Leggett Platt 2025 Q2 Earnings Strong Performance with 108.7% Net Income Turnaround

Leggett & Platt (LEG) reported its fiscal 2025 Q2 earnings on August 7, 2025. The company returned to profitability with a significant turnaround in earnings, exceeding expectations with strong net income growth. It maintained its full-year guidance while also announcing a quarterly dividend of $0.05 per share, reflecting ongoing confidence in its financial resilience.

Revenue
Total revenue for Leggett & Platt declined by 6.3% year-over-year to $1.06 billion in Q2 2025, down from $1.13 billion in the prior year. The Bedding Group remained the largest contributor with $782.10 million in revenue, followed by Specialized Products at $604.20 million. The Automotive Group reported $399.90 million, and the Aerospace Products Group brought in $103.60 million. Meanwhile, the Hydraulic Cylinders Group recorded $100.70 million. The Furniture, Flooring & Textile Products segment totaled $693.80 million, with the Home Furniture Group contributing $128 million and the Work Furniture Group adding $141 million. The Flooring & Textile Products Group accounted for $424.80 million. Collectively, these segments represented a total of $2.08 billion in segment-level revenue.

Earnings/Net Income
Leggett & Platt posted a net income of $52.50 million in Q2 2025, marking a 108.7% positive swing from a net loss of $602.10 million in the same period the previous year. Earnings per share (EPS) rose to $0.38, a dramatic improvement from a loss of $4.39 per share a year ago. These results underscore the company’s robust operational resilience and effective cost and debt management strategies.

Price Action
Shares of Leggett & Platt saw a sharp decline in the wake of the earnings report. The stock fell 3.14% in the latest trading day, dropped 9.63% during the most recent full week, and dropped 13.00% month-to-date. This negative price action contrasts with the company’s strong earnings performance.

Post Earnings Price Action Review
Despite the strong earnings beat, a buy-and-hold strategy for 30 days following the report delivered poor returns. The strategy returned -79.28%, significantly underperforming the benchmark by 165.48%. The negative performance highlights the market’s mixed reaction to the earnings, with high volatility and a Sharpe ratio of -0.69 indicating substantial risk with minimal returns. The strategy also saw a maximum drawdown of 0.00%, indicating concentrated downside.

CEO Commentary
President and CEO Karl Glassman emphasized the company’s improved profitability and continued progress in key strategic initiatives, including debt reduction, restructuring efforts, and the Aerospace business divestiture. He expressed confidence in the company’s ability to navigate macroeconomic and trade policy uncertainties, and reaffirmed the full-year guidance for both sales and adjusted earnings per share.

Guidance
Leggett & Platt maintained its full-year 2025 sales guidance of $4.0–$4.3 billion and adjusted EPS guidance of $1.00–$1.20. However, adjusted EPS is now expected to range between $0.88 and $1.17, reflecting ongoing restructuring costs of $0.08–$0.13 per share, $0.11 in pension-related charges in Q4, and $0.12–$0.16 from real estate gains. Sales are expected to decline by 2–9% year-over-year due to organic volume reductions and rising raw material costs. Capital expenditures are projected at $80–$90 million for the year.

Additional News
Leggett & Platt announced a quarterly dividend of $0.05 per share for the third quarter of 2025. The dividend will be paid on October 15, 2025, to shareholders of record on September 15. This represents a consistent payout and demonstrates the company’s commitment to returning value to shareholders. The Board’s decision underscores confidence in the company’s financial stability and long-term prospects. As a diversified manufacturer with a 142-year history, Leggett & Platt continues to play a key role in the production of components for homes, automobiles, and industrial applications. For more information, investors are directed to the company’s official website.