Leggett & Platt Inc. (LEG) recently shared its first-quarter 2025 earnings. The report shows mixed results due to tough market conditions. Revenue dropped by 7% compared to the first quarter of 2024, but the company showed strength through restructuring and operational improvements.
Earnings Highlights
- Revenue and Sales Performance: Leggett & Platt reported revenue of $1 billion, a 7% decline from the first quarter of 2024. This drop came from weaker demand in residential markets and issues in the Automotive sector. Sales for Bedding Products fell by 13%, Specialized Products by 5%, and Furniture, Flooring & Textile Products by 1% compared to the same time last year.
- EBIT and EPS: The company reported EBIT of $63 million and adjusted EBIT of $67 million, which is a $3 million increase from the first quarter of 2024. Earnings Per Share (EPS) were $0.22, while adjusted EPS rose to $0.24, up 4% from the previous year’s $0.23.
- Restructuring Efforts: Leggett & Platt spent $6 million on restructuring, including $5 million in cash and $1 million in noncash costs. These efforts aim to improve efficiency and address economic challenges.
- Financial Position: Operating cash flow improved by $13 million to $7 million compared to the first quarter of 2024. Total debt is $1.9 billion, and liquidity is $817 million, which includes $413 million in cash and $404 million available from a revolving credit facility.
- Guidance for 2025: The company expects sales in 2025 to be between $4.0 billion and $4.3 billion, indicating a possible decline of 2% to 9% from 2024. Adjusted EPS is expected to range from $1 to $1.20, with an adjusted EBIT margin forecasted between 6.4% and 6.8%.
Market Reaction and Strategic Outlook
Despite the difficulties, Leggett & Platt’s stock rose significantly in pre-market trading after the earnings announcement.
This reflects investor confidence in the company’s efforts for change and improvement. The company is focused on its goals to restructure and enhance efficiency to create long-term value for shareholders.
As the global economy changes, Leggett & Platt’s ability to adapt and innovate will be key to staying competitive in manufacturing.