Leggett & Platt(US:LEG)2025-10-27 20:44Financial 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]