Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Commission File Number 001-07845 LEGGETT & PLATT, INCORPORATED (Exact name of registrant as specified in its charter) Missouri 44-0324630 (State or oth ...

Core Insights - The article discusses the "Cigar Butt" investment strategy, which was historically used by Warren Buffett, focusing on finding undervalued stocks with potential for growth [1]. Group 1 - The term "Cigar Butt" refers to a strategy of investing in companies that are undervalued and have the potential for future growth [1]. - The author emphasizes a fundamental analysis approach to identify these investment opportunities [1].

Financial Data and Key Metrics Changes - Fourth quarter sales were $939 million, down 11% compared to the fourth quarter of 2024, primarily due to sales weakness at a certain customer and retailer merchandising changes in Adjustable Bed and Specialty Foam [12][14] - Full year 2025 sales decreased 7% to $4.05 billion, driven by weak demand in residential end markets and other factors [15] - Fourth quarter EBIT was $32 million, with adjusted EBIT at $48 million, down $8 million from the fourth quarter of 2024 [14] - Full year adjusted EPS was $1.05, flat compared to 2024 [15][19] - Operating cash flow for 2025 was $338 million, an increase of $33 million from 2024 [15] Business Line Data and Key Metrics Changes - Bedding Products segment sales decreased 11% compared to the fourth quarter of 2024 [13] - Specialized Products segment declined 21%, largely due to the Aerospace divestiture [13] - Furniture, Flooring, and Textile Products sales were down 3% [13] - In 2026, demand in the Bedding Product Segment is expected to decline low single digits, while U.S. Spring is anticipated to perform in line with the U.S. mattress market [8][9] Market Data and Key Metrics Changes - Residential markets remain in a multi-year depression, with demand well below average cycle levels [7] - The U.S. mattress market was down low single digits in 2025, with domestic production down high single digits [7] - Automotive demand faces inflationary pressures, impacting the Specialized Products segment [9] Company Strategy and Development Direction - The company aims to strengthen its balance sheet, improve operational efficiency, and position itself for long-term profitable growth [4][10] - Focus areas include diversifying the customer base in Specialty Foam and making strategic investments in the Automotive segment [10][11] - The company plans to continue prioritizing balance sheet strength and operational efficiency while pursuing growth opportunities [11][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to capitalize on incremental volume when demand recovers, despite current market challenges [7][10] - There is no expectation of macro market recovery in the 2026 forecast, with management acknowledging the uncertainty in demand [32] - The company is committed to driving operational excellence and investing in talent development [11] Other Important Information - The Aerospace business was divested in the third quarter, with proceeds used to retire outstanding commercial paper and accelerate deleveraging efforts [5] - The company expects to use excess cash flow to reduce net debt and pursue share repurchases and small strategic acquisitions [16][17] Q&A Session Summary Question: Can you talk about the restructuring and its impact on segment margins? - Management noted that restructuring efforts have provided significant benefits, with expectations of continued improvements in segment margins [26][28] Question: What is the outlook for the bedding market? - Management indicated that there is no expectation of a macro market recovery in 2026, with consumer confidence and housing being critical factors [32][34] Question: Can you elaborate on capital allocation priorities? - The company aims to fund organic growth, pursue small strategic acquisitions, and return excess cash to shareholders while moving closer to a 2x leverage target [48][49] Question: What are the impacts of customer supply chain disruptions? - Management confirmed that supply chain issues from various customers have been resolved, and they are now behind the company [46] Question: How should we think about working capital going forward? - The company does not anticipate further working capital benefits in 2026, with a focus on managing working capital tightly as sales grow [90]

Financial Data and Key Metrics Changes - Fourth quarter sales were $939 million, down 11% compared to the fourth quarter of 2024, primarily due to sales weakness at a certain customer and retailer merchandising changes [12][14] - Full year 2025 sales decreased 7% to $4.05 billion, driven by weak demand in residential end markets and other factors [15] - Fourth quarter EBIT was $32 million, and adjusted EBIT was $48 million, down $8 million versus the fourth quarter of 2024 [14] - Full year adjusted EBIT decreased $4 million to $263 million, primarily from lower volume [15] - Operating cash flow was $338 million, an increase of $33 million versus 2024 [15][16] - Net debt to Adjusted EBITDA decreased from 3.8x to 2.4x by the end of the year [16] Business Line Data and Key Metrics Changes - Bedding Products sales decreased 11% compared to the fourth quarter of 2024 [13] - Specialized Products declined 21%, mostly due to the aerospace divestiture [13] - Furniture, Flooring, and Textile Products were down 3% [13] - In 2026, bedding product segment volume is expected to be down low single digits, while specialized products are also expected to decline [8][9] Market Data and Key Metrics Changes - Residential markets remain in a multi-year depression, with demand well below average cycle levels [7] - The U.S. mattress market was down low single digits in 2025, with domestic production down high single digits [7] - Demand in the bedding product segment is expected to be down low single digits in 2026 due to volume declines in adjustable beds and specialty foam [8] Company Strategy and Development Direction - The company aims to strengthen the balance sheet, improve operational efficiency, and position itself for profitable long-term growth [4] - Focus on diversifying the customer base in specialty foam and integrating foam and innerspring capabilities [10] - Plans to continue prioritizing balance sheet strength, operational efficiency, and margin improvement [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to capitalize on incremental volume when demand recovers [7] - No expectation of macro market recovery in the 2026 forecast, with a focus on managing through current challenges [32] - The company is committed to driving operational excellence and investing in talent development [11] Other Important Information - The aerospace business was divested in the third quarter, with proceeds used to retire outstanding commercial paper [5] - The company expects 2026 sales to be $3.8-$4.0 billion, down 1%-6% versus 2025 [17] - Anticipated currency benefits are expected to offset lower volume and pricing effects year-over-year [9] Q&A Session Summary Question: Can you talk about the restructuring and its impact on segment margins? - Management noted that restructuring efforts have provided significant benefits, with $63 million in benefits realized in 2025 and an expected $5 million in 2026 [28] Question: What is the outlook for the bedding market? - Management indicated that there is no expectation of macro market recovery in 2026, with a focus on managing through current challenges [32] Question: Can you elaborate on capital allocation priorities? - The company aims to fund organic growth, pursue small strategic acquisitions, and return excess cash to shareholders while moving closer to a 2x leverage target [48][49] Question: What are the impacts of customer supply chain disruptions? - Management discussed various supply chain issues affecting customers, including semiconductor disputes and production shutdowns due to fires and cyberattacks [46] Question: How should we think about working capital going forward? - The company does not anticipate any working capital benefit in 2026 and may see a slight use of cash as sales grow [90]

Financial Data and Key Metrics Changes - Fourth quarter sales were $939 million, down 11% compared to Q4 2024, primarily due to sales weakness at a certain customer and retailer merchandising changes in adjustable bed and specialty foam [13] - Full year 2025 sales decreased 7% to $4.05 billion, driven by weak demand in residential end markets and other factors [15] - Fourth quarter EBIT was $32 million, and adjusted EBIT was $48 million, down $8 million versus Q4 2024 [14] - Full year adjusted EBIT decreased $4 million to $263 million, primarily from lower volume [15] - Full year EPS was $1.69, and adjusted EPS was $1.05, flat versus 2024 [15] - Operating cash flow was $338 million, an increase of $33 million versus 2024 [15] - Net debt to Adjusted EBITDA decreased from 3.8x to 2.4x by the end of the year [16] Business Line Data and Key Metrics Changes - Bedding Products sales decreased 11% compared to Q4 2024 [13] - Specialized Products declined 21%, mainly due to the aerospace divestiture [13] - Furniture, Flooring, and Textile Products were down 3% [13] - In the bedding segment, demand is expected to be down low single digits in 2026 due to volume declines in adjustable bed and specialty foam [9] - Specialized product segment sales are expected to be flat to slightly above 2025, excluding aerospace [10] Market Data and Key Metrics Changes - Residential markets remain in a multi-year depression, with demand well below average cycle levels [7] - The U.S. mattress market was down low single digits in 2025, with domestic production down high single digits [8] - Automotive volume in 2026 is expected to reflect a challenging industry backdrop, with inflationary pressures impacting demand [9] Company Strategy and Development Direction - The company aims to strengthen the balance sheet, improve operational efficiency, and position for long-term growth [4] - Focus on diversifying the customer base in specialty foam and integrating foam and innerspring capabilities in bedding [11] - In automotive, the company plans to make strategic investments to return to growth and strengthen relationships with OEM and Tier One customers [11] - The company is committed to driving operational excellence through continuous process improvement and cost reduction [12] Management's Comments on Operating Environment and Future Outlook - Management does not expect a macro market recovery in 2026, indicating a cautious outlook [31] - The company is confident in its ability to execute strategic priorities and create long-term shareholder value despite near-term demand uncertainty [21] - Management highlighted the importance of consumer confidence and housing market recovery as key factors for future growth [32] Other Important Information - The company has substantially completed its restructuring plan, exceeding original expectations [17] - Anticipated currency benefits are expected to offset the effects of lower volume and pricing year-over-year in both automotive and hydraulic cylinders [10] - The company is in discussions with Somnigroup but will not provide further comments on this matter [21] Q&A Session Summary Question: Can you talk about the restructuring and its impact on segment margins? - Management noted that restructuring efforts have provided significant benefits, with $63 million in benefits in 2025 and an expected $5 million in 2026 [28] Question: What is the outlook for the bedding market? - Management indicated that there is no expectation of macro market recovery in 2026, and the bedding market is expected to continue facing challenges [31] Question: Can you elaborate on the impacts of customer supply chain disruptions? - Management explained that various supply chain issues impacted customers, but these issues are now behind them [45] Question: What are the capital allocation priorities moving forward? - The company aims to fund organic growth, pursue small strategic acquisitions, and return excess cash to shareholders while moving closer to a 2x leverage target [46]

Fourth Quarter 2025 Summary Financial Information February 11, 2026 Financial Summary Overview 4th Quarter: Full Year: 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 "estimate," "expect," "guidance," "plan," "seek," or the like. These statements include, but are not limited to, guidance; sales, adjusted EPS; operating cash flow; implied adjusted EBIT margin; deprec ...

Core Insights - Legget & Platt (LEG) reported revenue of $938.6 million for Q4 2025, reflecting an 11.2% year-over-year decline, while EPS increased slightly to $0.22 from $0.21 a year ago [1] - The revenue exceeded the Zacks Consensus Estimate of $931.77 million by 0.73%, but the EPS fell short of the consensus estimate of $0.22 by 1.12% [1] Financial Performance Metrics - Organic Sales in Bedding Products decreased by 10%, slightly better than the estimated decline of 10.5% [4] - Organic Sales in Specialized Products fell by 4%, worse than the estimated decline of 2.8% [4] - Organic Sales in Furniture, Flooring, and Textile Products decreased by 2%, outperforming the average estimate of a 5.7% decline [4] - Overall Change in Organic Sales was a decline of 6%, slightly better than the average estimate of 6.5% [4] Trade Sales and EBIT - Trade sales for Furniture, Flooring, and Textile Products were reported at $324.1 million, slightly above the average estimate of $323.27 million, representing a year-over-year decline of 2.5% [4] - Trade sales for Specialized Products were $240.7 million, exceeding the average estimate of $233.78 million, with a significant year-over-year decline of 20.7% [4] - Trade sales for Bedding Products were $373.8 million, slightly below the average estimate of $374.72 million, reflecting an 11% year-over-year decline [4] - EBIT for Bedding Products was reported at $25.5 million, significantly higher than the average estimate of $12.77 million [4] - EBIT for Specialized Products was $24.3 million, exceeding the average estimate of $17.27 million [4] - EBIT for Furniture, Flooring, and Textile Products was $7.4 million, below the average estimate of $11.97 million [4] - Adjusted EBIT for Specialized Products was $22.8 million, surpassing the average estimate of $19.05 million [4] - Adjusted EBIT for Bedding Products was $16.3 million, lower than the average estimate of $19.8 million [4] Stock Performance - Shares of Legget & Platt have returned +2.4% over the past month, compared to a -0.3% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market [3]

分组1 - Legget & Platt reported quarterly earnings of $0.22 per share, matching the Zacks Consensus Estimate, and showing an increase from $0.21 per share a year ago, with an earnings surprise of -1.12% [1] - The company posted revenues of $938.6 million for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 0.73%, but down from $1.06 billion year-over-year [2] - Legget & Platt shares have increased approximately 14.6% since the beginning of the year, outperforming the S&P 500's gain of 1.4% [3] 分组2 - The earnings outlook for Legget & Platt is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The estimate revisions trend for Legget & Platt was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] - The current consensus EPS estimate for the upcoming quarter is $0.25 on revenues of $952.84 million, and for the current fiscal year, it is $1.07 on revenues of $3.93 billion [7] 分组3 - The Furniture industry, to which Legget & Platt belongs, is currently ranked in the top 22% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Sleep Number, another company in the same industry, is expected to report a quarterly loss of $0.56 per share, reflecting a significant year-over-year decline, with its revenue forecast down 13.9% from the previous year [9]

Financial Performance - Fourth quarter sales were $939 million, an 11% decrease compared to the fourth quarter of 2024[4] - Fourth quarter EBIT was $32 million, down from $44 million in the fourth quarter of 2024, with adjusted EBIT at $48 million, an $8 million decrease[5] - Full year 2025 sales totaled $4.05 billion, a 7% decrease from 2024, with operating cash flow of $338 million, an increase of $33 million from 2024[9] - Divestitures decreased sales by 5% in the fourth quarter, with organic sales down 6% due to weak demand in residential markets and supply chain disruptions[6] - Trade sales decreased by 11% in Q4 2025 compared to Q4 2024, with a total year-to-date decrease of 7%[34] - Volume decreased by 15% primarily due to sales weakness at specific customers and retailer merchandising changes[25] - Cash from operations for the fourth quarter was $95.5 million, down from $122.3 million in the previous year[36] - Organic sales growth for the overall company was reported at a decline of 6% year-over-year in the fourth quarter[36] Earnings and Margins - The EBIT margin for the fourth quarter was 3.4%, down from 4.1% in the fourth quarter of 2024, while adjusted EBIT margin was 5.1%, down from 5.3%[7] - Adjusted EBIT for the fourth quarter was $47.9 million, a decrease of 14% from $55.6 million year-over-year[36] - Adjusted EBITDA for the fourth quarter was $79.6 million, down 11% from $89.7 million in the prior year[36] - EBIT margin for the total company decreased to 3.4% from 4.1% year-over-year, reflecting a decline of 70 basis points[35] - Adjusted EPS is projected to be between $1.00 and $1.20, reflecting an increase due to operational efficiency improvements and favorable sales mix[25] - EBIT margin for 2026 is anticipated to be between 5.9% and 7.8%, with adjusted EBIT margin expected to be between 6.3% and 7.0%[25] Debt and Liquidity - The company reduced its debt by $376 million in 2025, achieving a net debt leverage ratio of 2.4x, moving towards a long-term target of 2.0x[3] - Total liquidity at year-end was $1,296 million, including $587 million in cash and $709 million in available capacity under the revolving credit facility[20] - Long-term debt decreased by 20% to $1.496 billion, contributing to improved financial stability[34] - Total current liabilities decreased by 8% to $775 million, reflecting effective cost management strategies[34] - The company reported a net debt of $1,513.9 million for 2024, with a net debt to adjusted EBITDA ratio of 3.76[39] - The total debt for 2024 is reported at $1,864.1 million, with cash and equivalents of $(350.2) million[39] Restructuring and Future Guidance - The restructuring plan launched in early 2024 was substantially completed by the end of 2025, resulting in greater EBIT benefits with lower costs than expected[4] - Restructuring costs are expected to impact earnings by $0.02 to $0.11 per share, primarily from cost improvement and footprint optimization initiatives[25] - The company anticipates an additional $20–$30 million of cash proceeds from real estate sales in 2026[20] - 2026 guidance projects sales between $3.8 billion and $4.0 billion, with EPS expected to be between $0.92 and $1.38[21] - The company expects to incur costs related to the unsolicited offer evaluation of Somnigroup amounting to $3.4 million in 2025[40] Segment Performance - Bedding Products segment trade sales fell by 11% to $373.8 million, with an EBIT margin improvement to 6.8% from 0.4%[35] - Specialized Products segment trade sales decreased by 21% to $240.7 million, while EBIT margin improved to 10.1% from 8.4%[35] - Furniture, Flooring & Textile Products segment trade sales declined by 3% to $324.1 million, with EBIT margin dropping to 2.3% from 5.0%[35] Non-GAAP Adjustments - Non-GAAP adjustments (after tax) for 2024 total $655.7 million, significantly impacting the EPS[39] - Goodwill impairment for 2024 is recorded at $676.0 million, indicating a substantial non-cash charge[39] - The company anticipates a restructuring-related charge of $49.8 million for 2024, reflecting ongoing operational adjustments[39]

Core Insights - Leggett & Platt reported a decrease in sales and earnings for 2025, with total sales of $4.05 billion, a 7% decline compared to 2024, and an EPS of $1.69, a significant recovery from a loss of $3.73 in 2024 [1][2][3] Financial Performance - Fourth quarter sales were $939 million, an 11% decrease from the same period last year, with organic sales down 6% [1][2] - For the full year 2025, EBIT was $356 million, a recovery from a loss of $430 million in 2024, while adjusted EBIT was $263 million, a slight decrease from $267 million in 2024 [1][2] - The company achieved a net income of $25.2 million in Q4 2025, compared to $14.2 million in Q4 2024, marking a 77% increase [3][4] Segment Performance - Bedding Products trade sales decreased by 11% in 2025, with a significant volume decline of 12% attributed to weak demand and restructuring-related sales attrition [2][3] - Specialized Products saw a 9% decrease in trade sales, with a 5% volume decline primarily due to disruptions in the automotive supply chain [2][3] - Furniture, Flooring & Textile Products experienced a 1% decrease in trade sales, with volume remaining flat year-over-year [2][3] Restructuring and Strategic Initiatives - The company completed a restructuring plan that resulted in a $41 million EBIT benefit in 2025, with expectations of an additional $5 million in 2026 [2][3] - Leggett & Platt reduced its total debt by $376 million in 2025, lowering its net debt leverage ratio to 2.4x, with a long-term target of 2.0x [1][2] Guidance for 2026 - The company expects sales in the range of $3.8 to $4.0 billion for 2026, reflecting a potential decline of 1% to 6% compared to 2025 [2][3] - EPS guidance for 2026 is projected between $0.92 and $1.38, with adjusted EPS expected to be between $1.00 and $1.20 [2][3]