Leggett & Platt (LEG) Q1 2025 earnings summary

Executive summary

• Q1 2025 sales were $1.022 billion, down 7% year-over-year, with volume declines in residential, automotive, and hydraulic markets, partially offset by growth in textiles and aerospace; restructuring and cost management drove margin gains.

• Adjusted EBIT rose to $67 million (6.5% margin), up $3 million year-over-year; adjusted EPS was $0.24, up $0.01, while reported EPS was $0.22, reflecting restructuring charges and real estate gains.

• Operating cash flow improved to $7 million, up $13 million year-over-year, driven by better working capital management.

• Strategic actions included divesting a small U.S. machinery business and signing an agreement to sell the Aerospace business for $285 million, expecting ~$240 million after-tax proceeds; sale expected to close in 2025.

• 2025 guidance for sales ($4.0–$4.3 billion) and adjusted EPS ($1.00–$1.20) is maintained, despite macroeconomic and trade policy uncertainties.

Financial highlights

• Q1 2025 sales: $1.022 billion, down 7% year-over-year; adjusted EBIT: $67 million (6.5% margin), up from $64 million (5.8%) in Q1-24.

• Adjusted EBITDA: $98 million (9.6% margin), up from $96 million (8.8%).

• Net income attributable to L&P was $30.6 million, down 3% year-over-year.

• Gross margin was 18.6%, up from 17.0% in Q1 2024.

• Net debt to trailing 12-month adjusted EBITDA was 3.77x at quarter-end; total liquidity stood at $817 million.

Outlook and guidance

• 2025 sales expected at $4.0–$4.3 billion, down 2%–9% from 2024; volume now forecasted to decline low to high single digits, with Bedding Products segment volume expected down low double digits.

• Adjusted EPS guidance remains $1.00–$1.20; EBIT margin expected at 6.4%–6.8%.

• Operating cash flow projected at $275–$325 million; capital expenditures at $100 million.

• Guidance assumes Aerospace business is owned for the full year; divestiture expected to close in 2025.

• Minimal acquisition and share repurchase activity expected for the remainder of 2025.