Leggett & Platt (LEG) Q2 2026 earnings summary

Executive summary

• Entered into an all-stock merger agreement with Somnigroup; shareholder vote scheduled for August 20, 2026; transaction expected to close upon regulatory and shareholder approval.

• Second quarter 2026 sales were $1.0 billion, down 6% year-over-year, with a 5% decline from divestitures.

• Adjusted EPS for Q2 2026 was $0.39, up $0.09 from adjusted Q2 2025 EPS, aided by non-recurring favorable items.

• EBIT for Q2 2026 was $80 million, down $10 million from Q2 2025; six-month EBIT was $125 million, down $29 million year-over-year.

• Operating cash flow for the first six months was $(10) million, a decrease of $101 million year-over-year.

Financial highlights

• Q2 2026 trade sales: $999.7 million (down 6% year-over-year); six months: $1.92 billion (down 8%).

• Adjusted EBIT increased to $89 million from $76 million in Q2 2025; adjusted EBIT margin rose to 8.9% from 7.1%.

• Net earnings for Q2 2026: $47.1 million; six months: $67.1 million.

• Operating cash flow was $46 million in Q2 2026, down $38 million year-over-year due to higher working capital and lower earnings.

• Declared quarterly dividend of $0.05 per share.

Outlook and guidance

• Anticipates muted demand for the remainder of 2026 due to macroeconomic and industry uncertainties.

• 2026 guidance was withdrawn due to the pending merger; no conference call will be held.

• Full-year effective tax rate expected to be approximately 31%.

• Capital expenditures for 2026 expected to be about $100 million.

• Minimal acquisition activity expected for the remainder of 2026.