Leggett & Platt (LEG)
NYSE:LEG
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Leggett & Platt
(NYSE:LEG)
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Rating:57Neutral
Price Target:
$10.50
▲(4.27% Upside)
Action:ReiteratedDate:02/17/26
The score is driven primarily by weaker financial performance (multi-year revenue declines, earnings volatility, and still-elevated leverage) partially offset by resilient cash flow and progress on deleveraging. The earnings outlook is balanced: restructuring and margin focus support profitability, but guidance signals continued demand headwinds. Valuation is a relative positive due to a low P/E, while technicals are broadly neutral with limited near-term momentum.
Positive Factors
Cash generation / Free cash flow
Consistently positive operating and free cash flow through the downturn increases the company's ability to fund capex, pay down debt, and support selective buybacks or acquisitions. Durable cash generation reduces refinancing risk and underpins deleveraging even if revenue recovery is slow.
Negative Factors
Multi-year revenue contraction
Sustained top-line decline erodes operating scale and bargaining leverage with suppliers and customers, making margins and fixed-cost absorption more vulnerable. Without a durable recovery in end markets, stabilizing growth will be required to restore normalized profitability and long-term cash generation.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation / Free cash flow
Consistently positive operating and free cash flow through the downturn increases the company's ability to fund capex, pay down debt, and support selective buybacks or acquisitions. Durable cash generation reduces refinancing risk and underpins deleveraging even if revenue recovery is slow.
Read all positive factors
Leggett & Platt (LEG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.37B
Dividend Yield1.84%
Average Volume (3M)1.20M
Price to Earnings (P/E)6.5
Beta (1Y)1.37
Revenue Growth-6.03%
EPS GrowthN/A
CountryUS
Employees17,700
SectorConsumer Cyclical
Sector Strength84
IndustryFurnishings, Fixtures & Appliances
Share Statistics
EPS (TTM)0.22
Shares Outstanding135,877,600
10 Day Avg. Volume1,026,108
30 Day Avg. Volume1,197,715
Financial Highlights & Ratios
PEG Ratio-0.04
Price to Book (P/B)1.49
Price to Sales (P/S)0.38
P/FCF Ratio5.42
Enterprise Value/Market Cap1.77
Enterprise Value/Revenue0.60
Enterprise Value/Gross Profit3.29
Enterprise Value/Ebitda5.06
Forecast
1Y Price Target
$12.00Price Target Upside19.17% Upside
Rating ConsensusHold
Number of Analyst Covering2
EPS Forecast (FY)1.09
Revenue Forecast (FY)$3.89B
Leggett & Platt Business Overview & Revenue Model
Company Description
Leggett & Platt, Incorporated designs, manufactures, and markets engineered components and products worldwide. It operates through three segments: Bedding Products; Specialized Products; and Furniture, Flooring & Textile Products. The company offe...
How the Company Makes Money
Leggett & Platt makes money primarily by manufacturing and selling components, materials, and selected finished products to business customers (e.g., bedding and furniture manufacturers, and other OEMs), generating revenue when these goods are shi...
Leggett & Platt Key Performance Indicators (KPIs)
Leggett & Platt Earnings Call Summary
Earnings Call Date:Feb 11, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 04, 2026
Earnings Call Sentiment Neutral
The call presents a balanced picture: strong execution on restructuring, meaningful deleveraging, improved cash flow and operational progress across products and geographies are offset by continued revenue declines, persistent weakness in residential end-markets (particularly Bedding), supply-chain and segment-specific headwinds, and conservative 2026 top-line guidance. Management emphasizes margin and balance-sheet priorities while acknowledging demand uncertainty.Positive Updates
Restructuring Delivered Greater-Than-Expected Benefit
Completed 2024–2025 restructuring with ~ $63 million of EBIT benefit flowing in 2025 and an expected ~$5 million in 2026 for a ~$70 million EBIT run-rate; total restructuring cost ~ $80 million (about half noncash).
Negative Updates
Significant Near-Term Revenue Declines
Fourth quarter sales were $939 million, down 11% versus Q4 2024; full-year 2025 sales were $4.05 billion, down 7% year-over-year, driven by weak residential demand, customer-specific declines and divestitures.
Read all updates
Q4-2025 Updates
Positive
Negative
Restructuring Delivered Greater-Than-Expected Benefit
Completed 2024–2025 restructuring with ~ $63 million of EBIT benefit flowing in 2025 and an expected ~$5 million in 2026 for a ~$70 million EBIT run-rate; total restructuring cost ~ $80 million (about half noncash).
Read all positive updates
Company Guidance
Leggett & Platt guided 2026 sales of $3.8–$4.0 billion (down 1%–6% vs. 2025, with ~3% of the decline from divestitures), with volume expected flat to down low-single-digits (Bedding down low single digits, Specialized down low single digits excluding Aerospace, FF&T flat) and inflation/currency providing a low-single-digit sales tailwind. GAAP EPS is guided to $0.92–$1.38 (including ~$0.02–$0.11 of restructuring costs, ~$0.05–$0.08 of Somnigroup-related costs and ~$0.11–$0.25 of real-estate gains); full-year adjusted EPS is expected to be $1.00–$1.20 (midpoint driven by operational efficiency, favorable mix and full-year metal-margin expansion, partially offset by lower volume). Adjusted EBIT margin is projected at 6.3%–7.0%; cash from operations $225–$275 million (no working-capital benefit assumed); CapEx $100–$115 million; and the company expects normal seasonality with weaker Q1 and Q4. Management also reiterated a ~$70 million restructuring EBIT run‑rate (≈$63M realized in 2025 plus ~$5M in 2026), $70–$80 million of expected real-estate proceeds (≈$48M realized), and plans to use most excess cash flow to reduce net debt after finishing 2025 at 2.4x net debt/adjusted EBITDA en route to a 2.0x target, while retaining capacity for buybacks and small acquisitions.Leggett & Platt Financial Statement Overview
Summary
Income Statement
45
Neutral
Balance Sheet
40
Negative
Cash Flow
70
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 4.06B | 4.38B | 4.73B | 5.15B | 5.07B |
| Gross Profit | 727.90M | 749.10M | 853.80M | 976.80M | 1.04B |
| EBITDA | 478.40M | -287.30M | 94.90M | 668.90M | 785.90M |
| Net Income | 235.40M | -511.50M | -136.80M | 309.80M | 402.40M |
Balance Sheet | |||||
| Total Assets | 3.54B | 3.66B | 4.63B | 5.19B | 5.31B |
| Cash, Cash Equivalents and Short-Term Investments | 587.40M | 350.20M | 365.50M | 316.50M | 361.70M |
| Total Debt | 1.66B | 2.05B | 2.20B | 2.29B | 2.29B |
| Total Liabilities | 2.51B | 2.97B | 3.30B | 3.54B | 3.66B |
| Stockholders Equity | 1.02B | 689.40M | 1.33B | 1.64B | 1.65B |
Cash Flow | |||||
| Free Cash Flow | 281.00M | 224.10M | 383.40M | 341.10M | 164.70M |
| Operating Cash Flow | 338.20M | 305.70M | 497.20M | 441.40M | 271.30M |
| Investing Cash Flow | 293.30M | -36.60M | -91.30M | -181.20M | -226.20M |
| Financing Cash Flow | -413.20M | -270.00M | -358.80M | -286.20M | -32.80M |
Leggett & Platt Technical Analysis
Positive
10.07
Price Trends
10.96
Negative
11.00
Negative
10.12
Negative
Market Momentum
-0.30
Negative
47.24
Neutral
57.45
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LEG, the sentiment is Positive. The current price of 10.07 is above the 20-day moving average (MA) of 9.91, below the 50-day MA of 10.96, and below the 200-day MA of 10.12, indicating a neutral trend. The MACD of -0.30 indicates Negative momentum. The RSI at 47.24 is Neutral, neither overbought nor oversold. The STOCH value of 57.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LEG.
Leggett & Platt Risk Analysis
Leggett & Platt disclosed 18 risk factors in its most recent earnings report. Leggett & Platt reported the most risks in the "Macro & Political" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Leggett & Platt Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $1.56B | 14.41 | 15.93% | 0.21% | 5.11% | 34.02% | |
70 Outperform | $564.91M | 12.45 | 9.20% | 7.86% | -4.26% | ― | |
65 Neutral | $1.36B | 18.08 | 8.12% | 2.39% | 1.78% | -25.36% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
57 Neutral | $1.37B | 6.47 | 26.15% | 1.84% | -6.03% | ― | |
50 Neutral | $1.04B | 14.70 | 0.83% | 4.16% | 4.34% | -141.36% | |
47 Neutral | $1.10B | 53.13 | 1.98% | ― | 1.77% | -44.11% |
* Consumer Cyclical Sector Average
LEG
Leggett & Platt
10.07
3.36
50.16%
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Ethan Allen
22.20
-2.85
-11.39%
MLKN
MillerKnoll
15.25
-0.53
-3.38%
TILE
Interface
26.92
8.16
43.50%
LZB
La-Z-Boy Incorporated
33.21
-4.35
-11.58%
MBC
MasterBrand Inc
8.62
-3.61
-29.52%
Leggett & Platt Corporate Events
Executive/Board Changes
Leggett & Platt Updates 2026 Executive Compensation Framework
Neutral
Feb 24, 2026
On February 19, 2026, Leggett Platt’s board committee approved modest 2026 base salary increases for its president and CEO Karl G. Glassman and other named executives, while confirming their long‑term incentive award multiples and sli...
Business Operations and StrategyFinancial Disclosures
Leggett & Platt Issues 2026 Outlook Amid Revenue Decline
Negative
Feb 11, 2026
Leggett Platt reported fourth-quarter 2025 sales of $939 million, down 11% year on year, and full-year 2025 revenue of $4.05 billion, a 7% decline from 2024, reflecting divestitures, softer residential demand, merchandising changes at key bedding...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.