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]

Leggett & Platt 2Q 2025 Results Overview [Management Commentary](index=1&type=section&id=Management%20Commentary) CEO Karl Glassman highlighted another quarter of improved profitability and a strengthened balance sheet through debt reduction and a favorable credit facility amendment, reaffirming full-year guidance despite macroeconomic headwinds - Management is pleased with profitability improvement and balance sheet strengthening via debt reduction and an amended revolving credit facility[2](index=2&type=chunk) - The company remains on track to complete the sale of its Aerospace business within the year[2](index=2&type=chunk) - Despite macroeconomic headwinds, the company reaffirmed its full-year guidance for both sales and adjusted EPS, citing business resilience and a diversified portfolio[3](index=3&type=chunk) [Second Quarter 2025 Financial Highlights](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Highlights) In Q2 2025, Leggett & Platt reported sales of $1.1 billion, a 6% decrease year-over-year, with adjusted EPS slightly increasing to $0.30, while significantly strengthening its balance sheet by reducing debt by $143 million and improving its net debt to adjusted EBITDA ratio to 3.5x Q2 2025 Key Financial Metrics | Metric | Q2 2025 Value | Change vs Q2 2024 | | :--- | :--- | :--- | | Sales | $1.1 billion | -6% | | EPS | $0.38 | Up from -$4.39 | | Adjusted EPS | $0.30 | +$0.01 | | Debt Reduction | $143 million | N/A | | Net Debt / Adj. EBITDA | 3.5x | Improved | - Organic sales decreased by **6%**, driven by a **7% volume decline**, primarily from soft demand in residential end markets, Automotive, and Hydraulic Cylinders[6](index=6&type=chunk) - The company amended its credit facility, extending the maturity to July 2030 and decreasing the facility size from **$1.2 billion** to **$1.0 billion**[5](index=5&type=chunk)[10](index=10&type=chunk) Financial Performance and Position [Detailed Second Quarter Results](index=1&type=section&id=Detailed%20Second%20Quarter%20Results) Second quarter sales fell 6% to $1.1 billion due to a 7% volume decline, partially offset by a 1% benefit from pricing and currency, with reported EBIT turning around to $90 million from a prior-year loss, and adjusted EBIT rising by $4 million to $76 million, improving the adjusted EBIT margin to 7.1% Q2 2025 vs Q2 2024 EBIT & EPS | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | EBIT | $90 million | -$614.3 million | | Adjusted EBIT | $76 million | $72 million (recalculated) | | EBIT Margin | 8.5% | (54.4)% | | Adjusted EBIT Margin | 7.1% | 6.3% | | EPS | $0.38 | -$4.39 | | Adjusted EPS | $0.30 | $0.29 | - The increase in adjusted EBIT was primarily due to metal margin expansion, benefits from restructuring, and disciplined cost management, which were partially offset by lower sales volume[6](index=6&type=chunk) - Q2 2025 results included a **$18 million gain** from real estate sales and **$4 million** in restructuring charges, while Q2 2024 results were heavily impacted by a **$675 million** non-cash goodwill impairment[6](index=6&type=chunk) [Debt, Cash Flow, and Liquidity](index=2&type=section&id=Debt%2C%20Cash%20Flow%2C%20and%20Liquidity) The company significantly improved its financial position in Q2, reducing total debt by $143 million to $1.8 billion and improving the net debt to trailing 12-month adjusted EBITDA ratio to 3.5x, while maintaining its dividend and ending the quarter with strong total liquidity of $878 million Liquidity and Cash Flow Summary (as of June 30, 2025) | Metric | Value | | :--- | :--- | | Total Liquidity | $878 million | | Cash on Hand | $369 million | | Revolver Capacity | $509 million | | Q2 Operating Cash Flow | $84 million | | Q2 Capital Expenditures | $9 million | | Q2 Dividends Paid | $7 million | - Debt was reduced by **$143 million** in the second quarter, bringing total debt to **$1.8 billion**[10](index=10&type=chunk) - The quarterly dividend was declared at **$0.05 per share**, consistent with the prior year's second quarter dividend[10](index=10&type=chunk) Strategic Initiatives and Outlook [Restructuring Plan Update](index=2&type=section&id=Restructuring%20Plan%20Update) The company has updated its restructuring plan estimates, now expecting an annualized EBIT benefit of $60–$70 million upon full implementation, with total costs reduced to $65–$75 million and real estate proceeds revised to $70–$80 million, though the timing of some cash proceeds is pushed to 2026 Updated Restructuring Plan Estimates (Total Plan) | Metric | Previous Estimate | Current Estimate | | :--- | :--- | :--- | | Annualized EBIT Benefit | N/A | $60–$70 million | | Annual Sales Attrition | $80 million | ~$65 million | | Real Estate Proceeds | $60–$80 million | $70–$80 million | | Total Costs | $80–$90 million | $65–$75 million | - The company realized a **$13 million** incremental EBIT benefit from restructuring in Q2 2025[13](index=13&type=chunk) - The timing for the remaining **$30–$40 million** in cash proceeds from real estate sales has shifted, with only **$0–$10 million** expected in H2 2025 and the balance in 2026[13](index=13&type=chunk) [2025 Guidance](index=3&type=section&id=2025%20Guidance) Leggett & Platt reaffirmed its full-year 2025 sales guidance of $4.0–$4.3 billion and adjusted EPS of $1.00–$1.20, but revised its GAAP EPS forecast to $0.88–$1.17 to account for restructuring costs and a pension settlement charge, while also updating volume expectations for the Bedding Products segment and adjusting other financial expectations Full-Year 2025 Guidance | Metric | 2025 Guidance | | :--- | :--- | | Sales | $4.0–$4.3 billion (unchanged) | | Adjusted EPS | $1.00–$1.20 (unchanged) | | EPS (GAAP) | $0.88–$1.17 (revised) | | Volume | Down low single to low double digits | | Operating Cash Flow | $275–$325 million | | Capital Expenditures | $80–$90 million (revised down) | - Volume expectations at the midpoint were revised lower for the Bedding Products segment (down mid-teens vs prior down low double digits)[14](index=14&type=chunk) - The effective tax rate expectation was increased to **26%** from **25%**[18](index=18&type=chunk) Segment Results [Bedding Products](index=4&type=section&id=Bedding%20Products) The Bedding Products segment experienced an 11% decrease in trade sales, driven by a 12% volume decline due to soft demand and retailer merchandising changes, yet adjusted EBIT increased by $12 million primarily from metal margin expansion and restructuring benefits Bedding Products Q2 2025 Performance | Metric | Change vs Q2 2024 | | :--- | :--- | | Trade Sales | -11% | | Volume | -12% | | Adjusted EBIT | +$12 million | [Specialized Products](index=4&type=section&id=Specialized%20Products) Trade sales in the Specialized Products segment decreased by 5%, with a 6% volume decline from weakness in Automotive and Hydraulic Cylinders, partially offset by Aerospace growth, while adjusted EBIT increased by $2 million due to cost management, restructuring benefits, and lower depreciation Specialized Products Q2 2025 Performance | Metric | Change vs Q2 2024 | | :--- | :--- | | Trade Sales | -5% | | Volume | -6% | | Adjusted EBIT | +$2 million | [Furniture, Flooring & Textile Products](index=4&type=section&id=Furniture%2C%20Flooring%20%26%20Textile%20Products) This segment experienced a 2% decrease in trade sales, with a slight 1% volume decline as softness in Home Furniture and Flooring was partly offset by growth in Textiles and Work Furniture, leading to a $10 million decrease in adjusted EBIT primarily due to pricing adjustments Furniture, Flooring & Textile Products Q2 2025 Performance | Metric | Change vs Q2 2024 | | :--- | :--- | | Trade Sales | -2% | | Volume | -1% | | Adjusted EBIT | -$10 million | Financial Statements and Reconciliations [Condensed Financial Statements](index=6&type=section&id=Condensed%20Financial%20Statements) The condensed financial statements show a 6% decline in Q2 trade sales to $1.058 billion, with net earnings attributable to L&P at $52.5 million, a significant recovery from the prior-year loss, and total assets of $3.70 billion as of June 30, 2025 Q2 2025 Selected Financial Data (in millions) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Trade Sales | $1,058.0 | $1,128.6 | | Gross Profit | $192.6 | $186.5 | | EBIT | $90.4 | $(614.3) | | Net Earnings (L&P) | $52.5 | $(602.2) | | Net Cash from Ops | $84.0 | $94.0 | Financial Position (in millions, as of June 30, 2025) | Metric | Jun 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Total Assets | $3,703.7 | $3,661.6 | | Long-Term Debt | $1,792.2 | $1,862.8 | | Equity | $855.8 | $690.2 | [Non-GAAP Reconciliations](index=9&type=section&id=Non-GAAP%20Reconciliations) The company provides reconciliations from GAAP to non-GAAP measures to offer supplemental information on operational performance, with Q2 2025 reported EBIT of $90.4 million adjusted to $75.6 million and reported EPS of $0.38 adjusted to $0.30, after accounting for items like real estate gains and restructuring charges Q2 2025 GAAP to Non-GAAP Reconciliation (in millions) | Metric | Reported (GAAP) | Adjustments | Adjusted (Non-GAAP) | | :--- | :--- | :--- | | EBIT | $90.4 | $(14.8) | $75.6 | | Diluted EPS | $0.38 | $(0.08) | $0.30 | - Major non-GAAP adjustments in Q2 2025 included a **$18.4 million gain** on the sale of real estate and **$3.6 million** in restructuring-related charges[29](index=29&type=chunk) - The Net Debt to 12-month Adjusted EBITDA ratio improved sequentially from **3.77x** in Q1 2025 to **3.51x** in Q2 2025[29](index=29&type=chunk)

Core Insights - The company reported a quarter of profitability improvement, with a focus on strengthening its balance sheet through debt reduction and amending its revolving credit facility [1][8] - Despite macroeconomic challenges, the company remains confident in its business resilience and has reaffirmed its full-year guidance for sales and adjusted EPS [2][17] Financial Performance - Second quarter sales were $1.1 billion, representing a 6% decrease compared to the second quarter of 2024 [3][8] - EBIT for the second quarter was $90 million, a significant increase of $705 million from the same period in 2024, while adjusted EBIT rose by $4 million to $76 million [3][4] - The EBIT margin improved to 8.5%, up from a negative margin of 54.4% in the second quarter of 2024 [4][8] - Second quarter EPS was $0.38, compared to a loss of $4.39 in the same quarter of 2024, with adjusted EPS at $0.30, an increase of $0.01 from the previous year [4][8] Debt and Liquidity - The company reduced its debt by $143 million during the second quarter, resulting in a net debt to trailing 12-month adjusted EBITDA ratio of 3.5x [8][10] - Total debt stood at $1.8 billion, including $297 million of commercial paper outstanding [10] - The company maintained total liquidity of $878 million as of June 30, 2025, with $369 million in cash and $509 million available under its revolving credit facility [10] Segment Performance - In the Bedding Products segment, trade sales decreased by 11% year-over-year, while adjusted EBIT increased significantly due to metal margin expansion and restructuring benefits [21] - The Specialized Products segment saw a 5% decline in trade sales, but adjusted EBIT increased by 6% [21] - The Furniture, Flooring & Textile Products segment experienced a 2% decrease in trade sales, with adjusted EBIT decreasing by 28% [21] Guidance and Future Expectations - The company expects 2025 sales to be between $4.0 billion and $4.3 billion, reflecting a decline of 2% to 9% compared to 2024 [17] - Adjusted EPS is anticipated to be in the range of $1.00 to $1.20, with earnings expectations influenced by restructuring costs and gains from real estate sales [17] - The company projects an EBIT margin of 5.9% to 6.8% for 2025, with adjusted EBIT margin expected to be between 6.5% and 6.9% [17]

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 aerospace [3] Upcoming Earnings Release - The company will release its second quarter earnings results on July 31, 2025, after market close [1] - A quarterly conference call to discuss the results, annual guidance, market conditions, and company initiatives will be held on August 1, 2025, at 8:30 a.m. Eastern Time [1] Access to Information - The earnings release and financial summary slides will be available on the Investor Relations section of the company's website shortly after the earnings release [2] - The conference call will be accessible via webcast, and dial-in information is provided for participants [2]

Group 1 - Leggett & Platt, Incorporated (NYSE: LEG) is an international diversified manufacturer that designs, produces, and sells a wide range of engineered components and products for homes and automobiles [1] - The company operates a steel rod mill in the U.S. with an annual capacity [1] Group 2 - The focus of the analysis is on identifying small cap companies with strong fundamentals and growth potential, large cap companies experiencing temporary setbacks, and stable companies with solid dividend yields and growth potential [1]

Financial Performance & Outlook - First quarter 2025 sales reached $1 billion, with an adjusted EBIT of $67 million (6.5% margin) and adjusted EBITDA of $98 million (9.6% margin)[29] - The company anticipates 2025 sales between $4 billion and $4.3 billion, a decrease of 2% to 9% compared to 2024, and adjusted EPS between $1 and $1.20[31, 32] - Operating cash for 2025 is projected to be between $275 million and $325 million[33] Segment Performance - Bedding Products segment expects a volume decrease in the low double digits at the midpoint for 2025[36] - Specialized Products segment anticipates a volume decrease in the mid-single digits at the midpoint for 2025[37] - Furniture, Flooring & Textile Products segment projects a volume decrease in the low single digits at the midpoint for 2025[38] Strategic Initiatives - The company's restructuring plan is on track to realize a $55 million to $60 million EBIT benefit in 2025[57] - Restructuring sales attrition is estimated at approximately $60 million in 2025[57] - The company has signed an agreement to exit the Aerospace business, expected to close in the second half of 2025[57] Tariff Impacts & Mitigation - The company is actively pursuing opportunities to capture demand for domestically-produced products and sourcing from lowest total cost countries to mitigate tariff impacts[51] - Foreign direct sourcing exposure is approximately $400 million annually before tariff implementation[49] Bedding Market Trends - The domestic mattress market experienced a 20% demand decline from 2021 to 2024, while domestic production declined 35% due to import market share growth[88]

Group 1: Zacks Premium Overview - Zacks Premium offers various tools for investors to enhance their stock market engagement and confidence, including daily updates, access to the Zacks Rank, and Equity Research reports [1][2] - The service includes the Zacks Style Scores, which are designed to help investors select stocks with the highest potential to outperform the market in the short term [2][9] Group 2: Zacks Style Scores - The Zacks Style Scores categorize stocks into four main types: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [3][4][5][6] - The Value Score identifies undervalued stocks using financial ratios like P/E and Price/Cash Flow [3] - The Growth Score assesses stocks based on projected earnings and sales growth [4] - The Momentum Score evaluates stocks based on price trends and earnings estimate changes [5] - The VGM Score combines all three styles to highlight stocks with the best overall potential [6] Group 3: Zacks Rank and Performance - The Zacks Rank is a proprietary model that uses earnings estimate revisions to guide investors in stock selection [7] - Stocks rated 1 (Strong Buy) have historically achieved an average annual return of +25.41%, significantly outperforming the S&P 500 [8] - Investors are encouraged to focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal returns [10] Group 4: Company Spotlight - Leggett & Platt - Leggett & Platt Inc. is a global manufacturer based in Carthage, MO, producing a variety of engineered components for homes, offices, and automobiles [12] - The company currently holds a Zacks Rank of 3 (Hold) and has a VGM Score of A, indicating solid performance potential [12] - Leggett & Platt is particularly appealing to growth investors, with a Growth Style Score of B and a forecasted year-over-year earnings growth of 5.7% for the current fiscal year [13] - Recent earnings estimates for fiscal 2025 have been revised upward, with the Zacks Consensus Estimate increasing by $0.02 to $1.11 per share [13]

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]