Leggett & Platt, Incorporated (LEG) Q4 2025 Earnings Call Transcript
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 12 2026
0mins
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.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy LEG?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on LEG
Wall Street analysts forecast LEG stock price to rise
3 Analyst Rating
0 Buy
3 Hold
0 Sell
Hold
Current: 11.500
Low
11.00
Averages
12.00
High
13.00
Current: 11.500
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 & Platt Declares Q1 2026 Dividend
- Dividend Declaration: Leggett & Platt's Board of Directors has declared a dividend of $0.05 per share for Q1 2026, reflecting the company's ongoing profitability and likely boosting investor confidence.
- Payment Date: The dividend will be paid on April 15, 2026, to shareholders of record as of March 13, 2026, ensuring timely returns for shareholders and enhancing the company's appeal in capital markets.
- Company Background: Founded 143 years ago, Leggett & Platt is a diversified manufacturer that designs and produces a wide range of engineered components, covering bedding, automotive seating, and furniture, showcasing its extensive market influence.
- Market Positioning: As a leading supplier of bedding components and solutions, Leggett & Platt's strong market position in the home and automotive sectors indicates its resilience against economic fluctuations.
See More
Leggett & Platt Declares Q1 2026 Dividend of $0.05 per Share
- Dividend Declaration: Leggett & Platt's Board of Directors has declared a dividend of $0.05 per share for Q1 2026, reflecting the company's ongoing commitment to stable cash flow and shareholder returns.
- Payment Schedule: The dividend will be paid on April 15, 2026, to shareholders of record on March 13, 2026, ensuring timely returns for investors and enhancing their confidence in the company.
- Company Overview: Founded 143 years ago, Leggett & Platt is a diversified manufacturer that designs and produces a wide range of engineered components, including bedding, automotive seating, and furniture, showcasing its leadership in the market.
- Market Impact: The announcement of this dividend not only reflects the company's solid financial health but may also attract more investor interest, thereby enhancing the company's image and stock performance in the capital markets.
See More
Leggett & Platt Declares Quarterly Dividend of $0.05 per Share
- Quarterly Dividend Declaration: Leggett & Platt has declared a quarterly dividend of $0.05 per share, consistent with previous distributions, indicating the company's ongoing ability to maintain stable cash flows despite cautious market sentiment regarding future growth.
- Dividend Yield: The forward yield of 1.73% reflects the company's shareholder return strategy in the current economic environment, aimed at attracting long-term investors and bolstering market confidence.
- Payment Schedule: The dividend will be payable on April 15, with a record date of March 13 and an ex-dividend date also on March 13, ensuring shareholders receive timely returns and enhancing investor retention.
- Sales Target Outlook: Leggett & Platt has set a sales target of $3.8 billion to $4.0 billion for 2026, indicating optimism about future market opportunities while undergoing portfolio streamlining and restructuring efforts.
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 Declares Q1 2026 Dividend
- Dividend Declaration: Leggett & Platt's Board of Directors has declared a dividend of $0.05 per share for Q1 2026, reflecting the company's ongoing profitability and likely boosting investor confidence.
- Payment Date: The dividend will be paid on April 15, 2026, to shareholders of record as of March 13, 2026, ensuring timely returns for shareholders and enhancing the company's appeal in capital markets.
- Company Background: Founded 143 years ago, Leggett & Platt is a diversified manufacturer that designs and produces a wide range of engineered components, covering bedding, automotive seating, and furniture, showcasing its extensive market influence.
- Market Positioning: As a leading supplier of bedding components and solutions, Leggett & Platt's strong market position in the home and automotive sectors indicates its resilience against economic fluctuations.
See More
Leggett & Platt Declares Q1 2026 Dividend of $0.05 per Share
- Dividend Declaration: Leggett & Platt's Board of Directors has declared a dividend of $0.05 per share for Q1 2026, reflecting the company's ongoing commitment to stable cash flow and shareholder returns.
- Payment Schedule: The dividend will be paid on April 15, 2026, to shareholders of record on March 13, 2026, ensuring timely returns for investors and enhancing their confidence in the company.
- Company Overview: Founded 143 years ago, Leggett & Platt is a diversified manufacturer that designs and produces a wide range of engineered components, including bedding, automotive seating, and furniture, showcasing its leadership in the market.
- Market Impact: The announcement of this dividend not only reflects the company's solid financial health but may also attract more investor interest, thereby enhancing the company's image and stock performance in the capital markets.
See More
Leggett & Platt Declares Quarterly Dividend of $0.05 per Share
- Quarterly Dividend Declaration: Leggett & Platt has declared a quarterly dividend of $0.05 per share, consistent with previous distributions, indicating the company's ongoing ability to maintain stable cash flows despite cautious market sentiment regarding future growth.
- Dividend Yield: The forward yield of 1.73% reflects the company's shareholder return strategy in the current economic environment, aimed at attracting long-term investors and bolstering market confidence.
- Payment Schedule: The dividend will be payable on April 15, with a record date of March 13 and an ex-dividend date also on March 13, ensuring shareholders receive timely returns and enhancing investor retention.
- Sales Target Outlook: Leggett & Platt has set a sales target of $3.8 billion to $4.0 billion for 2026, indicating optimism about future market opportunities while undergoing portfolio streamlining and restructuring efforts.
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
