Leggett & Platt (LEG) Investor presentation summary

Business overview and strategy

• Designs and manufactures a diverse range of engineered components for bedding, furniture, flooring, textiles, and automotive markets, with a broad customer base and strong competitive positions.

• Focuses on long-term profitability, operational efficiency, and disciplined capital allocation, targeting a 2.0x net debt to adjusted EBITDA ratio.

• Restructuring initiatives have optimized the manufacturing footprint and reduced costs, supporting future margin expansion.

• Strategic priorities include strengthening the balance sheet, investing in organic growth, pursuing strategic acquisitions, and returning value to shareholders through dividends and share repurchases.

• Commitment to sustainability, innovation, and maintaining an investment-grade credit rating.

Segment and market exposure

• Bedding products account for 39% of estimated 2026 net trade sales, followed by specialized products (26%) and furniture, flooring & textile products (35%).

• Geographic production is concentrated in the U.S. (60%), with significant presence in Europe (15%), Canada (7%), and Mexico (5%).

• Macro market exposure is split among consumer durables (50%), commercial/industrial (30%), and automotive (20%).

• Key economic drivers include housing turnover, consumer confidence, discretionary spending, and interest rates.

Financial performance and guidance

• 2026 sales guidance is $3.8–$4.0 billion, down 1–6% from 2025, with adjusted EPS expected at $1.00–$1.20 and operating cash flow of $225–$275 million.

• 2025 divestitures are expected to reduce sales by 3%; volume trends are flat to down low-single digits across segments.

• Adjusted EBIT margin guidance for 2026 is 6.3–7.0%, with improvements driven by operational efficiency and favorable sales mix.

• Historic adjusted EBIT margins declined from 11.2% in 2021 to 6.5% in 2025, reflecting market and operational challenges.

• Strong cash flow generation supports investment, debt reduction, and shareholder returns.