It has been about a month since the last earnings report for Legget & Platt (LEG Quick QuoteLEG - Free Report) . Shares have lost about 5.8% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Legget & Platt due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.

Leggett’s Q3 Earnings Miss, Margins Hold Steady Amid Soft Demand

Leggett & Platt reported third-quarter 2025 sales of $1.04 billion, down 6% year over year, but topping the Zacks Consensus Estimate by 1.2%.

The decline reflected soft demand in residential end markets, Automotive, and Hydraulic Cylinders, partly offset by gains in Textiles and Work Furniture. Organic sales fell 4%, while divestitures lowered sales 2%.

Adjusted EPS of 29 cents missed the Zacks Consensus Estimate by 3.3% and fell 9% year over year, primarily due to volume declines, though metal margin expansion offered some cushion.

Segment Highlights

Bedding Products: Sales fell 10%, with a 13% volume drop. Adjusted EBIT margin improved 220 bps to 6.6%, aided by metal margin expansion and restructuring gains.

Specialized Products: Sales declined 7% (organic down 2%), reflecting weaker Automotive and Hydraulic Cylinders performance. Adjusted EBIT margin increased slightly to 9.7%.

Furniture, Flooring & Textile Products: Sales were flat year over year; adjusted EBIT margin fell 230 bps to 5.5%, impacted by pricing pressure in Flooring and Textiles.

Margins and Profitability

Gross profit stood at $194 million, down 3% year over year, with gross margin essentially flat. Despite volume headwinds, pricing discipline and restructuring benefits helped sustain margins.

Adjusted EBIT came in at $73 million, down 4% year over year, while adjusted EBIT margin rose 10 basis points (bps) to 7.0%. Reported EBIT surged to $171 million, reflecting an $87 million gain from the Aerospace divestiture.

Balance Sheet & Cash Flow

Leggett ended Q3 with $461 million in cash, $974 million in total liquidity, and $1.5 billion in long-term debt, down $296 million sequentially following Aerospace proceeds. Operating cash flow improved to $126 million, up 32% year over year, driven by better working capital management. Capital expenditures were $16 million and dividends totaled $7 million. No material share repurchases occurred.

2025 Outlook

Management reaffirmed the midpoint of 2025 guidance, narrowing the range. Sales are projected between $4 billion and $4.1 billion (down 6-9% year over year), while adjusted EPS is expected at $1.00-$1.10, flat at midpoint versus 2024. The company targets an operating cash flow of $300 million and continues to focus on deleveraging and disciplined cost execution

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a flat trend in fresh estimates.

VGM Scores

Currently, Legget & Platt has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. However, the stock has a grade of A on the value side, putting it in the top quintile for value investors.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Legget & Platt has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.