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Leggett & Platt Reports Q4 and Full Year 2025 Results

Leggett & Platt Incorporated, a key player in manufacturing engineered components for various industries, has disclosed its fourth quarter and full year results for 2025, unveiling a notable decline in sales compared to the previous year. The company's fourth quarter sales reached $939 million, marking an 11% drop compared to Q4 2024, with earnings per share (EPS) at $0.18, an increase from $0.10 in the prior year. Adjusted EPS for the same quarter slightly improved to $0.22.

Financial Overview

In 2025, Leggett & Platt's total sales amounted to $4.05 billion, representing a 7% decline from 2024. The decrease in sales can be attributed primarily to a 5% drop in organic sales, alongside reduced volumes due to a softening demand in residential markets and disruptions within customer supply chains. Despite the tough market conditions, the operating cash flow improved by $33 million compared to 2024, reaching $338 million.

Karl Glassman, President and CEO of Leggett & Platt, highlighted the company's strategic initiatives aimed at enhancing operational efficiency and strengthening the financial foundation. He noted that their restructuring plan, initiated in early 2024, was largely completed by the end of 2025, yielding better-than-expected results in terms of earnings before interest and taxes (EBIT).

Q4 Highlights

The fourth quarter results showed that Leggett's EBIT was $32 million, down from $44 million in the same quarter last year. Adjusted EBIT fell to $48 million, reflecting lower volumes and the impact of divestitures, specifically in the aerospace sector. Although negative trends persisted in various segments, growth was recorded in textiles and work furniture.

The EBIT margin also decreased to 3.4%, compared to 4.1% in Q4 2024, while the adjusted EBIT margin was slightly better at 5.1% against last year's 5.3%.

Looking Ahead

Looking forward, Leggett & Platt has set optimistic guidance for 2026, forecasting sales between $3.8 billion and $4 billion and projected EPS ranging from $0.92 to $1.38. The company aims to continue its efforts in operational efficiencies while adapting to market demands. Importantly, their plan includes strategies to improve on their net debt leverage ratio, targeting a reduction down to 2.0x, which is a significant shift to enhance agility.

Despite the challenges faced throughout 2025, such as volume reductions and market fluctuations, Leggett & Platt’s strategic focus on innovation, careful management of operational costs, and sustainable growth is expected to bolster its long-term viability in a competitive market environment. The CEO expressed confidence that the improvements enacted over the last two years will provide a foundation for recovery in the residential market demand, indicating a hopeful outlook for 2026.

In the broader context, companies like Leggett & Platt serve as barometers for industry health, and their performance illustrates the ongoing pressures within manufacturing sectors amidst evolving market demands. Investors and stakeholders will closely monitor these developments as the company strives to navigate the current landscape and emerge stronger.