Leggett & Platt (LEG) investor relations material

Executive summary

• Second quarter 2025 sales were $1.1 billion, down 6% year-over-year, with volume down 7% due to soft demand and restructuring-related attrition.

• Adjusted EBIT was $76 million, up $4 million year-over-year, with margin up 80 bps to 7.1%; adjusted EPS was $0.30, up $0.01 year-over-year.

• Reported EPS was $0.38, up from $(4.39) in Q2 2024, reflecting real estate gains and absence of goodwill impairments.

• Balance sheet strengthened by $143 million debt reduction, improving net debt to trailing 12-month adjusted EBITDA to 3.5x.

• Restructuring activities are largely complete, with continued focus on operational execution, debt reduction, and divestiture of the Aerospace Products Group.

Financial highlights

• Q2 2025 sales were $1,058 million, down 6% year-over-year; YTD sales were $2,080 million, down 7%.

• Adjusted EBIT was $76 million (up 6%), with margin up to 7.1%; adjusted EBITDA was $105 million (up 1%).

• Net earnings for Q2 2025 were $52.5 million, compared to a net loss of $602.2 million in Q2 2024.

• Operating cash flow was $84 million, down $10 million year-over-year, mainly due to less benefit from working capital.

• Q2 2025 included $0.02/share in restructuring charges and a $0.10/share gain from real estate sales.

Outlook and guidance

• Full-year 2025 sales guidance maintained at $4.0–$4.3 billion, down 2%–9% versus 2024.

• Adjusted EPS expected at $1.00–$1.20; reported EPS at $0.88–$1.17, including restructuring and pension impacts.

• Adjusted EBIT margin range expected between 6.5%–6.9%; cash from operations projected at $275M–$325M; capex at $80M–$90M.

• Annualized EBIT benefit from restructuring expected at $60M–$70M after full implementation.

• Anticipated $65M in annual sales attrition post-restructuring, with $45M expected in 2025.