LEG Stock Forecast & Price Target

Leggett & Platt Inc has demonstrated a significant improvement in its overall financial performance, evidenced by a 210 basis point increase in adjusted EBITDA margin to 9.9%, primarily driven by restructuring savings. The company has reported a sequential increase in bedding sales by 3% during the second quarter, with management reaffirming positive midpoints for 2025 despite a year-over-year decline. Additionally, the expansion of gross margin by 170 basis points and adjusted EBIT margin by 80 basis points reflects a continued positive trend in profitability, particularly within the Specialized Products segment.

Leggett & Platt has reported a significant decline in its Bedding Products segment, with sales falling 10% year-over-year and volumes dropping 13%, primarily due to changes in retailer merchandising strategies from key customers. Additionally, the Specialized Products segment experienced a 7% year-over-year revenue decline, attributed to a 20% drop in Steel Rod volumes and overall market weakness at lower and mid-tier price points in furniture. The company's decision to maintain its 2025 sales outlook while lowering total volume declines indicates ongoing challenges, creating a negative outlook for the stock despite recent restructuring efforts stabilizing EPS.