Leggett & Platt Adjusted Ebit Rebounds as Somnigroup Deal Advances

The Tip Desk · August 6, 2026 · 3 min read

Adjusted EBIT was $89 million in the second quarter, reversing a first-quarter slide, as the company said it expects Somnigroup to close after an Aug. 20 shareholder vote.

Leggett & Platt (LEG), the diversified manufacturer of bedding, automotive, and furniture components, reported second-quarter adjusted EBIT of $89 million, reversing a first-quarter slide and lifting the adjusted EBIT margin to 8.9% from 4.7% in the prior quarter.

The company said the rebound came primarily from metal margin expansion, a restructuring benefit, and other favorable items, most of which it does not expect to repeat in future quarters. Reported EBIT was $80 million, with an EBIT margin of 8.0%. Adjusted EPS was $0.39, up $0.09 from a year earlier. GAAP EPS was $0.33.

Sales were $1.0 billion, down 6% from the year-ago quarter, including a 5% decrease from 2025 divestitures. Organic sales were down 1%, a slower organic decline than the 5% drop in the first quarter. Volume was down 4%, reflecting continued weak demand across most end markets, retailer merchandising changes in Adjustable Bed, and a fourth-quarter 2025 decision to walk away from a financially challenged customer in U.S. Spring. Raw-material-related selling price increases added 2% and currency benefit added 1%.

President and CEO Karl Glassman said U.S. mattress market units declined by low double digits in the second quarter, similar to first-quarter declines. He said bedding industry conditions remained challenged by sluggish consumer activity and continued consolidations and bankruptcies across the value chain.

Bedding Products trade sales decreased 1%. Volume fell 7% from retailer merchandising changes, lower volume with a certain customer in Adjustable Bed, demand softness in U.S. and European bedding markets, and the U.S. Spring walk-away, partially offset by higher trade rod and wire sales. Raw-material-related selling price increases and currency benefit added 6%. EBIT increased $15 million and adjusted EBIT increased $24 million. The adjusted increase came primarily from metal margin expansion, favorable sales mix, a temporary price-cost timing benefit in Specialty Foam, and restructuring benefit, partially offset by lower volume.

Specialized Products trade sales decreased 19%. The 2025 divestiture of Aerospace reduced sales 16%. Volume decreased 4% from softer market demand. EBIT decreased $20 million and adjusted EBIT decreased $15 million. Automotive volume was slightly below major-market production, with underperformance in Asia partially offset by outperformance in Europe and North America.

Furniture, Flooring & Textile Products trade sales increased 1%. Volume was flat, with growth in Textiles offset by declines in Home Furniture, Work Furniture, and Flooring. EBIT and adjusted EBIT increased $5 million. Adjusted EBIT benefited from refunds of IEEPA tariffs paid during the eleven-month period they were in force.

Operating cash flow was $46 million, a decrease of $38 million versus the year-ago quarter, reflecting an expected larger investment in working capital and lower earnings. Capital expenditures were $21 million. Net debt was 2.6 times trailing 12-month adjusted EBITDA. Total debt at June 30 was $1.5 billion in three tranches of long-term bonds at $500 million each. The board declared a third-quarter dividend of $0.05 a share, flat versus last year’s third-quarter dividend.

On April 13, 2026, the company entered into an agreement to be acquired by Somnigroup International Inc. The HSR waiting period expired in June. The company anticipates the transaction to close upon satisfaction of remaining closing conditions, including shareholder approval at a special meeting planned for August 20 and remaining required regulatory approvals. As is customary while a transaction is pending, 2026 guidance issued in February was withdrawn last quarter and should no longer be relied upon. The company will not host a conference call.

Glassman said the company remains focused on executing strategic priorities while expecting ongoing macroeconomic headwinds to temper consumer demand across most of its businesses for the remainder of the year.