Leggett & Platt, Incorporated

Fourth quarter sales were $939 million, down 11% year over year. Fourth quarter EBIT was $32 million and adjusted EBIT was $48 million, down $8 million versus Q4 2024; fourth quarter EPS was $0.18 and adjusted EPS was $0.22, up 5% from $0.21 a year ago. Full-year 2025 sales were $4.05 billion, down 7%; EBIT increased $786 million, primarily because 2024 included $676 million of goodwill impairment charges; adjusted EBIT was $263 million, down $4 million; full-year EPS was $1.69 and adjusted EPS was $1.05, flat year over year. Operating cash flow was $338 million, up $33 million, and adjusted working capital fell to 11.6% of annualized sales, down 140 basis points. For 2026, sales are guided to $3.8 billion to $4.0 billion, down 1% to 6%, with 3% of the decline from 2025 divestitures; adjusted EPS is guided to $1.00 to $1.20, full-year EPS to $0.92 to $1.38, adjusted EBIT margin to 6.3% to 7.0%, cash from operations to $225 million to $275 million, and CapEx to $100 million to $115 million.

Karl Glassman framed 2025 as a year of execution on priorities: strengthening the balance sheet, improving efficiency and margins, and positioning the company for long-term growth. He said the restructuring plan is essentially complete, the benefits were achieved at lower cost than expected, and the company is still looking for additional operational improvements, though no divestitures are being contemplated. His tone was cautious on demand but constructive on longer-term upside, emphasizing that Leggett is now better positioned to benefit when residential markets recover.

Ben Burns emphasized the financial payoff from restructuring, noting roughly $63 million of benefits in 2025 and about $5 million more expected in 2026, leading to a $70 million run rate. He also pointed to $376 million of debt reduction, aided by aerospace proceeds, operating cash flow and real estate sales, and said net debt/adjusted EBITDA improved to 2.4x from 3.8x. For 2026, he highlighted a full-year adjusted EBIT margin of 6.3% to 7.0%, cash from operations of $225 million to $275 million, CapEx of $100 million to $115 million, and expected restructuring-related EPS impacts plus a gain from real estate sales.

Analysts focused on restructuring, Bedding demand, Auto supply chain disruptions, FF&T margins, working capital and capital allocation. Management said restructuring is mostly done, with only modest additional benefit left in 2026, and that the company is still reviewing smaller footprint and cost actions. On Bedding, management reiterated there is no macro recovery embedded in guidance and said 2026 simply assumes a continuation of late-2025 trends, with customer disruptions largely lapped early in the year. On Auto, the supply chain issues were described as temporary and now behind them, while capital allocation is still centered on getting closer to the 2x leverage target before emphasizing buybacks or acquisitions.