Executive Summary

Q4 revenue was $1.06B (-5% y/y) with GAAP EPS $0.10 and adjusted EPS $0.21; adjusted EBIT margin was 5.3% (down 60 bps y/y) and sequentially lower vs Q3’s 6.9%, driven by metal margin compression and lower volume .
2025 guidance initiated: sales $4.0–$4.3B, EPS $0.83–$1.24, adjusted EPS $1.00–$1.20; adjusted EBIT margin 6.4%–6.8%; OCF $275–$325M; capex $100M; 139M diluted shares; tax rate 25%; net interest ~$70M .
Restructuring plan updated: annualized EBIT benefit raised to $60–$70M (prior $50–$60M) and cost range raised to $80–$90M (prior $65–$85M); $35–$40M incremental EBIT benefit expected in 2025; real estate proceeds $15–$40M in 2025 with balance in 2026 .
Balance sheet priorities evident: debt reduced $126M in 2024; year-end liquidity $793M; net debt/TTM adjusted EBITDA 3.76x; quarterly dividend maintained at $0.05 into Q1’25 .
Estimates context: S&P Global consensus estimates were unavailable at query time; we could not provide “vs. consensus” comparisons (S&P Global request limit reached).

What Went Well and What Went Wrong

What Went Well
- Restructuring execution exceeded expectations: $22M EBIT benefit realized in 2024; annualized benefit raised to $60–$70M; 14 bedding locations reduced with no customer interruptions .
- Cash discipline: 2024 debt reduced by $126M; year-end liquidity $793M; Q4 operating cash flow $122M .
- Pockets of growth: Aerospace strong; Textiles modest growth; trade rod and wire sales higher, helping offset weakness in residential and auto/hydraulics .
- Quote: “I am confident that the actions we are taking will improve profitability and create long-term shareholder value.” — CEO Karl Glassman .
What Went Wrong
- Demand headwinds persisted: residential markets weak; Automotive and Hydraulic Cylinders softened in H2; Specialty Foam customer exit; Q4 volume down 4% .
- Margin pressure: “Adjusted EBIT decreased primarily from metal margin compression, lower volume…”; FF&T margins declined y/y; Bedding adjusted EBIT down y/y .
- Market structure: Bedding impacted by bifurcation and low-end import surge; open coil volumes particularly pressured; management cautious on consumer health and 2025 macro .

Financial Results

Metric	Q4 2023	Q3 2024	Q4 2024
Revenue / Trade Sales ($USD Millions)	$1,115.1	$1,101.7	$1,056.4
GAAP EPS	($2.18)	$0.33	$0.10
Adjusted EPS	$0.26	$0.32	$0.21
EBIT Margin % (GAAP)	-32.9%	7.1%	4.1%
Adjusted EBIT Margin %	5.9%	6.9%	5.3%
Operating Cash Flow ($USD Millions)	$146.1	$95.5	$122.3

Q4 2024 vs S&P Global consensus: unavailable at query time (S&P Global request limit reached).

Segment breakdown – Q4 2024 versus Q4 2023

Segment	Trade Sales Q4’23 ($M)	Trade Sales Q4’24 ($M)	Adjusted EBIT Q4’23 ($M)	Adjusted EBIT Q4’24 ($M)	Adj EBIT Margin Q4’23	Adj EBIT Margin Q4’24
Bedding Products	$448.5	$420.2	$10.8	$8.2	2.4%	2.0%
Specialized Products	$318.5	$303.7	$32.0	$30.4	10.0%	10.0%
Furniture, Flooring & Textile (FF&T)	$348.1	$332.5	$22.4	$16.9	6.4%	5.1%

Selected KPIs

KPI	Value
Net Debt / TTM Adjusted EBITDA	3.76x at 12/31/24
Year-end Liquidity	$793M ($350M cash; $443M revolver capacity)
Q4 Operating Cash Flow	$122.3M
Q4 Capex	$21.8M
Total Debt (12/31/24)	$1.864B
Shares Outstanding (end of year)	134.4M

Non-GAAP context: Q4 adjusted EBIT $55.6M (5.3% margin); Q4 adjustments included $15.5M restructuring and a $4.3M real estate gain; 2024 included $676M goodwill impairment .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Sales	FY 2025	n/a	$4.0–$4.3B	Initiated
GAAP EPS	FY 2025	n/a	$0.83–$1.24	Initiated
Adjusted EPS	FY 2025	n/a	$1.00–$1.20	Initiated
Adjusted EBIT Margin	FY 2025	n/a	6.4%–6.8%	Initiated
Operating Cash Flow	FY 2025	n/a	$275–$325M	Initiated
Capex	FY 2025	n/a	~$100M	Initiated
D&A	FY 2025	n/a	~$135M	Initiated
Net Interest Expense	FY 2025	n/a	~$70M	Initiated
Effective Tax Rate	FY 2025	n/a	~25%	Initiated
Diluted Shares	FY 2025	n/a	139M	Initiated
Dividend	2025 run-rate	Q3’24 cut to $0.05/qtr	$0.05/qtr maintained into Q1’25	Maintained
Restructuring – Annualized EBIT Benefit	Plan	$50–$60M (Q3’24)	$60–$70M (Q4’24)	Raised
Restructuring – Total Costs	Plan	$65–$85M (Q3’24)	$80–$90M (Q4’24)	Raised
Restructuring – 2025 Real Estate Proceeds	FY 2025	Substantially complete by end-2025	$15–$40M in 2025; balance in 2026	Timing pushed
Restructuring – 2025 Incremental EBIT Benefit	FY 2025	~$10–$15M total 2024; 2025 not specified	~$35–$40M incremental in 2025	New detail

Earnings Call Themes & Trends

Topic	Previous Mentions (Q-2: Q2’24)	Previous Mentions (Q-1: Q3’24)	Current Period (Q4’24)	Trend
Restructuring plan	Target annualized EBIT benefit $40–$50M; majority of cash costs in 2024	Raised to $50–$60M benefit; earlier real estate proceeds; ~$10–$15M 2024 benefit	Raised to $60–$70M benefit; $35–$40M incremental benefit in 2025; higher total costs $80–$90M	Benefit up; costs up; execution ahead
Residential demand	Weak; deflationary pressures; lowering 2024 sales outlook	Demand weaker than expected; lowered 2024 guidance	Residential still weak; Oct soft, Dec strong; concern about pull-forward and consumer health	Still soft; volatile around promotions
Metal margins / tariffs	Mentioned pricing responses to global steel cost differentials	Metal margin compression cited	Tariffs could benefit mill but hurt downstream; metal margin dynamics explained	Tariff risk management active
Bedding market structure	—	—	Bifurcation; low-end import surge nearing ~50% of units on marketplaces; open coil pressured	Structural headwind at low end
Auto/hydraulics vs aerospace	Auto/hydraulics soft; aerospace growth	Auto/hydraulics headwinds; aerospace growth	Auto/hydraulics still soft; aerospace strong; detailed regional auto shifts and EV program delays	Mixed; aerospace offset
Portfolio actions	Strategic review underway	Exploring Aerospace sale	Continuing to explore sale of Aerospace	Ongoing

Management Commentary

Strategic priorities: “We expect continued economic uncertainty in 2025, but we continue to focus on strengthening our balance sheet, improving operational efficiency and margins, and positioning the company for long-term growth.” — CEO Karl Glassman .
Restructuring execution: “We realized a total of $22 million of EBIT benefit… and exceeded our expectation of $10 million to $15 million.” — CEO Karl Glassman .
2025 margin framework: “Based upon this guidance… 2025 full year adjusted EBIT margin range is expected to be 6.4% to 6.8%.” — CFO Ben Burns .
Tariffs and margin mechanics: “If we were only a pure-play U.S. steel manufacturer, we would be saying these tariffs are really well placed… But… downstream components flow into the United States and then offset the benefit… That’s not the way the world works.” — Management on tariff impacts .

Q&A Highlights

Bedding imports and market bifurcation: Management highlighted the surge of low-end imported finished mattresses (approaching ~50% of units on marketplaces), pressuring open coil; recovery likely sees consumers trading back to quality mid/higher price points .
Restructuring benefit trajectory: Annualized contribution margin potential at the higher end (25%–35%) if volume returns through a more efficient footprint; upside requires volume .
Segment margin outlook (2025): Bedding volumes down mid-single digits but margins up ~150 bps; Specialized volumes down mid-single digits with flat margins; FF&T volumes down low-single digits with ~50 bps margin decline; Q1 seasonally weakest and bears incremental stock comp/weather headwinds .
Tariff and metal margin dynamics: Tariffs could expand metal margins at the mill but depress downstream volumes/competitiveness unless downstream is addressed; management actively qualifying alternate suppliers and evaluating geographic shifts .
Specialized Products detail: Auto production mix shifts (China EVs up, multinational OEMs down) and EV program delays pressure volumes; hydraulics stabilized at lower level; aerospace strength expected to continue .

Estimates Context

We attempted to fetch SPGI (S&P Global) consensus for Q4’24 revenue and EPS but were unable to retrieve values due to a request limit at query time. As a result, we cannot provide “vs. consensus” comparisons for LEG this quarter (S&P Global).

Key Takeaways for Investors

2025 is a transition year: guidance implies modest revenue decline but higher adjusted margins driven by restructuring and efficiency, despite lower volumes .
Restructuring thesis strengthened: higher expected EBIT benefits ($60–$70M) offset higher costs ($80–$90M); incremental $35–$40M EBIT benefit in 2025 provides margin support .
Residential exposure remains the primary risk: weak mattresses/furniture demand and low-end import share weigh on Bedding; intra-quarter volatility persists around promotions .
Mixed end-market exposure: aerospace strength and cost discipline help offset softness in auto and hydraulics; expect continued pressure from EV transition timing and OEM mix .
Balance sheet focus: deleveraging continues (3.76x net debt/TTM adj EBITDA at YE), dividend reset sustained at $0.05/quarter, and real estate proceeds targeted to support cash in 2025–2026 .
Tariff path is a swing factor: could benefit steel margins but hurt downstream competitiveness; company preparing through sourcing and footprint work .
Near-term trading setup: results and guide are consistent with a “cost-out, volume-light” playbook; catalysts include any signs of bedding market mix improvement, aerospace strategic actions, and confirmation of restructuring savings cadence through 2025 .

Note: All quantitative figures and management commentary are sourced from LEG’s Q4’24 earnings press release, Form 8-K, and earnings call transcript as cited above. S&P Global consensus estimates were unavailable at query time.

LEGGETT & PLATT INC (LEG)·Q4 2024 Earnings Summary