Leggett & Platt (LEG) Q1 2026 earnings summary

Executive summary

• Entered into a merger agreement with Somnigroup in April 2026; transaction expected to close by year-end, subject to customary and regulatory approvals.

• Q1 2026 sales were $918 million, down 10% year-over-year, with a 5% decrease from divestitures and 5% organic sales decline.

• EBIT for Q1 2026 was $45 million, down from $63 million in Q1 2025, impacted by lower volume, divestitures, restructuring, and merger costs.

• EPS for Q1 2026 was $0.14, compared to $0.22 in Q1 2025; adjusted EPS was $0.15, both down significantly year-over-year.

• Operating cash flow was negative $56 million in Q1 2026, a $63 million decrease from Q1 2025.

Financial highlights

• Net trade sales: $918.2 million in Q1 2026 vs. $1,022.1 million in Q1 2025.

• Net earnings: $20.0 million in Q1 2026 vs. $30.6 million in Q1 2025.

• Gross profit: $170.7 million in Q1 2026 vs. $190.0 million in Q1 2025; gross margin was 18.6%.

• EBIT margin fell to 4.8% from 6.2% year-over-year; adjusted EBIT margin dropped to 4.7% from 6.5%.

• Adjusted EBITDA for Q1 2026 was $71.6 million, down 27% year-over-year; margin was 7.8%.

Outlook and guidance

• 2026 guidance withdrawn due to the pending Somnigroup acquisition; no conference call will be held.

• Full-year effective tax rate expected to be approximately 30%.

• Capital expenditures for 2026 projected at $100–$115 million.

• Acquisition activity expected to be minimal for 2026.

• Demand in 2026 expected to remain muted due to macroeconomic and industry uncertainties.