Leggett & Platt Reports 2Q 2025 Results

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]