Overview

• Diversified manufacturer's Q4 sales fell 11%, missing analyst expectations

• Adjusted EPS for Q4 rose slightly compared to last year

• Company improved operational efficiency and reduced debt in 2025

Outlook

• Leggett & Platt forecasts 2026 sales of $3.8–$4.0 bln, down 1% to 6% vs 2025

• Company expects 2026 EPS of $0.92–$1.38; adjusted EPS of $1.00–$1.20

• Leggett & Platt anticipates raw material price increases to boost 2026 sales

Result Drivers

• SALES DECLINE - Q4 sales decreased 11% due to divestitures and weak demand in Adjustable Bed and Specialty Foam segments, partially offset by growth in Textiles and Work Furniture

• RESTRUCTURING IMPACT - Restructuring plan completed with greater EBIT benefit and lower costs than expected

• OPERATIONAL EFFICIENCY - Improved operational efficiency and reduced debt contributed to financial stability

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the home furnishings peer group is "buy."

• Wall Street's median 12-month price target for Leggett & Platt Inc is $12.50, about 0.9% below its February 10 closing price of $12.61

• The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 9 three months ago

Press Release: ID:nPnbYDgMMa

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)