Leggett & Platt, Incorporated reported a decline in financial performance for the third quarter and first nine months of 2025, with net trade sales of $1,036.4 million for the quarter, down 6% from $1,101.7 million in the same period last year. For the nine months ending September 30, 2025, total sales were $3,116.5 million, a decrease of 6.3% compared to $3,327.2 million in 2024. Despite the drop in sales, the company achieved a significant turnaround in profitability, posting earnings before interest and taxes (EBIT) of $171 million for the third quarter, up from $77.7 million a year earlier, and $324 million for the nine months, compared to a loss of $473.6 million in the prior year. The improved EBIT figures were bolstered by an $87 million gain from the divestiture of the Aerospace Products Group and reduced restructuring costs.
The company’s restructuring efforts, particularly the 2024 Restructuring Plan, have led to significant changes in its operational structure. The plan involves consolidating between 15 and 20 production and distribution facilities primarily in the Bedding Products segment, with a total estimated cost of $75 million. As of September 30, 2025, Leggett & Platt had incurred $58.4 million in restructuring costs. The divestiture of the Aerospace Products Group, completed on August 29, 2025, generated net cash proceeds of $276 million, which were primarily used to reduce debt by $296 million, significantly improving the company's balance sheet.
Operationally, the company reported a decrease in trade sales across its segments, with Bedding Products sales falling by 10% and Specialized Products by 7%. The Furniture, Flooring & Textile Products segment remained relatively stable, with sales flat year-over-year. The company noted that the decline in sales was primarily due to soft demand in residential markets and restructuring-related attrition. However, there was growth in Textiles and Work Furniture, indicating some resilience in specific product lines. The total employee headcount was not disclosed, but the company continues to evaluate its workforce in light of ongoing restructuring efforts.
Leggett & Platt's cash flow from operations for the first nine months of 2025 was $217 million, an increase of $33 million from the previous year, reflecting improved working capital management. The company ended the quarter with cash and cash equivalents of $460.7 million, up from $350.2 million at the end of 2024. The company amended its credit facility in July 2025, extending the maturity to 2030 and reducing the borrowing capacity to $1 billion, which provides additional liquidity as it navigates market challenges.
Looking ahead, Leggett & Platt anticipates continued challenges in demand due to macroeconomic factors, including inflation and consumer confidence. The company expects overall demand in 2025 to be lower than in 2024, particularly in the bedding and automotive sectors. However, it remains focused on executing its restructuring plan and exploring strategic growth opportunities, including potential acquisitions and new sales channels, to enhance its market position and profitability.
About LEGGETT & PLATT INC
Leggett & Platt is a diversified manufacturer specializing in engineered components and products for bedding, furniture, automotive, aerospace, and industrial markets. Its core segments include Bedding Products, Specialized Products, and Furniture, Flooring & Textile Products. The company supplies raw materials, finished goods, and custom solutions globally, leveraging vertical integration, innovation, and cost efficiencies to serve OEMs, retailers, and industrial customers.
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