Latest news with #LeggettPlatt
Yahoo
02-08-2025
- Business
- Yahoo
Leggett & Platt Inc (LEG) Q2 2025 Earnings Call Highlights: Navigating Challenges with ...
Revenue: $1.1 billion, down 6% versus Q2 2024. Bedding Products Sales: Decreased 11% compared to Q2 2024. Specialized Products Sales: Declined 5% year-over-year. Furniture, Flooring & Textile Products Sales: Down 2% year-over-year. Adjusted EBIT: $76 million, up $4 million versus Q2 2024. Adjusted EPS: $0.30, a 3% increase from Q2 2024 adjusted EPS of $0.29. Operating Cash Flow: $84 million, a decrease of $10 million versus Q2 2024. Total Debt Reduction: $143 million in Q2, bringing total debt to $1.8 billion. Liquidity: $878 million, including $369 million cash on hand. Restructuring Costs: Expected $15 million to $25 million in 2025, down from prior estimate. Full Year 2025 Sales Guidance: $4.0 billion to $4.3 billion, down 2% to 9% versus 2024. Adjusted EBIT Margin Range: Expected between 6.5% and 6.9%. Cash from Operations: Expected $275 million to $325 million for the year. Warning! GuruFocus has detected 5 Warning Signs with LEG. Release Date: August 01, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Leggett & Platt Inc (NYSE:LEG) reported growth in earnings compared to the previous year, indicating improved financial performance. The company successfully executed its restructuring plan, leading to strengthened balance sheet and cash flow generation. Metal margin expansion contributed positively to the company's earnings, supported by the 232 steel tariffs. The company reduced its total debt by $143 million in the second quarter, improving its financial leverage. Leggett & Platt Inc (NYSE:LEG) maintained its full-year 2025 sales and adjusted EPS guidance, reflecting confidence in its financial outlook. Negative Points Second quarter sales were down 6% compared to the same period last year, driven by soft demand in residential end markets and restructuring-related sales attrition. Bedding Products segment sales decreased by 11%, with ongoing challenges in mattresses and adjustable bases. The company faced significant tariff exposure in its domestic adjustable bed business, impacting profitability. Aggressive competitive discounting in Flooring and Textiles led to pricing adjustments, affecting margins. The company anticipates continued headwinds in the Bedding segment due to customer sales challenges and retailer merchandising changes. Q & A Highlights Q: Can you explain the connection between the consumption number for the Bedding business and your U.S. volume number? A: Karl Glassman, CEO, explained that the U.S. Spring volume was down 9% year-over-year, with about a third of that due to sales attrition from restructuring. Tyson Hagale, President of Bedding Products, added that the specialty foam and adjustable bed businesses were impacted by specific customer challenges and changes in promotional strategies. Q: Are you seeing an acceleration in metal margins, and is this related to tariffs on imported rod? A: Karl Glassman, CEO, confirmed that metal margins are expanding both sequentially and year-on-year, partly due to the 232 tariffs. He emphasized that the expansion is sustainable and beneficial for U.S. steel manufacturers. Q: What changes led to the decision to retain some facilities initially slated for closure in the restructuring plan? A: Karl Glassman, CEO, and Tyson Hagale, President of Bedding Products, noted that the decision was based on evaluating customer relationships and market dynamics, which led to adjustments in their restructuring plan to better align with current opportunities and risks. Q: How do you assess the health of the consumer, and what are your expectations for volume and demand in the second half of the year? A: Karl Glassman, CEO, mentioned that consumer confidence improved as the second quarter progressed, with strong promotional periods like Memorial Day and the 4th of July. However, the impact of tariffs on consumer spending remains uncertain. Q: How are you managing price-cost dynamics across segments in light of tariffs? A: Karl Glassman, CEO, stated that they are working with suppliers to absorb tariff impacts and passing through pricing where necessary. He emphasized that tariffs are expected to be a net positive for the company, with pricing power maintained across business units. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Yahoo
25-05-2025
- Business
- Yahoo
Leggett & Platt (NYSE:LEG) Is Paying Out A Dividend Of $0.05
Leggett & Platt, Incorporated (NYSE:LEG) has announced that it will pay a dividend of $0.05 per share on the 15th of July. The dividend yield will be 2.3% based on this payment which is still above the industry average. Our free stock report includes 2 warning signs investors should be aware of before investing in Leggett & Platt. Read for free now. If the payments aren't sustainable, a high yield for a few years won't matter that much. Even though Leggett & Platt isn't generating a profit, it is generating healthy free cash flows that easily cover the dividend. We generally think that cash flow is more important than accounting measures of profit, so we are fairly comfortable with the dividend at this level. According to analysts, EPS should be several times higher next year. If the dividend extends its recent trend, estimates say the dividend could reach 2.7%, which we would be comfortable to see continuing. Check out our latest analysis for Leggett & Platt The company has a long dividend track record, but it doesn't look great with cuts in the past. The dividend has gone from an annual total of $1.24 in 2015 to the most recent total annual payment of $0.20. This works out to a decline of approximately 84% over that time. A company that decreases its dividend over time generally isn't what we are looking for. Dividends have been going in the wrong direction, so we definitely want to see a different trend in the earnings per share. Leggett & Platt's earnings per share has shrunk at 54% a year over the past five years. Such rapid declines definitely have the potential to constrain dividend payments if the trend continues into the future. On the bright side, earnings are predicted to gain some ground over the next year, but until this turns into a pattern we wouldn't be feeling too comfortable. In summary, while it's good to see that the dividend hasn't been cut, we are a bit cautious about Leggett & Platt's payments, as there could be some issues with sustaining them into the future. The company is generating plenty of cash, which could maintain the dividend for a while, but the track record hasn't been great. We don't think Leggett & Platt is a great stock to add to your portfolio if income is your focus. Investors generally tend to favour companies with a consistent, stable dividend policy as opposed to those operating an irregular one. However, there are other things to consider for investors when analysing stock performance. To that end, Leggett & Platt has 2 warning signs (and 1 which shouldn't be ignored) we think you should know about. If you are a dividend investor, you might also want to look at our curated list of high yield dividend stocks. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
11-05-2025
- Business
- Yahoo
Leggett & Platt (NYSE:LEG) Will Pay A Dividend Of $0.05
Leggett & Platt, Incorporated (NYSE:LEG) has announced that it will pay a dividend of $0.05 per share on the 15th of July. Based on this payment, the dividend yield on the company's stock will be 2.1%, which is an attractive boost to shareholder returns. We've discovered 2 warning signs about Leggett & Platt. View them for free. We like to see robust dividend yields, but that doesn't matter if the payment isn't sustainable. While Leggett & Platt is not profitable, it is paying out less than 75% of its free cash flow, which means that there is plenty left over for reinvestment into the business. In general, cash flows are more important than the more traditional measures of profit so we feel pretty comfortable with the dividend at this level. Looking forward, earnings per share is forecast to rise exponentially over the next year. Assuming the dividend continues along recent trends, we think the payout ratio will be 2.7%, which makes us pretty comfortable with the sustainability of the dividend. View our latest analysis for Leggett & Platt While the company has been paying a dividend for a long time, it has cut the dividend at least once in the last 10 years. The dividend has gone from an annual total of $1.24 in 2015 to the most recent total annual payment of $0.20. The dividend has fallen 84% over that period. Generally, we don't like to see a dividend that has been declining over time as this can degrade shareholders' returns and indicate that the company may be running into problems. Given that dividend payments have been shrinking like a glacier in a warming world, we need to check if there are some bright spots on the horizon. Earnings per share has been sinking by 54% over the last five years. This steep decline can indicate that the business is going through a tough time, which could constrain its ability to pay a larger dividend each year in the future. Over the next year, however, earnings are actually predicted to rise, but we would still be cautious until a track record of earnings growth can be built. In summary, while it's good to see that the dividend hasn't been cut, we are a bit cautious about Leggett & Platt's payments, as there could be some issues with sustaining them into the future. The company is generating plenty of cash, which could maintain the dividend for a while, but the track record hasn't been great. We don't think Leggett & Platt is a great stock to add to your portfolio if income is your focus. It's important to note that companies having a consistent dividend policy will generate greater investor confidence than those having an erratic one. At the same time, there are other factors our readers should be conscious of before pouring capital into a stock. Case in point: We've spotted 2 warning signs for Leggett & Platt (of which 1 makes us a bit uncomfortable!) you should know about. If you are a dividend investor, you might also want to look at our curated list of high yield dividend stocks. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
