduced sales 17%

- Volume decreased 5% from lower market demand

- Raw material-related selling price increases added 1% to sales

- Currency benefit increased sales 2%

- EBIT decreased $11 million and adjusted¹ EBIT decreased $14 million

- Adjusted EBIT decreased primarily from earnings associated with the divested Aerospace business and lower volume

- Automotive volume outperformed major market production by ~1% in the quarter

Furniture, Flooring & Textile Products –

- Trade sales decreased 7%

- Volume decreased 7% from declines in Home Furniture, Flooring, and Textiles partially offset by growth in Work Furniture

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

- 2025 divestiture of a small facility in Work Furniture reduced sales 1%

- EBIT decreased $20 million and adjusted¹ EBIT decreased $17 million

- Adjusted¹ EBIT decreased primarily from lower volume impacts, margin compression in our Flooring business, currency impact, and start-up costs associated with a new Home Furniture facility in Vietnam

2026 GUIDANCE AND CONFERENCE CALL

On April 13, 2026, the Company entered into an agreement to be acquired by Somnigroup International Inc. The transaction is anticipated to close by year-end 2026, subject to customary closing conditions, including approval by Leggett & Platt's shareholders and receipt of applicable regulatory approvals.

As is customary while a transaction is pending, Leggett & Platt's previously issued guidance for 2026 is not being updated in conjunction with this quarter's earnings release and should no longer be relied upon. Additionally, Leggett & Platt will not host a conference call. For further details on quarterly performance, please refer to Leggett & Platt's Quarterly Report on Form 10-Q for the quarter ended March 31, 2026, which is expected to be filed today with the Securities and Exchange Commission.