NYSE:LEG
LEGGETT & PLATT INC
A global leader in engineered motion solutions providing essential springs and upholstery components for furniture, automotive, and healthcare markets.
Key Metrics
Investment Thesis
Bull Case
Investors may buy LEG due to its successful financial stabilization, evidenced by a return to positive net income and strong operating cash flow that supports shareholder returns via dividends. The company's massive IP portfolio offers a defensive moat in a recession-resistant utility-like business model essential for the furniture and healthcare industries. Attractive valuation metrics combined with a clear path to margin expansion through cost discipline make it an opportune buy for value-oriented portfolios.
Bear Case
Skeptics should avoid LEG given the recent revenue contraction from $5.20B in 2022 to $4.06B, signaling potential structural weakness or loss of market share. The history of significant losses in 2023 and 2024 raises concerns about the sustainability of current profitability without further cost-cutting measures. High debt obligations and interest expenses could weigh heavily on earnings if global economic conditions worsen or commodity prices spike unexpectedly.
About LEGGETT & PLATT INC
Leggett & Platt designs and manufactures engineered motion solutions, including springs and upholstery components, serving the home furniture, commercial seating, and automotive industries globally. The company leverages its vast portfolio of intellectual property and manufacturing scale to provide critical structural elements for products ranging from mattresses and sofas to medical devices. Recent financial recovery indicates a return to profitability after significant losses in previous years.
Analysis
Management Discussion
The company has demonstrated a strong operational turnaround, posting $235.4M in net profit for 2025 after reporting significant losses in 2024 and 2023. Cash flow from operations of $338.2M highlights robust core business liquidity despite the reduction in total revenue to $4.06B compared to five years ago. The balance sheet remains healthy with $587.4M in cash and equivalents, enabling strategic flexibility for debt reduction or targeted M&A while navigating industry headwinds.
Industry Overview
The engineered motion solutions industry serves as a critical backbone for the global furniture, automotive, and medical device sectors, where demand is tied to broader consumer spending and housing markets. Companies in this space face constant pressure to innovate while managing volatile input costs like steel and energy, leading to an environment of consolidation and efficiency-driven growth. Success requires deep technical expertise and established relationships with major OEMs who prioritize reliability over price fluctuations.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $5.20B | $4.73B | $4.38B | $4.06B |
| Cost of Revenue | $4.17B | $3.87B | $3.63B | $3.31B |
| Gross Profit | $976.8M | $853.8M | $749.1M | $744.1M |
| Operating Expenses | $573.2M | $1.03B | $1.26B | $454.4M |
| Operating Income | $403.6M | $-173.4M | $-509.2M | $289.7M |
| G&A | $427.3M | $465.4M | $508.8M | $488.3M |
| Stock-Based Comp | $30.1M | $27.6M | $26.5M | $19.6M |
| D&A | $179.8M | $179.9M | — | — |
| Depreciation | $110.2M | $108.9M | $112.4M | $104.7M |
| Amortization | $66.8M | $69.0M | $22.0M | $16.2M |
| Other OpEx | $145.9M | $561.8M | $749.5M | $-33.9M |
| Non-Operating Income | $0 | $0 | $0 | $0 |
| Interest Expense | $85.5M | $88.4M | $85.9M | $72.9M |
| Interest Income | $4.1M | $5.4M | $6.6M | $6.6M |
| Pre-Tax Income | $403.6M | $-173.4M | $-509.2M | $289.7M |
| Income Tax | $93.7M | $-36.6M | $2.2M | $54.3M |
| Continuing Ops | $309.9M | $-136.8M | $-511.4M | $235.4M |
| Discontinued Ops | $0 | $0 | $0 | $0 |
| Net Income | $309.9M | $-136.8M | $-511.4M | $235.4M |
| Minority Interest | $100.0K | $0 | $100.0K | $0 |
| Net to Common | $309.8M | $-136.8M | $-511.5M | $235.4M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $1.96B | $1.88B | $1.69B | $1.74B |
| Cash & Equivalents | $316.5M | $365.5M | $350.2M | $587.4M |
| Accounts Receivable | $609.0M | $564.9M | $503.0M | $433.7M |
| Inventory | $907.5M | $819.7M | $722.6M | $622.6M |
| Prepaid Expenses | $59.0M | $58.9M | $58.3M | $57.7M |
| Other Current Assets | $66.0M | $72.4M | $56.4M | $42.2M |
| Long-Term Assets | $3.23B | $2.75B | $1.97B | $1.79B |
| PP&E (Net) | $772.4M | $781.2M | $724.4M | $664.0M |
| Intangibles | $675.4M | $167.5M | $140.4M | $91.3M |
| Goodwill | $1.47B | $1.49B | $794.4M | $751.4M |
| Operating Leases | $195.0M | $193.2M | $175.7M | $137.9M |
| Other LT Assets | $110.9M | $121.4M | $136.2M | $148.2M |
| Total Assets | $5.19B | $4.63B | $3.66B | $3.54B |
| Current Liabilities | $968.1M | $1.26B | $846.4M | $775.0M |
| Accounts Payable | $518.4M | $536.2M | $497.7M | $466.6M |
| Current Leases | $49.5M | $57.3M | $53.4M | $51.5M |
| Other Current Liab | $80.2M | $351.0M | $46.4M | $22.8M |
| Long-Term Liabilities | $2.58B | $2.04B | $2.12B | $1.74B |
| LT Operating Leases | $153.6M | $150.5M | $131.1M | $106.7M |
| Other LT Liab | $2.14B | $1.70B | $1.63B | $1.63B |
| Total Liabilities | $3.54B | $3.30B | $2.97B | $2.51B |
| Shareholders' Equity | $1.64B | $1.33B | $690.2M | $1.02B |
| Retained Earnings | $3.05B | $2.66B | $2.06B | $2.27B |
| AOCI | $-93.5M | $-43.7M | $-115.8M | $-9.0M |
| Total L&E | $5.19B | $4.63B | $3.66B | $3.54B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $309.9M | $-136.8M | $-511.4M | $235.4M |
| Non-Cash Adjustments | $325.4M | $667.0M | $910.7M | $229.5M |
| Working Capital Changes | $-193.9M | $-33.0M | $-93.6M | $-126.7M |
| Cash from Operations | $441.4M | $497.2M | $305.7M | $338.2M |
| Capital Expenditures | $100.3M | $113.8M | $81.6M | $57.2M |
| Cash from Investing | $-181.2M | $-91.3M | $-36.6M | $293.3M |
| Share Buybacks | $60.3M | $6.0M | $4.9M | $2.4M |
| Dividends Paid | $229.2M | $239.4M | $136.3M | $27.0M |
| Cash from Financing | $-286.2M | $-358.8M | $-270.0M | $-413.2M |
| FX Effect | $-19.2M | $1.9M | $-14.4M | $18.9M |
| Net Change in Cash | $-45.2M | $49.0M | $-15.3M | $237.2M |
| Beginning Cash | $361.7M | $316.5M | $365.5M | $350.2M |
| Ending Cash | $316.5M | $365.5M | $350.2M | $587.4M |
Frequently Asked Questions
How does LEGGETT & PLATT INC make money?
The company's revenue is driven by three primary segments: Home Furniture (mattresses, sofas, and other upholstered goods), Commercial Seating (office chairs and public sector seating), and Automotive (seat frames, mechanisms, and foam). Additionally, the portfolio includes specialized divisions for Medical Devices, Aerospace, and Industrial markets that utilize its proprietary motion technology.
What are the main risks for LEG?
Significant exposure to raw material price volatility, particularly steel and natural gas, which can erode margins if not managed effectively. Cyclical demand fluctuations in the home furniture and automotive sectors pose a threat to steady revenue growth and capital allocation strategies. High levels of goodwill on the balance sheet ($751.4M) create potential impairment risks if market conditions deteriorate or acquisitions underperform.
What is LEG's competitive advantage?
Leggett & Platt possesses a formidable competitive moat through one of the largest portfolios of intellectual property in the engineered motion industry, granting it exclusive rights to key technologies. Its global manufacturing footprint and economies of scale allow for cost efficiencies and rapid response times that smaller competitors cannot match. The company's diversified customer base across multiple end-markets provides revenue stability against cyclical downturns in any single sector.
Related Companies
Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.