Leggett & Platt Reports 4Q and Full Year 2025 Results

Core Insights - Leggett & Platt reported a decrease in sales and earnings for 2025, with total sales of $4.05 billion, a 7% decline compared to 2024, and an EPS of $1.69, a significant recovery from a loss of $3.73 in 2024 [1][2][3] Financial Performance - Fourth quarter sales were $939 million, an 11% decrease from the same period last year, with organic sales down 6% [1][2] - For the full year 2025, EBIT was $356 million, a recovery from a loss of $430 million in 2024, while adjusted EBIT was $263 million, a slight decrease from $267 million in 2024 [1][2] - The company achieved a net income of $25.2 million in Q4 2025, compared to $14.2 million in Q4 2024, marking a 77% increase [3][4] Segment Performance - Bedding Products trade sales decreased by 11% in 2025, with a significant volume decline of 12% attributed to weak demand and restructuring-related sales attrition [2][3] - Specialized Products saw a 9% decrease in trade sales, with a 5% volume decline primarily due to disruptions in the automotive supply chain [2][3] - Furniture, Flooring & Textile Products experienced a 1% decrease in trade sales, with volume remaining flat year-over-year [2][3] Restructuring and Strategic Initiatives - The company completed a restructuring plan that resulted in a $41 million EBIT benefit in 2025, with expectations of an additional $5 million in 2026 [2][3] - Leggett & Platt reduced its total debt by $376 million in 2025, lowering its net debt leverage ratio to 2.4x, with a long-term target of 2.0x [1][2] Guidance for 2026 - The company expects sales in the range of $3.8 to $4.0 billion for 2026, reflecting a potential decline of 1% to 6% compared to 2025 [2][3] - EPS guidance for 2026 is projected between $0.92 and $1.38, with adjusted EPS expected to be between $1.00 and $1.20 [2][3]