To: E_K_S who wrote (77497 ) 4/28/2025 7:52:06 PM From: E_K_S Respond to Last Perplexity Update for Leggett & Platt Inc (LEG)boring but stable business model spanning bedding, automotive seats, and industrial components, with a historical focus on domestic production as a potential advantage amid supply chain localization trends 4 . The company's ability to pass through price increases and adapt to inflationary pressures is noted, though concerns about substitutable components and cyclical market exposure remain 4 .Restructuring Progress $73 million debt reduction 50 basis-point sequential EBIT margin improvement Revised annual sales attrition estimate to $80 million (from $100 million) 2 . 2 .Mexican Facility Strategy proximity to customers and cost-efficient production , with initial lines transferred from China 3 . There is no indication of reconsideration; recent restructuring focuses on bedding/furniture consolidation rather than automotive footprint changes 2 3 2025-2026 EPS trajectory and capital allocation plans are shaped by restructuring efforts and the Aerospace Products Group divestiture:2025 Guidance : EPS is projected at $0.83–$1.24 , with adjusted EPS narrowing to $1.00–$1.20 4 6 . This reflects restructuring costs ($80–$90 million) and anticipated $35–$40 million EBIT benefits from facility consolidations 6 .2026 Outlook : While explicit guidance is unavailable, analysts forecast EPS growth of 9.1%–12.9% (2026) and 12.9%–20% (2027), driven by reduced costs and streamlined operations 3 6 . The aerospace sale removes a segment contributing $190 million in 2024 sales but with unclear profitability impact 2 .debt reduction (cutting $126 million in 2024) and funding restructuring over shareholder returns 6 2 . Proceeds from the aerospace sale ($240 million after-tax) are likely allocated to further deleveraging rather than buybacks 2 6 .Leggett & Platt is executing its restructuring plan as scheduled, with measurable progress in cost savings and operational efficiency. Share repurchases remain on hold, with management signaling a possible review of this stance after further deleveraging and the completion of the Aerospace Products Group divestiture. The company’s near-term focus is on restructuring execution, balance sheet strength, and core business optimization 1 2 4 .
