Leggett and Platt Inc (LEG)

Leggett & Platt Announces Quarterly Dividend and Annual Meeting ResultsMay 21, 2026 1:05 PM
PR Newswire (US) CARTHAGE, Mo., May 21, 2026 /PRNewswire/ -- Board declared second quarter dividend of $.05 per shareAnnual meeting voting aligned with Board recommendationsLeggett & Platt's Board of Directors declared a dividend of $.05 per share for the second quarter 2026. The dividend will be paid on July 15, 2026 to shareholders of record on June 15, 2026.The Company's annual meeting of shareholders was held this morning. Shareholders elected as directors the eight nominees proposed by the Board; ratified the selection of PricewaterhouseCoopers as the Company's independent registered public accountant for 2026; endorsed the compensation of the Company's named executive officers; and approved the amendment and restatement of the Company's Flexible Stock Plan. No other proposals were voted upon.FOR MORE INFORMATION: Visit Leggett's website at www.leggett.com.COMPANY DESCRIPTION: Leggett & Platt (NYSE: LEG) is a diversified manufacturer that designs and produces a broad variety of engineered components and products that can be found in many homes and automobiles. The 143-year-old Company is a leading supplier of bedding components and solutions; automotive seat comfort and convenience systems; home and work furniture components; geo components; flooring underlayment; and hydraulic cylinders for material handling and heavy construction applications.CONTACT:   Investor Relations, (417) 358-8131 or invest@leggett.com
Ryan M. Kleiboeker, Executive Vice President View original content to download multimedia:https://www.prnewswire.com/news-releases/leggett--platt-announces-quarterly-dividend-and-annual-meeting-results-302779277.htmlSOURCE Leggett & Platt Incorporated Original: Leggett & Platt Announces Quarterly Dividend and Annual Meeting Results

Leggett & Platt (LEG) shares slide after earnings miss and guidance withdrawalMay 7, 2026 8:53 AM
IH Market News Leggett & Platt (NYSE:LEG) reported weaker-than-expected first-quarter results on Thursday and withdrew its 2026 outlook following the announcement of its pending acquisition by Somnigroup International Inc. (NYSE:SGI).Shares of the company fell 8.06% after the earnings release. Earnings and revenue miss expectations The company posted adjusted earnings of $0.15 per share for the quarter, missing the analyst consensus estimate of $0.25 by $0.10.Revenue totaled $918 million, down 10% from the prior year and below analyst expectations of $949.65 million.Leggett & Platt said the decline reflected a 5% impact from divestitures and a 5% decrease in organic sales, driven by a 9% drop in volume across most of its end markets. Company withdraws 2026 guidance The company withdrew its previously issued 2026 financial guidance due to the planned acquisition by Somnigroup International, which was announced on April 13.The transaction is expected to close by the end of 2026, pending shareholder approval and regulatory clearances.President and CEO Karl Glassman said quarterly sales were generally in line with company expectations, but acknowledged weaker conditions in the bedding business.“demand in our domestic bedding business was lower than anticipated, as the overall health of the U.S. industry remains challenged.”The company estimates that the U.S. mattress market declined by a high single-digit to low double-digit percentage during the first quarter. Profitability pressured by lower demand and margin compression Adjusted EBIT declined to $43 million from $67 million in the first quarter of 2025.Leggett & Platt said the decrease was mainly driven by lower sales volume, margin pressure within the Flooring business, and the absence of contributions from the divested Aerospace segment.The company also noted that the war in Iran contributed to rising transportation expenses and longer shipping transit times late in the quarter.Additionally, higher chemical prices are expected to pressure costs further during the second quarter. Cash flow weakens as debt remains elevated Operating cash flow was negative $56 million during the quarter, representing a deterioration of $63 million compared with the same period last year.At quarter-end, net debt stood at 2.8 times trailing 12-month adjusted EBITDA. More about Leggett & Platt Leggett & Platt manufactures engineered components and products used in bedding, furniture, flooring, automotive seating, and other industrial applications. The company supplies materials and systems to manufacturers across consumer and industrial markets globally.Leggett & Platt stock price Original: Leggett & Platt (LEG) shares slide after earnings miss and guidance withdrawal

Leggett & Platt Reports 1Q 2026 ResultsMay 7, 2026 6:30 AM
PR Newswire (US) CARTHAGE, Mo., May 7, 2026 /PRNewswire/ --1Q sales of $918 million, a 10% decrease vs 1Q25, including a 5% decrease from divestitures1Q EPS of $.14, 1Q adjusted1 EPS of $.15, a $.09 decrease vs adjusted1 1Q25 EPSWithdrawing previously issued 2026 guidance due to the pending acquisition by Somnigroup InternationalPresident and CEO Karl Glassman commented, "In aggregate, first quarter sales were in line with our expectations, and restructuring actions implemented over the past two years continued to deliver EBIT benefits, reflecting continued progress in structurally improving our earnings profile."At the same time, first quarter results reflected lower market demand across most of our businesses compared to the prior year, particularly in residential end markets. Demand in our domestic bedding business was lower than anticipated, as the overall health of the U.S. industry remains challenged across both manufacturers and retailers due to continued weakness in consumer activity. Market conditions were stable early in the quarter, and the President's Day promotional period generally met expectations. As the quarter progressed, however, weather-related closures, economic uncertainty, and lower consumer sentiment driven by the war in Iran weighed on demand. As a result, we believe the U.S. mattress market declined by high single to low double digits in the first quarter."In addition to weak demand, our teams navigated a dynamic global environment related to the war in Iran, which drove higher transportation costs and increased transit times late in the quarter, as well as higher chemical prices that will begin to impact our costs in the second quarter. The combination of lower volume and continued cost pressures – most notably in our Furniture, Flooring & Textile Products segment – resulted in lower margins. We are mitigating these pressures through product and sourcing actions and by passing through price increases where appropriate.  "Despite these macroeconomic challenges and disruptions, we remain focused on our long-term priorities. As previously announced, we signed a merger agreement with Somnigroup, a valued long–standing customer and partner, that provides Leggett & Platt shareholders with an opportunity to participate in the future growth and value creation of a leading global company. For more than 140 years, Leggett & Platt has been defined by innovation, quality, and strong customer partnerships. We believe this combination positions us well to continue delivering compelling strategic and financial value for our customers, employees and shareholders."FIRST QUARTER RESULTSFirst quarter sales were $918 million, a 10% decrease versus first quarter last year2025 divestitures decreased sales 5%Organic sales2 were down 5%Volume was down 9%, primarily from continued weak demand across most of our end markets and retailer merchandising changes in Adjustable BedRaw material-related selling price increases added 2% to salesCurrency benefit increased sales 2%First quarter EBIT was $45 million, down from $63 million in first quarter 2025. Adjusted1 EBIT was $43 million, down from first quarter 2025 adjusted1 EBIT of $67 million.Adjusted1 EBIT decreased primarily from lower volume, earnings associated with the divested Aerospace business, and continued margin compression in our Flooring business driven by higher costs combined with pricing pressure resulting from the soft demand environment, partially offset by metal margin expansion in trade rod. Additionally, higher stock-based compensation expense and an increase in bad debt reserves related to Bedding customers contributed to the year-over-year decline.EBIT margin was 4.8%, down from 6.2% in the first quarter of 2025, and adjusted1 EBIT margin was 4.7%, down from 6.5%.First quarter EPS was $.14, an $.08 decrease versus first quarter 2025 EPS of $.22. First quarter adjusted1 EPS was $.15, down $.09 versus first quarter 2025 adjusted1 EPS of $.24.
First Quarter Results 1
EBIT (millions)
EPS
BeddingSpecializedFF&TOtherTotal


1Q261Q251Q261Q251Q261Q251Q261Q251Q261Q25
1Q261Q25Reported results$26$10$18$28$4$25($3)$—$45$63
$.14$.22Adjustment items:












Gain on sale of real
estate (10)————(3)——(10)(3)
(.05)(.02)Restructuring,
restructuring-related, and
impairment charges53—3

Somnigroup International, the World's Leading Bedding Company, to Acquire Leggett & Platt, A Diversified Component Manufacturer and Key Somnigroup Supplier, in an All-Stock TransactionApril 13, 2026 6:36 AM
PR Newswire (US)

–  Continues vertical integration strategy, enhancing consumer-centric innovation –  Expands addressable market in bedding and into non-bedding industries –  Reduces financial leverage and drives operating cash flow –  Drives immediate adjusted EPS accretion before synergies –  Creates meaningful synergy opportunitiesDALLAS and CARTHAGE, Mo., April 13, 2026 /PRNewswire/ -- Somnigroup International Inc. (NYSE: SGI, "Somnigroup") and Leggett & Platt, Incorporated (NYSE: LEG, "Leggett & Platt") today announced that the companies have signed a definitive agreement pursuant to which Somnigroup will acquire Leggett & Platt in an all-stock transaction valued at approximately $2.5 billion based on Somnigroup's closing share price on April 10, 2026.Under the terms of the agreement, Leggett & Platt shareholders will receive 0.1455 shares of Somnigroup common stock in exchange for each share of Leggett & Platt common stock they own. As a result of the transaction, Leggett & Platt's shareholders will own approximately 9% of the combined company on a fully diluted basis. The agreement has been unanimously approved by the Boards of Directors of Somnigroup and Leggett & Platt.The transaction is currently anticipated to close by year-end 2026, subject to the satisfaction of customary closing conditions, including approval by Leggett & Platt's shareholders and receipt of applicable regulatory approvals. The transaction does not require Somnigroup shareholder approval.Following the close of the transaction, Leggett & Platt is expected to operate as a separate business unit within Somnigroup, similar to Tempur Sealy, Mattress Firm, and Dreams, and to maintain its offices in Carthage, Missouri. Leggett & Platt's Chairman and CEO, Karl Glassman, will continue to lead Leggett & Platt following the closing date and will assist with a seamless transition to a new CEO of the Leggett & Platt business unit within twelve months of the closing date. Somnigroup and Leggett & Platt have collaborated for nearly 50 years to drive innovation in the bedding market. With a deep, longstanding partnership and strong cultural alignment, the companies know each other well, and the combination is expected to further strengthen their ability to deliver innovative bedding products. Together, after giving effect to the transaction, including elimination of intercompany sales, the combined company generated 2025 net sales of approximately $11.2 billion, approximately $1.7 billion of adjusted EBITDA, and $1.1 billion of operating cash flow. The combined company is expected to operate 175 manufacturing facilities across 36 countries worldwide, supported by a global workforce of more than 36,000 colleagues. The combined company will continue to honor Leggett & Platt's existing supply agreements with customers in the bedding industry.Leggett & Platt is a diversified manufacturer that designs and produces a broad variety of engineered components and products that can be found in many homes and automobiles. It is a leading supplier of bedding components and solutions; automotive seat comfort and convenience systems; home and work furniture components; geo components; flooring underlayment; and hydraulic cylinders for material handling and heavy construction applications.Somnigroup Chairman and CEO Scott Thompson said, "We are proud to have Leggett & Platt join Somnigroup. Leggett & Platt's strong engineering capabilities, diversified end users and cash–generating financial profile meaningfully enhance our global platform. This combination is consistent with our vertical integration strategy, which drives innovation and value for customers while also enhancing shareholder value. By bringing a successful supply partner into our group, we accelerate our ability to deliver differentiated, consumer–centric innovation. This combination is evidence of our commitment to disciplined capital allocation centered on long–term shareholder value creation."Leggett & Platt Chairman and CEO Karl Glassman said, "We are pleased to reach this agreement with Somnigroup, a valued long–standing customer and partner. This transaction provides Leggett & Platt shareholders with the opportunity to participate in the future growth and value creation of a leading global company on a tax deferred basis. On behalf of our Board of Directors and management team, I would like to thank the Leggett & Platt team for their hard work and dedication. For more than 140 years, we have provided our customers with innovation and quality. I believe this combination positions us to continue that track record and deliver compelling strategic and financial value for our customers, employees and shareholders."Strategic Rationale
The companies expect the combination to leverage the individual strengths of Somnigroup and Leggett & Platt to realize five strategic benefits.Continues Vertical Integration Strategy, Enhancing Consumer-Centric Innovation.
The combination enables closer collaboration between component engineering, mattress design, and consumer trends, supporting accelerated innovation cycles and more cost effective consumer-centric product constructions.Expands Addressable Markets in Bedding and Into Non-Bedding Industries.
The combination provides access to incremental addressable markets beyond bedding, expanding long-term growth opportunities and cash flow generation. Additionally, Leggett & Platt's diversified sales streams and geographic presence lessen reliance on any single category, product or geographic market, reducing overall volatility.Reduces Financial Leverage and Drives Operating Cash Flow.
The combination is expected to lower Somnigroup's net financial leverage and increases financial flexibility. Enhanced balance sheet capacity supports an expanded capital allocation strategy, which we, in turn, expect will drive shareholder value and enhance the combined company's competitive position.Drives Immediate Adjusted EPS Accretion Before Synergies.
The combination is expected to be accretive to adjusted EPS before synergies in the first year post close*.Creates Meaningful Synergy Opportunities.
The combination presents cost synergy opportunities with an expected net positive impact on adjusted EBITDA of $50 million on a fully implemented annual run-rate basis. The main categories of anticipated synergies are sourcing, operations and product innovation. We expect that these synergies will be fully realized over a three-year period, with approximately $10 million benefiting adjusted EBITDA in the first twelve months post-closing.*Post closing, Somnigroup expects Leggett & Platt's financial results will be presented as a new reporting segment within the Somnigroup business. Leggett & Platt's sales to Somnigroup's other reporting segments will be eliminated, with no impact to reported Leggett & Platt segment profits. In 2025, Somnigroup represented 7% of Leggett & Platt's net sales. Additionally, in accordance with GAAP, Somnigroup expects to incur approximately $50 million of annualized non-cash expense from the adjustment to fair value of the acquired Leggett & Platt business, which will primarily impact cost of goods sold, and Somnigroup expects to incur approximately $10 million of annualized non-cash expense from the adjustment to fair value of the acquired Leggett & Platt bonds, which will impact interest expense.Financial Impact
As of December 31, 2025, Leggett & Platt's net leverage under its credit agreement was 2.4 times adjusted EBITDA. Somnigroup expects to leave Leggett & Platt's existing long-term bond debt in place following the transaction.Advisors
Goldman Sachs & Co. LLC is serving as exclusive financial advisor and Cleary Gottlieb Steen & Hamilton LLP is serving as legal counsel to Somnigroup. J.P. Morgan Securities LLC is serving as exclusive financial advisor and Latham & Watkins LLP is serving as legal counsel to Leggett & Platt.Forward-Looking Statements
This press release contains statements that may be characterized as "forward-looking" within the meaning of the federal securities laws. Such statements might include information concerning one or more of Somnigroup's and Leggett & Platt's plans, guidance, objectives, goals, strategies, and other information that is not historical information. When used in this release, the words "will," "targets," "expects," "anticipates," "plans," "proposed," "intends," "outlook," and variations of such words or similar expressions are intended to identify forward-looking statements. These forward-looking statements include, without limitation, statements relating to Somnigroup's expectations regarding the impact of the proposed transaction on Somnigroup's brands, products, customer base, results of operations, or financial position, its share repurchases, adjusted EPS, net leverage, operating cash flow, net income, future performance, cost and run-rate synergies, funding sources, expected capital structure, the financial impact of Leggett & Platt's existing long-term debt, ability to deleverage after the proposed transaction, the expected timing and likelihood of completion of the proposed transaction, the integration of Leggett & Platt with Somnigroup's business and personnel and Somnigroup's and Leggett & Platt's post-acquisition financial reporting. Any forward-looking statements contained herein are based upon current expectations and beliefs and various assumptions. There can be no assurance that these expectations or beliefs will prove correct.Numerous factors, many of which are beyond Somnigroup's and Leggett & Platt's control, could cause actual results to differ materially from any that may be expressed herein as forward-looking statements. These potential risks include risks associated with Leggett & Platt's ongoing operations; the ability to obtain the requisite Leggett & Platt shareholder approval; the risk that Somnigroup or Leggett & Platt may be unable to obtain governmental and regulatory approvals required for the proposed transaction (and the risk that such approvals may result in the imposition of conditions that could adversely affect the combined company or the expected benefits of the proposed transaction); the risk that an event, change or other circumstance could give rise to the termination of the proposed transaction; the risk of delays in completing the proposed transaction; the ability to successfully integrate Leggett & Platt into Somnigroup's operations and realize synergies from the proposed transaction and the expected run-rate of such synergies; the possibility that the expected benefits of the acquisition are not realized when expected or at all; the risk that any announcement relating to the proposed transaction could have adverse effects on the market price of Somnigroup's or Leggett & Platt's common stock; the risk of litigation related to the proposed transaction; the diversion of management time from ongoing business operations and opportunities as a result of the proposed transaction; the risk of adverse reactions or changes to business or employee relationships, including those resulting from the announcement or completion of the proposed transaction; general economic, financial and industry conditions, particularly conditions relating to the financial performance and related credit issues present in the retail sector, as well as consumer confidence and the availability of consumer financing; the impact of the macroeconomic environment in both the U.S. and internationally on Somnigroup and Leggett & Platt; uncertainties arising from national and global events; industry competition; the effects of consolidation of retailers on revenues and costs; consumer acceptance and changes in demand for Somnigroup's and Leggett & Platt's products; and other risks inherent in Somnigroup's and Leggett & Platt's businesses.All such factors are difficult to predict, are beyond Somnigroup's and Leggett & Platt's control, and are subject to additional risks and uncertainties, including those detailed in Somnigroup's annual report on Form 10-K for the year ended December 31, 2025 and those detailed in Leggett & Platt's annual report on Form 10-K for the year ended December 31, 2025. These risks, as well as other risks related to the proposed transaction, will be included in the Form S-4 and proxy statement/prospectus (each as defined below) that Somnigroup and Leggett & Platt intend to file with the United States Securities and Exchange Commission (the "SEC") in connection with the proposed transaction. There may be other factors that may cause Somnigroup's and Leggett & Platt's actual results to differ materially from the forward-looking statements. Neither Somnigroup nor Leggett & Platt undertakes any obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law.No Offer or Solicitation
This press release is not intended to be, and shall not constitute, an offer to sell, buy or exchange or the solicitation of an offer to sell, buy or exchange any securities, or a solicitation of any vote or approval, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offering of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.Additional Information and Where to Find It
In connection with the proposed transaction, Somnigroup intends to file with the SEC a registration statement on Form S-4 (the "Form S-4") that will include a proxy statement of Leggett & Platt and that will also constitute a prospectus of Somnigroup with respect to the shares of Somnigroup common stock to be issued in the proposed transaction (the "proxy statement/prospectus"). The definitive proxy statement/prospectus (if and when available) will be filed with the SEC by, and mailed to shareholders of, Leggett & Platt. Each of Somnigroup and Leggett & Platt may also file other relevant documents with the SEC regarding the proposed transaction.This press release is not a substitute for the Form S-4, the proxy statement/prospectus or any other document that Somnigroup or Leggett & Platt may file with the SEC in connection with the proposed transaction. INVESTORS AND SECURITY HOLDERS OF SOMNIGROUP AND LEGGETT & PLATT ARE URGED TO READ THE FORM S-4, THE PROXY STATEMENT/PROSPECTUS AND ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THOSE DOCUMENTS, CAREFULLY IN THEIR ENTIRETY IF AND WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION. Investors and security holders will be able to obtain copies of these documents (if and when available), as well as other filings containing information about Somnigroup and Leggett & Platt, free of charge on the SEC's website at www.sec.gov. Copies of the documents filed with, or furnished to, the SEC by Somnigroup will be available free of charge on Somnigroup's website at https://somnigroup.com/investor-resources/financials/sec-filings/default.aspx. Copies of the documents filed with, or furnished to, the SEC by Leggett & Platt will be available free of charge on Leggett & Platt's website at https://leggett.gcs-web.com/financials/sec-filings. The information included on, or accessible through, Somnigroup's or Leggett & Platt's website is not incorporated by reference into this communication.Participants in Solicitation
Somnigroup, Leggett & Platt and certain of their respective directors and executive officers may be deemed to be participants in the solicitation of proxies with respect to the proposed transaction under the rules of the SEC. You can find information about Somnigroup's executive officers and directors in Somnigroup's definitive proxy statement filed with the SEC on March 31, 2026, under the section entitled "Proposal No. 1 — Election of Directors - Executive Officers," "Proposal No. 1 — Election of Directors - Nominees to Board of Directors," "Stock Ownership – Stock Ownership of Certain Beneficial Owners and Directors and Executive Officers," "Executive Compensation and Related Information - Compensation of Executive Officers" and "Director Compensation." You can find information about Leggett & Platt's executive officers and directors in Leggett & Platt's Annual Report on Form 10-K for the year ended December 31, 2025, under the section entitled "Supplemental Information: Information about our Executive Officers," and "Directors, Executive Officers and Corporate Governance," and in Leggett & Platt's definitive proxy statement filed with the SEC on April 7, 2026, under the sections entitled "Corporate Governance and Board Matters - Director Compensation," "Proposals to be Voted On at the Annual Meeting - Proposal One: Election of Directors," "Executive Compensation and Related Matters - Compensation Discussion & Analysis" and "Security Ownership - Security Ownership of Directors and Executive Officers." Additional information regarding the interests of the participants in the solicitation of proxies will be included in the Form S-4, the proxy statement/prospectus and other relevant materials to be filed with the SEC if and when they become available. You should read the Form S-4 and the proxy statement/prospectus carefully when available before making any voting or investment decisions. You may obtain free copies of these documents using the sources indicated above.About Somnigroup International
Somnigroup is the world's leading bedding company, dedicated to transforming how the world sleeps. With superior capabilities in design, manufacturing, distribution and retail, we deliver breakthrough sleep solutions and serve the evolving needs of consumers in more than 100 countries worldwide, through our fully-owned businesses, Tempur Sealy, Mattress Firm and Dreams. Our portfolio includes the most highly recognized brands in the industry, including Tempur-Pedic®, Sealy®, Stearns & Foster®, and Sleepy's®, and our global omni-channel platform enables us to meet consumers wherever they shop, offering a personal connection and innovation to provide a unique retail experience and tailored sleep solutions.We seek to deliver long-term value for our shareholders through prudent capital allocation, including managing investments in our businesses. We are guided by our core value of Doing the Right Thing and committed to our global responsibility to protect the environment and the communities in which we operate. For more information, please visit www.somnigroup.com.About Leggett & Platt
Leggett & Platt is a diversified manufacturer that designs and produces a broad variety of engineered components and products that can be found in many homes and automobiles. The 143-year-old company is a leading supplier of bedding components and solutions; automotive seat comfort and convenience systems; home and work furniture components; geo components; flooring underlayment; and hydraulic cylinders for material handling and heavy construction applications.Investor Relations ContactsFor Somnigroup:
Lauren Avritt
Investor Relations
Somnigroup International Inc.
800-805-3635
Investor.relations@somnigroup.comFor Leggett & Platt:
Ryan M. Kleiboeker
Investor Relations
Leggett & Platt, Incorporated
417-358-8131
invest@leggett.com 



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Original: Somnigroup International, the World's Leading Bedding Company, to Acquire Leggett & Platt, A Diversified Component Manufacturer and Key Somnigroup Supplier, in an All-Stock Transaction

Leggett & Platt Announces Quarterly Dividend of $.05February 26, 2026 11:04 AM
PR Newswire (US)

CARTHAGE, Mo., Feb. 26, 2026 /PRNewswire/ -- Leggett & Platt's Board of Directors declared a dividend of $.05 per share for the first quarter of 2026. The dividend will be paid on April 15, 2026 to shareholders of record on March 13, 2026.FOR MORE INFORMATION: Visit Leggett's website at www.leggett.com.COMPANY DESCRIPTION: Leggett & Platt (NYSE: LEG) is a diversified manufacturer that designs and produces a broad variety of engineered components and products that can be found in many homes and automobiles. The 143-year-old Company is a leading supplier of bedding components and solutions; automotive seat comfort and convenience systems; home and work furniture components; geo components; flooring underlayment; and hydraulic cylinders for material handling and heavy construction applications.CONTACT:   Investor Relations, (417) 358-8131 or invest@leggett.com
Ryan M. Kleiboeker, Executive Vice President
Katelyn J. Pierce, Analyst 





View original content to download multimedia:https://www.prnewswire.com/news-releases/leggett--platt-announces-quarterly-dividend-of-05-302698608.htmlSOURCE Leggett & Platt Incorporated

Original: Leggett & Platt Announces Quarterly Dividend of $.05

Leggett & Platt Reports 4Q and Full Year 2025 ResultsFebruary 11, 2026 4:10 PM
PR Newswire (US)

CARTHAGE, Mo., Feb. 11, 2026 /PRNewswire/ --4Q sales of $939 million, an 11% decrease vs 4Q244Q EPS of $.18, 4Q adjusted1 EPS of $.22, a $.01 increase vs adjusted1 4Q24 EPS2025 sales of $4.05 billion, a 7% decrease vs 20242025 EPS of $1.69, 2025 adjusted1 EPS of $1.05, flat vs adjusted1 2024 EPS2025 operating cash flow of $338 million, a $33 million increase vs 20242026 guidance: sales of $3.8–$4.0 billion, EPS of $0.92–$1.38; adjusted1 EPS of $1.00–$1.20President and CEO Karl Glassman commented, "Throughout 2025, our teams executed our strategic priorities, including strengthening our balance sheet, improving operational efficiency, and positioning the company for long-term growth. We made significant progress on our deleveraging efforts, reducing our debt and lowering our net debt leverage ratio to 2.4x. This was a tremendous step toward achieving our long-term target of 2.0x, making Leggett more agile and enabling us to shift our focus to pursuing opportunities for growth and returning capital to shareholders."We are pleased the restructuring plan we launched in early 2024 was substantially completed by the end of 2025, resulting in greater EBIT benefit with lower costs than originally expected. We are confident the significant improvements made over the past two years are sustainable, will support improved profitability and cash flow, and position us to benefit from the future recovery in residential market demand."FOURTH QUARTER RESULTS
Fourth quarter sales were $939 million, an 11%2 decrease versus fourth quarter last yearDivestitures decreased sales 5%Organic sales3 were down 6%Volume was down 9%, primarily from sales weakness at a certain customer and retailer merchandising changes in Adjustable Bed and Specialty Foam, continued soft demand in residential end markets, customers' supply chain disruptions in Automotive, and lower demand in Hydraulic Cylinders. These declines were partially offset by growth in Textiles, Work Furniture, and higher trade wire and rod sales.Raw material-related selling price increases and currency benefit increased sales 3%Fourth quarter EBIT was $32 million, down $12 million from fourth quarter 2024 EBIT of $44 million. Adjusted1 EBIT was $48 million, an $8 million decrease from fourth quarter 2024 adjusted1 EBIT.Adjusted1 EBIT decreased primarily from lower volume and earnings associated with the divested Aerospace business, partially offset by metal margin expansion and restructuring benefitEBIT margin was 3.4%, down from 4.1% in the fourth quarter of 2024, and adjusted1 EBIT margin was 5.1%, down from 5.3%.Fourth quarter EPS was $.18, an $.08 increase versus fourth quarter 2024 EPS of $.10. Fourth quarter adjusted1 EPS was $.22, up $.01 versus fourth quarter 2024 adjusted1 EPS of $.21.
Fourth Quarter Results 1
EBIT (millions) 
EPS
BeddingSpecializedFF&TOtherTotal


4Q254Q244Q254Q244Q254Q244Q254Q244Q254Q24
4Q254Q24Reported results$26$2$24$25$7$17($25)—$32$44
$.18$.10Adjustment items:












Net gain from insurance proceeds(22)———————(22)—
(.12)—Gain from sale of restructuring real estate (5)(2)——————(5)(2)
(.03)(.01)Gain on sale of Aerospace Products Group——(4)—————(4)—
(.03)—Gain from sale of idle real estate—(2)———————(2)
—(.01)Restructuring, restructuring-related, and impairment charges21710352———2215
.12.09Pension settlement3 ——————22—22—
.08—Somnigroup unsolicited offer evaluation costs——————3—3—
.02—Goodwill impairment—1———————1
—.00Special tax item4——————————
—.04Total adjustments(9)7(2)52—25—1612
.04.11Adjusted results $16$8$23$30$9$17$0—$48$56
$.22$.211 Calculations impacted by rounding 2 4Q25 includes $3 million and 4Q24 includes $2 million of other restructuring activities not associated with the restructuring plan3 Impact from a non-cash settlement charge related to the termination of a pension plan4 $5 million deferred tax asset valuation allowance related to a 2022 acquisition in the Specialized Products segment














FULL YEAR RESULTS
2025 sales were $4.05 billion, a 7%4 decrease versus 2024Divestitures decreased sales 2%Organic sales3 were down 5%Volume was down 6%, primarily from continued weak demand in residential end markets, sales weakness at a certain customer and retailer merchandising changes in Adjustable Bed and Specialty Foam, lower demand in Automotive and Hydraulic Cylinders, and restructuring-related sales attrition. These declines were partially offset by growth in Textiles and Work Furniture and higher trade wire and rod sales.Raw material-related selling price increases and currency benefit increased sales 1%2025 EBIT was $356 million, up $786 million from 2024 EBIT of ($430) million. Adjusted1 EBIT was $263 million, a $4 million decrease from 2024 adjusted1 EBIT.Adjusted1 EBIT decreased primarily from lower volume, partially offset by restructuring benefit and metal margin expansion.EBIT margin was 8.8%, up from (9.8%) in 2024, and adjusted1 EBIT margin was 6.5%, up from 6.1%.2025 EPS was $1.69, a $5.42 increase versus 2024 EPS of ($3.73). 2025 adjusted1 EPS was $1.05, flat versus 2024 adjusted1 EPS of $1.05.
Full Year Results 1
EBIT (millions) 
EPS
BeddingSpecializedFF&TOtherTotal


2025202420252024202520242025202420252024
20252024Reported results$99($549)$204$64$79$58($25)($4)$356($430)
$1.69($3.73)Adjustment items:












Gain on sale of Aerospace Products Group——(91)—————(91)—
(.61)—Net gain from insurance proceeds(35)————(2)——(35)(2)
(.19)(.01)Gain from sale of restructuring real estate (22)(17)——(3)———(24)(17)
(.13)(.09)Gain from sale of idle real estate—(14)(2)—(3)———(5)(14)
(.03)(.08)Restructuring, restructuring-related, and impairment charges2263781032——3650
.20.28Pension settlement3 ——————22—22—
.08—Somnigroup unsolicited offer evaluation costs——————3—3—
.02—Goodwill impairment—588—44—44———676
—4.61CEO transition compensation costs———————4—4
—.03Special tax item4——————————
.02.04Total adjustments(30)594(85)54(3)44254(93)696
(.64)4.78Adjusted results $68$45$119$118$76$103$0$—$263$267
$1.05$1.051 Calculations impacted by rounding 2 2025 includes $6 million and 2024 includes $3 million of other restructuring activities not associated with the restructuring plan3 Impact from a non-cash settlement charge related to the termination of a pension plan4 2025 includes $2 million tax related to U.S. corporate tax law changes; 2024 includes $5 million deferred tax asset valuation allowance related to a 2022 acquisition in the Specialized Products segment  
















2025 DEBT, CASH FLOW, AND LIQUIDITYNet Debt1 was 2.4x trailing 12-month adjusted EBITDA1 as of year endDebt at December 31Reduced debt by $376 million in 2025Total debt of $1.5 billion in three tranches of long-term bonds at $500 million eachOperating cash flow was $338 million, an increase of $33 million versus 2024, driven primarily by working capital improvementsCapital expenditures were $57 millionDividends were $27 millionIn November, Leggett & Platt's Board of Directors declared a fourth quarter dividend of $.05 per share, flat versus last year's fourth quarter dividendStock issuances and repurchases were all related to employee benefit plans, .3 million shares surrendered and issuances of 1.4 million sharesTotal liquidity was $1,296 million at December 31$587 million cash on hand$709 million in capacity remaining under revolving credit facilityRESTRUCTURING PLANRealized $5 million of incremental5 EBIT benefit in fourth quarter 2025, $41 million of incremental5 EBIT benefit in 2025 and $63 million of EBIT benefit from inceptionExpect approximately $5 million of incremental5 EBIT benefit in 2026Realized $5 million of incremental5 sales attrition in fourth quarter 2025, including $3 million from the divestiture of a small U.S. machinery business in our Bedding Products segment and realized $38 million of incremental5 sales attrition in 2025, including $12 million from the divestiture of the machinery business. Realized $53 million of sales attrition from inception.Expect approximately $5 million of incremental5 sales attrition in 2026Realized $48 million of cash proceeds from real estate sales from inceptionAnticipate an additional $20–$30 million of cash proceeds in 2026Realized $19 million of restructuring and restructuring-related costs in fourth quarter 2025, $30 million of restructuring and restructuring-related costs in 2025, and $78 million of restructuring and restructuring-related costs from inceptionExpect an additional $2 million of restructuring and restructuring-related costs in 2026
Restructuring Plan Impacts (millions)

4Q 20252025Since Inception Total Plan
Estimate
Net Cash Received from
Real Estate Sales$6$28$48$70–$80
Total Costs$19$30$78~$80
     Cash Costs 1939~40
     Non-Cash Costs 182139~40












2026 GUIDANCESales are expected to be $3.8–$4.0 billion, down 1% to 6% versus 20252025 divestitures to reduce sales by 3%Volume is expected to be flat to down low-single digitsVolume at the midpoint:Down low-single digits in Bedding Products segmentDown low-single digits in Specialized Products segmentFlat in Furniture, Flooring & Textile Products segmentRaw material-related price increases and currency benefit combined expected to increase sales low-single digitsEPS is expected to be $0.92–$1.38Earnings expectations include:$.02 to $.11 per share impact from restructuring costs, primarily related to cost improvement and footprint optimization opportunities identified across the company that are currently being evaluated$.05 to $.08 per share impact from costs associated with the unsolicited offer from Somnigroup$.11 to $.25 per share gain from sales of real estateAdjusted EPS is expected to be $1.00–$1.20At the midpoint, increase versus 2025 due primarily to operational efficiency improvements, disciplined cost management, favorable sales mix, and full year benefit of metal margin expansion that started in Q2 2025, partially offset by lower volumeBased on this framework, 2026 EBIT margin is expected to be 5.9%–7.8%; adjusted EBIT margin is expected to be 6.3%–7.0%Additional expectations:Depreciation and amortization $115 millionNet interest expense $50 millionEffective tax rate 26%Operating cash flow $225–$275 millionCapital expenditures $100–$115 millionFully diluted shares 141 millionShare repurchases to offset share issuances, resulting in minimal dilutionSEGMENT RESULTS – Fourth Quarter 2025 (versus 4Q 2024) Bedding Products –Trade sales decreased 11%Volume decreased 15%, primarily due to sales weakness at a certain customer and retailer merchandising changes in Adjustable Bed and Specialty Foam and restructuring-related sales attrition, partially offset by higher trade wire and rod salesRaw material-related selling price increases and currency benefit added 5% to salesDivestiture of a small U.S. machinery business reduced sales 1%EBIT increased $24 million and adjusted1 EBIT increased $8 millionAdjusted1 EBIT increased primarily from metal margin expansion in trade rod and restructuring benefit partially offset by lower volumeSpecialized Products –Trade sales decreased 21%Divestiture of Aerospace reduced sales 17%Volume decreased 7% primarily from customers' supply chain disruptions in Automotive and lower demand in Hydraulic CylindersRaw material-related selling price increases and currency benefit added 3% to salesEBIT decreased $1 million and adjusted1 EBIT decreased $8 millionAdjusted1 EBIT decreased primarily from lower volume and earnings associated with the divested Aerospace business partially offset by restructuring benefitFurniture, Flooring & Textile Products –Trade sales decreased 3%Volume decreased 2%, primarily from demand softness in Home Furniture and Flooring partially offset by growth in Textiles and Work FurnitureCurrency benefit offset by raw material-related selling price decreasesDivestiture of a facility in Work Furniture reduced sales 1%EBIT decreased $9 million and adjusted1 EBIT decreased $8 millionAdjusted1 EBIT decreased primarily from lower volume, pricing adjustments, currency impact, and start-up costs associated with a new Home Furniture facility in VietnamSEGMENT RESULTS – Full Year 2025 (versus 2024) Bedding Products –Trade sales decreased 11%Volume decreased 12%, primarily due to sales weakness at a certain customer and retailer merchandising changes in Adjustable Bed and Specialty Foam, demand softness in U.S. and European bedding markets, restructuring-related sales attrition, and the exit of a customer in Specialty Foam partially offset by higher trade rod and wire salesRaw material-related selling price increases and currency benefit added 2% to salesDivestiture of a small U.S. machinery business reduced sales 1%EBIT increased $648 million and adjusted1 EBIT increased $23 millionAdjusted1 EBIT increased primarily from metal margin expansion, restructuring benefit, favorable sales mix in Steel Rod and U.S. Spring, and operational efficiency improvements in Specialty Foam. These increases were partially offset by lower volume.Specialized Products –Trade sales decreased 9%Divestiture of Aerospace reduced sales 5%Volume decreased 5% from declines in Automotive and Hydraulic Cylinders partially offset by growth in Aerospace in the first half of the yearRaw material-related selling price increases and currency benefit added 1% to salesEBIT increased $140 million and adjusted1 EBIT increased $1 millionAdjusted1 EBIT increased primarily from pricing actions, operational efficiency improvements, and restructuring benefit partially offset by lower volume and earnings associated with the divested Aerospace businessFurniture, Flooring & Textile Products –Trade sales decreased 1%Volume was flat year over year from demand softness in Home Furniture and Flooring offset by growth in Textiles and Work FurnitureRaw material-related selling price decreases, net of currency benefit, reduced sales 1%EBIT increased $20 million and adjusted1 EBIT decreased $27 millionAdjusted1 EBIT decreased primarily from pricing adjustments, currency impact, start-up costs associated with a new Home Furniture facility in Vietnam, and the aggregate of other smaller itemsSLIDES AND CONFERENCE CALL
A set of slides containing summary financial information is available from the Investor Relations section of Leggett's website at www.leggett.com. Management will host a conference call at 7:30 a.m. Central (8:30 a.m. Eastern) on Thursday, February 12. The webcast can be accessed from Leggett's website, via Leggett & Platt Q425 Webcast & Earnings Conference Call. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
FOR MORE INFORMATION: Visit Leggett's website at www.leggett.com.COMPANY DESCRIPTION: Leggett & Platt (NYSE: LEG) is a diversified manufacturer that designs and produces a broad variety of engineered components and products that can be found in many homes and automobiles. The 143-year-old Company is a leading supplier of bedding components and solutions; automotive seat comfort and convenience systems; home and work furniture components; geo components; flooring underlayment; and hydraulic cylinders for material handling and heavy construction applications.FORWARD-LOOKING STATEMENTS: This press release contains "forward-looking statements," identified by the context in which they appear or words such as "expect," "anticipated," "estimate," and "guidance," including, but not limited to volume; sales, EPS, adjusted EPS; capital expenditures; depreciation and amortization; net interest expense; fully diluted shares; operating cash flow;  incremental sales attrition; EBIT margin; adjusted EBIT margin; effective tax rate; dividends; raw material related price increases; currency impact; incremental EBIT benefit; share repurchases; net cash from real estate sales, and restructuring and restructuring related cash and non-cash costs. Such statements are expressly qualified by cautionary statements described in this provision and reflect only the beliefs, expectations, and assumptions of Leggett at the time the statement is made. Because all forward-looking statements deal with the future, they are subject to risks, uncertainties and developments which might cause actual events or results to differ materially from those envisioned or reflected in any forward-looking statement. Moreover, we do not have, and do not undertake, any duty to update or revise any forward-looking statement to reflect events or circumstances after the date on which the statement was made. Some of these risks include: risks associated with our review of any potential transaction between the Company and Somnigroup International, Inc. including the impact on our stock price, customer relationships, business, and the timeline for the completion of the review process which there can be no assurance that the process will result in any particular outcome; increased trade costs, including tariffs; regarding the Restructuring Plan,  our ability to timely receive anticipated EBIT benefits, and  expected net cash from real estate sales,  our ability to accurately forecast sales and earnings; the adverse impact on our sales, earnings, liquidity, margins, cash flow, costs, and financial condition caused by: global inflationary and deflationary impacts; the demand for our products and our customers' products; our manufacturing facilities' ability to obtain necessary raw materials, parts, and labor, and to ship finished products; the impairment of goodwill and long-lived assets; our ability to access the commercial paper market or borrow under our credit facility; supply chain shortages and disruptions; our ability to manage working capital; our ability to collect receivables; price and product competition; cost of raw materials, labor and energy; cash generation sufficient to pay our debts or the dividend; cash repatriation from foreign accounts; our ability to pass along cost increases through increased selling prices; conflict between China and Taiwan; our ability to maintain profit margins if customers change the quantity or mix of our products; political risks; tax audits and rates; foreign operating risks; cybersecurity incidents; customer losses and insolvencies; disruption to our steel rod mill and wire mills and other operations because of severe weather-related events, natural disaster, fire, explosion, terrorism, pandemic, or governmental action; ability to develop innovative products; foreign currency fluctuation; share repurchases; anti-dumping duties on innersprings, steel wire rod and mattresses; data privacy; sustainability obligations; litigation risks; and risk factors in the "Forward-Looking Statements" and "Risk Factors" sections in Leggett's Form 10-K and subsequent Form 10-Qs. INVESTOR CONTACTS: Investor Relations
Ryan M. Kleiboeker, Executive Vice President
Katelyn J. Pierce, Analyst
(417) 358-8131 or invest@leggett.com ________________________1 Please refer to attached tables for Non-GAAP Reconciliations2

11.75 don't bite my Leg

"Leggett & Platt (LEG) Shares Skyrocket, What You Need To Know"

"Shares of manufacturing company Leggett & Platt
LEG jumped 15.2% in the afternoon session after bedding manufacturer Somnigroup International proposed to acquire the company in an all-stock deal valued at about $1.6 billion.

Under the terms of the unsolicited proposal, Leggett & Platt shareholders would receive Somnigroup common stock valued at $12.00 for each share they owned. This price represented a 30.3% premium to Leggett & Platt's average closing price over the previous 30 trading days. Leggett & Platt confirmed it received the non-binding offer and its Board of Directors planned to carefully review it with financial and legal advisors. The company also told its shareholders that no action was needed at the time."

https://www.tradingview.com/news/stockstory:85b029862094b:0-leggett-platt-leg-shares-skyrocket-what-you-need-to-know/

That would just cover my average cost basis of 20.43.

: - }

This was a classic falling knife for me last year and I even used it to do some tax loss harvesting (not to mention sell covered calls on the way down). Now to see what in the earnings justifies the positive action. It would be hilarious if it continued pumping. Next strike price on the option chain is 10.

Let's go back to 20 with a 44 cent dividend.

I'm betting this company will start making decent profits again now that the country is heading in the right direction again.

Another example of why I never buy stocks for fat dividends. Prefer those that pay durable "market rate" payouts of around 1%-3%. Index funds sill doing well and paying nicely,

Strange that t LEG was still increasing its dividend until recently. They do a lot of business in auto interiors. including EV interiors. That surely hasn't gone well lately.

"Leggett (LEG) Lags on Q1 Earnings & Sales, Cuts Dividend by 89%." Been trimming my Leg holding for ages. Once about my largest holding several decades ago.

"Leggett significantly reduced its second-quarter dividend to 5 cents from the prior-year figure of 46 cents. The company noted that the move has been undertaken to free up capital to accelerate the deleveraging of its balance sheet and solidify long-held financial strength. The dividend will be paid on Jul 15, 2024, to shareholders of record on Jun 14.

Quarter in Details
Leggett reported adjusted earnings per share (EPS) of 23 cents, which lagged the consensus estimate of 25 cents by 8% and decreased 41% from 39 cents reported a year ago.

Net trade sales of $1.1 billion missed the consensus mark of $1.11 billion by 1.5% and declined 9.6% from the prior-year quarter’s level of $1.2 billion (all org

https://www.zacks.com/stock/news/2266176/leggett-leg-lags-on-q1-earnings-sales-cuts-dividend-by-89

Wow now that's a hair cut. There goes the dividend.

LEG is the smallest company I own stock in. Normally I don't invest in firms with less than a $10 billion market cap. But Leg's cap is currently just $3.5 billion. So I certainly wouldn't add.

LEG's main business sectors, bedding and auto, are suffering to some degree. Note that my large holdings in index funds continue doing well and paying growing dividends. I'll continue to hold LEG.

What the heck is going on with LEG? 60 down to 18 much like IEP. How much longer before a dividend cut?

"Q. Dividend Goes to $0.46"

" Date Dividend
Jun 14, 2023 0.46 Dividend
Mar 14, 2023 0.44 Dividend
Dec 14, 2022 0.44 Dividend
Sep 14, 2022 0.44 Dividend
Jun 14, 2022 0.44 Dividend
Mar 14, 2022 0.42 Dividend
Dec 14, 2021 0.42 Dividend
Sep 14, 2021 0.42 Dividend
Jun 14, 2021 0.42 Dividend
Mar 12, 2021 0.40 Dividend
Dec 14, 2020 0.40 Dividend
Sep 14, 2020 0.40 Dividend
Jun 12, 2020 0.40 Dividend
Mar 12, 2020 0.40 Dividend
Dec 12, 2019 0.40 Dividend
Sep 12, 2019 0.40 Dividend
Jun 13, 2019 0.40 Dividend
Mar 14, 2019 0.38 Dividend
Dec 13, 2018 0.38 Dividend
Sep 21, 2018 0.38 Dividend"

"Leggett & Platt's (NYSE:LEG) Dividend Will Be Increased To $0.46"

"The board of Leggett & Platt, Incorporated (NYSE:LEG) has announced that it will be paying its dividend of $0.46 on the 14th of July, an increased payment from last year's comparable dividend. This will take the annual payment to 5.7% of the stock price, which is above what most companies in the industry pay.

View our latest analysis for Leggett & Platt

Leggett & Platt's Payment Has Solid Earnings Coverage
A big dividend yield for a few years doesn't mean much if it can't be sustained. The last payment made up 88% of earnings, but cash flows were much higher. In general, cash flows are more important than earnings, so we are comfortable that the dividend will be sustainable going forward, especially with so much cash left over for reinvestment.

Over the next year, EPS is forecast to fall by 2.7%. Assuming the dividend continues along recent trends, we think the payout ratio could reach 93%, which is definitely on the higher side."

https://finance.yahoo.com/news/leggett-platts-nyse-leg-dividend-101503935.html

"LEG ANNOUNCES Q. DIVIDEND OF $.44"

*"First quarter dividend is $.44 per share, an increase of 4.8% versus 1Q 2022

* Indicated dividend yield is 5.2%

* Annual dividends have increased for 51 consecutive years"

https://finance.yahoo.com/news/leggett-platt-announces-quarterly-dividend-194100912.html

May 17, 2022: "LEGGETT & PLATT ANNOUNCES DIVIDEND_INCREASE AND ANNUAL MEETING RESULTS"

"Increased second quarter dividend by $.02, or 4.8%, to $.44 per share. The dividend will be paid on July 15, 2022 to shareholders of record on June 15, 2022.

Indicated dividend yield is 4.7%

"Leggett & Platt has increased its annual dividend for 51 consecutive years and possesses one of the highest yields among the Dividend Kings."

https://finance.yahoo.com/news/leggett-platt-announces-dividend-increase-150900247.html

I've owned tons of LEG for decades. If I need a chunk of cash, I'll often sell off some of those shares. It was a huge winner in the 1990s with several splits, but those days are gone. Yields a pretty safe 4.5% with a bit of inflation protection, but offers little more.

Looking interesting here

LEG Quarterly Dividend History (corrected)
Mar 14, 2022 0.42 Dividend
Dec 14, 2021 0.42 Dividend
Sep 14, 2021 0.42 Dividend
Jun 14, 2021 0.42 Dividend
Mar 12, 2021 0.40 Dividend
Dec 14, 2020 0.40 Dividend
Sep 14, 2020 0.40 Dividend
Jun 12, 2020 0.40 Dividend
Mar 12, 2020 0.40 Dividend
Dec 12, 2019 0.40 Dividend
Sep 12, 2019 0.40 Dividend
Jun 13, 2019 0.40 Dividend
Mar 14, 2019 0.38 Dividend
Dec 13, 2018 0.38 Dividend
Sep 21, 2018 0.38 Dividend
Jun 14, 2018 0.38 Dividend
Mar 14, 2018 0.36 Dividend
Dec 14, 2017 0.36 Dividend
Sep 14, 2017 0.36 Dividend
Jun 13, 2017 0.36 Dividend

March of 7 years ago! The report wasn't that bad, but this market is demanding beats, and often gets them.

Back to where we were in March

Now that 9% drop was ugly.

Dividend Correction from SA, which seems to make a lot of errors regarding dividends:

There will only one dividend raise in 2021, an increase of $.02 per share or 5%.

"In May, we increased the quarterly dividend by $0.02 to $0.42 per share. At an annual indicated dividend of $1.68, the yield is 3.5% based upon Friday's closing price of $48.03, one of the higher yields among the S&P 500 Dividend Aristocrats. This year marks our 50th consecutive year of annual increases. We're proud of our dividend record and we plan to extend it."

https://seekingalpha.com/news/3729061-leggett-and-platt-incorporated-declares-0_42-dividend

Better than nice. That's the 2nd increase this year!

Nice! "LEG declares $0.44/share quarterly dividend, 4.8% increase from prior dividend of $0.42."

https://seekingalpha.com/news/3729061-leggett-and-platt-incorporated-declares-0_42-dividend

LEG looks poised to breakout out to the upside--looking at the charts.

"Leggett & Platt Reports Record 2Q Results"

• 2Q sales were a quarterly record1 $1.27 billion, a 50% increase vs 2Q20
• 2Q EBIT was $172 million, an increase of $149 million vs 2Q20
• 2Q record adjusted2 EBIT was $144 million, up $94 million vs 2Q20
• 2Q EPS was $.82, up $.87 vs 2Q20; 2Q adjusted2 EPS was $.66, up $.51 vs 2Q20 adjusted2 EPS
• Acquired Kayfoam, an Ireland-based provider of specialty foam and finished mattresses
• Increasing 2021 guidance: sales of $4.9–$5.1 billion; EPS of $2.86–$3.06; adjusted2 EPS of $2.70–$2.90

LEG June 14, 2021 payout rose to $0.42 from 0.40. Nice increase, but its been awhile.

SA: "Leggett & Platt: The Dividend King Has Risen"

"* Leggett & Platt just posted strong results and raised its dividend for the 50th consecutive year.

* It should continue to benefit from the stay-at-home environment, has a healthy backlog, and could benefit from the favorable trade ruling.

* I also highlight the balance sheet, valuation, and other points worth considering."

https://seekingalpha.com/article/4424734-leggett-platt-dividend-king-risen?mail_subject=leg-leggett-platt-the-dividend-king-has-risen

Yes, that's an *intelligent* way to get secure and growing dividends. I believe every one of my stocks increased its payout in the last year with the exception of my small Boeing holding, which remains troubled, and Berkshire Hathaway which has never paid one. (and BRK has soared this year!)

Great that you're not using the usual short-sighted IHUB method, with gimmicky and likely scammy junk that attracts unsophisticated, desperate retirees by displaying unsustainably high yields. Heck, any corp can pay ridiculously high dividends for a time by loading its balance sheet with debt.

Now if you'd buy higher quality issues and trade less often you'd do better yet.

Still own LEG. Part of my dividend income portfolio and will be as long as they find a way to increase dividends periodically.

LEG was a good way to have a high dividend last year and not just be in energy and banks.

Do you still own it?

I am very happy with LEG. Wish I bought more last year--but I wished I had more money to buy everything last year, lol.

$55, a record high, plus 3% dividend.

Surprise! LEG "Reports Record 1Q EBIT and EPS; Increases 2Q Dividend"

* "1Q sales increased 10% vs 1Q20, to $1.151 billion

* 1Q EPS was a first quarter record $.64, an increase of $.31 vs 1Q20 and an increase of $.24 vs adjusted1 EPS in 1Q20

* Board of Directors increased second quarter dividend $.02 to $.42 per share

* Increased 2021 guidance: sales of $4.8–$5.0 billion and EPS of $2.55–$2.75"

https://finance.yahoo.com/news/leggett-platt-reports-record-1q-201400123.html

LEG 5-year Q div history
Mar 12, 2021 0.4 Dividend
Dec 14, 2020 0.4 Dividend
Sep 14, 2020 0.4 Dividend
Jun 12, 2020 0.4 Dividend
Mar 12, 2020 0.4 Dividend
Dec 12, 2019 0.4 Dividend
Sep 12, 2019 0.4 Dividend
Jun 13, 2019 0.4 Dividend
Mar 14, 2019 0.38 Dividend
Dec 13, 2018 0.38 Dividend
Sep 21, 2018 0.38 Dividend
Jun 14, 2018 0.38 Dividend
Mar 14, 2018 0.36 Dividend
Dec 14, 2017 0.36 Dividend
Sep 14, 2017 0.36 Dividend
Jun 13, 2017 0.36 Dividend
Mar 13, 2017 0.34 Dividend
Dec 13, 2016 0.34 Dividend
Sep 13, 2016 0.34 Dividend
Jun 13, 2016 0.34 Dividend

LEG nudged thru 52-week high today at $47.55. All time high set in late 2019 was $54.50. Dividend will likely be increased to $0.42 next payout or the one after that.

Current yield 3.5%

Leggett & Platt: The Specialty Foam Potential

Feb. 22, 2021 Leggett & Platt, Incorporated (LEG)

Summary

Leggett & Platt Inc. may be more appropriately analyzed as comprising a Specialty Foam division and the rest of the LEG business units (Classic LEG division).
The Classic LEG division is a "steady" business with a 2.2 % CAGR in revenue and a 4.9% CAGR in EBIT from 2010 to 2019.
The Specialty Foam division is a growth business with double-digit growth in 2019. In 2019, it contributed an additional 17% to the group average EBIT (5 years average).
I valued LEG at USD 50 per share based on a sum of part valuation model. There is a sufficient margin of safety at the current market price.
Investment thesis
The past two years' performance of Leggett & Platt (LEG) does not present an accurate picture of the long-term prospects of the business. Not only has the 2020 performance been distorted by the Covid-19 pandemic but the potential of the Specialty Foam business that was acquired in 2019 has yet to be seen.

While the Classic LEG division is a 'steady" business, the Specialty Foam is a growth one.

To assess the fundamental value of LEG you have to look at the pre-Covid-19 performance. At the same time, the valuation of LEG should be based on a sum of parts value as the Specialty Foam business prospects are different from those of the Classic LEG division.

LEG is currently under-priced based on a sum of parts value of USD 50 per share. There is a buying opportunity with a sufficient margin of safety.

Rationale
1. LEG can be considered as a USD 4.8 billion Total Assets group comprising 2 divisions:

The Specialty Foam division employing about USD 1.3 billion of total assets.
The Classic LEG division employing about USD 3.5 billion of total assets.
2. The Specialty Foam division achieved double-digit growth in 2019 and added 17 % to the group's past 5 years average annual EBIT. This division provides LEG with another growth path into the polyfoam sector.

3. From 2010 to 2019, the revenue and EBIT of the Classic LEG division grew at 2.2 % CAGR and 4.9 % CAGR respectively. While not exciting, it provides "steady" earnings.

4. I valued LEG at USD 50 per share based on a sum of part valuation with the Specialty Foam division modeled as a growth business and the Classic LEG division modeled as a "steady" business.

LEG Total Assets Profile
As of the end of 2020, LEG had USD 4.8 billion of Total Assets. I estimated that USD 1.3 billion of these was deployed in the Specialty Foam division with the balance in the Classic LEG division. About 64 % of LEG 2020 Total Assets comprises goodwill and intangibles. The breakdown of the Total Assets into the Specialty Foam and Classic LEG divisions are shown in the chart below.

You will note that a very significant portion of the Specialty Foam division's Total Assets comprises goodwill and intangibles. In its 2019 SEC Filings, Note S, LEG stated that of the USD 1.24 billion purchase price of the Specialty Foam division:

USD 0.59 billion was for goodwill.
USD 0.37 billion was for customer relationships.
USD 0.17 billion was for technology.
LEG Total Assets ProfileSource: Author(A) The Specialty Foam tangible assets were derived from the 2018 SEC Filing for the ECS Performa financials after deducting 2 years of depreciation and amortization as per the said Performa. The Specialty Foam goodwill/intangibles were assumed to be the same as that in the 2018 Performa(B) The Classic LEG data were based on the unaudited FY 2020 financials after deducting the relevant amount for the Specialty Foam division

This high level of goodwill and intangibles mean that the actual reinvestment to fund its growth is relatively low as compared to the situation where the majority of the Total Assets are tangible assets. This low reinvestment rate "boosts" the free cash flow and hence the value of the business.

Specialty Foam division
In Jan 2019, LEG acquired Elite Comfort Solutions Inc (ECS) for USD 1.24 billion. This became the Specialty Foam business unit under the LEG organization structure.

Using the very best in custom design polyurethane foam technology, ECS is a leader in the proprietary specialized foam technology for the bedding and furniture industries. Its products included finished mattresses sold through both traditional and online channels, mattress components, mattress toppers, pillows, and furniture foam.

In 2018, about 65 % of ECS sales were to the bedding sector with 25 % to the furniture sector.

ECS sales profile

Source: LEG Nov 2018 Investors Presentation

What is the Specialty Foam division's potential contribution to LEG? I estimated this based on the information provided by LEG in its SEC Filings and summarized it as shown in the table below.

ESC parametersSource: Author from LEG SEC Filings on ESC Performa financial statements

In its Nov 2018 presentation to investors, LEG represented that ECS is expected to generate double digits revenue growth.

Then in its 2019 Highlights of its SEC Filings, LEG reported that ECS added 14 % to its 2019 revenue. This is equivalent to about USD 665 million. Considering that the acquisition of ECS was in Jan 2019, I estimated that a full year Specialty Foam division revenue to be 725 million i.e. about 19 % growth compared to the 2018 Performa revenue.

Assuming the ECS 2018 gross profit margin and SGA, this works out to be about USD 79 million EBIT. This is equivalent to about 17 % of LEG group 2015 to 2019 average annual EBIT of USD 471 million.

To give you a sense of the contribution of the Specialty Foam division from an enterprise perspective, this 17 % EBIT contribution was generated from 27 % (USD 1.3 billion) of the group Total Assets in 2020.

While LEG has focussed on ECS's contribution to its bedding business in announcing the acquisition, I believe that the Specialty Foam division opens up a new growth possibility for LEG i.e. into the polyfoam market.

According to Grand View Research, the global polymer foam market size was valued at USD 113.89 billion in 2019 and is projected to expand at a CAGR of 3.8% from 2020 to 2027. Growing applications in various industries, such as packaging, furniture and bedding, and automotive industries, are expected to drive the type demand.

I believe that the Specialty Foam division can provide benefits to the Classic LEG business units beyond the bedding business.

US Foam industrySource: Grand View Research

Classic LEG division
Excluding the Specialty Foam division, I estimated that the Classic LEG division generated revenue of USD 4.1 billion in 2019. Over the period from 2010 to 2019, the Classic LEG division revenue grew at 2.2 % CAGR.

The Classic LEG business model appears to be one where there is annual closure or sale of business units as well as new acquisitions. The revenue growth is the net effect of these acquisitions and business closure. From 2010 to 2019

13 business units were discontinued or sold
There were 28 (excluding ECS) acquisitions. Except for ECS, all these were within the existing Classic LEG businesses and/or products.
Due to the discontinuation and acquisition program, the Classic LEG division EBIT has an uptrend with a CAGR of 4.9 % from 2010 to 2019 as illustrated by the Performance Index chart.

Nevertheless, its EBIT dipped in 2013 and 2014 due to the following:

The results in 2013 were due to a USD 63 million impairment of goodwill and intangibles for assets related to the Commercial Vehicle Products.
In 2014, there was a loss of USD 124 million following the sale and discontinuation of the Store Fixtures unit
Gross profitability which had some improvement from 2014 to 2016 has declined since then. You should not be surprised to see the link between EBIT and gross profitability.

Classic LEG division Performance IndexSource: Author(a) The 2019 metrics were estimated by deducting the portion attributable to the Specialty Foam division. The Specialty Foam division parameters were based on USD 665 million of revenue with the 2018 Performa margins

The Classic LEG division is organized into three segments as of Jan 2020. The chart below shows how the three segments have performed over the past 10 years.

The Bedding segment accounted for 39 % of the 2019 group revenue. But it only achieved 0.5 % CAGR between 2010 and 2019
The Furniture, Flooring & Textile segment is the next biggest revenue contributor. It achieved a 1.3 % CAGR.
The Speciality Foam segment accounted for about 26 % of the 2019 group revenue. However, this is the fastest-growing segment with a 7.4 % CAGR. This is despite the complete closure of the Commercial Vehicle Business in 2017. In the first half of the decade, the Commercial Vehicle Business contributed about USD 120 million annual revenue.
Classic LEG division segment revenueSource: Author from SEC Filings. Note that the 2010 to 2016 segment figures were estimated based on the business unit's revenue and may not be the same as those if they were recast by LEG. However, it should provide a picture of the trend over the years.

Even without taking into account any synergy from the Specialty Foam division, you can see that the Classic LEG division is a "steady" business.

While LEG has extolled the benefits to the Classic LEG division in its announcement about the ECS acquisition, there is not enough information at this stage to understand the scale of this contribution. Thus, in my valuation of the Classic LEG division, I will not cover any synergy impact.

Valuation
I value LEG based on a sum of part valuation with:

Classic LEG division valued based on a single-stage low growth model.
Specialty Foam division valued as a high growth business. I use a 2-stage growth model for this.
The equity value of LEG based on the sum of parts model is USD 50 per share computed as per the table below.

LEG Sum of Parts valuationSource: Author

The Classic LEG division accounted for slightly more than ¾ of the value with the balance from the Specialty Foam division. This appears to be in line with the Total Assets deployment where the Classic LEG division accounted for slightly less than ¾ of the Total Assets.

Single-stage growth model for the Classic LEG division
The enterprise value was derived based on a Free Cash Flow to the Firm (FCFF) model as per Damodaran.

FCFF = EBIT X (1-tax rate) X (1-Reinvestment rate)

Value = [ FCFF X (1+growth rate) ] / [ WACC - growth rate ]

The key inputs and assumptions used in the valuation are shown below.

Classic LEG valuation imputsSource: Author(a) The EBIT was derived by adding net interests to the PBT. Thus, it included all the impairments and gain from the sale of businesses. This is appropriate as business closures and acquisitions (except for ECS) are not a one-off event.(b) The actual reinvestment rate over the past 5 years was about 5.4 %

2-stage valuation model for the Specialty Foam division
I adopted a 2-stage valuation model for the Speciality Foam division with the following additional assumptions.

Specialty Foam valuation

The challenge with valuing the Specialty Foam division is that there is not sufficient historical data. As such, I have referred to other sources for the 2 key parameters in the 2-stage model - the high growth rate and the reinvestment rates.

Can growth be justified?
The high growth rate of 9.1 % that I have assumed would increase the Specialty Foam division revenue in 10 years by 2.4 times to about USD 1.9 billion. To give you a sense of scale, the 2019 revenue of a number of the Classic LEG furniture businesses (Bedding, Adjustable Beds, Home Furniture, Work Furniture) was USD 1.9 billion.

My assumed high revenue growth rate is realistic as:

The US bedding industry had grown at a 9.1 % CAGR for the past 10 years. An online retailer like Amazon doubled its revenue from 2018 to 2019. If you want more background on the US bedding industry and its potential, refer to my Seeking Alpha article "Tempur-Sealy: Time to exit" (TPX)
In 2019, the Specialty Foam division revenue grew by 19 %.
Note that at the assumed growth rate, the Specialty Foam division would just maintain its market share of the US bedding sector. At the same time, this growth rate is looking at just the bedding industry without taking into account the other poly foam sectors.

Can the reinvestment rates be justified?

The 26.4 % reinvestment rate was based on the average of

The Specialty Foam division 2018 Performa reinvestment rate of 47.3 %.
The Classic LEG division past 5 years average reinvestment rate of 5.4 %
It is obvious that with a lower reinvestment rate, you would get a higher valuation. My view is that the Specialty Foam division rate is not sustainable whereas the Classic LEG division rate looks very low. I cite the following to support my reinvestment assumption.

In my TPX article, I estimated that the TPX reinvestment rate to be about 17%.

The Furniture/Furnishing sector had a [ Net Capex / EBIT (1-t) ] of 20.8%. (Source: Damodaran Jan 2021). This is a reinvestment rate before accounting for the increase in working capital related to the growth.
In LEG 2021 Guidance, capital expenditure for the group was estimated at USD 150 million. This is similar to the past 5 years' capital expenditure. There did not seem to any significant change to the historical capital expenditure even with the Specialty Foam division.
I have earlier mentioned that the tangible assets employed by the Specialty Foam division are actually very small relative to the Total Assets. I estimated it to be currently under USD 200 million. A 26.4 % reinvestment rate would result in about USD 15 million reinvestment compared to the USD 200 million tangible assets.
Are there other boosters to the margin of safety?
My valuation has resulted in a 20 % margin of safety. I believe this is conservative for the following reasons.

Firstly, I have assumed a 1% growth rate for the Classic LEG division compared to its past 10 years growth rate of 2.2 %. A valuation based on a 2 % growth rate would add another USD 8.84 per share to the value of LEG and increase the margin of safety to 41 %.

Secondly, over the past 10 years, LEG has spent about USD 1.5 billion to repurchase about 45 million shares. LEG currently has USD 349 million of cash. If I assumed that it spends part of the cash eg USD 150 million to buy back shares at the current price, it would reduce the average number of shares by 3.6 million. This would boost the value by USD 0.23 per share. This is the impact of a buyback for one year.

Valuation risk

It is clear that the margin of safety comes from modeling the Specialty Foam division as a high-growth business. Over the 10 years' high revenue growth period, the cumulative EBIT for the Specialty Foam division amounted to USD 1.2 billion. Assuming a 25 % tax rate, this is equivalent to an after-tax payback period of about 13 years based on the USD 1.24 billion acquisition price. They may those who would argue that the payback period is too long and that my assumptions were "conservative".

While LEG has not shared the financial projections for the acquisition, I would think that LEG would have to assume that it was a high growth business for the acquisition to make financial sense. Therein lies the risk. If the Specialty Foam division does not deliver double-digit growth over the coming decade, it would have been an expensive acquisition. And of course, the sum of part valuation would not make sens

Last Q was nice. 7 Qs in a row paying 40 cents. Overdue for an increase in March.

Leggett & Platt Reports 4Q And Full Year 2020 Results And Announces 1Q Dividend

• 4Q sales grew 3% vs 4Q19, to $1.182 billion

• 4Q EPS was a fourth quarter record $.76, an increase of $.12 vs 4Q19

• 2020 sales decreased 10% vs 2019, to $4.28 billion

• 2020 EPS was $1.82 and 2020 adjusted(1) EPS was $2.13, decreases vs 2019

• 2020 cash flow from operations was $603 million

• Board of Directors declared first quarter dividend of $.40 per share

• 2021 guidance: sales of $4.6–$4.9 billion and EPS of $2.30–$2.60

Another of my stocks that fell sharply after a good earning report.

LEG chart the power of a healthy dividend

LEGGETT & PLATT QUARTERLY EARNINGS

News Release: Monday, November 2, 2020 after market close

Conference Call: Tuesday, November 3, 2020- 8:30 a.m. ET

CONFERENCE CALL DETAILS

Phone: 201/689-8341
Internet: Investor Relations section of www.leggett.com

Future conference call information will be available on the Investor Relations page of Leggett's website (www.leggett.com).

I am earning a nice dividend while I wait for even more capital appreciation. LEG may not be a high tech stock, but the price strength and the nice dividend is nice.

LEG's powerful price action suggests better earnings may be announced and an overdue dividend increase. I can't find any news to account for the recent strength.

Next div declaration date is around 11/3/2020. Next earnings announcement due aftermarket on 11/2/2020.

LEG has been a great performer since March. Very happy here.