Leggett & Platt’s third quarter was marked by operational discipline and continued execution on restructuring efforts, as results met Wall Street’s profit expectations and slightly exceeded revenue estimates. Management attributed performance to cost reductions across its manufacturing footprint, improved operational execution, and benefits from its restructuring plan, despite ongoing softness in residential end markets. CEO Karl Glassman noted the company’s “nearly two years of disciplined cost structure improvements,” with particular emphasis on portfolio optimization and balance sheet strengthening. Management also highlighted the completion of the Aerospace business divestiture and ongoing cost savings in its Bedding, Furniture, and Hydraulic Cylinders segments.
Is now the time to buy LEG? Find out in our full research report (it’s free for active Edge members).
Leggett & Platt (LEG) Q3 CY2025 Highlights:
- Revenue: $1.04 billion vs analyst estimates of $1.03 billion (5.9% year-on-year decline, 1.1% beat)
- Adjusted EPS: $0.29 vs analyst estimates of $0.29 (in line)
- Adjusted EBITDA: $102.2 million vs analyst estimates of $105.4 million (9.9% margin, 3% miss)
- The company dropped its revenue guidance for the full year to $4.05 billion at the midpoint from $4.15 billion, a 2.4% decrease
- Management lowered its full-year Adjusted EPS guidance to $1.05 at the midpoint, a 4.5% decrease
- Operating Margin: 16.5%, up from 7.1% in the same quarter last year
- Market Capitalization: $1.26 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Leggett & Platt’s Q3 Earnings Call
- Susan Maklari (Goldman Sachs) asked how restructuring benefits are translating to margins and future upside. CFO Ben Burns explained that annualized EBIT gains are on track, with additional benefits expected next year and strong contribution margins anticipated as volume recovers.
- Maklari (Goldman Sachs) also questioned Bedding segment demand trends. President Tyson Hagale described recent stabilization and sequential improvement, but cautioned that broad recovery is contingent on macro factors like housing and inflation.
- Alexia Morgan (Piper Sandler) probed sequential improvement in Home Furniture volumes. President Sam Smith explained this reflected normalization after tariff impacts, and highlighted the Vietnam plant’s opening as improving tariff positions for key products.
- Robert Griffin (Raymond James) asked about organic growth opportunities post-restructuring. CEO Karl Glassman and President Hagale pointed to private label finished bedding and new product innovation as key drivers, though management expects benefits to be more long term.
- Keith Hughes (Truist Securities) pushed for clarity on margins by segment. Burns outlined that Bedding margins should rise, Specialized Products improve modestly, while Furniture, Flooring and Textiles would face margin pressure from competitive pricing.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will be watching (1) the pace and sustainability of demand stabilization in Bedding and Furniture segments, (2) the realization of additional restructuring benefits and incremental margin improvement as volume returns, and (3) progress on innovation and new product launches, particularly in finished bedding and textiles. The impact of tariff enforcement and competitive pricing dynamics will also be critical to track.
Leggett & Platt currently trades at $9.41, up from $9.20 just before the earnings. Is there an opportunity in the stock?The answer lies in our full research report (it’s free for active Edge members).
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