Leggett & Platt, Incorporated · NYSE:LEG
Leggett & Platt — Q1 2025 Earnings Presentation
28 slides from Leggett & Platt's earnings presentation, Apr 29, 2025
Slide 1: First Quarter 2025 Summary Financial Information, Tariff Overview and Restructuring Update
First Quarter 2025 Summary Financial Information, Tariff Overview and Restructuring Update April 28, 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 by their context or by use of words such as “anticipate,” “estimate,” “expect,” “guidance,” “may,” “plan,” or the like. These statements include, but ar
Slide 3: Financial Summary
Financial Summary
Slide 4: Overview
Overview o Q1 sales of $1.0 billion, a 7% decrease vs Q1-24 • Volume was down 5% • Raw material-related price decreases reduced sales 1% • Currency impact reduced sales 1% o Q1 adjusted1 EBIT of $67 million, up $3 million vs Q1-24 adjusted1 EBIT o Adjusted1 EBIT margin of 6.5%, up 70 bps vs Q1-24 ad
Slide 5: Q1 2025 Financial Highlights
Q1 2025 Financial Highlights $’s in millions Reported Adj.1 Adj.1 Reported Adj.1 Adj.1 Change (except EPS) Q1-25 Q1-25 Q1-24 Q1-24 Sales $1,022 $1,022 $1,097 $1,097 (7)% EBIT 63 4 67 63 1 64 5% EBIT Margin 6.2% 6.5% 5.7% 5.8% 70 bps EPS .22 .02 .24 .23 – .23 4% Cash from Operations 7 7 (6) (6) 211%
Slide 6: Q1 2025 Sales & Adjusted EBIT Bridge
Q1 2025 Sales & Adjusted EBIT Bridge Sales: mln $’s % change 1st Qtr 2024 $1,097 Divestitures (3) —% Adjusted 1st Qtr 2024 Sales $1,094 Approx volume decrease (52) (5)% Approx raw material-related pricing and currency impact (20) (2)% Organic Sales (72) (7)% Acquisitions — —% 1st Qtr 2025 $1,022 (7)
Slide 7: Q1 2025 Earnings
Q1 2025 Earnings $’s in millions Reported Adj.1 Adj.1 Reported Adj.1 Adj.1 Change (except EPS) Q1-25 Q1-25 Q1-24 Q1-24 EBIT $63 $4 $67 $63 $1 $64 5% Net interest 18 18 21 21 Pre-tax earnings 45 4 49 42 1 43 14% Income taxes 15 1 16 11 0 11 Tax rate 32.4% 25.5% Net earnings 31 3 33 32 0 32 3% Noncont
Slide 8: Adjusted Working Capital
Adjusted Working Capital $’s in millions2 3/31 12/31 3/31 2025 2024 2024 Cash & equivalents $413 $350 $361 Accounts receivable, net 558 559 635 Inventories, net 678 723 807 Other current assets 135 58 57 Total current assets 1,784 1,691 1,860 Current debt maturities (1) (1) (304) Current operating l
Slide 9: Net Debt to Adjusted EBITDA
Net Debt to Adjusted EBITDA $’s in millions 3/31 12/31 3/31 2025 2024 2024 Long-term debt $1,935 $1,863 $1,773 Current maturities 1 1 304 Total debt 1,936 1,864 2,077 Less: Cash & equivalents (413) (350) (361) Net debt 1,524 1,514 1,715 EBIT, trailing 12 months (430) (430) (117) Depreciation & amort
Slide 10: Cash Flow
Cash Flow $’s in millions 1st Qtr 2025 2024 Net earnings $31 $32 D&A 32 33 Impairment, write-offs & other 6 14 Other non-cash 3 (2) Changes in working capital: Accounts receivable (27) (29) Inventory (12) 1 Other current assets 5 1 Accounts payable (5) (36) Other current liabilities (25) (20) Cash f
Slide 11: 2025 Sales and Adj. EPS Guidance Unchanged
2025 Sales and Adj. EPS Guidance Unchanged 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 now expected to be down low to high-single digits vs prior guidance of down low to mi
Slide 12: 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 o Following the anticipated divestiture of
Slide 13: Tariff Overview
Tariff Overview
Slide 14: Tariff Impacts
Tariff Impacts US Spring Textiles Flooring Home Furniture Automotive • As the leading • Significant global • Mainly domestic • SE Asian competitors • Largest indirect domestic sourcing with ability to business with are advantaged exposure; limited manufacturer of resource to lowest immaterial exposu
Slide 15: Tariff Mitigation Strategy and Risks
Tariff Mitigation Strategy and Risks Mitigation Strategies Foreign Direct Sourcing Exposure by Country ~$400m annual spend (prior to tariff implementation) Sourcing product domestically or from alternative lowest total cost countries Other 5% Shifting production to take advantage of our global f
Slide 16: Restructuring Update
Restructuring Update
Slide 17: Restructuring Initiatives
Restructuring Initiatives 2024 Accomplishments Q1 2025 Progress Bedding Products Bedding Products Reduced footprint by 14 locations (10 in U.S. Spring, 3 in Divested a small U.S. machinery business Specialty Foam, 1 in Adjustable Bed) Consolidated 1 Specialty Foam production facility Consoli
Slide 18: Restructuring Plan Financial Update
Restructuring Plan Financial Update 2025 2025 Full Plan 2024 Q1 2025 Q1 2024 Q1 2025 Incremental1 Run Rate Run Rate Actuals Incremental1 Estimates Estimates Estimates Sales Attrition $15m $— $14m $14m ~$45m ~$60m ~$80m EBIT Benefit $22m <$1m $14m $14m $35–$40m ~$55–$60m $60–$70m Total Plan 2024 Actu
Slide 19: Segment Detail
Segment Detail
Slide 20: Q1 2025 Segment Summary
Q1 2025 Segment Summary Q1-25 Q1-25 ∆ vs Q1-24 Q1-25 ∆ vs Q1-24 Organic Adj. EBIT 2 Adj. EBIT 2 Adj. EBITDA 2 Adj. EBITDA 2 Sales Margin Margin Margin Margin Growth 1, 2 Bedding Products (12)% 3.3% -50 bps 6.7% -40 bps Specialized Products (5)% 10.6% +310 bps 14.1% +340 bps Furniture, Flooring & (1)
Slide 21: Bedding Products
Bedding Products Trade Sales mln $’s % change 1st Qtr 2024 $448 Divestitures (3) (1)% Adjusted 1st Qtr 2024 Sales 445 Organic Sales 1 (54) (12)% 1st Qtr 2025 $391 (13)% 1 Lower volume (10)% and raw material-related selling price decreases and currency impact (2)% mln $’s Adj. Adj. EBIT2 D&A Adj. Adj
Slide 22: Bedding – Key Points
Bedding – Key Points o Q1 organic sales were down 12%: • Volume decreased 10%, 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 1st Qtr 2024 $316 Organic Sales 1 (16) (5)% 1st Qtr 2025 $300 (5)% 1 Lower volume (4)%, currency impact (2)%, and raw material-related selling price increases 1% mln $’s Adj. Adj. EBIT2 D&A Adj. Adj. EBITDA2 EBIT2 margin EBITDA2 margin 1st Qtr 2024 $
Slide 24: Specialized – Key Points
Specialized – Key Points o Q1 organic sales were down 5%: • Volume decreased 4% from declines in Automotive and Hydraulic Cylinders partially offset with growth in Aerospace • Raw material-related selling price increases added 1% to sales • Currency impact reduced sales 2% o Sales trends: Q1 Q1 Orga
Slide 25: Furniture, Flooring & Textile Products
Furniture, Flooring & Textile Products Trade Sales mln $’s % change 1st Qtr 2024 $333 Organic Sales 1 (2) (1)% 1st Qtr 2025 $331 (1)% 1 Higher volume 2%, raw material-related price decreases (2)%, and currency impact (1)% mln $’s Adj. Adj. EBIT2 D&A Adj. Adj. EBITDA2 EBIT2 margin EBITDA2 margin 1st
Slide 26: Furniture, Flooring & Textile – Key Points
Furniture, Flooring & Textile – Key Points o Q1 organic sales were down 1%: • Volume increased 2% from growth in Textiles partially offset by continued weak demand in residential end markets • Raw material-related selling price decreases reduced sales 2% • Currency impact reduced sales 1% o Sales tr
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 Katelyn Pierce Vice President, Investor Relations Analyst, Investor Relations Webcast replay and Company Fact Book are available at www.leggett.com
Slide 28: Non-GAAP Adjustments
28 Non-GAAP Adjustments $’s in millions Q1-25 Q1-24 (except EPS) Non-GAAP Adjustments1,2 Restructuring, restructuring-related and impairment charges 3 $7 $11 Gain on sale of idle real estate 4 (3) (8) Gain from net insurance proceeds from tornado damage 4 - (2) Non-GAAP adjustments (pre-tax) 4 1 Inc