Leggett & Platt Inc (LEG) Q4 2025 Earnings Call Highlights: Navigating Challenges and …

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Fri, February 13, 2026 at 6:06 AM GMT+9 4 min read

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**Fourth Quarter Sales:** $939 million, down 11% versus Q4 2024.

**Fourth Quarter EBIT:** $32 million; Adjusted EBIT: $48 million, down $8 million from Q4 2024.

**Fourth Quarter EPS:** $0.18; Adjusted EPS: $0.22, a 5% increase from Q4 2024 adjusted EPS of $0.21.

**Full Year 2025 Sales:** $4.05 billion, a decrease of 7% from 2024.

**Full Year EBIT:** Increased by $786 million due to non-recurrence of goodwill impairment charges.

**Full Year Adjusted EBIT:** $263 million, a decrease of $4 million from 2024.

**Full Year EPS:** $1.69; Adjusted EPS: $1.05, flat versus 2024.

**Operating Cash Flow 2025:** $338 million, an increase of $33 million from 2024.

**Net Debt to Adjusted EBITDA:** Decreased from 3.8 times to 2.4 times by year-end 2025.

**2026 Sales Guidance:** Expected to be $3.8 to $4.0 billion, down 1 to 6% versus 2025.

**2026 EPS Guidance:** $0.92 to $1.38; Adjusted EPS: $1 to $1.20.

**2026 Cash from Operations:** Expected to be $225 to $275 million.

**2026 CapEx:** Expected to be $100 to $115 million.

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Release Date: February 12, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

Leggett & Platt Inc (NYSE:LEG) successfully completed its 2024 restructuring plan, delivering greater EBIT benefits at a lower cost than expected.

The company made significant progress in strengthening its balance sheet, reducing net debt by $376 million, and moving closer to its long-term leverage target of 2 times.

Leggett & Platt Inc (NYSE:LEG) saw growth in its semi-finished products, particularly in eco-base and pre-foam encased comfort core and bedding products.

The company opened a new facility in Vietnam to better serve its home furniture customers in the growing region of furniture production.

Leggett & Platt Inc (NYSE:LEG) experienced growth in its geocomponents retail business, gaining share at major home improvement retailers.

Negative Points

Fourth quarter sales were down 11% compared to the fourth quarter of 2024, primarily due to sales weakness in adjustable bed and specialty foam, and continued soft demand in residential markets.

The specialized products segment saw a 21% decline in sales, largely due to the aerospace divestiture.

The company faces ongoing demand challenges in its residential markets, which account for roughly half of its revenue, with no immediate recovery in sight.

Leggett & Platt Inc (NYSE:LEG) anticipates further demand uncertainty in its residential-focused businesses, such as home furniture and flooring.

The automotive segment is expected to face challenges in 2026 due to inflationary pressures and competition from Chinese exports, impacting multinational OEMs in Europe.

 






Story Continues  

Q & A Highlights

Q: Can you discuss the impact of the restructuring efforts on segment margins and any additional opportunities for cost improvement? A: Karl Glassman, CEO, mentioned that while no divestitures are currently planned, they continue to seek operational improvements across business units. Benjamin Burns, CFO, added that the restructuring efforts provided significant benefits, with $63 million realized in 2025 and an additional $5 million expected in 2026. The restructuring has positively impacted margins in the bedding, specialized, and furniture, flooring, and textile segments.

Q: What is the outlook for the bedding market, and how does housing impact this? A: Tyson Hagale, President of Bedding Products, noted that while housing is a significant factor, consumer confidence and affordability also play crucial roles. The company does not anticipate a macro market recovery in 2026, and the guidance reflects a continuation of trends from the latter half of 2025. The expectation is for US Spring to perform in line with the market, with potential upside if conditions improve.

Q: Can you provide guidance on revenue and margins for each segment in 2026? A: Benjamin Burns, CFO, stated that for the bedding segment, net trade sales and volume are expected to be down low single-digits, with margins up 150 basis points. The specialized products segment, excluding aerospace, is expected to see organic sales and volume down low single-digits, with margins down 150 basis points. The furniture, flooring, and textile segment is expected to have flat net trade sales and volumes, with flat margins.

Q: What were the main factors affecting US Spring volumes in Q4, and what is the outlook for automotive supply chain disruptions? A: Tyson Hagale explained that the primary factor for the decline in US Spring volumes was customer consolidation. Samuel Smith, President of Specialized Products, noted that previous supply chain disruptions in automotive, such as semiconductor and aluminum shortages, have been resolved, and no lingering issues are expected in Q1.

Q: What are the capital allocation priorities, and how does the company plan to achieve its leverage target? A: Karl Glassman, CEO, reiterated the long-term priorities of funding organic growth, strategic acquisitions, and returning cash to shareholders. In the near term, the focus is on reducing leverage to the target of 2 times, with expectations to achieve this by the end of 2026 through debt reduction and cash flow management.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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