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]

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]

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]

Financial Data and Key Metrics Changes - First quarter adjusted EBITDA was $591 million, compared to $544 million in the prior period, reflecting a year-over-year increase [19] - Adjusted EFO for the quarter was $345 million, which included a net gain of $114 million from the sale of an offshore oil services shuttle tanker operation [19] Business Line Data and Key Metrics Changes - The Industrial segment generated first quarter adjusted EBITDA of $304 million, benefiting from $72 million in tax benefits at the advanced energy storage operation [19] - The Business Service segment's adjusted EBITDA was CAD 213 million, an increase from CAD 205 million in 2024, driven by strong performance in residential mortgage insurance and improved project execution in construction [20] - The Infrastructure Services segment's adjusted EBITDA was $104 million, down from $143 million in the same quarter last year, impacted by weak market conditions in work access services [21] Market Data and Key Metrics Changes - The U.S. remains an attractive destination for capital, with ongoing investments in the backbone of the economy [7][9] - Growth in Europe has lagged behind the U.S., but there are signs of a pro-growth agenda from governments [9] - India and the Gulf countries are highlighted as bright spots in the global economy, providing a conducive deal-making environment [9] Company Strategy and Development Direction - The company aims to own great businesses with market-leading positions and enhance their performance and cash flows [6] - There is a focus on capital recycling initiatives, with $1.5 billion generated and $370 million committed to acquiring two industrial businesses [5] - The company is prepared for uncertain days ahead but remains optimistic about the quality of its businesses and operational capabilities [11] Management's Comments on Operating Environment and Future Outlook - Management acknowledges that most businesses will not be entirely insulated from tariffs or potential downturns in global growth, but they are confident in their operational capabilities to adapt [6][17] - The company is evaluating proactive measures across its businesses to mitigate potential headwinds and prepare for changing environments [15][17] - Management expects the longer-term impacts from U.S. trade policy could be positive for their businesses, despite recognizing near-term disruption risks [17] Other Important Information - The company has a liquidity of approximately CAD 2.3 billion at the corporate level, which supports ongoing capital allocation priorities [21] - A $250 million repurchase program was launched, with $140 million already returned to shareholders [5][22] Q&A Session Summary Question: Impact of tariffs on Dexco's EBITDA - Management indicated that performance in Q1 was in line with plans, with some recovery in North America, but the market remains muted. They are managing costs effectively to improve margins [25][26] Question: Status of Clarios' tax filing - Management confirmed that the tax return for 2024 is being processed normally, and they expect to receive tax benefits in due course [27][61] Question: Plans for returning capital to shareholders - Management stated they are always looking for monetization opportunities and have a balanced approach to deleveraging, returning capital, and new investments [30] Question: Realignment at Scientific Games - Management highlighted significant opportunities in digitizing the lottery ecosystem and has appointed a new head of digital to enhance value [35] Question: Participation in Barclays payments business - Management confirmed that BBU will participate in the Barclays investment, aligning with their strategy in financial infrastructure [37] Question: Performance of Unidos in Brazil - Management reported stable performance in the fleet management side, with the car rental side also performing well despite rising interest rates [49][52]