Leggett & Platt Reports Q3 2025 Earnings and Strategic Changes

Leggett & Platt announced its third-quarter results for 2025, reporting sales of $1.0 billion, a decrease of 6% compared to the same period last year. The company cited ongoing macroeconomic challenges as a factor in this decline. Earnings per share (EPS) reached $0.91, reflecting a significant increase from the $0.33 reported in the third quarter of 2024. However, the adjusted EPS of $0.29 marked a slight decrease of $0.03 from the prior year’s adjusted figure.

In addition to the financial results, President and CEO Karl Glassman remarked on the company’s strategic focus, stating, “We are pleased to report solid results for the quarter, achieved amid ongoing macroeconomic challenges.” He emphasized the successful completion of the sale of the Aerospace business, which has allowed the company to concentrate on its core operations.

Third Quarter Financial Overview

Leggett & Platt’s net trade sales amounted to $1.0 billion, which represents a 6% decline year-over-year. Organic sales dropped 4%, primarily due to reduced demand in residential end markets, Automotive, and Hydraulic Cylinders. These declines were somewhat countered by growth in Textiles and Work Furniture. Price increases related to raw materials and favorable currency impacts contributed an additional 2% to sales, while divestitures accounted for another 2% decrease in sales.

The earnings before interest and taxes (EBIT) for the quarter was $171 million, a significant increase of $93 million from the previous year, while adjusted EBIT stood at $73 million, reflecting a $3 million decrease compared to adjusted EBIT in the third quarter of 2024. The EBIT margin improved to 16.5%, up from 7.1% a year earlier.

Debt Reduction and Cash Flow

The company made substantial progress in reducing its debt, lowering it by $296 million in the third quarter alone, utilizing proceeds from the Aerospace business and operating cash flow. As of September 30, total debt stood at $1.5 billion, with a net debt to trailing twelve-month adjusted EBITDA ratio of 2.6x. Operating cash flow reached $126 million, an increase of $30 million compared to the same quarter in 2024, driven by improvements in working capital.

The board of directors declared a quarterly dividend of $0.05 per share, consistent with the previous year, and total liquidity at the end of September was $974 million, comprised of $461 million in cash and $513 million available under the revolving credit facility.

Future Guidance

Leggett & Platt reaffirmed its 2025 sales and adjusted EPS guidance while narrowing the range. The company anticipates sales of $4.0–$4.1 billion, down 6% to 9% from 2024, with expected volume declines in various segments. EPS is expected to range from $1.52–$1.72, reflecting a slight upward adjustment from previous estimates.

The company remains committed to generating strong cash flow and enhancing shareholder value. Glassman noted, “The dedication and hard work of our employees is creating a stronger, more agile company positioned for profitable growth.”

As Leggett & Platt continues to navigate a challenging economic landscape, its strategic focus on core operations and financial discipline aims to position the company for long-term success.