Core Insights - Leggett & Platt's Q3 2025 earnings report showed a sales decline of 6% year over year to $1.04 billion, although it exceeded the Zacks Consensus Estimate by 1.2% [2] - Adjusted EPS of 29 cents missed estimates by 3.3% and fell 9% year over year, primarily due to volume declines, despite some support from metal margin expansion [3] - The company reaffirmed its 2025 guidance, projecting sales between $4 billion and $4.1 billion, reflecting a year-over-year decline of 6-9% [8] Financial Performance - Sales in the Bedding Products segment fell 10%, with a 13% volume drop, but adjusted EBIT margin improved by 220 basis points to 6.6% due to metal margin expansion [4] - Specialized Products saw a 7% sales decline, with organic sales down 2%, while the adjusted EBIT margin slightly increased to 9.7% [4] - Gross profit was $194 million, down 3% year over year, with gross margin remaining flat; adjusted EBIT was $73 million, down 4% year over year, but adjusted EBIT margin rose by 10 basis points to 7.0% [6] Balance Sheet & Cash Flow - At the end of Q3, the company had $461 million in cash and $974 million in total liquidity, with long-term debt at $1.5 billion, down $296 million sequentially [7] - Operating cash flow improved to $126 million, up 32% year over year, driven by better working capital management [7] Market Position & Outlook - Leggett & Platt has a subpar Growth Score of D and a Momentum Score of F, but a strong Value Score of A, placing it in the top quintile for value investors [9] - The company holds a Zacks Rank 3 (Hold), indicating an expectation of an in-line return from the stock in the coming months [10]