Group 1: Earnings Performance - Legget & Platt reported quarterly earnings of $0.29 per share, missing the Zacks Consensus Estimate of $0.30 per share, and down from $0.32 per share a year ago, representing an earnings surprise of -3.33% [1] - The company posted revenues of $1.04 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 1.18%, but down from $1.1 billion year-over-year [2] Group 2: Market Performance - Legget & Platt shares have lost about 5% since the beginning of the year, while the S&P 500 has gained 15.5% [3] - The current status of estimate revisions translates into a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market in the near future [6] Group 3: Future Outlook - The current consensus EPS estimate for the coming quarter is $0.21 on revenues of $989.11 million, and $1.05 on revenues of $4.09 billion for the current fiscal year [7] - The outlook for the industry can significantly impact the stock's performance, with the Furniture industry currently in the bottom 35% of Zacks industries [8]

Financial Performance - Net trade sales for Q3 2025 were $1.0 billion, a 6% decrease compared to Q3 2024[5] - Q3 2025 adjusted EPS was $0.29, a $0.03 decrease from Q3 2024 adjusted EPS of $0.32[5] - EBIT margin for Q3 2025 was 16.5%, up from 7.1% in Q3 2024[7] - Trade sales for Q3 2025 were $1,036.4 million, a decrease of 6% compared to $1,101.7 million in Q3 2024[25] - Net earnings attributable to Leggett & Platt for Q3 2025 were $127.1 million, representing a 183% increase from $44.9 million in Q3 2024[25] - Earnings per diluted share for Q3 2025 increased to $0.91, up 176% from $0.33 in Q3 2024[25] - The company reported a significant improvement in earnings before interest and income taxes, reaching $171.1 million, a 120% increase from $77.7 million in Q3 2024[25] - Adjusted EBITDA for the total company decreased by 9% to $102.2 million in Q3 2025, with an adjusted EBITDA margin of 9.9%[27] - EBIT for Q3 2025 was $171.1 million, a significant increase from $62.9 million in Q1 2025[29] - Adjusted EBITDA for Q3 2025 was $102.2 million, compared to $98.2 million in Q1 2025, indicating a growth of 3.9%[29] Cash Flow and Liquidity - Operating cash flow for Q3 2025 was $126 million, an increase of $30 million compared to Q3 2024[5] - Total liquidity was $974 million as of September 30, 2025, including $461 million in cash[10] - Net cash from operating activities for Q3 2025 was $125.9 million, a 32% increase from $95.5 million in Q3 2024[25] - Cash and equivalents increased to $460.7 million, up from $350.2 million at the end of 2024[25] - Cash from operations was reported at $94.0 million in Q3 2025, slightly down from $95.5 million in Q3 2024[27] Debt and Equity - The company reduced debt by $296 million in Q3 2025, utilizing proceeds from the Aerospace divestiture and operating cash flow[5] - Long-term debt decreased by 20% to $1,495.8 million compared to $1,862.8 million in the previous year[25] - Net debt decreased to $1,036.5 million in Q3 2025, down from $1,523.8 million in Q1 2025, resulting in a net debt to adjusted EBITDA ratio of 2.62[29] - Equity increased by 41% to $972.4 million from $690.2 million at the end of 2024[25] Sales and Volume Trends - The company reaffirmed the midpoint of 2025 sales guidance at $4.0–$4.1 billion, down 6% to 9% versus 2024[15] - Volume is expected to decline mid to high single digits in 2025, with specific segments projected to decrease by mid-teens to low single digits[15] - Trade sales for Bedding Products decreased by 10% to $402.5 million in Q3 2025, and year-to-date sales fell by 11% to $1,184.6 million[26] - Total company trade sales declined by 6% to $1,036.4 million in Q3 2025, with year-to-date sales also down 6% to $3,116.5 million[26] - The company experienced a volume growth decline of 6% in Q3 2025 compared to the same period last year[27] - Organic sales for Bedding Products showed a decline of 10% in Q2 2025 and 9% in Q3 2025 compared to the prior year[27] Restructuring and Future Expectations - The company anticipates annualized EBIT benefits of $60–$70 million from restructuring initiatives once fully implemented[10] - Adjusted EPS for 2025 is now expected to be $1.00–$1.10, flat versus 2024 due to metal margin expansion and restructuring benefits[15] - The long-term debt to adjusted EBITDA ratio stood at 3.83 in Q3 2025, indicating a slight increase from previous quarters[27] - The company incurred restructuring charges of $4.1 million in Q3 2025, down from $6.9 million in Q1 2025[29] Asset Management - Total assets decreased by 4% to $3,525.0 million as of September 30, 2025, down from $3,661.6 million at the end of 2024[25] - The company reported a decrease in total current liabilities by 6% to $794.1 million from $846.4 million in the previous year[25] Special Items - The special tax item of $2.3 million in Q3 2025 was related to recent U.S. corporate income tax law changes[30] - The company reported a goodwill impairment of $675.3 million in Q2 2024, impacting overall financial performance[29]

Core Insights - The company reported solid quarterly results despite ongoing macroeconomic challenges, highlighting progress on strategic priorities and disciplined execution [2][3] - The sale of the Aerospace business was completed, allowing the company to sharpen its focus on core operations [2] - The company reaffirmed its full-year sales and adjusted EPS guidance, indicating confidence in its business resilience [3] Financial Performance - Net trade sales for the third quarter were $1.0 billion, representing a 6% decrease compared to the same period in 2024 [3][7] - EBIT was reported at $171 million, a significant increase of $93 million from the third quarter of 2024, while adjusted EBIT decreased by $3 million to $73 million [4][5] - The EBIT margin improved to 16.5%, up from 7.1% in the third quarter of 2024, while the adjusted EBIT margin slightly increased to 7.0% [5] Earnings Per Share (EPS) - The EPS for the third quarter was $0.91, an increase of $0.58 compared to $0.33 in the third quarter of 2024 [5][7] - Adjusted EPS was $0.29, down $0.03 from $0.32 in the same quarter last year [5][7] Cash Flow and Debt Management - Operating cash flow for the third quarter was $126 million, an increase of $30 million from the previous year [7][13] - The company reduced its debt by $296 million during the third quarter, utilizing proceeds from the Aerospace sale and operating cash flow [7][13] - Total liquidity stood at $974 million as of September 30, with $461 million in cash on hand [13] Guidance and Future Outlook - The company narrowed its sales guidance for 2025 to a range of $4.0–$4.1 billion, reflecting a decrease of 6% to 9% compared to 2024 [14] - Volume is expected to decline in the mid to high single digits, with specific segments like Bedding Products anticipated to see a mid-teens decrease [14] - Adjusted EPS guidance for 2025 is now set at $1.00–$1.10, indicating a flat performance compared to 2024 [14] Segment Performance - The Bedding Products segment experienced a 10% decrease in trade sales, while EBIT improved by 43% to $36 million [15][26] - The Specialized Products segment saw a 7% decline in trade sales, with EBIT significantly increasing to $112.9 million [16][26] - The Furniture, Flooring & Textile Products segment reported flat trade sales year-over-year, with EBIT decreasing by 20% [17][26]

Core Viewpoint - Wall Street anticipates a year-over-year decline in earnings and revenues for Legget & Platt in the upcoming earnings report, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - The earnings report is expected on October 27, with a consensus estimate of $0.30 per share, reflecting a -6.3% change year-over-year. Revenues are projected at $1.03 billion, down 6.8% from the previous year [3]. Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analysts' assessments [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model shows a positive Earnings ESP of +3.33% for Legget & Platt, suggesting analysts have recently become more optimistic about the company's earnings prospects [12]. Historical Performance - In the last reported quarter, Legget & Platt exceeded the expected earnings of $0.29 per share by delivering $0.30, resulting in a surprise of +3.45%. Over the last four quarters, the company has beaten consensus EPS estimates twice [13][14]. Investment Considerations - While a potential earnings beat is a positive indicator, other factors may influence stock performance, making it essential to consider the broader context [15][17].

Core Insights - Legget & Platt (LEG) is positioned to continue its earnings-beat streak, having surpassed earnings estimates in the last two quarters by an average of 3.90% [1][5] Earnings Performance - In the most recent quarter, Legget & Platt reported earnings of $0.30 per share against an expectation of $0.29, resulting in a surprise of 3.45% [2] - For the previous quarter, the company reported $0.24 per share, exceeding the consensus estimate of $0.23, which represented a surprise of 4.35% [2] Earnings Estimates and Predictions - Recent estimates for Legget & Platt have been trending upward, with a positive Earnings ESP of +3.33%, indicating bullish sentiment among analysts regarding the company's earnings prospects [5][8] - The combination of a positive Earnings ESP and a Zacks Rank of 3 (Hold) suggests a high likelihood of another earnings beat, with historical data showing that such combinations lead to positive surprises nearly 70% of the time [6][8] Earnings ESP Explanation - The Earnings ESP metric compares the Most Accurate Estimate to the Zacks Consensus Estimate, reflecting the latest analyst revisions prior to an earnings release [7] - A positive Earnings ESP enhances the predictive power for earnings surprises, while a negative value does not necessarily indicate an earnings miss [9] Upcoming Earnings Report - Legget & Platt's next earnings report is anticipated to be released on October 27, 2025 [8]

Core Viewpoint - Leggett & Platt is set to release its third quarter earnings results on October 27, 2025, followed by a conference call on October 28, 2025, to discuss various financial and operational aspects [1][2]. Company Overview - Leggett & Platt (NYSE: LEG) is a diversified manufacturer with a history of 142 years, producing engineered components and products for various markets, including bedding, automotive, furniture, and construction [3]. - The company is recognized as a leading supplier of bedding components, automotive seat systems, furniture components, and other engineered products [3]. Investor Relations - The earnings release and financial summary slides will be available on the company's Investor Relations website on October 27, 2025, shortly after market close [2]. - An audio replay of the conference call will be accessible on the website for 12 months following the event [2]. Contact Information - Investor relations contacts include Steve West, Vice President, and Katelyn J. Pierce, Analyst, with a contact number provided for inquiries [4].

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