Leggett & Platt, Incorporated (LEG)

In July 2025, Leggett & Platt affirmed its FY2025 adjusted EPS guidance and reported Q2 adjusted EPS in line with expectations. In September 2025, the company announced its Q3 2025 earnings call, noting ongoing reconstruction and restructuring efforts. In October 2025, Q3 results showed a revenue decrease but beat Wall Street estimates, with non-GAAP profit in line with consensus; Truist Financial raised its target price. In November 2025, a quarterly dividend was announced. In December 2025, Leggett & Platt received an unsolicited acquisition proposal from Somnigroup International Inc., leading to a stock surge, and Truist raised its price target again. In January 2026, the stock hit a new 52-week high, reported Q earnings missing estimates slightly but beating revenue estimates, set FY2025 guidance, and received an upgrade to "buy" from Wall Street Zen, though some analysts downgraded to "hold" due to concerns about the Somnigroup offer.

Demand for Leggett & Platt's products, especially in bedding and home furnishings, exhibits seasonality. Consumer spending on big-ticket items tends to slow after periods of high purchasing, with seasonal demand spikes ahead of the holiday season. The housing market plays a significant role, with improvements potentially increasing demand. However, macroeconomic headwinds like higher interest rates and inflation have reduced demand, and the U.S. bedding market remains weak due to industry headwinds.

Leggett & Platt is a diversified manufacturer specializing in engineered components and products for bedding, furniture, automotive, and commercial industries. The company operates in three segments: Bedding Products, which supplies components and machinery for bedding manufacturers; Specialized Products, which focuses on automotive comfort and convenience systems, aerospace tubing, and hydraulic cylinders; and Furniture, Flooring & Textile Products, which provides components for residential and work furniture, carpet cushion, hard-surface flooring underlayment, and textiles and geo components.

Leggett & Platt has a significant global presence, with 135 manufacturing facilities located in 18 countries as of November 2025. As of fiscal year 2021, it had 131 manufacturing facilities, with 84 in the U.S. and 47 in 17 foreign countries. Its international operations are primarily located in Europe, China, Canada, and Mexico. The company's automotive division has locations across North America, Europe, and Asia, and it has manufacturing locations nationwide in the U.S. for products like carpet cushion and flooring underlayment.

Leggett & Platt's brand reputation has been influenced by its restructuring efforts, softening demand and sales declines, the acquisition proposal from Somnigroup International Inc., and dividend consistency. Restructuring efforts aim to improve efficiency and align with evolving markets. Softening demand has led to sales declines, impacting its reputation for market leadership. The acquisition proposal generated market attention and a stock price surge. Consistent dividend payments contribute to its reputation as a stable investment.

Institutional investors hold a significant portion of Leggett & Platt's stock, with ownership ranging from approximately 30.11% to 84%. As of January 2026, institutional shareholders own 80.89% of the stock. Major institutional owners include BlackRock, Inc., The Vanguard Group, Inc., Millennium Management LLC, State Street Corp, Geode Capital Management, Llc, D. E. Shaw & Co., Inc., and Morgan Stanley. Individual owners hold approximately 18% to 36.63% of the shares, while insiders own about 2.06% to 11.55% of the company. Karl Glassman, the CEO, directly holds 1.1% of the total shares outstanding, and Harry M. Cornell Jr. is the largest individual shareholder, owning 3.58% of the company.