Leggett & Platt Reports 2Q 2026 Results

President and CEO Karl Glassman commented, "We are pleased with how our teams managed through a challenging environment in the second quarter. Our employees remained focused on disciplined execution and cost management which, along with favorable items that we do not expect to repeat in future quarters, contributed to improved adjusted earnings.

"Bedding industry conditions remain challenged both by sluggish consumer activity and continued consolidations and bankruptcies across the value chain. We estimate that U.S. mattress market units declined by low double digits in the second quarter, similar to the declines we saw in the first quarter. In our Bedding Products segment, continued strong performance of our trade rod and wire business partially offset the decline from lower mattress demand.

"Across our other segments, demand remained soft in markets tied to housing and broader consumer spending as consumers were faced with additional uncertainty resulting from the war in the Middle East and higher gas prices. In Specialized Products, Automotive performed slightly below the market, which saw lower consumer demand across all regions. In Furniture, Flooring & Textile Products, growth in Textiles offset lower demand in the remaining businesses, which are more directly exposed to U.S. residential spending, leading to a slight improvement in trade sales.

"As we look forward, we remain focused on executing our strategic priorities while expecting ongoing macroeconomic headwinds to temper consumer demand across most of our businesses for the remainder of the year.  

"Finally, we continue to progress towards the planned merger with Somnigroup. As previously announced, the waiting period under the HSR Antitrust Improvements Act expired in June. We anticipate the transaction to close upon satisfaction of the remaining closing conditions, including Leggett & Platt shareholder approval at the special meeting planned for August 20^th and the remaining required regulatory approvals. As previously stated, we believe this combination with a valued long–standing customer will create a leading global company - providing compelling strategic and financial value for our customers, employees, and the Leggett & Platt shareholders."

SECOND QUARTER RESULTS

Second quarter sales were $1.0 billion, a 6% decrease versus second quarter last year

• 2025 divestitures decreased sales 5%
• Organic sales² were down 1%
  • Volume was down 4%, primarily from continued weak demand across most of our end markets, retailer merchandising changes in Adjustable Bed, and the decision during the fourth quarter of 2025 to walk away from a financially challenged customer in U.S. Spring
  • Raw material-related selling price increases added 2% to sales
  • Currency benefit increased sales 1%

Second quarter EBIT was $80 million, down from $90 million in second quarter 2025. Adjusted¹ EBIT was $89 million, up from second quarter 2025 adjusted¹ EBIT of $76 million.

• Adjusted¹ EBIT increased primarily from metal margin expansion, restructuring benefit, and other favorable items, most of which are not expected to repeat in future quarters.  EBIT margin was 8.0%, down from 8.5% in the second quarter of 2025, and adjusted¹ EBIT margin was 8.9%, up from 7.1%.

Second quarter EPS was $.33, a $.05 decrease versus second quarter 2025 EPS of $.38. Second quarter adjusted¹ EPS was $.39, up $.09 versus second quarter 2025 adjusted¹ EPS of $.30.

DEBT AND CASH FLOW

• Net Debt¹ was 2.6x trailing 12-month adjusted EBITDA¹
• Total Debt at June 30 was $1.5 billion in three tranches of long-term bonds at $500 million each
• Operating cash flow was $46 million in the second quarter, a decrease of $38 million versus second quarter 2025, reflecting an expected larger investment in working capital and lower earnings
• Capital expenditures were $21 million
• Dividends were $7 million
  • In May, Leggett & Platt's Board of Directors declared a second quarter dividend of $.05 per share, flat versus last year's second quarter dividend
  • In July, Leggett & Platt's Board of Directors declared a third quarter dividend of $.05 per share, flat versus last year's third quarter dividend. The dividend will be paid on August 24, 2026.

SEGMENT RESULTS – Second Quarter 2026 (versus 2Q 2025)

Bedding Products –

• Trade sales decreased 1%
  • Volume decreased 7%, primarily due to retailer merchandising changes and lower volume with a certain customer in Adjustable Bed, demand softness in U.S. and European bedding markets, and the decision during the fourth quarter of 2025 to walk away from a financially challenged customer in U.S. Spring. These declines were partially offset by higher trade rod and wire sales.
  • Raw material-related selling price increases and currency benefit added 6% to sales
• EBIT increased $15 million and adjusted¹ EBIT increased $24 million
• Adjusted¹ EBIT increased primarily from metal margin expansion, favorable sales mix, temporary price-cost timing benefit in Specialty Foam, and restructuring benefit. These increases were partially offset by lower volume.
• We believe U.S. mattress market units were down low double digits in the second quarter

Specialized Products –

• Trade sales decreased 19%
  • 2025 divestiture of Aerospace reduced sales 16%
  • Volume decreased 4% from softer market demand
  • Currency benefit increased sales 1%
• EBIT decreased $20 million and adjusted¹ EBIT decreased $15 million
• Adjusted¹ EBIT decreased primarily from earnings associated with the divested Aerospace business, currency impact, and lower volume
• Automotive volume was slightly below major market production in the quarter, driven by underperformance in Asia partially offset by outperformance in Europe and North America

Furniture, Flooring & Textile Products –

• Trade sales increased 1%
  • Volume was flat with growth in Textiles offset by declines in Home Furniture, Work Furniture, and Flooring
  • Raw material-related selling price increases added 1% to sales
  • 2025 divestiture of a small facility in Work Furniture reduced sales <1%
• EBIT and adjusted¹ EBIT increased $5 million
• Adjusted¹ EBIT benefited from refunds of IEEPA tariffs that were paid during the eleven-month period they were in force. During that period, competitive pressures led to margin compression as cost increases, including tariffs, were not fully recovered through increased selling prices.

2026 GUIDANCE AND CONFERENCE CALL

On April 13, 2026, the Company entered into an agreement to be acquired by Somnigroup International Inc. (NYSE: SGI). The transaction is anticipated to close upon satisfaction of the remaining closing conditions, including Leggett & Platt shareholder approval at the August 20, 2026 meeting and remaining required regulatory approvals. As is customary while a transaction is pending, Leggett & Platt's 2026 guidance issued in February was withdrawn last quarter and should no longer be relied upon. Additionally, Leggett & Platt will not host a conference call. For further details on quarterly performance, please refer to Leggett & Platt's Quarterly Report on Form 10-Q for the quarter ended June 30, 2026, which is expected to be filed today with the Securities and Exchange Commission.

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FOR MORE INFORMATION: Visit Leggett's website at www.leggett.com.

COMPANY DESCRIPTION: Leggett & Platt (NYSE: LEG) is a diversified manufacturer that designs and produces a broad variety of engineered components and products that can be found in many homes and automobiles. The 143-year-old Company is a leading supplier of bedding components and solutions; automotive seat comfort and convenience systems; home and work furniture components; geo components; flooring underlayment; and hydraulic cylinders for material handling and heavy construction applications.

FORWARD-LOOKING STATEMENTS: This press release contains "forward-looking statements," identified by words such as "expect," "anticipate," "estimate," "believe," or by the context in which they appear, including, but not limited to, the anticipated closing of the Somnigroup transaction upon satisfaction of the remaining closing conditions, including Leggett & Platt shareholder approval at the August 20, 2026 meeting and required regulatory approvals, the filing date of the Company's Form 10-Q as well as the delivery of compelling strategic and financial value for customers, employees and shareholders associated with the Somnigroup Merger, and certain favorable items not expected to improve adjusted earnings in future quarters. Such statements are expressly qualified by cautionary statements described in this provision and reflect only the beliefs, expectations, and assumptions of Leggett at the time the statement is made. Because all forward-looking statements deal with the future, they are subject to risks, uncertainties and developments which might cause actual events or results to differ materially from those envisioned or reflected in any forward-looking statement. Moreover, we do not have, and do not undertake, any duty to update or revise any forward-looking statement to reflect events or circumstances after the date on which the statement was made, whether as a result of new information, future events or otherwise, except as required by law. Some of these risks include: risks associated with the Agreement and Plan of Merger, dated April 13, 2026 (as may be amended from time to time, the "Somnigroup Merger Agreement"), by and among Somnigroup International Inc. ("Somnigroup"), Sparrow Unity Corporation, a Missouri corporation and a direct, wholly owned subsidiary of Somnigroup ("Merger Sub") and Leggett, pursuant to which, subject to the terms and conditions of the Somnigroup Merger Agreement, Merger Sub will merge with and into Leggett (the "Somnigroup Merger"), with Leggett surviving the Somnigroup Merger as a direct, wholly owned subsidiary of Somnigroup, including (i) Leggett's shareholders inability to determine the value of consideration to be received in a completed Somnigroup Merger because the exchange ratio is fixed and the market price of Somnigroup common stock will fluctuate; (ii) the completion of the Somnigroup Merger is subject to certain conditions that may not be satisfied or waived, including Leggett shareholder approval and certain governmental and regulatory approvals; (iii) an event, change or other circumstance could give rise to delays in completing the Somnigroup Merger or the termination of the Somnigroup Merger Agreement; (iv) Leggett's business relationships (including with Somnigroup and its affiliates) may be subject to disruption due to uncertainty associated with the Somnigroup Merger; (v) the diversion of management time from ongoing business operations and opportunities as a result of the Somnigroup Merger; (vi) failure to complete the Somnigroup Merger could negatively impact the share price and the future business and financial results of Leggett; (vii) litigation against the Company could result in substantial costs, an injunction preventing the completion of the Somnigroup Merger and/or a judgment resulting in the payment of damages; (viii) the Company will incur significant transaction and merger-related costs in connection with the Somnigroup Merger; and (ix) the possibility that the expected benefits of the Somnigroup Merger are not realized when expected or at all. In addition, risks include: impacts of the Iranian war; increased trade costs, including tariffs; regarding the 2024 and 2026 Restructuring Plans,  our ability to timely receive anticipated EBIT benefits, and  expected net cash from real estate sales; our ability to accurately forecast sales and earnings; the adverse impact on our sales, earnings, liquidity, margins, cash flow, costs, and financial condition caused by: global inflationary and deflationary impacts; the demand for our products and our customers' products; our manufacturing facilities' ability to obtain necessary raw materials, parts, and labor, and to ship finished products; the impairment of goodwill and long-lived assets; our ability to access the commercial paper market or borrow under our credit facility; supply chain shortages and disruptions; our ability to manage working capital; our ability to collect receivables; price and product competition; cost of raw materials, labor and energy; cash generation sufficient to pay our debts or the dividend; cash repatriation from foreign accounts; our ability to pass along cost increases through increased selling prices; conflict between China and Taiwan; our ability to maintain profit margins if customers change the quantity or mix of our products; political risks; tax audits and rates; foreign operating risks; cybersecurity incidents; customer losses and insolvencies; disruption to our steel rod mill and wire mills and other operations because of severe weather-related events, natural disaster, fire, explosion, terrorism, or governmental action; ability to develop innovative products; foreign currency fluctuation; anti-dumping duties on innersprings, steel wire rod and mattresses; data privacy; sustainability obligations; litigation risks; and risk factors in the "Forward-Looking Statements" and "Risk Factors" sections in Leggett's Form 10-K and subsequent Form 10-Qs. There may be other factors that may cause Leggett's actual results to differ materially from the forward-looking statements.

INVESTOR CONTACT: Investor Relations

Ryan M. Kleiboeker, Executive Vice President

(417) 358-8131 or invest@leggett.com