Part I - Financial Information [Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements.) Presents Q1 2025 unaudited condensed consolidated financial statements, including balance sheet, income, cash flows, and key notes [Consolidated Financial Statements Overview](index=5&type=section&id=Consolidated%20Financial%20Statements) Summarizes the company's Q1 2025 financial performance, balance sheet, and cash flow activities Q1 2025 Key Financial Results | Financial Metric | Q1 2025 (Millions) | Q1 2024 (Millions) | | :--- | :--- | :--- | | Net Trade Sales | $1,022.1 Million | $1,096.9 Million | | Gross Profit | $190.0 Million | $186.4 Million | | EBIT | $62.9 Million | $63.0 Million | | Net Earnings | $30.6 Million | $31.6 Million | | Diluted EPS | $0.22 | $0.23 | Balance Sheet Summary (as of March 31, 2025) | Account | Amount (Millions) | | :--- | :--- | | Total Current Assets | $1,784.1 | | Total Assets | $3,748.9 | | Total Current Liabilities | $810.4 | | Total Liabilities | $3,001.3 | | Total Equity | $747.6 | Cash Flow Summary (Three Months Ended March 31, 2025) | Cash Flow Activity | Amount (Millions) | | :--- | :--- | | Net Cash from Operating Activities | $6.8 | | Net Cash Used for Investing Activities | ($6.1) | | Net Cash Provided by Financing Activities | $60.0 | | **Increase in Cash and Cash Equivalents** | **$62.4** | [Note B: Revenue](index=11&type=section&id=B%E2%80%94Revenue) Details the company's revenue disaggregation by product family for Q1 2025 and Q1 2024 Revenue by Product Family (Three Months Ended March 31) | Product Family | 2025 (Millions) | 2024 (Millions) | | :--- | :--- | :--- | | **Bedding Products** | $390.7 | $448.0 | | **Specialized Products** | $300.1 | $315.9 | | Automotive Group | $197.2 | $210.9 | | Aerospace Products Group | $53.0 | $45.6 | | Hydraulic Cylinders Group | $49.9 | $59.4 | | **Furniture, Flooring & Textile Products** | $331.3 | $333.0 | | **Total** | **$1,022.1** | **$1,096.9** | [Note C: Segment Information](index=12&type=section&id=C%E2%80%94Segment%20Information) Outlines the company's operating segments and their financial performance - The company operates and reports across three segments: Bedding Products, Specialized Products, and Furniture, Flooring & Textile Products[37](index=37&type=chunk)[39](index=39&type=chunk) Segment EBIT (Three Months Ended March 31) | Segment | 2025 EBIT (Millions) | 2024 EBIT (Millions) | | :--- | :--- | :--- | | Bedding Products | $9.6 | $15.7 | | Specialized Products | $28.4 | $23.7 | | Furniture, Flooring & Textile Products | $24.8 | $23.6 | | **Total Segment EBIT** | **$62.8** | **$63.0** | [Note E: Restructuring and Related Activities](index=14&type=section&id=E%E2%80%94Restructuring%20and%20Related%20Activities) Details the ongoing 2024 Restructuring Plan, its scope, expected completion, and associated costs - The company is executing a 2024 Restructuring Plan, primarily in the Bedding Products segment, which involves consolidating 15 to 20 production and distribution facilities. The plan is expected to be substantially complete by the end of 2025[45](index=45&type=chunk)[46](index=46&type=chunk) 2024 Restructuring Plan Costs | Cost Type | Expected Total (Millions) | Incurred to Date (Millions) | Incurred Q1 2025 (Millions) | | :--- | :--- | :--- | :--- | | Net Restructuring & Related | $60.0 - $70.0 | $48.8 | $5.2 | | Goodwill & Asset Impairment | ~$20.0 | $4.5 | $0.3 | | **Total** | **$80.0 - $90.0** | **$53.3** | **$5.5** | - Additional restructuring costs of **$1.4 Million** were incurred in Q1 2025 related to the pending sale of the Aerospace business[48](index=48&type=chunk) [Note L: Assets Held For Sale and Divestitures](index=21&type=section&id=L%E2%80%94Assets%20Held%20For%20Sale%20and%20Divestitures) Details the planned divestiture of the Aerospace Products Group, including sale terms and assets held for sale - On April 2, 2025, the company signed an agreement to sell its Aerospace Products Group for a cash price of **$285.0 Million**, subject to adjustments. The group was classified as held for sale at March 31, 2025[70](index=70&type=chunk) Net Assets Held for Sale (as of March 31, 2025) | Category | Amount (Millions) | | :--- | :--- | | Total assets held for sale | $229.0 | | Total liabilities held for sale | $41.7 | | **Net assets held for sale** | **$187.3** | - The Aerospace Products Group generated external sales of **$53.0 Million** and pretax earnings of **$7.2 Million** in Q1 2025[72](index=72&type=chunk) [Management's Discussion and Analysis (MD&A)](index=23&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations.) Management discusses Q1 2025 financial results, key business factors, segment performance, liquidity, and capital structure [Q1 2025 Highlights](index=23&type=section&id=Highlights) Summarizes key financial and operational highlights for Q1 2025, including sales, EPS, divestiture, and dividend - Q1 2025 trade sales were **$1.022 Billion**, a **7% decrease YoY**[78](index=78&type=chunk) - EPS was **$0.22**, compared to **$0.23 in Q1 2024**, including a **$0.04 restructuring charge** and a **$0.02 real estate sale gain** in Q1 2025[78](index=78&type=chunk) - An agreement was reached to sell the Aerospace Products Group for **$285 Million**, with expected after-tax proceeds of approximately **$240 Million**[80](index=80&type=chunk)[97](index=97&type=chunk) - The quarterly dividend was declared at **$0.05 per share**, a significant reduction from **$0.46** in the prior year's first quarter[82](index=82&type=chunk) [Major Factors Impacting Business](index=24&type=section&id=Major%20Factors%20That%20Impact%20Our%20Business) Discusses key factors impacting the business, including restructuring, market demand, competition, and goodwill impairment risks - The 2024 Restructuring Plan is progressing, with an expected annualized EBIT benefit of **$60–$70 Million** and annual sales attrition of **~$80 Million** once fully implemented[111](index=111&type=chunk)[112](index=112&type=chunk) - Market demand is expected to be down in 2025 from 2024 levels due to a dynamic macroeconomic environment, particularly weak residential end markets and automotive industry volatility[119](index=119&type=chunk)[121](index=121&type=chunk) - The company faces pressure from foreign competitors but maintains competitiveness through efficiency, vertical integration, and logistics, supported by extended antidumping duties on mattresses and innersprings[131](index=131&type=chunk)[134](index=134&type=chunk) - Goodwill impairment testing in Q2 2024 resulted in significant write-downs, with a sustained lower stock price potentially leading to further material impairment in Q2 2025[101](index=101&type=chunk)[103](index=103&type=chunk) [Results of Operations](index=31&type=section&id=Results%20of%20Operations) Analyzes Q1 2025 operational results, detailing changes in trade sales, EBIT, and segment performance drivers - Q1 2025 trade sales decreased **7% YoY** to **$1,022.1 Million**, driven by **5% volume decline**, **1% raw material price decreases**, and **1% currency impact**[140](index=140&type=chunk) - EBIT was flat YoY at **$63 Million**, with restructuring and cost management benefits offset by lower volume, metal margin compression, and reduced asset sale gains[141](index=141&type=chunk) Segment Performance (Q1 2025 vs Q1 2024) | Segment | Sales Change | EBIT Change (Millions) | Key Drivers | | :--- | :--- | :--- | :--- | | Bedding Products | -13% | -$6.1 Million | Lower volume, metal margin compression, partially offset by restructuring benefits. | | Specialized Products | -5% | +$4.7 Million | Cost management and efficiency improvements offset lower volume. | | Furniture, Flooring & Textile | -1% | +$1.2 Million | Gain on real estate sale and higher volume offset by pricing adjustments. | [Liquidity and Capitalization](index=33&type=section&id=Liquidity%20and%20Capitalization) Assesses the company's liquidity and capital structure, including cash, operating cash flow, debt, and capital allocation - Cash and cash equivalents were **$413 Million** at quarter-end, with most funds held by foreign operations, incurring approximately **$22 Million** in withholding taxes upon repatriation[156](index=156&type=chunk)[157](index=157&type=chunk) - Operating cash flow was **$7 Million**, an increase of **$13 Million YoY**, primarily due to a smaller use of working capital[82](index=82&type=chunk)[158](index=158&type=chunk) Working Capital Metrics (Days) | Metric | March 31, 2025 | December 31, 2024 | March 31, 2024 | | :--- | :--- | :--- | :--- | | DSO | 46 | 44 | 48 | | DIO | 73 | 77 | 81 | | DPO | 52 | 52 | 50 | - Total debt stands at **$1.9 Billion**. The company has a **$1.2 Billion** commercial paper program, with **$440 Million** outstanding and **$404 Million** available borrowing capacity as of March 31, 2025[175](index=175&type=chunk)[184](index=184&type=chunk)[188](index=188&type=chunk) - Near-term cash use priority is to deleverage the balance sheet, while long-term priorities include growth and shareholder returns, with minimal share repurchases expected for the remainder of 2025[176](index=176&type=chunk)[181](index=181&type=chunk) Part II - Other Information [Legal Proceedings](index=44&type=section&id=Item%201.%20Legal%20Proceedings.) Details ongoing legal matters, primarily focusing on antidumping and countervailing duty petitions related to mattresses - Antidumping duty orders on mattresses from China were extended, with duties up to **1,731%** remaining in place[218](index=218&type=chunk) - In July 2023, petitions were filed alleging mattress dumping from 12 additional countries, leading to preliminary injury determinations by the ITC and preliminary duties by the DOC[220](index=220&type=chunk)[221](index=221&type=chunk) [Risk Factors](index=45&type=section&id=Item%201A.%20Risk%20Factors.) Updates key business risks, including restructuring plan failure, credit rating impact, goodwill impairment, and debt covenant non-compliance - **Restructuring Risk:** The 2024 Restructuring Plan may not achieve intended outcomes, with potential changes to cost, benefit, and asset sale estimates impacting financial results[227](index=227&type=chunk)[234](index=234&type=chunk) - **Financial Risk:** Recent credit rating downgrades could adversely affect capital market access and increase borrowing costs, potentially forcing reliance on the credit facility at higher rates[238](index=238&type=chunk) - **Impairment Risk:** Significant goodwill and long-lived assets exist on the balance sheet, with a sustained low stock price potentially leading to a material goodwill impairment charge in Q2 2025[241](index=241&type=chunk)[245](index=245&type=chunk)[246](index=246&type=chunk) - **Covenant Risk:** Reduced earnings could limit borrowing capacity under the credit facility's leverage ratio covenant, with a breach potentially triggering default, accelerating debt, and severely impacting liquidity[247](index=247&type=chunk)[250](index=250&type=chunk)[252](index=252&type=chunk) [Issuer Purchases of Equity Securities](index=52&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds.) Reports on issuer purchases of equity securities, noting no repurchases in Q1 2025 despite a standing Board authorization - No shares of the company's common stock were repurchased during the three months ended March 31, 2025[270](index=270&type=chunk) - The Board has a standing authorization to repurchase up to **10 Million shares** each calendar year, in place since 2004 and including 2025[272](index=272&type=chunk)

Group 1 - The Board of Directors of Leggett & Platt declared a dividend of $0.05 per share for the second quarter of 2025, payable on July 15, 2025, to shareholders of record on June 13, 2025 [1] - The annual meeting of shareholders resulted in the election of eight nominees as directors, ratification of PricewaterhouseCoopers as the independent registered public accountant for 2025, endorsement of executive compensation, and approval of the amendment and restatement of the Flexible Stock Plan [2] - Manuel Fernandez and Mark Blinn retired from the Board of Directors prior to the annual meeting, leading to a reduction in the number of directors from ten to eight [3] Group 2 - Karl Glassman, the Board Chairman, President & CEO, expressed gratitude towards the retiring directors for their service and contributions to the company [4] - The company, Leggett & Platt, is a diversified manufacturer with a 142-year history, producing a wide range of engineered components and products for homes and automobiles [5]

Group 1 - Leggett & Platt (NYSE: LEG) stock has decreased by 23.5% since the last analysis, despite a strong recovery of over 30% following the release of Q1 earnings [1] Group 2 - The analysis indicates a focus on fundamental valuation, aiming to identify undervalued stocks with growth potential [2]

Core Viewpoint - Leggett & Platt, Incorporated (LEG) reported mixed first-quarter 2025 results, with earnings exceeding expectations while revenues fell short, reflecting ongoing demand softness in key markets [1][2][4]. Financial Performance - Adjusted earnings per share (EPS) for Q1 2025 were 24 cents, surpassing the consensus estimate of 23 cents by 4.3%, and up from 23 cents in the same quarter last year [4]. - Net trade sales totaled $1.022 billion, missing the consensus mark of $1.028 billion by 0.5%, and representing a 7% decline from $1.097 billion in the prior-year quarter [4]. - Adjusted EBIT increased 4.6% to $66.6 million from $63.7 million year-over-year, driven by restructuring benefits and operational efficiency improvements [5]. - Adjusted EBIT margin expanded 70 basis points to 6.5% from 5.8% in the year-ago quarter, while adjusted EBITDA margin grew 80 basis points to 9.6% [5]. Segment Performance - Bedding Products segment saw a 13% decline in net trade sales to $390.7 million, with a volume drop of 10% attributed to demand softness in U.S. and European markets [6]. - Specialized Products segment's trade sales decreased 5% to $300.1 million, with a volume decline of 4% due to reduced demand in Automotive and Hydraulic Cylinders [8]. - Furniture, Flooring & Textile Products segment reported a 1% decline in trade sales to $331.3 million, with a volume increase of 2% driven by growth in Textiles [10]. Guidance and Outlook - The company maintained its full-year sales guidance of $4-$4.3 billion, indicating a 2-9% decline year-over-year, with updated expectations for volume declines in key segments [14][15]. - Adjusted EPS is anticipated to be between $1 and $1.20, reflecting an increase at the midpoint compared to 2024, driven by restructuring benefits [16]. - The company expects adjusted EBIT margin to be in the range of 6.4-6.8% for the year [16]. Financial Position - As of March 31, 2025, the company had $817 million in liquidity, with cash and equivalents of $412.6 million, up from $350.2 million at the end of 2024 [12]. - Long-term debt increased to $1.94 billion from $1.86 billion at the end of 2024, with a trailing 12-month net debt-to-adjusted EBITDA ratio of 3.77x [12].

Leggett & Platt (LEG) Q1 2025 Earnings Call April 29, 2025 01:27 PM ET Speaker0 Greetings, and welcome to the Leggett and Platt First Quarter twenty twenty five Webcast and Earnings Conference Call. At this time, all participants are in a listen only mode. A brief question and answer session will follow the formal presentation. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Kathy Branscombe, VP of Investor Relations. Thank you, Ms. Branscombe. You may begin. ...

Financial Data and Key Metrics Changes - First quarter sales were $1 billion, down 7% compared to the first quarter of 2024, attributed to weak demand in residential markets and automotive [20][21] - First quarter EBIT was $63 million, with adjusted EBIT at $67 million, up $3 million from the previous year due to restructuring benefits and operational efficiency [22][23] - First quarter earnings per share (EPS) was $0.22, with adjusted EPS at $0.24, a 4% increase from the previous year [22][23] - Total debt at the end of the first quarter was $1.9 billion, with total liquidity of $817 million [24] Business Line Data and Key Metrics Changes - Sales in the bedding products segment decreased by 13%, while specialized products declined by 5% and furniture, flooring, and textile products were down 1% [20] - U.S. mattress production was down low double digits, with total mattress consumption down high single to low double digits [21] - The geo components business experienced better-than-expected growth in the civil construction sector [22] Market Data and Key Metrics Changes - Approximately 60% of trade revenues are produced and consumed in the U.S., with another 8% produced abroad and consumed in the U.S. [9] - The company expects the mattress market to decline mid-single digits in 2025, with domestic production down mid to high single digits [21] Company Strategy and Development Direction - The company is focused on strengthening its balance sheet, improving profitability, and operational efficiency while navigating a complex tariff environment [18][19] - A strategic business review is ongoing, with plans to divest non-core businesses, including the aerospace segment, expected to close this year [8][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate macroeconomic uncertainties and demand volatility, emphasizing the importance of restructuring benefits [19][31] - Concerns were raised about tariffs potentially driving inflation and impacting consumer confidence and demand [10][18] Other Important Information - The company is targeting a long-term leverage ratio of two times and plans to use cash from real estate sales and divestitures for debt reduction [25][29] - The restructuring plan is expected to yield significant benefits as demand recovers in the markets served [38][39] Q&A Session Summary Question: Can you talk about the restructuring benefits expected for this year? - Management indicated that restructuring benefits will continue to roll through the year, with potential upside as demand recovers [38][39] Question: Did you see any pull forward in consumer demand due to tariffs? - Management could not identify significant pull forward in demand, although some customers may have sold products out of inventory in anticipation of tariffs [42][42] Question: What is the outlook for the aerospace segment post-divestiture? - Specific guidance on the aerospace segment will be provided after the sale closes, but first quarter sales were $53 million with EBIT of $7 million [48][50] Question: How are margins expected to change across segments this year? - Margins are expected to improve in bedding and specialized products, while furniture, flooring, and textiles are expected to decline slightly [51] Question: What is the impact of tariffs on the mattress market? - The company noted that tariffs could raise prices in the sub-$500 mattress market, but the impact remains uncertain due to various market dynamics [80][82]

First Quarter 2025 Summary Financial Information, Tariff Overview and Restructuring Update April 28, 2025 Forward-Looking Statements Statements in this presentation that are not historical in nature are "forward-looking." These statements are identified by their context or by use of words such as "anticipate," "estimate," "expect," "guidance," "may," "plan," or the like. These statements include, but are not limited to, sales; EPS; adjusted EPS; cash flow; demand; Company and segment volume; raw material-re ...

Core Insights - Legget & Platt reported revenue of $1.02 billion for the quarter ended March 2025, reflecting a 6.8% decline year-over-year and a slight miss of 0.53% against the Zacks Consensus Estimate of $1.03 billion [1] - The company's EPS was $0.24, which is an increase from $0.23 in the same quarter last year, resulting in a positive surprise of 4.35% compared to the consensus estimate of $0.23 [1] Revenue and Earnings Performance - The change in organic sales for Bedding Products was -12%, significantly worse than the estimated -4% [4] - Specialized Products saw a -5% change in organic sales, compared to an average estimate of -3.1% [4] - Furniture, Flooring, and Textile Products experienced a -1% change in organic sales, better than the estimated -5.4% [4] - Overall change in organic sales was -7%, against an estimate of -5.6% [4] Trade Sales and EBIT Analysis - Trade sales for Furniture, Flooring, and Textile Products were reported at $331.30 million, exceeding the average estimate of $322.63 million, with a year-over-year change of -0.5% [4] - Trade sales for Specialized Products were $300.10 million, slightly above the average estimate of $298.78 million, reflecting a -5% year-over-year change [4] - Trade sales for Bedding Products were $390.70 million, below the average estimate of $409.90 million, indicating a -12.8% year-over-year decline [4] - EBIT for Bedding Products was $9.60 million, significantly lower than the average estimate of $18.65 million [4] - EBIT for Specialized Products was $28.40 million, surpassing the average estimate of $20.42 million [4] - Adjusted EBIT for Specialized Products was $31.80 million, exceeding the average estimate of $23 million [4] - Adjusted EBIT for Bedding Products was $13 million, below the average estimate of $16.45 million [4] - Adjusted EBIT for Furniture, Flooring, and Textile Products was $21.70 million, above the average estimate of $18.90 million [4] Stock Performance - Legget & Platt's shares have returned -8.7% over the past month, compared to a -4.3% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Company Performance - Legget & Platt reported quarterly earnings of $0.24 per share, exceeding the Zacks Consensus Estimate of $0.23 per share, and showing an increase from $0.23 per share a year ago, representing an earnings surprise of 4.35% [1] - The company posted revenues of $1.02 billion for the quarter ended March 2025, which missed the Zacks Consensus Estimate by 0.53% and decreased from $1.1 billion year-over-year [2] - Over the last four quarters, Legget & Platt has surpassed consensus EPS estimates only once and has topped consensus revenue estimates just once [2] Stock Performance - Legget & Platt shares have declined approximately 24.1% since the beginning of the year, compared to a decline of 6.1% for the S&P 500 [3] - The current Zacks Rank for Legget & Platt is 4 (Sell), indicating expectations for the stock to underperform the market in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.30 on revenues of $1.07 billion, and for the current fiscal year, it is $1.09 on revenues of $4.2 billion [7] - The outlook for the furniture industry, where Legget & Platt operates, is currently in the bottom 5% of over 250 Zacks industries, which may negatively impact stock performance [8] Industry Context - Sleep Number, a competitor in the same industry, is expected to report a quarterly loss of $0.11 per share, reflecting a significant year-over-year decline of 466.7%, with revenues anticipated to be $391.57 million, down 16.8% from the previous year [9][10]

Exhibit 99.1 FOR IMMEDIATE RELEASE: APRIL 28, 2025 Leggett & Platt Reports 1Q 2025 Results President and CEO Karl Glassman commented, "We are pleased to report better than anticipated first quarter earnings. Our earnings improvement is a testament to the excellent execution of our restructuring plan and operational efficiency improvement initiatives, as well as disciplined cost management. As we navigate the complex and fluid tariff environment, we are mitigating impacts while pursuing any opportunities to ...