Leggett & Platt (LEG) Q2 2025 earnings summary

Executive summary

• Q2 2025 sales were $1.1 billion, down 6% year-over-year, with volume down 7% and organic sales also down 6% due to soft demand in key markets.

• Adjusted EBIT was $76 million, up $4 million from Q2 2024, with margin up 80 bps to 7.1%, driven by metal margin expansion and restructuring benefits.

• Adjusted EPS was $0.30, up $0.01 year-over-year; reported EPS was $0.38, reflecting real estate gains and restructuring charges.

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

• Strategic business review and optimization efforts are ongoing, including the sale of a small Mexican work furniture operation and an upcoming aerospace divestiture.

Financial highlights

• Q2 2025 sales: $1,058 million, down 6% from Q2-24; YTD 2025 sales: $2,080 million, down 7% year-over-year.

• Adjusted EBIT: $76 million (up 6%); EBIT for the quarter was $90 million, a $705 million increase year-over-year due to absence of prior year goodwill impairment.

• Adjusted EPS: $0.30 (up 3%); reported EPS: $0.38; 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.

• Total debt at quarter-end was $1.8 billion, with $297 million in commercial paper outstanding; liquidity at $878 million.

Outlook and guidance

• Full-year 2025 sales guidance maintained at $4.0–$4.3 billion, down 2%–9% from 2024, with volume declines in all segments.

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

• Adjusted EBIT margin expected between 6.5% and 6.9%; cash from operations forecasted at $275–$325 million; capex at $80–$90 million.

• Restructuring plan targets $60–$70 million EBIT benefit at full run rate, with $65 million sales attrition; costs for 2025 now expected at $15–$25 million.

• Full-year effective tax rate expected to be ~26%.