Leggett & Platt (LEG) Q4 2025 earnings summary

Executive summary

• 2025 sales were $4.05 billion, a 7% decrease year-over-year, with Q4 sales of $939 million, down 11% from Q4 2024; divestitures and volume declines contributed to the decrease.

• The restructuring plan launched in 2024 was substantially completed by end of 2025, delivering greater EBIT benefit and lower costs than expected.

• Net debt leverage ratio improved to 2.4x at year-end 2025, moving closer to the long-term target of 2.0x.

• Proceeds from the Aerospace business divestiture in Q3 2025 were used to retire commercial paper and accelerate deleveraging.

• Continued focus on cost structure improvements, portfolio simplification, and core operations, with growth in semi-finished products and new facility openings.

Financial highlights

• Q4 2025 adjusted EBIT was $48 million (5.1% margin), down $8 million year-over-year; full year adjusted EBIT was $263 million (6.5% margin), down $4 million.

• Q4 adjusted EPS was $0.22, up $0.01 year-over-year; full year adjusted EPS was $1.05, flat versus 2024.

• Operating cash flow for 2025 was $338 million, up $33 million year-over-year.

• Net debt reduced by $376 million in 2025; net debt to adjusted EBITDA improved from 3.8x to 2.4x.

• Q4 adjusted EBITDA margin was 8.5%, flat year-over-year; full year adjusted EBITDA margin was 9.5%, up 30 bps.

Outlook and guidance

• 2026 sales expected at $3.8–$4.0 billion, down 1%–6% from 2025, with divestitures reducing sales by 3%.

• 2026 adjusted EPS guidance: $1.00–$1.20; EBIT margin 6.3%–7.0%; operating cash flow projected at $225–$275 million; capex $100–$115 million.

• Volume expected flat to down low single digits across segments; inflation and currency to add low single-digit sales growth.

• No macro market recovery assumed in 2026 guidance; upside possible if demand rebounds.