Leggett & Platt (LEG) Q4 2024 earnings summary

Executive summary

• 2024 was marked by significant restructuring focused on operational efficiency and cost reduction across segments, with $22 million in EBIT benefit, $48 million in restructuring costs, and $20–$31 million in real estate sales proceeds.

• Q4 2024 sales were $1.1 billion, down 5% year-over-year; full-year sales were $4.4 billion, down 7%, with volume and price/currency impacts both contributing to declines.

• Adjusted EBIT for Q4 was $56 million (5.3% margin), down $10 million year-over-year; full-year adjusted EBIT was $267 million (6.1% margin), down $67 million.

• Product innovation and healthy pipelines remain a focus, with growth in semi-finished bedding and OEM partnerships.

• Demand remains pressured by weak residential, automotive, and hydraulic cylinder markets, affordability issues, and macroeconomic uncertainty.

Financial highlights

• Q4 adjusted EBITDA was $90 million (8.5% margin), down 19% year-over-year; full-year adjusted EBITDA was $403 million (9.2% margin), down 22%.

• Q4 EBIT was $44 million; adjusted EBIT was $56 million, down $10 million year-over-year; Q4 adjusted EPS was $0.21, a 19% decrease from Q4 2023.

• Full-year adjusted EPS was $1.05, down $0.34 from 2023; full-year EBIT was $(430) million, down $340 million, mainly from $676 million in goodwill impairment charges.

• Operating cash flow for 2024 was $306 million, down $191 million from 2023; capital expenditures were $82 million.

• Net debt to trailing 12-month adjusted EBITDA was 3.76x at year-end; total liquidity was $793 million, including $350 million cash.

Outlook and guidance

• 2025 sales expected at $4.0–$4.3 billion, down 2–9% from 2024, with volume declines across all segments.

• 2025 adjusted EPS guidance is $1.00–$1.20; EBIT margin expected at 6.4%–6.8%; operating cash flow projected at $275–$325 million.

• Restructuring costs for 2025 expected at $30–$40 million, with total plan costs now $80–$90 million and annualized EBIT benefit of $60–$70 million by late 2025.

• Minimal acquisitions and share repurchases planned; focus on debt reduction and organic growth.

• Guidance does not include net tariff impacts; teams are preparing for multiple tariff scenarios.