Description
Leggett & Platt: Restructuring Gains, Margin Recovery & Balance Sheet Strengthening—A Turnaround Story Taking Shape!
Leggett & Platt reported financial results for the fourth quarter and full year 2025 marked by ongoing challenges in several residential end markets alongside strategic efforts to improve operational efficiency and strengthen the balance sheet. Full-year sales declined by 7% to $4.05 billion due to weak demand in residential sectors—including bedding and furniture—customer supply chain disruptions particularly in automotive, and divestiture-related impacts such as the sale of the Aerospace business. Despite these headwinds, adjusted EBIT remained relatively flat year-over-year at $263 million, supported partly by metal margin expansion and execution of a multi-year restructuring plan that delivered approximately $63 million in benefits in 2025 with an expected $70 million run rate going forward. The company’s operating cash flow increased $33 million to $338 million, contributing to a $376 million debt reduction during the year and a meaningful move toward the target net-debt-to-adjusted-EBITDA ratio of 2x, which stood at 2.
