Is Leggett & Platt’s 2026 Outlook of Lower Sales and EPS Altering The Investment Case For LEG?

• In February 2026, Leggett & Platt reported that fourth-quarter 2025 sales fell to US$938.6 million from US$1,056.4 million a year earlier, while net income rose to US$25.2 million and diluted EPS from continuing operations increased to US$0.18.
• For full-year 2025, the company’s sales slipped to US$4.06 billion from US$4.38 billion, yet it moved from a US$511.5 million net loss to a US$235.4 million net profit with diluted EPS from continuing operations of US$1.69 replacing a prior diluted loss per share of US$3.73.
• We’ll now examine how Leggett & Platt’s 2026 guidance for lower sales and reduced EPS reshapes its previously outlined investment narrative.

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Leggett & Platt Investment Narrative Recap

To own Leggett & Platt today, you have to be comfortable with a bedding and home-products business that is profitable again but still working through softer demand and high leverage. The latest earnings show improved earnings on lower sales, while the 2026 guidance for reduced revenue and EPS keeps the near term focus squarely on whether management can protect margins; the biggest risk remains that weak bedding volumes and pricing pressure persist, and this guidance does not materially change that near term concern.

The most relevant new data point is the 2026 EPS outlook of US$0.92 to US$1.38 on sales of US$3.8 billion to US$4.0 billion, which sits below 2025 revenue and frames expectations for slower progress than previously hoped. This guidance ties directly to the core investment case that efficiency gains and restructuring benefits can offset sluggish demand, but it also underlines how dependent the story is on the bedding market eventually stabilizing.

Yet beneath the headline profit recovery, investors should be aware that ongoing weakness in bedding demand could still...

Read the full narrative on Leggett & Platt (it's free!)

Leggett & Platt's narrative projects $4.3 billion revenue and $200.1 million earnings by 2028.

Uncover how Leggett & Platt's forecasts yield a $12.50 fair value, a 5% upside to its current price.

Exploring Other Perspectives

Six members of the Simply Wall St Community value Leggett & Platt between US$10.91 and US$31.63 per share, highlighting very different expectations. When you set those views against guidance that points to lower 2026 sales and EPS, it underlines how important your own conviction is about the company’s ability to manage through persistent bedding and furniture softness.

Explore 6 other fair value estimates on Leggett & Platt - why the stock might be worth 8% less than the current price!

Reach Your Own Conclusion

Don't just follow the ticker - dig into the data and build a conviction that's truly your own.

• A great starting point for your Leggett & Platt research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Leggett & Platt research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Leggett & Platt's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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