The earnings weakness is overshadowed by the pending Somnigroup acquisition. The stock will trade on merger arbitrage dynamics — monitor shareholder vote and regulatory approvals. Weak Q1 could pressure deal terms or raise closing risk concerns.
Price Chart
Executive Summary
Leggett & Platt reported weak Q1 2026 results with sales down 10% YoY to $918M, GAAP EPS of $0.14 (down 36% YoY), and adjusted EPS of $0.15 (down 38% YoY). Operating cash flow turned negative at -$56M. The company withdrew its 2026 guidance due to the pending acquisition by Somnigroup International, shifting focus to merger completion.
Key Facts
- Q1 2026 sales $918M, down 10% YoY (5% from divestitures, 5% organic decline)
- GAAP EPS $0.14 vs $0.22 in Q1 2025; adjusted EPS $0.15 vs $0.24
- EBIT $45M, down 29% YoY; EBIT margin 4.8% vs 6.2%
- Operating cash flow -$56M vs +$6.8M in prior year quarter
- 2026 guidance withdrawn due to pending acquisition by Somnigroup International (SGI)
- Net debt/EBITDA leverage increased to 2.8x from 2.4x at year-end 2025
Financial Impact
Q1 sales $918M, EPS $0.14, adjusted EPS $0.15, operating cash flow -$56M, net debt leverage 2.8x
Risk Factors
- Merger may not close if conditions not met
- Further demand deterioration in residential end markets
- Leverage increase limiting financial flexibility
- Tariff and war in Iran impacting costs and supply chain
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001193125-26-210226 |
| Document: d132611d8k.htm | 0001193125-26-210226 |
| Document: 0001193125-26-210226-index-headers.html | 0001193125-26-210226 |
| Document: 0001193125-26-210226-index.html | 0001193125-26-210226 |
| Document: 0001193125-26-210226.txt | 0001193125-26-210226 |
| 8-K Data (Synthetic) | 0001193125-26-210226 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 8, 2026 5w ago | 15-12G | — | awaiting T+1 | — | — |
Sep 8, 2026 5w ago | 15-12G | — | awaiting T+1 | — | — |
Aug 26, 2026 7w ago | 8-K | $9.20 $9.20 | · 0.00% | ▼ −0.66% | — |
Aug 25, 2026 7w ago | 8-K | $9.32 $9.20 | ▼ −1.29% | ▼ −1.31% | — |
Jun 4, 2026 19w ago | 425 | $10.20 $10.01 | ▼ −1.86% | ▲ +0.74% | — |
Jun 4, 2026 19w ago | 8-K | $10.20 $10.01 | ▼ −1.86% | ▲ +0.74% | — |
May 7, 2026 23w ago | 8-K | $10.30 $10.06 | ▲ +2.33% | ▲ +3.16% | — |
Apr 13, 2026 26w ago | 425 | $11.50 $11.35 | ▼ −1.30% | ▼ −2.08% | — |
Apr 13, 2026 27w ago | 425 | $11.25 $11.50 | ▲ +2.22% | ▲ +1.01% | — |
Apr 13, 2026 27w ago | 8-K | $11.25 $11.50 | ▲ +2.22% | ▲ +1.01% | — |
US Market Status
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