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1. Company Snapshot

1.a. Company Description

Leggett & Platt, Incorporated designs, manufactures, and markets engineered components and products worldwide.It operates through three segments: Bedding Products; Specialized Products; and Furniture, Flooring & Textile Products.The company offers steel rods, drawn wires, foam chemicals and additives, innersprings, specialty foams, private label finished mattresses, mattress foundations, wire forms for mattress foundations, adjustable beds, industrial sewing and quilting machines, and mattress packaging and glue drying equipment, as well as machines to produce innersprings for industrial users of steel rods and wires, manufacturers of finished bedding, big box and e-commerce retailers, bedding brands and mattress retailers, department stores, and home improvement centers.


It also provides mechanical and pneumatic lumbar support and massage systems for automotive seating; seat suspension systems, motors and actuators, and cables; titanium, nickel, and stainless-steel tubing, formed tubes, tube assemblies, and flexible joint components for fluid conveyance systems; and engineered hydraulic cylinders to automobile OEMs and Tier 1 suppliers, aerospace OEMs and suppliers, and mobile equipment OEMs. In addition, the company offers steel mechanisms and motion hardware for reclining chairs, sofas, sleeper sofas and lift chairs; springs and seat suspensions; components and private label finished goods for soft seating; and bases, columns, back rests, casters, and frames, as well as control devices for chairs.Further, it offers carpet cushion and hard surface flooring underlayment, structural fabrics, and geo components to manufacturers of upholstered and office furniture, flooring retailers and distributors, contractors, landscapers, road construction companies, retailers, government agencies, and mattress and furniture producers, as well as manufacturers of packaging, filtration, and draperies.The company was founded in 1883 and is based in Carthage, Missouri.

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1.b. Last Insights on LEG

Leggett & Platt's recent performance was negatively impacted by soft demand trends in residential end markets and headwinds in its Automotive business due to ongoing economic challenges. The company's Q4 2024 results reflected a 5% decrease in sales compared to the same period in 2023, with adjusted EPS of $0.21, a $0.05 decrease from the previous year. Additionally, the company's decision to sell its Aerospace Products Group for $285 million may indicate a strategic shift away from certain business segments.

1.c. Company Highlights

2. Leggett & Platt's Q3 2025 Earnings: A Closer Look at the Numbers

Leggett & Platt reported third-quarter sales of $1 billion, down 6% year-over-year, primarily due to soft demand and sales attrition from the Aerospace divestiture and restructuring efforts. The company's actual EPS came out at $0.29, slightly below estimates of $0.3. The Bedding product sales decreased 10% year-over-year, while Specialized product sales declined 7%, and Furniture, Flooring, and Textile product sales were flat. Despite the decline in sales, the company made significant progress on its restructuring plan, which is nearing completion and has delivered better EBIT contribution with lower associated costs than initially announced.

Publication Date: Nov -29

📋 Highlights
  • Reaffirmed Guidance: Sales guidance reaffirmed at $4.0–$4.1 billion; adjusted EPS guidance of $1.00–$1.10.
  • Restructuring Progress: $60–70 million annualized EBIT benefits and $70–80 million real estate proceeds from restructuring.
  • Divestiture Impact: Aerospace divestiture reduced sales by 6% YoY; proceeds used to pay down debt, lowering net debt/EBITDA ratio.
  • Cash Flow & Debt: Improved cash flow enabled $100 million CapEx and focus on debt reduction to achieve 2x net debt/EBITDA target.
  • Segment Margins: 200 bps increase in Bedding, 50 bps in Specialized, but 150 bps decline in Furniture, Flooring, and Textiles.

Segment Performance

The Bedding segment saw a significant drop in steel rod volume, but this was due to the elimination of billet sales, and the trade rod mix was strong. The company is seeing momentum in finished bedding, with private label work expected to reap significant benefits in the long term. In the Furniture segment, there was sequential improvement, with volumes down 5% in Q3 versus 12% in Q2, indicating a normalization of business after the impact of tariffs. A new factory in Vietnam is expected to provide a favorable tariff position and benefit customers.

Restructuring and Cost Management

The company's restructuring efforts have delivered significant EBIT contributions, with $60 million to $70 million in annualized EBIT benefits expected. As Benjamin Burns noted, the company's margin benefits are attributed to its restructuring efforts and cost actions. The company is confident in its ability to achieve strong incremental contribution margins of 25% to 35% as volume recovers.

Outlook and Valuation

Looking ahead, the company expects U.S. domestic mattress production to slow sequentially in the fourth quarter and remain negative year-over-year. The company is reaffirming the midpoint of its sales and adjusted EPS guidance, with sales expected to be $4.0 billion to $4.1 billion and adjusted EPS of $1.00 to $1.10. With a current EV/EBITDA ratio of 5.24 and a P/S Ratio of 0.33, the company's valuation appears reasonable. Analysts estimate next year's revenue growth at -3.7%, indicating a challenging environment. However, the company's focus on cost management and strategic initiatives is expected to drive long-term profitable growth.

Capital Allocation

The company's long-term net debt leverage target is 2x, and capital allocation will focus on reducing net debt, with consideration for small strategic acquisitions, particularly in the textiles business, and share repurchases. The textiles business has seen growth, driven by the GEO side, with potential for bolt-on M&A to drive further growth.

3. NewsRoom

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Advisors Asset Management Inc. Reduces Stock Position in Leggett & Platt, Incorporated $LEG

Dec -03

Source: defenseworld.net

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Somnigroup Seeks to Buy Leggett & Platt for About $1.6 Billion

Dec -01

Source: wsj.com

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Leggett & Platt Confirms Receipt of Unsolicited Proposal from Somnigroup International Inc.

Dec -01

Source: prnewswire.com

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Somnigroup Proposes to Acquire Leggett & Platt in All-Stock Transaction

Dec -01

Source: prnewswire.com

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Leggett & Platt Announces Quarterly Dividend of $.05

Nov -06

Source: prnewswire.com

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Y Intercept Hong Kong Ltd Reduces Holdings in Leggett & Platt, Incorporated $LEG

Nov -06

Source: defenseworld.net

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Nisa Investment Advisors LLC Purchases Shares of 8,505 Leggett & Platt, Incorporated $LEG

Nov -06

Source: defenseworld.net

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Ethic Inc. Invests $111,000 in Leggett & Platt, Incorporated $LEG

Nov -01

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (0.91%)

6. Segments

Bedding Products

Expected Growth: 0.8%

Leggett & Platt's Bedding Products segment growth of 0.8 is driven by increasing demand for comfort and wellness, rising popularity of online mattress sales, and strategic partnerships with leading mattress manufacturers. Additionally, the company's focus on innovative products, such as adjustable beds and cooling/heating technologies, contributes to its growth.

Furniture, Flooring & Textile Products

Expected Growth: 0.9%

Leggett & Platt's Furniture, Flooring & Textile Products segment growth is driven by increasing demand for home furnishings, rising consumer spending, and a growing trend towards home renovation and remodeling. Additionally, the company's focus on innovative products, strategic acquisitions, and operational efficiencies also contribute to its growth.

Specialized Products

Expected Growth: 1.1%

Leggett & Platt's Specialized Products segment growth is driven by increasing demand for comfort and support in bedding and furniture, as well as rising adoption of ergonomic and adjustable products. Additionally, the company's focus on innovation, strategic acquisitions, and expanding distribution channels contribute to its 1.1% growth.

7. Detailed Products

Bedding Components

Leggett & Platt's Bedding Components segment provides innerspring units, wire forms, and machinery to the bedding industry.

Furniture, Flooring, and Textile Products

This segment offers a range of products including furniture, flooring, and textile products for residential and commercial markets.

Specialized Products

Leggett & Platt's Specialized Products segment provides a range of products including mechanical components, automotive seating, and industrial products.

Work Furniture and Ergonomic Products

This segment offers a range of work furniture and ergonomic products for office and industrial markets.

Aerospace and Defense Products

Leggett & Platt's Aerospace and Defense Products segment provides a range of products including aircraft seating, cargo restraint systems, and other specialized products.

8. Leggett & Platt, Incorporated's Porter Forces

Forces Ranking

Threat Of Substitutes

Leggett & Platt, Incorporated operates in the diversified consumer goods industry, which has a moderate threat of substitutes. The company's products, such as bedding and furniture, have some substitutes, but they are not easily replaceable.

Bargaining Power Of Customers

Leggett & Platt, Incorporated has a large customer base, which reduces the bargaining power of individual customers. The company's products are also diversified, making it difficult for customers to negotiate prices.

Bargaining Power Of Suppliers

Leggett & Platt, Incorporated has a moderate bargaining power of suppliers. The company relies on a diverse range of suppliers, which reduces the bargaining power of individual suppliers. However, some suppliers may have some bargaining power due to the specialized nature of their products.

Threat Of New Entrants

Leggett & Platt, Incorporated operates in an industry with high barriers to entry, making it difficult for new entrants to join the market. The company's established brand and distribution network also make it challenging for new entrants to compete.

Intensity Of Rivalry

Leggett & Platt, Incorporated operates in a highly competitive industry, with many established players. The company faces intense competition from rivals, which can lead to pricing pressures and reduced market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 60.50%
Debt Cost 5.12%
Equity Weight 39.50%
Equity Cost 9.96%
WACC 7.03%
Leverage 153.16%

11. Quality Control: Leggett & Platt, Incorporated passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Growth: 5.4

Quality: 5.7

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Momentum: 8.5

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Leggett & Platt

A-Score: 4.4/10

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A-Score: 3.8/10

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

11.4$

Current Price

11.4$

Potential

-0.00%

Expected Cash-Flows