Leggett & Platt, Incorporated · NYSE:LEG
Leggett & Platt — Q4 2024 Earnings Presentation
29 slides from Leggett & Platt's earnings presentation, Feb 14, 2025
Slide 1: Fourth Quarter 2024 Summary Financial Information and Restructuring Update
Fourth Quarter 2024 Summary Financial Information and Restructuring Update February 13, 2025
Slide 2: Forward-Looking Statements
Forward-Looking Statements Statements in this presentation that are not historical in nature are “forward-looking.” These statements are identified either by the context in which they appear or by use of words such as “anticipate,” “estimate,” “expect,” “guidance,” “may,” “plan,” or the like. These
Slide 3: Financial Summary
Financial Summary
Slide 4: Overview
Overview 4th Quarter: o Q4 sales of $1.1 billion, a 5% decrease vs Q4-23 • Volume was down 4% • Raw material-related price decreases and currency impact reduced sales 1% o Q4 adjusted1 EBIT of $56 million, down $10 million vs Q4-23 adjusted1 EBIT o Adjusted1 EBIT margin of 5.3%, down 60 bps vs Q4-23
Slide 5: Q4 2024 Financial Highlights
Q4 2024 Financial Highlights $’s in millions Reported Adj.1 Adj. Reported Adj.1 Adj. Change (except EPS) Q4-24 Q4-24 Q4-23 Q4-23 Sales $1,056 $1,056 $1,115 $1,115 (5%) EBIT 44 12 56 (367) 433 66 (16%) EBIT Margin 4.1% 5.3% (32.9%) 5.9% (60 bps) EPS .10 .11 .21 (2.18) 2.44 .26 (19%) Cash from Operati
Slide 6: Q4 2024 Sales & EBIT Bridge
Q4 2024 Sales & EBIT Bridge Sales: mln $’s % change 4th Qtr 2023 $1,115 Approx volume decrease (41) (4%) Approx raw material-related pricing and currency impact (18) (1%) Organic Sales (59) (5%) Acquisitions — —% 4th Qtr 2024 $1,056 (5%) EBIT: margin Adjusted1 4th Qtr 2023 $66 5.9% Primarily metal m
Slide 7: Q4 2024 Earnings
Q4 2024 Earnings $’s in millions Reported Adj.1 Adj. Reported Adj.1 Adj. Change (except EPS) Q4-24 Q4-24 Q4-23 Q4-23 EBIT $44 $12 $56 ($367) $433 $66 (16%) Net interest 19 19 20 20 Pre-tax earnings 25 12 37 (386) 433 47 (21%) Income taxes 11 (3) 8 (89) 100 11 Tax rate 22.0% 23.5% Net earnings 14 15
Slide 8: Adjusted Working Capital
Adjusted Working Capital $’s in millions 12/31 9/30 12/31 2024 2024 2023 Cash & equivalents $350 $277 $365 Accounts receivable, net 559 638 637 Inventories, net 723 754 820 Other current assets 58 65 59 Total current assets 1,691 1,735 1,881 Current debt maturities (1) (301) (308) Current operating
Slide 9: Net Debt to Adjusted EBITDA
Net Debt to Adjusted EBITDA $’s in millions 12/31 9/30 12/31 2024 2024 2023 Long-term debt $1,863 $1,578 $1,680 Current maturities 1 301 308 Total debt 1,864 1,879 1,988 Less: Cash & equivalents (350) (277) (365) Net debt 1,514 1,602 1,622 EBIT, trailing 12 months (430) (840) (90) Depreciation & amo
Slide 10: Cash Flow
Cash Flow $’s in millions 4th Qtr YTD 2024 2023 2024 2023 Net earnings $14 ($297) ($511) ($137) D&A 34 45 136 180 Impairment, write-offs & other 12 447 724 446 Other non-cash 3 (112) (73) (108) Changes in working capital: Accounts receivable 56 72 43 49 Inventory 4 20 45 87 Other current assets 8 10
Slide 11: 2024 Financial Highlights
2024 Financial Highlights $’s in millions Reported Adj.1 Adj. Reported Adj.1 Adj. Change (except EPS) 2024 2024 2023 2023 Sales $4,384 $4,384 $4,725 $4,725 (7%) EBIT (430) 696 267 (90) 424 334 (20%) EBIT Margin (9.8%) 6.1% (1.9%) 7.1% (100 bps) EPS (3.73) 4.78 1.05 (1.00) 2.39 1.39 (24%) Cash from O
Slide 12: 2024 Sales & EBIT Bridge
2024 Sales & EBIT Bridge Sales: mln $’s % change 2023 $4,725 Approx volume decrease (205) (4%) Approx raw material-related pricing (136) (3%) Organic Sales (341) (7%) Acquisitions — —% 2024 $4,384 (7%) EBIT: margin Adjusted1 2023 $334 7.1% Primarily lower volume and unfavorable sales mix, raw materi
Slide 13: 2024 Earnings
2024 Earnings $’s in millions Reported Adj.1 Adj. Reported Adj.1 Adj. Change (except EPS) 2024 2024 2023 2023 EBIT ($430) $696 $267 ($90) $424 $334 (20%) Net interest 79 79 83 83 Pre-tax earnings (509) 696 187 (173) 424 251 (25%) Income taxes 2 41 43 (37) 98 61 Tax rate 22.9% 24.5% Net earnings (511
Slide 14: 2025 Guidance
2025 Guidance o Sales: $4.0–$4.3 billion; down 2% to 9% versus 2024 • Expect demand to remain pressured due to economic uncertainty and restructuring-related sales attrition • Volume is expected to be down low to mid-single digits • Volume at the midpoint: * Down mid-single digits in Bedding Product
Slide 15: 2025 Guidance (continued)
2025 Guidance (continued) o Depreciation and amortization ~$135 million o Net interest expense ~$70 million o Tax rate ~25% o Diluted shares ~139 million o Operating cash $275–$325 million o Cap-ex ~$100 million o Minimal acquisitions and share repurchases, as well as a full year of lower quarterly
Slide 16: Restructuring Update
Restructuring Update
Slide 17: Restructuring Initiatives
Restructuring Initiatives 2024 Progress 2025 Expectations Bedding Products Bedding Products Reduced footprint by 14 locations (10 in U.S. Spring, 3 in Complete Bedding restructuring, primarily Specialty Foam Specialty Foam, 1 in Adjustable Bed) consolidations Consolidated all domestic innerspr
Slide 18: Restructuring Plan Financial Update
Restructuring Plan Financial Update 2025 Total or Full Q1 Q2 Q3 Q4 2024 2024 Incremental Run Rate 2024 2024 2024 2024 Actuals Estimates Estimates Estimates EBIT Benefit <$1m $3m $6m $12m $22m $10–$15m $35–$40m $60–$70m *Prior estimate for 2025 was $45–$55m *Prior estimate for full run rate was $50–$
Slide 19: Segment Detail
Segment Detail
Slide 20: Q4 2024 Segment Summary
Q4 2024 Segment Summary Q4-24 Q4-24 ∆ vs Q4-23 Q4-24 ∆ vs Q4-23 Organic Adj. EBIT 2 Adj. EBIT 2 Adj. EBITDA 2 Adj. EBITDA 2 Sales Margin Margin Margin Margin Growth 1, 2 Bedding Products (6%) 2.0% -40 bps 5.6% -270 bps Specialized Products (5%) 10.0% Flat 13.8% +80 bps Furniture, Flooring & (4%) 5.1
Slide 21: Bedding Products
Bedding Products Trade Sales mln $’s % change 4th Qtr 2023 $449 Organic Sales 1 (28) (6%) 4th Qtr 2024 $420 (6%) 1 Lower volume (3%) and raw material-related selling price decreases (3%) mln $’s EBIT EBIT D&A EBITDA EBITDA margin margin Adjusted 2 4th Qtr 2023 $11 2.4% $27 $37 8.3% Change 3 (3) (12)
Slide 22: Bedding – Key Points
Bedding – Key Points o Q4 organic sales were down 6%: • Volume decreased 3%, primarily due to demand softness in U.S. and European bedding markets, the expected exit of a customer in Specialty Foam, and restructuring-related sales attrition, partially offset by higher trade rod and wire sales • Raw
Slide 23: Specialized Products
Specialized Products Trade Sales mln $’s % change 4th Qtr 2023 $319 Organic Sales 1 (15) (5%) 4th Qtr 2024 $304 (5%) 1 Lower volume (5%) mln $’s EBIT EBIT D&A EBITDA EBITDA margin margin 4th Qtr 2023 $32 10.0% $9 $41 13.0% Change 2 (2) 2 1 Adjusted 3 4th Qtr 2024 $30 10.0% $12 $42 13.8% 2 Calculatio
Slide 24: Specialized – Key Points
Specialized – Key Points o Q4 organic sales were down 5%: • Volume decreased 5% from declines in Automotive and Hydraulic Cylinders, partially offset by growth in Aerospace o Sales trends: Q4 Q4 2024 2024 Organic Sales Volume1 Organic Sales Volume1 Automotive (7%) (8%) (5%) (4%) Aerospace 29% 24% 24
Slide 25: Furniture, Flooring & Textile Products
Furniture, Flooring & Textile Products Trade Sales mln $’s % change 4th Qtr 2023 $348 Organic Sales 1 (16) (4%) 4th Qtr 2024 $333 (4%) 1 Lower volume (2%) and raw material-related price decreases (2%) mln $’s EBIT EBIT D&A EBITDA EBITDA margin margin Adjusted 2 4th Qtr 2023 $22 6.4% $6 $28 8.0% Chan
Slide 26: Furniture, Flooring & Textile – Key Points
Furniture, Flooring & Textile – Key Points o Q4 organic sales were down 4%: • Volume decreased 2% primarily from continued weak demand in residential end markets partially offset by growth in Geo Components and Fabric Converting • Raw material-related selling price decreases reduced sales 2% o Sales
Slide 27: Contact Us for Additional Information
CONTACT US FOR ADDITIONAL INFORMATION Ticker: LEG (NYSE) Website: www.leggett.com Email: invest@leggett.com Phone: (417) 358-8131 Cassie Branscum Kolina Talbert Katelyn Pierce Vice President, Investor Relations Manager, Investor Relations Analyst, Investor Relations Webcast replay and Company Fact B
Slide 28: Non-GAAP Adjustments
Non-GAAP Adjustments $’s in millions Q4-24 Q4-23 2024 2023 (except EPS) Non-GAAP Adjustments ($’s)1,2 Goodwill impairment 1 — 676 — Restructuring, restructuring-related and impairment charges 4 15 — 50 — CEO transition compensation costs 5 — — 4 — Gain on sale of restructuring real estate 3 (2) — (1
Slide 29: Reconciliation of Full Year Adj EBIT & EBITDA
Reconciliation of Full Year Adj EBIT & EBITDA ($ millions)1 Bedding Products Specialized Furniture, Flooring Other Products & Textile Products 2024 EBIT ($549) $64 $58 ($4) Goodwill impairment 588 44 44 — Restructuring, restructuring-related and impairment charges 2 37 10 2 — Gain from sale of restr