Leggett & Platt Reports 3Q 2025 Results Amid Market Challenges

Leggett & Platt, a diversified manufacturer based in Carthage, Missouri, has announced its financial results for the third quarter of 2025. The company reported sales of $1.0 billion, reflecting a 6% decrease compared to the same period in 2024. The earnings per share (EPS) for the quarter stood at $0.91, while the adjusted EPS was $0.29, a decline of $0.03 from the adjusted EPS in the third quarter of 2024.

The company experienced a notable increase in operating cash flow, which reached $126 million, an improvement of $30 million compared to the previous year. Additionally, Leggett & Platt strengthened its balance sheet by reducing debt by $296 million through proceeds from its Aerospace business divestiture and operational cash flow.

Karl Glassman, President and CEO, expressed satisfaction with the quarter’s performance, stating, “We are pleased to report solid results for the quarter, achieved amid ongoing macroeconomic challenges.” He highlighted the successful completion of the Aerospace business sale, emphasizing a strategic focus on core operations. Looking ahead, Glassman reaffirmed the company’s 2025 sales and adjusted EPS guidance, underscoring the resilience displayed throughout the business.

Third Quarter Financial Performance

Leggett & Platt’s net trade sales for the third quarter totaled $1.0 billion, down 6% from the prior year. Organic sales decreased by 4%, attributed mainly to reduced demand in residential end markets, automotive sectors, and hydraulic cylinders. Volume declined by 6%, although this was partially offset by growth in textiles and work furniture.

Despite the overall sales decrease, the company reported an EBIT of $171 million, which is a significant increase of $93 million compared to the third quarter of 2024. The adjusted EBIT was reported at $73 million, down $3 million from the previous year. The adjustments included $4 million in restructuring charges and an $87 million gain from the Aerospace divestiture.

The EBIT margin for the quarter was 16.5%, a substantial increase from 7.1% in the same quarter last year. The adjusted EBIT margin rose slightly to 7.0% from 6.9%.

Debt Management and Future Guidance

Leggett & Platt reported a net debt of 2.6 times its trailing twelve-month adjusted EBITDA. The company has successfully reduced its total debt to $1.5 billion across three tranches of long-term bonds, each valued at $500 million. Operating cash flow of $126 million in the third quarter reflects improvements in working capital.

The company has reaffirmed its 2025 sales guidance, now anticipated to fall between $4.0 billion and $4.1 billion, reflecting a 6% to 9% decrease from 2024. The expected EPS is projected to be between $1.52 and $1.72.

Glassman concluded, “The dedication and hard work of our employees is creating a stronger, more agile company positioned for profitable growth.” The company remains focused on generating strong cash flow and enhancing shareholder value as it navigates ongoing market challenges.