Leggett & Platt (LEG) Q4 2025 earnings summary

Executive summary

• 2025 sales were $4.05 billion, a 7% decrease year-over-year, with Q4 sales of $939 million, down 11% from Q4 2024, driven by volume declines and divestitures.

• The restructuring plan launched in 2024 was substantially completed by end of 2025, delivering sustainable EBIT benefits at lower costs than expected.

• Divested Aerospace business in Q3 2025, using proceeds to retire commercial paper and accelerate deleveraging, moving closer to a 2x leverage target.

• Net debt leverage ratio improved to 2.4x by year-end 2025, moving closer to the long-term target of 2.0x.

• Continued focus on cost structure improvements, portfolio simplification, and growth in core operations, including expansion in Specialty Foam and Automotive innovation.

Financial highlights

• Q4 2025 adjusted EBIT was $48 million (5.1% margin), down $8 million year-over-year; full-year adjusted EBIT was $263 million (6.5% margin), down $4 million.

• Q4 adjusted EPS was $0.22, up $0.01 year-over-year; full-year adjusted EPS was $1.05, flat versus 2024.

• Operating cash flow for 2025 was $338 million, up $33 million year-over-year.

• Net debt to adjusted EBITDA improved from 3.8x to 2.4x by year-end 2025.

• Total debt reduced by $376 million in 2025.

Outlook and guidance

• 2026 sales expected at $3.8–$4.0 billion, down 1%–6% from 2025, with divestitures reducing sales by 3%.

• 2026 adjusted EPS guidance is $1.00–$1.20; full-year adjusted EBIT margin expected at 6.3%–7.0%.

• Cash from operations projected at $225–$275 million; CapEx expected at $100–$115 million.

• No macro market recovery assumed in 2026 guidance; any recovery would be upside.

• Volume expected flat to down low-single digits, with raw material and currency benefits adding low-single digit growth.