Group 1 - The reconstruction efforts of Leggett & Platt, Inc. (NYSE: LEG) are beginning to show positive results despite a challenging market environment [1] - The analyst has extensive experience in the logistics sector and has been involved in stock investing and macroeconomic analysis for nearly a decade [1] - The focus areas for investment include ASEAN and NYSE/NASDAQ stocks, particularly in banks, telecommunications, logistics, and hotels [1] Group 2 - The analyst has diversified their portfolio by investing in various industries and market cap sizes, including blue-chip companies and stocks for retirement [1] - The entry into the US market occurred in 2020, following a period of trading using a relative's account, which increased awareness of the US market [1] - The analyst has been utilizing analyses from Seeking Alpha to compare with their own research in the Philippine market since discovering the platform in 2018 [1]

Core Insights - Leggett & Platt, Incorporated (LEG) has completed the sale of its Aerospace Products Group to Tinicum Incorporated, generating approximately $250 million in after-tax proceeds [1][9] - The sale aims to streamline operations, reduce exposure to volatile markets, and reinforce LEG's strategic priorities, allowing for a more focused business portfolio [2][3] Business Restructuring - The Aerospace Products business generated $190 million in net trade sales in 2024 but was considered non-core to LEG's main segments, which include bedding, furniture, flooring, and textiles [3][4] - The divestiture allows LEG to reallocate resources towards higher-growth opportunities within its core segments [4] Financial Impact - Following the divestiture, LEG updated its full-year 2025 guidance, projecting sales between $3.9 billion and $4.2 billion, down from a previous range of $4.0 billion to $4.3 billion [7] - Adjusted EPS guidance was lowered to $0.95-$1.15 from $1.00-$1.20, with an implied adjusted EBIT margin expected to be between 6.3% and 6.7%, a decline from the previous range of 6.5% to 6.9% [7] Operational Adjustments - The company is consolidating its bedding and furniture operations, planning to reduce its plant count from 50 to 30-35 and cut its workforce by up to 1,100 [5] - Proceeds from the sale are expected to be used to pay down debt and strengthen the balance sheet, aligning with the company's goal to enhance financial flexibility and improve margins [6][12] Market Performance - Shares of LEG declined by 1.2% on the day of the announcement, although the stock has gained 10.2% over the past three months, underperforming the Zacks Furniture industry's 13.2% rise [2][8] - The company reported revenues of $1.06 billion in Q2 2025, down 6.3% year-over-year, with adjusted EBIT rising to $76 million and adjusted EPS growing 3% to $0.30 [11]

Core Viewpoint - The ESG rating of LEG.US has been downgraded from AA to A by MSCI as of August 27, 2025 [1] Company Summary - LEG.US's ESG rating change indicates a potential shift in the company's sustainability practices and overall governance [1]

[Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) [Overview of Forward-Looking Statements](index=3&type=section&id=Overview%20of%20Forward-Looking%20Statements) This section outlines forward-looking statements regarding financial projections, restructuring impacts, and the Aerospace Products Group sale, all subject to material risks and uncertainties - The report contains forward-looking statements covering projections for revenue, income, earnings, capital expenditures, dividends, product demand, capital structure, cash flows, interest costs, and the payment of cash dividends[8](index=8&type=chunk) - Statements also include estimates related to the 2024 Restructuring Plan (facility closures, costs, impairment charges, sales reduction, proceeds from asset sales, and EBIT benefit) and the net positive impact of tariffs[8](index=8&type=chunk) - All forward-looking statements are subject to risks, uncertainties, and developments that might cause actual events or results to differ materially from those envisioned[9](index=9&type=chunk) [Key Risks and Uncertainties](index=3&type=section&id=Key%20Risks%20and%20Uncertainties) This section details key risks such as sale termination, restructuring changes, tariff impacts, supply chain disruptions, and market access - Risk of termination or delays in the sale of the Aerospace Products Group, including regulatory approvals and financing[10](index=10&type=chunk) - Potential changes to the 2024 Restructuring Plan, affecting costs, benefits, sales attrition, and real estate sales[10](index=10&type=chunk) - Impact of tariffs (U.S. and retaliatory) on product demand, profit margins, and earnings, including changes to USMCA exemptions[10](index=10&type=chunk) - Supply chain disruptions due to various factors like geopolitical conflicts, labor strikes, and vendor quality issues[11](index=11&type=chunk) - Ability to access commercial paper and debt markets, and compliance with credit facility covenants[11](index=11&type=chunk) - Impairment of goodwill and long-lived assets, and volatility in the automotive industry due to Chinese EV manufacturers[11](index=11&type=chunk) - Cybersecurity incidents, unauthorized use of AI, and physical effects of climate change on operations and supply chains[11](index=11&type=chunk) [PART I - FINANCIAL INFORMATION](index=5&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements.](index=5&type=section&id=Item%201.%20Financial%20Statements.) This section presents unaudited consolidated condensed financial statements, including balance sheets, statements of operations, cash flows, and equity changes, with detailed notes [Consolidated Condensed Balance Sheets](index=5&type=section&id=Consolidated%20Condensed%20Balance%20Sheets) Consolidated Condensed Balance Sheets (Amounts in millions) | (Amounts in millions) | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :---------------- | | **ASSETS** | | | | Cash and cash equivalents | $368.8 | $350.2 | | Trade receivables, net | $542.2 | $503.0 | | Inventories | $648.6 | $722.6 | | Total current assets | $1,742.7 | $1,690.5 | | Net property, plant and equipment | $686.4 | $724.4 | | Goodwill | $751.2 | $794.4 | | Total assets | $3,703.7 | $3,661.6 | | **LIABILITIES AND EQUITY** | | | | Total current liabilities | $802.3 | $846.4 | | Long-term debt | $1,792.2 | $1,862.8 | | Total liabilities | $2,045.6 | $2,125.0 | | Total equity | $855.8 | $690.2 | | Total liabilities and equity | $3,703.7 | $3,661.6 | - Total assets increased by **$42.1 million** from December 31, 2024, to June 30, 2025[13](index=13&type=chunk) - Total equity increased by **$165.6 million**, while total liabilities decreased by **$79.4 million** over the same period[13](index=13&type=chunk) [Consolidated Condensed Statements of Operations](index=6&type=section&id=Consolidated%20Condensed%20Statements%20of%20Operations) Consolidated Condensed Statements of Operations (Amounts in millions, except per share data) | (Amounts in millions, except per share data) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :----------------------------------------- | :----------------------------- | :----------------------------- | :------------------------------- | :------------------------------- | | Net trade sales | $2,080.1 | $2,225.5 | $1,058.0 | $1,128.6 | | Gross profit | $382.6 | $372.9 | $192.6 | $186.5 | | Impairments | $1.2 | $677.9 | $0.9 | $675.6 | | Earnings (loss) before interest and income taxes | $153.3 | $(551.3) | $90.4 | $(614.3) | | Net earnings (loss) attributable to Leggett & Platt, Inc. common shareholders | $83.1 | $(570.6) | $52.5 | $(602.2) | | Basic EPS | $0.60 | $(4.16) | $0.38 | $(4.39) | - Net trade sales decreased by **6.5%** for the six months ended June 30, 2025, compared to the same period in 2024[15](index=15&type=chunk) - Net earnings significantly improved from a loss of **$(570.6) million** in H1 2024 to a gain of **$83.1 million** in H1 2025, primarily due to the non-recurrence of large impairment charges[15](index=15&type=chunk) - Basic EPS increased from **$(4.16)** in H1 2024 to **$0.60** in H1 2025[15](index=15&type=chunk) [Consolidated Condensed Statements of Comprehensive Income (Loss)](index=7&type=section&id=Consolidated%20Condensed%20Statements%20of%20Comprehensive%20Income%20(Loss)) Consolidated Condensed Statements of Comprehensive Income (Loss) (Amounts in millions) | (Amounts in millions) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :-------------------- | :----------------------------- | :----------------------------- | :------------------------------- | :------------------------------- | | Net earnings (loss) | $83.1 | $(570.5) | $52.5 | $(602.1) | | Other comprehensive income (loss), net of tax | $82.9 | $(43.4) | $59.6 | $(18.6) | | Comprehensive income (loss) | $166.0 | $(613.9) | $112.1 | $(620.7) | - Comprehensive income significantly improved from a loss of **$(613.9) million** in H1 2024 to a gain of **$166.0 million** in H1 2025[18](index=18&type=chunk) - Foreign currency translation adjustments shifted from a loss of **$(40.9) million** in H1 2024 to a gain of **$81.9 million** in H1 2025[18](index=18&type=chunk) [Consolidated Condensed Statements of Cash Flows](index=8&type=section&id=Consolidated%20Condensed%20Statements%20of%20Cash%20Flows) Consolidated Condensed Statements of Cash Flows (Amounts in millions) | (Amounts in millions) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------- | :----------------------------- | :----------------------------- | | Net Cash Provided by Operating Activities | $90.8 | $87.9 | | Net Cash Provided by (Used for) Investing Activities | $10.3 | $(18.6) | | Net Cash Used for Financing Activities | $(93.8) | $(117.1) | | Increase (Decrease) in Cash and Cash Equivalents | $18.6 | $(58.5) | | Cash and Cash Equivalents—June 30, | $368.8 | $307.0 | - Net cash provided by operating activities increased by **$2.9 million (3.3%)** in H1 2025 compared to H1 2024[21](index=21&type=chunk) - Investing activities shifted from a net cash outflow of **$(18.6) million** in H1 2024 to a net cash inflow of **$10.3 million** in H1 2025, driven by higher proceeds from disposals of assets and businesses[21](index=21&type=chunk) - Cash and cash equivalents increased by **$18.6 million** in H1 2025, contrasting with a decrease of **$(58.5) million** in H1 2024[21](index=21&type=chunk) [Consolidated Condensed Statements of Changes in Equity](index=9&type=section&id=Consolidated%20Condensed%20Statements%20of%20Changes%20in%20Equity) Consolidated Condensed Statements of Changes in Equity (Amounts in millions) | (Amounts in millions) | Total Equity (June 30, 2025) | Total Equity (December 31, 2024) | | :-------------------- | :--------------------------- | :------------------------------- | | Beginning balance, January 1, 2025 | $690.2 | $1,334.0 (Jan

Core Insights - Leggett & Platt reported Q2 2025 GAAP revenue of $1.058 billion, matching analyst estimates but down 6% from Q2 2024 [1][2] - Adjusted EPS was $0.30, consistent with estimates and slightly above last year's adjusted EPS of $0.29 [1][2] - Operating cash flow decreased to $84.0 million, indicating ongoing challenges in demand trends [1] Financial Performance - Adjusted EBIT rose to $75.6 million, with an adjusted EBIT margin of 7.1%, up from 6.3% in Q2 2024 [2][6] - Organic sales declined by 6%, with Bedding Products sales down 11% due to weak demand in the U.S. and Europe [5][10] - Total debt reduced by $143 million, with net debt to trailing twelve-month adjusted EBITDA improving to 3.5x [7][11] Strategic Focus - The company is prioritizing vertical integration, particularly in steel rod and wire production, and product innovation [4] - A major restructuring plan initiated in 2024 aims to streamline operations and control costs, with expected annualized EBIT benefits of $60–$70 million [6][7] - Product innovation includes the rollout of ComfortCore coils in bedding and growth in textiles, although these advances have not yet offset declines in core segments [8][9] Market Conditions - Demand remains soft across core markets, with projected mid-teen volume declines in Bedding Products for 2025 [13] - The restructuring plan has led to $11 million in sales attrition due to facility closures, with total expected attrition reaching $65 million [7][10] - The company maintains full-year 2025 sales guidance of $4.0 billion to $4.3 billion despite ongoing demand challenges [13] Capital Management - Total liquidity was reported at $878 million as of June 30, 2025, following amendments to the primary credit facility [11] - The quarterly dividend remains unchanged at $0.05 per share, following a significant reduction in 2024 [12]

Financial Data and Key Metrics Changes - Second quarter sales were $1.1 billion, down 6% compared to 2024, primarily due to soft demand in residential end markets, automotive, and hydraulic cylinders, along with restructuring-related sales attrition [14][15] - Adjusted EBIT for the second quarter was $76 million, up $4 million from the previous year, driven by metal margin expansion and disciplined cost management [18] - Adjusted EPS for the second quarter was $0.30, a 3% increase from $0.29 in the same quarter last year [18][23] - Total debt was reduced by $143 million to $1.8 billion, with total liquidity at $878 million [19][20] Business Line Data and Key Metrics Changes - Bedding product sales decreased by 11% year-over-year, with weakness in mattresses and adjustable bases offsetting strong trade rod and wire sales [15][16] - Specialized products saw a 5% decline in sales, with aerospace growth of 6% year-over-year offset by declines in automotive and hydraulic cylinders [17] - Furniture, flooring, and textile product sales were down 2%, with positive growth in work furniture and textiles but declines in home furniture and flooring products [15][18] Market Data and Key Metrics Changes - The mattress market volume is expected to decline mid-single digits for the full year, with domestic production down high single digits [16] - Tariff impacts have varied across businesses, with some segments experiencing disruptions while others have seen benefits from increased metal margins [8][11] - The company is actively engaged in mitigating tariff impacts by shifting production and sourcing to less affected regions [8][12] Company Strategy and Development Direction - The company is nearing completion of its restructuring plan, which aims to strengthen profitability and balance sheet [24][25] - Future cash flow will be directed towards organic growth investments, strategic acquisitions, and potential share repurchases [21][25] - The company is focused on enhancing operational efficiency and profitability while navigating macroeconomic uncertainties [13][24] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding consumer health, noting an uptick in demand as consumer confidence improves [50][52] - The company anticipates challenges in the second half of the year, particularly in adjustable beds and specialty foam due to ongoing market dynamics [62] - Management remains confident in the company's position to leverage improvements once consumer demand fully re-engages [25] Other Important Information - Restructuring costs are now expected to be between $15 million and $25 million for 2025, down from previous estimates [22] - The company maintained its full-year 2025 sales guidance, projecting sales between $4 billion and $4.3 billion, representing a decline of 2% to 9% compared to 2024 [23] Q&A Session Summary Question: Can you connect the bedding consumption number to U.S. volume? - Management explained that U.S. spring volume was down 9%, with a portion attributed to sales attrition from restructuring [33][36] Question: What is the outlook for metal margins? - Management indicated that metal margins are expanding and are expected to remain sustainable due to tariffs [39] Question: What factors influenced the decision to retain certain facilities? - The decision was based on updated assessments of customer relationships and market dynamics [41][42] Question: How is the health of the consumer affecting expectations for volume and demand? - Management noted a soft start to the second quarter but observed improvements leading up to Memorial Day and into July [50][52] Question: What are the price-cost dynamics across segments? - Management is working with suppliers to absorb tariff costs and is passing through pricing where necessary [53] Question: Can you provide guidance by segment for sales and operating margins? - Management expects sales and volumes to decline across segments, with varying impacts on margins [54][55] Question: What is the outlook for home furniture performance? - Management noted a bifurcation in the home furniture market, with higher price point furniture performing better than mid-price point products [76][78]

Financial Data and Key Metrics Changes - Second quarter sales were $1.1 billion, down 6% compared to 2024, primarily due to soft demand in residential end markets, automotive, and hydraulic cylinders, along with restructuring-related sales attrition [16][20] - Adjusted EBIT for the second quarter was $76 million, up $4 million from the previous year, driven by metal margin expansion and disciplined cost management [19] - Adjusted earnings per share (EPS) for the second quarter was $0.30, a 3% increase from $0.29 in the same quarter last year [19][25] - Total debt was reduced by $143 million to $1.8 billion, leading to a decrease in net debt to trailing twelve-month adjusted EBITDA to 3.5 times [20][21] Business Line Data and Key Metrics Changes - Bedding product sales decreased by 11% year-over-year, with weakness in mattresses and adjustable bases offsetting strong trade rod and wire sales [16][17] - Specialized products segment saw a 5% decline, with aerospace growth of 6% year-over-year offset by declines in automotive and hydraulic cylinders [18] - Furniture, flooring, and textile products sales were down 2%, with positive growth in work furniture and textiles but declines in home furniture and flooring products [19] Market Data and Key Metrics Changes - The U.S. mattress market production was down mid to high single digits, with total mattress consumption estimated to be down low single digits year-over-year [17][18] - Tariff impacts varied across businesses, with the recent tariff changes being a net positive overall, although concerns about inflation and consumer demand persist [10][12] - The company is actively shifting production and sourcing to mitigate tariff impacts, particularly in the bedding segment where steel tariffs have led to expanded metal margins [11][14] Company Strategy and Development Direction - The company is nearing completion of its restructuring plan, which is expected to strengthen profitability and balance sheet [26] - Future cash flow will be directed towards organic growth investments, strategic acquisitions, and potential share repurchases [27][22] - The company is focused on enhancing operational efficiency and profitability while navigating macroeconomic uncertainties [15][26] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding consumer health, noting an uptick in demand as consumer confidence improves, particularly around holiday periods [50][51] - The company anticipates continued challenges in the bedding segment due to customer changes and promotional dynamics [66] - Management remains confident in the company's position to leverage improvements once consumer demand fully reengages [27][26] Other Important Information - Restructuring costs are now expected to be between $15 million to $25 million for 2025, down from previous estimates, with total restructuring costs projected at $65 million to $75 million [23] - The company maintained its full-year 2025 sales guidance, expecting sales in the range of $4 billion to $4.3 billion, reflecting a decline of 2% to 9% compared to 2024 [24][25] Q&A Session Summary Question: Insights on bedding business consumption numbers - Management explained that U.S. spring volume was down 9%, with a third of that attributed to sales attrition from restructuring, indicating that they are not losing market share [31][37] Question: Metal margin acceleration and tariff impacts - Management confirmed that metal margins are expanding sequentially and year-over-year, positively impacted by steel tariffs [38][40] Question: Changes in restructuring plan and facility retention - Management noted that the decision to retain certain facilities was based on updated market assessments and customer relationships [41][43] Question: Consumer health and macro uncertainty - Management indicated that consumer confidence has improved, leading to a more optimistic outlook for the third quarter compared to the first quarter [50][52] Question: Pricing strategies to offset tariff impacts - Management stated that they are working with suppliers to absorb tariff costs and are passing through pricing when necessary, maintaining pricing power across segments [55] Question: Segment guidance and operating margin expectations - Management provided guidance indicating expected sales and volume declines across segments, with varying margin expectations [56][57] Question: Home furniture performance and market dynamics - Management discussed the bifurcation in the home furniture market, with higher price point furniture performing well while mid-price point customers faced volume declines due to tariff impacts [79][81]

Financial Performance - Q2 2025 - Sales decreased by 6% to $1.058 billion compared to Q2 2024[7,8] - Volume decreased by 7%[7,9] - Adjusted EBIT increased by $4 million to $76 million compared to Q2 2024[7] - Adjusted EBIT margin increased by 80 bps to 7.1%[7,8] - Adjusted EPS increased by $.01 to $.30 compared to Q2 2024[7,8] - Cash flow decreased by $10 million to $84 million compared to Q2 2024[7,8] Financial Performance - YTD 2025 - Sales decreased by 7% to $2.080 billion compared to YTD 2024[15,16] - Adjusted EBIT increased by $7 million to $142 million compared to YTD 2024[15,16] - Adjusted EBIT margin increased by 70 bps to 6.8%[15] - Adjusted EPS increased by $.02 to $.54 compared to YTD 2024[15,17] Guidance - The company maintains its 2025 sales guidance of $4.0–$4.3 billion, a decrease of 2% to 9% versus 2024[7,18] - The company maintains its adjusted EPS guidance of $1.00–$1.20[7,19]

Core Insights - Legget & Platt reported revenue of $1.06 billion for the quarter ended June 2025, reflecting a 6.3% decline year-over-year and a surprise of -0.54% compared to the Zacks Consensus Estimate [1] - The company's EPS was $0.30, slightly up from $0.29 in the same quarter last year, resulting in an EPS surprise of +3.45% against the consensus estimate [1] Revenue and Sales Performance - Organic sales for Bedding Products decreased by 11%, worse than the -9.1% estimated by analysts [4] - Organic sales for Specialized Products fell by 5%, compared to the -1.6% average estimate [4] - Organic sales for Furniture, Flooring, and Textile Products declined by 2%, better than the -5.6% average estimate [4] - Overall change in organic sales was -6%, slightly worse than the -5.3% average estimate [4] Trade Sales Analysis - Trade sales for Furniture, Flooring, and Textile Products were reported at $362.5 million, below the $364.82 million average estimate, marking a -2.3% year-over-year change [4] - Trade sales for Specialized Products reached $304.1 million, exceeding the $301.68 million estimate, but still reflecting a -4.9% year-over-year change [4] - Trade sales for Bedding Products were $391.4 million, lower than the $397.2 million estimate, indicating a -10.6% change from the previous year [4] EBIT and Adjusted EBIT Metrics - EBIT for Bedding Products was $27.2 million, significantly higher than the $19.5 million average estimate [4] - EBIT for Specialized Products was $38.7 million, also exceeding the $27.26 million average estimate [4] - Adjusted EBIT for Specialized Products was reported at $37.6 million, above the $32.55 million estimate [4] - Adjusted EBIT for Bedding Products was $12.6 million, surpassing the $10.6 million estimate [4] - Adjusted EBIT for Furniture, Flooring, and Textile Products was $25.3 million, below the $31.6 million average estimate [4] Stock Performance - Legget & Platt's shares have returned -2.7% over the past month, contrasting with the Zacks S&P 500 composite's +2.7% change [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

分组1 - Legget & Platt (LEG) reported quarterly earnings of $0.3 per share, exceeding the Zacks Consensus Estimate of $0.29 per share, and showing an increase from $0.29 per share a year ago, resulting in an earnings surprise of +3.45% [1] - The company posted revenues of $1.06 billion for the quarter ended June 2025, which was below the Zacks Consensus Estimate by 0.54%, and a decrease from $1.13 billion in the same quarter last year [2] - Over the last four quarters, Legget & Platt has surpassed consensus EPS estimates two times and topped consensus revenue estimates only once [2] 分组2 - The stock has added approximately 0.6% since the beginning of the year, underperforming compared to the S&P 500's gain of 8.2% [3] - The company's earnings outlook, including current consensus earnings expectations for upcoming quarters, will be crucial for investors [4] - The current consensus EPS estimate for the coming quarter is $0.34 on revenues of $1.06 billion, and for the current fiscal year, it is $1.11 on revenues of $4.16 billion [7] 分组3 - The Zacks Industry Rank indicates that the Furniture industry is currently in the bottom 25% of over 250 Zacks industries, which may negatively impact stock performance [8] - Flexsteel Industries, another company in the same industry, is expected to report quarterly earnings of $0.84 per share, reflecting a year-over-year change of +12% [9]