Leggett & Platt Reports 4Q and Full Year 2025 Results

FOURTH QUARTER RESULTS
Fourth quarter sales were $939 million, an 11%² decrease versus fourth quarter last year

• Divestitures decreased sales 5%
• Organic sales³ were down 6%
  • Volume was down 9%, primarily from sales weakness at a certain customer and retailer merchandising changes in Adjustable Bed and Specialty Foam, continued soft demand in residential end markets, customers' supply chain disruptions in Automotive, and lower demand in Hydraulic Cylinders. These declines were partially offset by growth in Textiles, Work Furniture, and higher trade wire and rod sales.
  • Raw material-related selling price increases and currency benefit increased sales 3%

Fourth quarter EBIT was $32 million, down $12 million from fourth quarter 2024 EBIT of $44 million. Adjusted¹ EBIT was $48 million, an $8 million decrease from fourth quarter 2024 adjusted¹ EBIT.

• Adjusted¹ EBIT decreased primarily from lower volume and earnings associated with the divested Aerospace business, partially offset by metal margin expansion and restructuring benefit

EBIT margin was 3.4%, down from 4.1% in the fourth quarter of 2024, and adjusted¹ EBIT margin was 5.1%, down from 5.3%.

Fourth quarter EPS was $.18, an $.08 increase versus fourth quarter 2024 EPS of $.10. Fourth quarter adjusted¹ EPS was $.22, up $.01 versus fourth quarter 2024 adjusted¹ EPS of $.21.

• Divestitures decreased sales 2%
• Organic sales³ were down 5%
  • Volume was down 6%, primarily from continued weak demand in residential end markets, sales weakness at a certain customer and retailer merchandising changes in Adjustable Bed and Specialty Foam, lower demand in Automotive and Hydraulic Cylinders, and restructuring-related sales attrition. These declines were partially offset by growth in Textiles and Work Furniture and higher trade wire and rod sales.
  • Raw material-related selling price increases and currency benefit increased sales 1%

2025 EBIT was $356 million, up $786 million from 2024 EBIT of ($430) million. Adjusted¹ EBIT was $263 million, a $4 million decrease from 2024 adjusted¹ EBIT.

• Adjusted¹ EBIT decreased primarily from lower volume, partially offset by restructuring benefit and metal margin expansion.

EBIT margin was 8.8%, up from (9.8%) in 2024, and adjusted¹ EBIT margin was 6.5%, up from 6.1%.

2025 EPS was $1.69, a $5.42 increase versus 2024 EPS of ($3.73). 2025 adjusted¹ EPS was $1.05, flat versus 2024 adjusted¹ EPS of $1.05.

• Net Debt¹ was 2.4x trailing 12-month adjusted EBITDA¹ as of year end
• Debt at December 31
  • Reduced debt by $376 million in 2025
  • Total debt of $1.5 billion in three tranches of long-term bonds at $500 million each
• Operating cash flow was $338 million, an increase of $33 million versus 2024, driven primarily by working capital improvements
• Capital expenditures were $57 million
• Dividends were $27 million
  • In November, Leggett & Platt's Board of Directors declared a fourth quarter dividend of $.05 per share, flat versus last year's fourth quarter dividend
• Stock issuances and repurchases were all related to employee benefit plans, .3 million shares surrendered and issuances of 1.4 million shares
• Total liquidity was $1,296 million at December 31
  • $587 million cash on hand
  • $709 million in capacity remaining under revolving credit facility

RESTRUCTURING PLAN

• Realized $5 million of incremental⁵ EBIT benefit in fourth quarter 2025, $41 million of incremental⁵ EBIT benefit in 2025 and $63 million of EBIT benefit from inception
  • Expect approximately $5 million of incremental⁵ EBIT benefit in 2026
• Realized $5 million of incremental⁵ sales attrition in fourth quarter 2025, including $3 million from the divestiture of a small U.S. machinery business in our Bedding Products segment and realized $38 million of incremental⁵ sales attrition in 2025, including $12 million from the divestiture of the machinery business. Realized $53 million of sales attrition from inception.
  • Expect approximately $5 million of incremental⁵ sales attrition in 2026
• Realized $48 million of cash proceeds from real estate sales from inception
  • Anticipate an additional $20–$30 million of cash proceeds in 2026
• Realized $19 million of restructuring and restructuring-related costs in fourth quarter 2025, $30 million of restructuring and restructuring-related costs in 2025, and $78 million of restructuring and restructuring-related costs from inception
  • Expect an additional $2 million of restructuring and restructuring-related costs in 2026

• Sales are expected to be $3.8–$4.0 billion, down 1% to 6% versus 2025
  • 2025 divestitures to reduce sales by 3%
  • Volume is expected to be flat to down low-single digits
  • Volume at the midpoint:
    • Down low-single digits in Bedding Products segment
    • Down low-single digits in Specialized Products segment
    • Flat in Furniture, Flooring & Textile Products segment
  • Raw material-related price increases and currency benefit combined expected to increase sales low-single digits
• EPS is expected to be $0.92–$1.38
  • Earnings expectations include:
    • $.02 to $.11 per share impact from restructuring costs, primarily related to cost improvement and footprint optimization opportunities identified across the company that are currently being evaluated
    • $.05 to $.08 per share impact from costs associated with the unsolicited offer from Somnigroup
    • $.11 to $.25 per share gain from sales of real estate
• Adjusted EPS is expected to be $1.00–$1.20
  • At the midpoint, increase versus 2025 due primarily to operational efficiency improvements, disciplined cost management, favorable sales mix, and full year benefit of metal margin expansion that started in Q2 2025, partially offset by lower volume
• Based on this framework, 2026 EBIT margin is expected to be 5.9%–7.8%; adjusted EBIT margin is expected to be 6.3%–7.0%
• Additional expectations:
  • Depreciation and amortization $115 million
  • Net interest expense $50 million
  • Effective tax rate 26%
  • Operating cash flow $225–$275 million
  • Capital expenditures $100–$115 million
  • Fully diluted shares 141 million
    • Share repurchases to offset share issuances, resulting in minimal dilution

SEGMENT RESULTS – Fourth Quarter 2025 (versus 4Q 2024)

Bedding Products –

• Trade sales decreased 11%
  • Volume decreased 15%, primarily due to sales weakness at a certain customer and retailer merchandising changes in Adjustable Bed and Specialty Foam and restructuring-related sales attrition, partially offset by higher trade wire and rod sales
  • Raw material-related selling price increases and currency benefit added 5% to sales
  • Divestiture of a small U.S. machinery business reduced sales 1%
• EBIT increased $24 million and adjusted¹ EBIT increased $8 million
• Adjusted¹ EBIT increased primarily from metal margin expansion in trade rod and restructuring benefit partially offset by lower volume

Specialized Products –

• Trade sales decreased 21%
  • Divestiture of Aerospace reduced sales 17%
  • Volume decreased 7% primarily from customers' supply chain disruptions in Automotive and lower demand in Hydraulic Cylinders
  • Raw material-related selling price increases and currency benefit added 3% to sales
• EBIT decreased $1 million and adjusted¹ EBIT decreased $8 million
• Adjusted¹ EBIT decreased primarily from lower volume and earnings associated with the divested Aerospace business partially offset by restructuring benefit

Furniture, Flooring & Textile Products –

• Trade sales decreased 3%
  • Volume decreased 2%, primarily from demand softness in Home Furniture and Flooring partially offset by growth in Textiles and Work Furniture
  • Currency benefit offset by raw material-related selling price decreases
  • Divestiture of a facility in Work Furniture reduced sales 1%
• EBIT decreased $9 million and adjusted¹ EBIT decreased $8 million
• Adjusted¹ EBIT decreased primarily from lower volume, pricing adjustments, currency impact, and start-up costs associated with a new Home Furniture facility in Vietnam

SEGMENT RESULTS – Full Year 2025 (versus 2024)

Bedding Products –

• Trade sales decreased 11%
  • Volume decreased 12%, primarily due to sales weakness at a certain customer and retailer merchandising changes in Adjustable Bed and Specialty Foam, demand softness in U.S. and European bedding markets, restructuring-related sales attrition, and the exit of a customer in Specialty Foam partially offset by higher trade rod and wire sales
  • Raw material-related selling price increases and currency benefit added 2% to sales
  • Divestiture of a small U.S. machinery business reduced sales 1%
• EBIT increased $648 million and adjusted¹ EBIT increased $23 million
  • Adjusted¹ EBIT increased primarily from metal margin expansion, restructuring benefit, favorable sales mix in Steel Rod and U.S. Spring, and operational efficiency improvements in Specialty Foam. These increases were partially offset by lower volume.

Specialized Products –

• Trade sales decreased 9%
  • Divestiture of Aerospace reduced sales 5%
  • Volume decreased 5% from declines in Automotive and Hydraulic Cylinders partially offset by growth in Aerospace in the first half of the year
  • Raw material-related selling price increases and currency benefit added 1% to sales
• EBIT increased $140 million and adjusted¹ EBIT increased $1 million
• Adjusted¹ EBIT increased primarily from pricing actions, operational efficiency improvements, and restructuring benefit partially offset by lower volume and earnings associated with the divested Aerospace business

Furniture, Flooring & Textile Products –

• Trade sales decreased 1%
  • Volume was flat year over year from demand softness in Home Furniture and Flooring offset by growth in Textiles and Work Furniture
  • Raw material-related selling price decreases, net of currency benefit, reduced sales 1%
• EBIT increased $20 million and adjusted¹ EBIT decreased $27 million
  • Adjusted¹ EBIT decreased primarily from pricing adjustments, currency impact, start-up costs associated with a new Home Furniture facility in Vietnam, and the aggregate of other smaller items

SLIDES AND CONFERENCE CALL
A set of slides containing summary financial information is available from the Investor Relations section of Leggett's website at www.leggett.com. Management will host a conference call at 7:30 a.m. Central (8:30 a.m. Eastern) on Thursday, February 12. The webcast can be accessed from Leggett's website, via Leggett & Platt Q425 Webcast & Earnings Conference Call. 

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FOR MORE INFORMATION: Visit Leggett's website at www.leggett.com.

COMPANY DESCRIPTION: Leggett & Platt (NYSE: LEG) is a diversified manufacturer that designs and produces a broad variety of engineered components and products that can be found in many homes and automobiles. The 143-year-old Company is a leading supplier of bedding components and solutions; automotive seat comfort and convenience systems; home and work furniture components; geo components; flooring underlayment; and hydraulic cylinders for material handling and heavy construction applications.

FORWARD-LOOKING STATEMENTS: This press release contains "forward-looking statements," identified by the context in which they appear or words such as "expect," "anticipated," "estimate," and "guidance," including, but not limited to volume; sales, EPS, adjusted EPS; capital expenditures; depreciation and amortization; net interest expense; fully diluted shares; operating cash flow;  incremental sales attrition; EBIT margin; adjusted EBIT margin; effective tax rate; dividends; raw material related price increases; currency impact; incremental EBIT benefit; share repurchases; net cash from real estate sales, and restructuring and restructuring related cash and non-cash costs. Such statements are expressly qualified by cautionary statements described in this provision and reflect only the beliefs, expectations, and assumptions of Leggett at the time the statement is made. Because all forward-looking statements deal with the future, they are subject to risks, uncertainties and developments which might cause actual events or results to differ materially from those envisioned or reflected in any forward-looking statement. Moreover, we do not have, and do not undertake, any duty to update or revise any forward-looking statement to reflect events or circumstances after the date on which the statement was made. Some of these risks include: risks associated with our review of any potential transaction between the Company and Somnigroup International, Inc. including the impact on our stock price, customer relationships, business, and the timeline for the completion of the review process which there can be no assurance that the process will result in any particular outcome; increased trade costs, including tariffs; regarding the Restructuring Plan,  our ability to timely receive anticipated EBIT benefits, and  expected net cash from real estate sales,  our ability to accurately forecast sales and earnings; the adverse impact on our sales, earnings, liquidity, margins, cash flow, costs, and financial condition caused by: global inflationary and deflationary impacts; the demand for our products and our customers' products; our manufacturing facilities' ability to obtain necessary raw materials, parts, and labor, and to ship finished products; the impairment of goodwill and long-lived assets; our ability to access the commercial paper market or borrow under our credit facility; supply chain shortages and disruptions; our ability to manage working capital; our ability to collect receivables; price and product competition; cost of raw materials, labor and energy; cash generation sufficient to pay our debts or the dividend; cash repatriation from foreign accounts; our ability to pass along cost increases through increased selling prices; conflict between China and Taiwan; our ability to maintain profit margins if customers change the quantity or mix of our products; political risks; tax audits and rates; foreign operating risks; cybersecurity incidents; customer losses and insolvencies; disruption to our steel rod mill and wire mills and other operations because of severe weather-related events, natural disaster, fire, explosion, terrorism, pandemic, or governmental action; ability to develop innovative products; foreign currency fluctuation; share repurchases; anti-dumping duties on innersprings, steel wire rod and mattresses; data privacy; sustainability obligations; litigation risks; and risk factors in the "Forward-Looking Statements" and "Risk Factors" sections in Leggett's Form 10-K and subsequent Form 10-Qs. 

INVESTOR CONTACTS: Investor Relations
Ryan M. Kleiboeker, Executive Vice President
Katelyn J. Pierce, Analyst
(417) 358-8131 or invest@leggett.com