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Leggett & Platt's Second Quarter Financial Overview

On July 31, 2025, Leggett & Platt Inc. released its financial results for the second quarter of 2025, presenting a mixed picture of sales performance and profitability enhancement against a backdrop of broader economic challenges.

The company reported sales of $1.1 billion, reflecting a 6% decrease compared to the same period in 2024. This downturn was largely attributed to soft demand in residential markets, the automotive sector, and hydraulic cylinders, despite a boost in trade wire, rod sales, and textiles. According to management, organic sales also contracted by 6%, and volume dropped by 7%. Nevertheless, the increase in raw material-related selling prices and currency benefits managed to elevate total sales slightly by 1%.

The company's work to strengthen its balance sheet yielded positive results. Leggett & Platt decreased its debt by $143 million during this quarter, resulting in a notable improvement in the net debt to trailing twelve-month adjusted EBITDA ratio, which now stands at 3.5x. Reflecting this financial prudence, President and CEO Karl Glassman expressed satisfaction over the quarter's profitability, emphasizing the need for continued dedication to structural adjustments.

In terms of earnings, the second quarter EPS (earnings per share) was $0.38, a significant recovery from a loss of $4.39 in the previous year. Adjusted EPS reflected a modest increase to $0.30, up from $0.29 in the second quarter of 2024. This performance improvement supports the company's maintained guidance for 2025 sales and adjusted EPS, indicating confidence amidst ongoing macroeconomic headwinds.

Segment Performance Highlights

Breaking down performance by segment, the Bedding Products segment saw a 11% decline in trade sales, primarily due to softness in the U.S. and European markets. The Specialized Products segment reported a 5% drop in trade sales, impacted by reduced automotive demand; however, it managed to show EBIT improvements due to disciplined cost management.

Furthermore, the Furniture, Flooring, and Textile Products segment exhibited a slight decline of 2% in trade sales, with volume reductions noted in home furnishings and flooring areas. The decrease here was partially offset by growth in textiles and work furniture sales.

Additionally, Leggett & Platt is navigating a restructuring plan aiming to optimize operations and cut costs. The restructuring efforts are projected to deliver an EBIT benefit of $60$–70 million once fully implemented, with $13 million realized in the second quarter alone.

Outlook and Future Initiatives

Leggett & Platt remains on track to complete the sale of its Aerospace business within the year, a strategic move intended to streamline focus and drive long-term engagement. Revitalizing the balance sheet amidst fluctuating market conditions, the company is positioning itself for sustainable growth. While they expect sales for the year to be in the range of $4.0$ to $4.3 billion—indicating a 2% to 9% decrease from 2024—management remains optimistic regarding the execution of their long-term strategies.

In conclusion, while the current quarter's results reflect a challenging landscape, Leggett & Platt is demonstrating its resilience through strategic refinements and a robust commitment to enhancing shareholder value. The leadership is keen on leveraging their workforce's dedication and talent to navigate this evolving business environment effectively.