Leggett & Platt, Incorporated (LEG) Q4 2025 Earnings Call Transcript
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
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Should l Buy LEG?
Source: SeekingAlpha
Fourth Quarter Sales $939 million, down 11% versus the fourth quarter of 2024. Reasons: Sales weakness at a certain customer, retailer merchandising changes in Adjustable Bed and Specialty Foam, continued soft demand in residential end markets, customer supply chain disruptions in Automotive, and lower demand in Hydraulic Cylinders. Growth in Textiles and Work Furniture, along with higher trade wire and rod sales, partially offset demand declines.
Fourth Quarter EBIT $32 million and adjusted EBIT was $48 million, down $8 million versus fourth quarter 2024. Reasons: Lower volume and earnings associated with divested aerospace business, partially offset by metal margin expansion and restructuring benefit.
Fourth Quarter EPS $0.18. On an adjusted basis, $0.22, a 5% increase from fourth quarter 2024 adjusted EPS of $0.21. Reasons: Adjusted EPS increase due to operational efficiency improvements and restructuring benefits.
Full Year 2025 Sales $4.05 billion, decreased 7% compared to 2024. Reasons: Continued weak demand in residential end markets, sales weakness at a certain customer, retail merchandising changes in Adjustable Bed and Specialty Foam, divestitures, lower demand in Automotive and Hydraulic Cylinders, and restructuring-related sales attrition. Partially offset by growth in Textiles and Work Furniture, higher trade wire and rod sales, raw material-related selling price increases, and currency benefit.
Full Year EBIT $786 million, increased primarily due to the non-recurrence of $676 million in goodwill impairment charges during 2024. Adjusted EBIT decreased $4 million to $263 million. Reasons: Lower volume, partially offset by restructuring benefit and metal margin expansion.
Full Year EPS $1.69 and adjusted EPS was $1.05, flat versus 2024. Reasons: Adjusted EPS remained flat due to offsetting factors of operational efficiency and lower volume.
Operating Cash Flow (2025) $338 million, an increase of $33 million versus 2024. Reasons: Primarily driven by working capital benefits.
Net Debt to Adjusted EBITDA Decreased from 3.8x to 2.4x by the end of 2025. Reasons: Aerospace divestiture proceeds, cash from operations, and real estate sales allowed debt reduction by $376 million.
Restructuring Plan EBIT Benefit Approximately $70 million of EBIT benefit with total cost of $80 million. Reasons: Restructuring actions and real estate sales contributed to the benefit.
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Analyst Views on LEG
Wall Street analysts forecast LEG stock price to rise
3 Analyst Rating
0 Buy
3 Hold
0 Sell
Hold
Current: 11.450
Low
11.00
Averages
12.00
High
13.00
Current: 11.450
Low
11.00
Averages
12.00
High
13.00
About LEG
Leggett & Platt, Incorporated is a diversified manufacturer that designs and produces a variety of engineered components and products that can be found in homes and automobiles. Its segments include Bedding Products, Specialized Products and Furniture, Flooring & Textile Products. Bedding Products segment supplies a variety of components and machinery used by bedding manufacturers, as well as produces private label finished mattresses and adjustable bed bases. This segment is also vertically integrated into the production and supply of specialty foam chemicals, steel rod, and drawn steel wire to its own operations and to external customers. Specialized Products segment supplies lumbar support systems, seat suspension systems, motors and actuators, and control cables used by automotive manufacturers. Furniture, Flooring & Textile Products segment supplies a range of components for residential and work furniture manufacturers, as well as select lines of private label finished furniture.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Leggett and Platt LEG Q4 2025 Earnings Transcript
See More
Towle & Co Initiates Position in Leggett & Platt
- New Position: Towle & Co initiated a new position in Leggett & Platt by acquiring 953,080 shares in Q4 2023, with an estimated transaction value of $10.48 million, reflecting confidence in the company's potential.
- Asset Allocation: This acquisition represents 2.77% of Towle & Co's reportable assets under management as of December 31, indicating its significance within a diversified portfolio and potential influence on future investment strategies.
- Financial Performance: Leggett & Platt reported $4.05 billion in sales for 2025, down 7%, but management projects 2026 sales to rebound to between $3.8 billion and $4.0 billion, showcasing positive developments in restructuring and cost management.
- Market Outlook: With housing demand stabilizing and ongoing restructuring efforts, Leggett & Platt's earnings power could significantly improve over the next two years, attracting Towle & Co's interest and highlighting a preference for value-oriented investments.
See More
Leggett & Platt Q4 2025 Earnings Call Insights
- Restructuring Progress: Leggett & Platt has substantially completed its restructuring plan initiated in early 2024, which is expected to yield approximately $70 million in EBIT benefits at a significantly lower cost than anticipated, positioning the company for future market recovery.
- Financial Performance Overview: In Q4 2025, sales reached $939 million, down 11% year-over-year, while adjusted earnings per share increased by 5% to $0.22, demonstrating resilience amid challenging market conditions.
- Cautious Future Outlook: Management projects 2026 sales between $3.8 billion and $4.0 billion, reflecting a cautious stance on ongoing weakness in the residential market, with expected low single-digit declines in volume across product lines.
- Significant Debt Management: The company reduced debt by $376 million in 2025 through divestitures and real estate sales, resulting in a year-end net debt to adjusted EBITDA ratio decreasing from 3.8x to 2.4x, indicating substantial improvement in financial health.
See More
Leggett & Platt Reports Q4 Earnings Growth
- Earnings Growth: Leggett & Platt reported a fourth-quarter profit of $25.2 million, translating to $0.18 per share, which is a significant increase from last year's $14.2 million and $0.10 per share, indicating improved profitability.
- Adjusted Earnings: Excluding items, the adjusted earnings per share stood at $0.22, reflecting enhancements in cost control and operational efficiency, despite a decline in overall revenue.
- Revenue Decline: The company's revenue for the fourth quarter was $938.6 million, down 10.6% from $1.05 billion last year, highlighting pressures from weak market demand and increased competition affecting sales.
- 2026 Guidance: The company anticipates sales between $3.8 billion and $4.0 billion for 2026, with adjusted EPS expected to range from $1.00 to $1.20, demonstrating confidence in future growth despite current challenges.
See More
Leggett & Platt Reports 2025 Financials: Debt Reduction and Profit Improvement
- Debt Reduction: Leggett & Platt successfully reduced its net debt leverage ratio to 2.4x in 2025, approaching its long-term target of 2.0x, which enhances the company's agility and allows a greater focus on growth opportunities and capital returns.
- Restructuring Plan Completion: The company substantially completed its restructuring plan initiated in early 2024 by the end of 2025, which is expected to yield higher EBIT benefits and lower costs than initially anticipated, thereby improving future profitability and cash flow.
- Fourth Quarter Sales Decline: Fourth quarter sales for 2025 were $939 million, an 11% decrease year-over-year, with EBIT at $32 million, down $12 million from the same quarter in 2024, reflecting challenges from weak market demand.
- Full Year Performance Recovery: For the full year 2025, sales totaled $4.05 billion, a 7% decline year-over-year, yet EBIT rebounded from a loss of $430 million in 2024 to $356 million, indicating a significant improvement in the company's profitability.
See More
Leggett & Platt to Announce Q4 Earnings on February 11
- Earnings Announcement: Leggett & Platt (LEG) is set to release its Q4 earnings on February 11 after market close, with a consensus EPS estimate of $0.23, reflecting a 9.5% year-over-year increase, indicating slight improvement in profitability.
- Revenue Decline Expected: The anticipated revenue for Q4 is $938.74 million, representing a 14.7% year-over-year decline, which highlights challenges the company faces in the current market environment and may impact investor confidence moving forward.
- Historical Performance Review: Over the past two years, Leggett & Platt has only beaten EPS estimates 25% of the time and revenue estimates 38% of the time, indicating volatility in achieving financial targets and potential concerns for investors.
- Estimate Revision Status: In the last three months, there have been no upward revisions to EPS estimates and one downward revision, suggesting analysts are becoming more cautious about the company's future performance, which could affect stock price movements.
See More
Leggett and Platt LEG Q4 2025 Earnings Transcript
See More
Towle & Co Initiates Position in Leggett & Platt
- New Position: Towle & Co initiated a new position in Leggett & Platt by acquiring 953,080 shares in Q4 2023, with an estimated transaction value of $10.48 million, reflecting confidence in the company's potential.
- Asset Allocation: This acquisition represents 2.77% of Towle & Co's reportable assets under management as of December 31, indicating its significance within a diversified portfolio and potential influence on future investment strategies.
- Financial Performance: Leggett & Platt reported $4.05 billion in sales for 2025, down 7%, but management projects 2026 sales to rebound to between $3.8 billion and $4.0 billion, showcasing positive developments in restructuring and cost management.
- Market Outlook: With housing demand stabilizing and ongoing restructuring efforts, Leggett & Platt's earnings power could significantly improve over the next two years, attracting Towle & Co's interest and highlighting a preference for value-oriented investments.
See More
Leggett & Platt Q4 2025 Earnings Call Insights
- Restructuring Progress: Leggett & Platt has substantially completed its restructuring plan initiated in early 2024, which is expected to yield approximately $70 million in EBIT benefits at a significantly lower cost than anticipated, positioning the company for future market recovery.
- Financial Performance Overview: In Q4 2025, sales reached $939 million, down 11% year-over-year, while adjusted earnings per share increased by 5% to $0.22, demonstrating resilience amid challenging market conditions.
- Cautious Future Outlook: Management projects 2026 sales between $3.8 billion and $4.0 billion, reflecting a cautious stance on ongoing weakness in the residential market, with expected low single-digit declines in volume across product lines.
- Significant Debt Management: The company reduced debt by $376 million in 2025 through divestitures and real estate sales, resulting in a year-end net debt to adjusted EBITDA ratio decreasing from 3.8x to 2.4x, indicating substantial improvement in financial health.
See More
Leggett & Platt Reports Q4 Earnings Growth
- Earnings Growth: Leggett & Platt reported a fourth-quarter profit of $25.2 million, translating to $0.18 per share, which is a significant increase from last year's $14.2 million and $0.10 per share, indicating improved profitability.
- Adjusted Earnings: Excluding items, the adjusted earnings per share stood at $0.22, reflecting enhancements in cost control and operational efficiency, despite a decline in overall revenue.
- Revenue Decline: The company's revenue for the fourth quarter was $938.6 million, down 10.6% from $1.05 billion last year, highlighting pressures from weak market demand and increased competition affecting sales.
- 2026 Guidance: The company anticipates sales between $3.8 billion and $4.0 billion for 2026, with adjusted EPS expected to range from $1.00 to $1.20, demonstrating confidence in future growth despite current challenges.
See More
Leggett & Platt Reports 2025 Financials: Debt Reduction and Profit Improvement
- Debt Reduction: Leggett & Platt successfully reduced its net debt leverage ratio to 2.4x in 2025, approaching its long-term target of 2.0x, which enhances the company's agility and allows a greater focus on growth opportunities and capital returns.
- Restructuring Plan Completion: The company substantially completed its restructuring plan initiated in early 2024 by the end of 2025, which is expected to yield higher EBIT benefits and lower costs than initially anticipated, thereby improving future profitability and cash flow.
- Fourth Quarter Sales Decline: Fourth quarter sales for 2025 were $939 million, an 11% decrease year-over-year, with EBIT at $32 million, down $12 million from the same quarter in 2024, reflecting challenges from weak market demand.
- Full Year Performance Recovery: For the full year 2025, sales totaled $4.05 billion, a 7% decline year-over-year, yet EBIT rebounded from a loss of $430 million in 2024 to $356 million, indicating a significant improvement in the company's profitability.
See More
Leggett & Platt to Announce Q4 Earnings on February 11
- Earnings Announcement: Leggett & Platt (LEG) is set to release its Q4 earnings on February 11 after market close, with a consensus EPS estimate of $0.23, reflecting a 9.5% year-over-year increase, indicating slight improvement in profitability.
- Revenue Decline Expected: The anticipated revenue for Q4 is $938.74 million, representing a 14.7% year-over-year decline, which highlights challenges the company faces in the current market environment and may impact investor confidence moving forward.
- Historical Performance Review: Over the past two years, Leggett & Platt has only beaten EPS estimates 25% of the time and revenue estimates 38% of the time, indicating volatility in achieving financial targets and potential concerns for investors.
- Estimate Revision Status: In the last three months, there have been no upward revisions to EPS estimates and one downward revision, suggesting analysts are becoming more cautious about the company's future performance, which could affect stock price movements.
See More
