Leggett & Platt's Q2 2025: Conflicting Insights on Bedding Demand, Tariffs, and Consumer Health

Bedding volume and market conditions, metal margin expansion, bedding demand and market dynamics, impact of tariffs on bedding industry, and consumer health and demand expectations are the key contradictions discussed in Leggett & Platt's latest 2025Q2 earnings call.



Financial Performance and Debt Reduction:
- Leggett & Platt reported second quarter sales of $1.1 billion, down 6% year-over-year, and reduced total debt by $143 million to $1.8 billion.
- The decline in sales was primarily due to soft demand in residential and automotive segments, while debt reduction was driven by disciplined cost management and cash flow generation.

Tariff Impact and Strategic Adaptation:
- The company's performance was significantly affected by tariffs, with both positive and negative outcomes across different segments.
- Tariffs led to expanded metal margins in steel rod and rod and wire operations but had negative impacts on adjustable bed demand and Automotive sales. Leggett & Platt responded by leveraging its global footprint for production and sourcing shifts.

Segment-Specific Performance:
- Bedding Products sales decreased by 11%, primarily due to weaknesses in mattresses and adjustable bases.
- Aerospace segment grew by 6% year-over-year, offsetting declines in Automotive and Hydraulic Cylinders.

Restructuring and Cost Management:
- The company completed most restructuring activities, with total restructuring costs now estimated to be $65 million to $75 million, down from the previous estimate of $80 million to $90 million.
- Restructuring efforts focused on facility closures, customer relationship evaluations, and strategic divestments to enhance operational efficiency.