Leggett & Platt revises guidance on sale of aerospace products

Leggett & Platt revises guidance on sale of aerospace products

Leggett & Platt (NYSE: LEG) has announced a significant update to its full-year 2025 financial guidance following the completion of the sale of its Aerospace Products Group to Tinicum Incorporated's affiliated funds. The transaction, which closed on August 29, 2025, is expected to generate after-tax proceeds of approximately $250 million. These proceeds will be primarily used to pay down debt and strengthen the company's balance sheet and leverage ratio [1].

The Aerospace Products Group is a supplier of complex, highly engineered tube and duct assemblies for commercial and military aircraft platforms and space launch vehicles. The business, which includes seven manufacturing facilities in the U.S., UK, and France, employed approximately 700 employees and generated net trade sales of $190 million in 2024 [2].

Following the divestiture, Leggett & Platt has revised its full-year 2025 guidance as follows:

- Sales: Projected at $3.9 billion to $4.2 billion, down from the previous guidance of $4.0 billion to $4.3 billion.
- Implied Adjusted EBIT Margin: Expected to be 6.3% to 6.7%, down from 6.5% to 6.9%.
- Net Interest Expense: Projected at $65 million, down from $70 million.
- EPS (Earnings per Share): Expected to be $1.43 to $1.72, including a $0.60 per share gain from the Aerospace Products Group sale. Adjusted EPS, excluding the gain, is projected at $0.95 to $1.15, down from $1.00 to $1.20 [1].

The sale of the Aerospace Products Group is part of Leggett & Platt's strategic business review aimed at focusing resources on operations better aligned with long-term corporate objectives. The slight adjustment to earnings guidance suggests that while the aerospace division was profitable, it was not a core growth driver that justified its continued place in the portfolio relative to the balance sheet benefits of divestiture [2].

This transaction reflects a significant balance sheet improvement opportunity, as management has explicitly stated that the proceeds will be primarily used to reduce debt and strengthen the company's leverage ratio [1].

References:
[1] https://www.prnewswire.com/news-releases/leggett--platt-closes-the-sale-of-its-aerospace-products-group-302542032.html
[2] https://www.stocktitan.net/news/LEG/leggett-platt-closes-the-sale-of-its-aerospace-products-nndq2rlkc56j.html