LEG Stock Forecast & Price Target

Leggett & Platt Inc. demonstrated a robust operational performance, as evidenced by a notable increase in its adjusted EBITDA margin by 210 basis points to 9.9%, supported by effective restructuring savings. The company highlighted a sequential improvement in bedding sales, which rose by 3% compared to the previous quarter, reflecting positive momentum within its core revenue-generating segment. Furthermore, both gross margin and adjusted EBIT margin improved year-over-year, expanding by 170 basis points and 80 basis points respectively, indicating a strengthening of profitability driven by favorable metal margins and effective cost management strategies.

Leggett & Platt Inc. has maintained its 2025 sales outlook but has adjusted its total volume decline expectations to a range of low single digits, indicating a cautious approach given the anticipated challenges. Significant declines were noted across its Bedding Products segment, with sales falling 10% year-over-year and notable volume decreases in key categories, particularly Adjustable and Specialty Foam, which saw declines of 39% and 17%, respectively. Furthermore, performance in the Specialized Products segment was also concerning, as revenues decreased 7% year-over-year due to pressures from certain customers and a weakening trend in lower- and mid-tier furniture price points, reflecting broader market headwinds.