Leggett & Platt, Incorporated (LEG): Business Model Canvas [Dec-2025 Updated]

You're looking at Leggett & Platt, Incorporated right now, and it's not just business as usual; they're deep in a major restructuring to fix profitability as we head into late 2025. Honestly, dissecting their Business Model Canvas reveals the tension: a global component powerhouse, built on selling to bedding and auto OEMs, is actively pruning its portfolio-like the Aerospace divestiture-while targeting $4.0-$4.1 billion in sales guidance for the year. We need to see how their key activities, like optimizing that 119-facility footprint, will cover the projected $65 million net interest expense and the restructuring costs they're taking on, which range from $15 million to $25 million in 2025. Dive below to see the full nine-block breakdown of this pivot.

Leggett & Platt, Incorporated (LEG) - Canvas Business Model: Key Partnerships

You're looking at the core relationships that keep Leggett & Platt, Incorporated (LEG) moving, especially given the recent unsolicited proposal from Somnigroup International Inc. (SGI).

Somnigroup International (proposed acquirer and key customer/supplier)

The most immediate partnership dynamic involves Somnigroup International Inc. (SGI), which on December 1, 2025, proposed an all-stock acquisition of Leggett & Platt, Incorporated (LEG). This proposed transaction valued Leggett & Platt at around $1.6 billion. The offer specifically targeted LEG shareholders with shares of Somnigroup stock valued at $12.00 per share, which represented a 30.3% premium over LEG's average closing price for the preceding 30 trading days. Somnigroup, itself formed earlier in 2025 via the $5 billion acquisition of Mattress Firm by Tempur Sealy International, explicitly noted that Leggett & Platt has been an important supplier for many years. The proposed deal aims to secure stable volumes for Leggett & Platt, which reported 3Q 2025 sales of $1.0 billion.

Thousands of global suppliers for raw materials and services underpin the entire manufacturing base. Leggett & Platt, Incorporated operates across 18 countries with 135 manufacturing facilities. The sheer scale of this network means managing thousands of relationships is a constant operational focus. Raw material costs directly impact profitability; for instance, in 3Q 2025, raw material-related selling price increases added 2% to sales, while metal margin compression was cited as a factor in adjusted EBIT changes.

Strategic sourcing partners for high-quality, consistent material supply are critical, especially given the volatility in commodity markets. The company's Bedding Products segment relies heavily on materials like steel and foam. The impact of raw material pricing is evident in the financial reporting; for example, in 1Q 2025, raw material-related selling price decreases reduced sales by 2%. Disciplined cost management and operational efficiency initiatives, which realized $14 million of incremental EBIT benefit in 1Q 2025 from the restructuring plan, are partly designed to mitigate this supply chain cost exposure.

Major mattress manufacturers and automotive OEMs (Original Equipment Manufacturers) represent the core customer base for Leggett & Platt, Incorporated's primary segments. The Automotive Group is described as the world's foremost designer and manufacturer of automotive seating support and comfort systems, supplying OEMs and tier 1 suppliers with products like mechanical control cables and actuator systems. The Bedding Products segment supplies innovative sleep solutions 'all the way to private label finished goods.' Volume declines in 3Q 2025 were noted across Automotive and Hydraulic Cylinders, though Textiles and Work Furniture provided offsets.

Key retailers for finished goods like Adjustable Beds are crucial for the Bedding Products segment. This segment supplies everything from springs to specialty foam and finished adjustable beds. The company's strategy involves supporting customer needs 'anywhere along the value chain, from raw materials all the way to private label finished goods and fulfillment.' The company strengthened its balance sheet in 3Q 2025 by reducing debt by $296 million using proceeds from the Aerospace divestiture and operating cash flow, which helps secure favorable terms with these large retail partners.

• Bedding Products segment trade sales decreased 11% in 2024 due to demand softness and customer exit in Specialty Foam.
• Specialized Products segment trade sales decreased 3% in 2024, with soft demand in Automotive.
• Furniture, Flooring & Textile Products segment trade sales decreased 6% in 2024 due to weak residential end markets.
• The company expects to invest approximately $100 million in capital expenditures in 2025, focusing on efficiency improvements.

Leggett & Platt, Incorporated (LEG) - Canvas Business Model: Key Activities

You're looking at the core engine room of Leggett & Platt, Incorporated (LEG) right now-the essential things they must do well to keep the whole operation running and shifting toward better profitability. This isn't about selling; it's about making and managing the business structure itself, especially given the big changes they've been driving through late 2024 and into 2025.

Manufacturing engineered components (e.g., springs, wire, foam)

The fundamental activity is turning raw materials into the core components for bedding, automotive, and furniture. This involves heavy process control to ensure quality across diverse product lines. For instance, the U.S. Spring business activity centers on high recycled content in their primary output.

Here are some concrete material and output metrics that define this activity:

• U.S. Spring business innersprings contain 94% recycled scrap steel content as of December 31, 2024.
• Flooring Products Group carpet cushion products are made with 88% recycled materials.
• Flooring Products Group carpet cushion products are 100% recyclable.
• Specialty Foam business is actively pioneering bio-based formulas to reduce petroleum content.

The overall scale of manufacturing and distribution is reflected in the 2024 financial results, which saw $306 million in cash generated from operations, though this was down from 2023. Capital expenditures to maintain this base were $82 million in 2024. The company is focused on improving profitability, with 2024 Adjusted EBIT coming in at $267 million.

Executing the 2024/2025 Restructuring Plan for efficiency

A major key activity has been the execution of the 2024 Restructuring Plan, which was expanded throughout 2024 to cover Bedding, Furniture, Flooring & Textile Products, and Specialized Products segments, plus corporate G&A costs. This is a massive undertaking to streamline operations.

The financial targets associated with this activity are central to the near-term strategy:

This activity also involved significant workforce adjustments, with layoffs expected between 900 and 1,100 workers. The goal is definitely to create a more focused, agile organization.

Optimizing global manufacturing and distribution footprint

This activity is the physical manifestation of the restructuring plan, focused on reducing complexity and enhancing efficiency by operating out of fewer, higher-output locations. This optimization is critical to supporting the company's long-term leverage goal of ~2x net debt to trailing 12-month adjusted EBITDA, following a 3.76x ratio at the end of 2024.

Footprint consolidation details include:

• Bedding Products segment consolidation aims to reduce the footprint from 50 facilities to approximately 30 to 35 facilities.
• In 2024, 14 production and distribution facilities were consolidated in Bedding Products (ten in U.S. Spring, three in Specialty Foam, one in Adjustable Bed).
• All domestic innerspring production was consolidated into four larger remaining spring production facilities in 2024.
• In 2025, further consolidations are expected in Bedding Products, primarily in Specialty Foam, and restructuring initiatives in Flooring Products are set for completion.

The company is actively managing its asset base, anticipating $0.12 to $0.16 per share gain from real estate sales in 2025.

Strategic portfolio management (e.g., Aerospace divestiture in 2025)

A key strategic activity in 2025 was refining the portfolio by divesting non-core assets to focus on remaining businesses aligned with long-term goals. The most significant action was the sale of the Aerospace Products Group.

The Aerospace divestiture provides clear financial data points:

• The sale to Tinicum Incorporated closed on August 29, 2025.
• The initial announced cash purchase price was $285 million.
• Expected after-tax proceeds were approximately $250 million.
• The business sold had net trade sales of $190 million in 2024.
• The group comprised seven manufacturing facilities across the U.S., UK, and France, with approximately 700 employees.

This divestiture directly impacted 2025 guidance. Post-close guidance revised expected 2025 Sales to $3.9 billion to $4.2 billion (down from $4.0 billion to $4.3 billion previously) and included a $0.60 per share gain on the sale.

Research and development for innovative, higher-value bedding content

This activity focuses on advancing the product strategy within the core Bedding Products segment, moving away from lower-value offerings. This involves material science and design to capture demand for higher-margin products.

The focus on innovation is evidenced by the strategic shift mentioned alongside the restructuring, which includes:

• Continuing to reshape the Bedding Products business to focus on innovative, higher-value content.
• Seeing further opportunities in both innersprings and specialty foam, spanning from components to private label finished goods.

The company is also looking at growth drivers in the remaining segments, with semi-finished growth in U.S. Spring exceeding 20% Year-over-Year in Q3 2025, driven by content gains like Comfort Core.

Leggett & Platt, Incorporated (LEG) - Canvas Business Model: Key Resources

You're looking at the core assets Leggett & Platt, Incorporated (LEG) relies on to execute its business strategy as of late 2025. These aren't just line items; they are the tangible and intangible engines driving the company's operations.

The physical footprint remains a massive resource. Leggett & Platt, Incorporated operates a global network consisting of 135 manufacturing facilities spread across 18 countries. This scale allows for localized production and distribution to serve its diverse customer base across bedding, automotive, and furniture sectors. This network is currently undergoing optimization, as part of a restructuring plan expected to be fully implemented in late 2025, which involves consolidating certain locations to create a more efficient regional distribution network.

Financially, liquidity provides a buffer and flexibility. As of the third quarter of 2025, Leggett & Platt, Incorporated had $461 million in cash on hand. This cash, combined with $513 million in capacity remaining under its revolving credit facility, provided total liquidity of $974 million at September 30, 2025. This financial strength is critical, especially following the recent divestiture of the Aerospace Products Group, which generated after-tax proceeds of approximately $250 million used primarily to pay down debt.

Intangible assets are just as vital. Leggett & Platt, Incorporated possesses proprietary engineering and intellectual property that underpins its component designs. This is complemented by significant large-scale wire rod and steel processing capabilities, including domestic steel mills, which can mitigate risks associated with tariffs and steel price volatility.

The human capital is substantial. The company relies on its experienced management team and a global workforce. As of December 31, 2024, Leggett & Platt, Incorporated had 17,700 employees. This figure represented an 8.29% decrease from the prior year, reflecting consolidation efforts.

Here is a quick look at some of the key quantifiable resources:

The company's ability to generate value is tied directly to these foundational elements. For instance, the 2024 Revenue / Employee metric was $235,757, and Profits / Employee was $12,678.

The core tangible and intangible assets supporting Leggett & Platt, Incorporated include:

• 135 manufacturing facilities across 18 countries.
• Proprietary engineering and intellectual property for components.
• Large-scale wire rod and steel processing capabilities.
• $461 million in cash on hand as of Q3 2025.
• 17,700 global employees as of year-end 2024.

Finance: draft 13-week cash view by Friday.

Leggett & Platt, Incorporated (LEG) - Canvas Business Model: Value Propositions

You're looking at the core value Leggett & Platt, Incorporated delivers to its customers, which is rooted in its manufacturing scale and component expertise. This isn't just about making parts; it's about the structure that supports those parts.

Vertically integrated, reliable supply of engineered components

Leggett & Platt, Incorporated emphasizes its ability to control the process from raw material to finished component. This integration is being actively reinforced through cost-control measures. For instance, the company realized $22 million in EBIT benefits from restructuring in 2024. Furthermore, year-to-date through Q3 2025, the company achieved $36 million in incremental EBIT benefit from ongoing restructuring initiatives, with an expectation to reach approximately $40 million for the full year 2025. The expected annual run-rate EBIT benefits from these efforts, once fully implemented, are projected to be $60-$70 million. This focus on internal efficiency helps secure the supply chain, which is critical when overall sales are under pressure; 2024 net trade sales were $4,384 million, a 7% decrease from 2023.

Global manufacturing footprint that mitigates regional supply disruption

The scale of operations is a key value driver, offering redundancy against localized issues. Leggett & Platt, Incorporated operates 119 manufacturing facilities across 18 countries. The company explicitly notes that this diverse geographical manufacturing footprint helps mitigate the potential physical risks of any local or regional severe weather-related event having a material effect on operations. This global reach supports the 2025 sales guidance, which is projected to be between $4.0-$4.1 billion.

Advanced products for automotive seat support and lumbar systems

In the Specialized Products segment, which includes Automotive, the value proposition centers on advanced systems. While the segment saw a 3% decrease in trade sales volume in 2024, the Q3 2025 results showed a 4% volume decline attributed to softness in Automotive and Hydraulic Cylinders. Still, the segment saw strong demand in Aerospace before its divestiture, which contributed to a $87 million gain on sale in Q3 2025. The focus remains on delivering specialized comfort and convenience systems to this demanding sector.

Innovative, higher-value content for the evolving bedding market

The Bedding Products segment, a core area, is navigating demand softness. In 2024, this segment's trade sales decreased 11%, with volume down 6%. The restructuring plan in 2024 included consolidating 14 production and distribution facilities within this segment alone. For Q3 2025, the trade sales volume decrease was 13%, primarily due to customer weakness and merchandising changes in Adjustable Bed and Specialty Foam. However, metal margin expansion in trade rod and restructuring benefits helped the adjusted EBIT for this area increase by $7 million in Q3 2025.

Custom-designed components for furniture, flooring, and textile products

This segment provides tailored solutions across multiple residential and commercial applications. In 2024, trade sales decreased 6%. By Q3 2025, trade sales were flat year-over-year, with volume actually increasing 1% driven by growth in Textiles and Work Furniture, which offset declines in Home Furniture and Flooring. This shows responsiveness to specific sub-market needs within the broader category.

Here's a quick look at the segment performance context leading into late 2025:

The company is managing this environment by prioritizing balance sheet strength; debt was reduced by $296 million in Q3 2025, bringing the net debt to trailing 12-month adjusted EBITDA ratio to 3.5x as of June 30, 2025. This financial discipline supports the ability to deliver on these complex component promises.

Leggett & Platt, Incorporated (LEG) - Canvas Business Model: Customer Relationships

Dedicated account management for large, long-term B2B customers is supported by the company's ongoing strategic portfolio review and restructuring efforts, which aim to align the operating footprint with future market demand.

High-touch, consultative sales for custom engineered solutions are implied by the nature of the products, though specific sales force metrics aren't public; however, the company's focus on operational efficiency and margin improvement suggests a tight feedback loop with key customers.

Strategic collaboration with major customers like Somnigroup has recently been highlighted by an unsolicited, all-stock acquisition proposal received on December 1, 2025, valuing Leggett & Platt, Incorporated at $12.00 per share. This proposal represented a 30.3% premium over the 30-day average closing price. Leggett & Platt, Incorporated has a history as an 'important supplier' to Somnigroup. The board was requested to respond by December 22, 2025.

Supplier relationship management for thousands of global partners is a core operational component. Leggett & Platt, Incorporated relies on thousands of suppliers to provide necessary materials, goods, and services for its manufacturing operations worldwide. The company has approximately 135 manufacturing facilities across 18 countries. The restructuring plan, expected to be fully implemented in late 2025, involves reducing the number of manufacturing and distribution bedding plants from 50 to between 30 and 35.

Investor relations is heavily focused on deleveraging and profitability improvement, which directly impacts the long-term stability offered to customers and partners. The company has been actively using proceeds from divestitures and operating cash flow to reduce debt.

The investor relations messaging emphasizes tangible financial progress:

• Debt reduced by $296 million in the third quarter of 2025.
• Operating cash flow was $126 million in the third quarter of 2025.
• The company expects to realize approximately $40 million of incremental EBIT benefit from restructuring in full year 2025.
• Anticipated annual sales attrition from the restructuring plan is $80 million.
• Restructuring and related costs incurred in 2025 were the remainder of the $65 to $85 million total expected charge.

Leggett & Platt, Incorporated (LEG) - Canvas Business Model: Channels

You're looking at how Leggett & Platt, Incorporated (LEG) gets its engineered components and products to its customers as of late 2025, which is heavily influenced by the ongoing 2024 Restructuring Plan.

The primary channel remains a direct sales force to manufacturers and large retailers, serving as a key supplier to the mattress industry and others. The overall net trade sales for the full year 2024 were $4,384 million, reflecting a 7% decrease from 2023. For 2025, the company has guided sales to be between $4.0-$4.3 billion.

The structure of these sales channels is being actively optimized through a significant overhaul of the physical network. This involves the consolidation of facilities to create a more efficient regional distribution network, which is targeted for full implementation in late 2025.

Here's a look at the key channel-related financial impacts and footprint changes:

The global distribution and logistics network is undergoing this consolidation to enhance efficiency and better align capacity with regional demand. This is a move to fewer, higher-output facilities.

• Consolidating 14 production and distribution facilities in the Bedding Products segment.
• Exiting the Mexican innerspring operation.
• Downsizing the Chinese innerspring operation.
• Launching restructuring activities in the Hydraulic Cylinders business to optimize manufacturing.

For direct-to-customer for certain finished goods, Leggett & Platt, Incorporated is focusing on its strategy to reshape the Bedding Products business toward innovative, higher-value content, including private label finished goods. Specific revenue figures for a pure direct-to-customer channel aren't broken out in the latest reports, so we focus on the trade sales structure.

The strategy explicitly supports regional manufacturing and distribution centers for localized service through the creation of this new, more efficient network. The goal is to maintain market-leading service while improving overall efficiency. Finance: draft the Q3 2025 cash flow forecast incorporating the expected real estate proceeds by Friday.

Leggett & Platt, Incorporated (LEG) - Canvas Business Model: Customer Segments

You're looking at the core customer base for Leggett & Platt, Incorporated as of late 2025, which is heavily concentrated in durable goods manufacturing across several distinct industries. The company generates its revenue by supplying essential engineered components to these large-scale producers.

The Bedding Products segment remains the foundation, serving bedding manufacturers with components like specialty foam and innersprings. This segment is the largest revenue generator, though it faced headwinds; for instance, in the second quarter of 2025, trade sales for this segment decreased by 11% compared to the second quarter of 2024, with volume specifically down 12%. This softness was attributed to demand softness in U.S. and European bedding markets.

The Specialized Products segment caters to a few key industrial customers. This includes Automotive OEMs needing seat support and lumbar systems, and Hydraulic Cylinder manufacturers. In the third quarter of 2025, trade sales for this segment decreased by 7% year over year, with volume declining by 4%. This figure reflects the impact of the divestiture of the Aerospace business, which reduced sales by 5%.

The Furniture, Flooring & Textile Products segment serves Home and Work Furniture manufacturers, as well as Flooring manufacturers. For this combined segment, trade sales were flat year over year in the third quarter of 2025. However, this flat result masked internal dynamics: volume decreased by 1% due to demand softness in Home Furniture and Flooring, while there was volume growth in Textiles and Work Furniture.

To give you the scale, as of September 30, 2025, Leggett & Platt, Incorporated had a trailing twelve-month revenue of $4.17 Billion USD. The company's guidance for full-year 2025 sales was set between $4.0 billion and $4.3 billion.

Here's a breakdown mapping the customer segments to the reported segment performance data:

You can see the direct impact of end-market conditions on the specific customer groups:

• Bedding Products: Demand softness in U.S. and European bedding markets.
• Automotive: Softening demand in Automotive was noted in 2024.
• Home Furniture: Experienced demand softness in Q3 2025.
• Aerospace: This customer group was effectively removed from the segment via divestiture in Q3 2025.

Leggett & Platt, Incorporated (LEG) - Canvas Business Model: Cost Structure

The Cost Structure for Leggett & Platt, Incorporated centers heavily on input costs, production overhead, and strategic investment in the business footprint. You're looking at a company where the cost of goods sold is dominated by commodity prices, making cost management a constant focus.

The high cost of raw materials is a primary driver of the overall cost base. This includes significant spending on materials like steel, wire, and foam, which are fundamental to their engineered components and finished goods across bedding, automotive, and furniture segments. While specific 2025 raw material cost totals aren't explicitly stated as a full-year figure, the impact is visible in segment performance; for instance, in the first quarter of 2025, raw material-related selling price decreases and currency impact reduced sales by 2%.

Manufacturing and distribution contribute to significant operating expenses. For the fiscal quarter ending in September of 2025, Leggett & Platt reported Operating Expenses of $971.8 million. This figure reflects the ongoing costs associated with running a diversified global manufacturing and distribution network.

The company's ongoing strategic realignment contributes specific, non-recurring costs. Restructuring costs are a known element of the 2025 expense profile, with expectations falling in the range of $15 million to $25 million for the full year 2025. For context on execution, reported restructuring charges through the first three quarters of 2025 totaled $15 million ($7 million in Q1, $4 million in Q2, and $4 million in Q3).

You need to factor in the planned investment in the asset base. Capital expenditures (CapEx) guidance for the full year 2025 was set between $60-$70 million. This represents the planned outlay for maintaining and improving the company's operational capacity.

Finally, the cost of financing the business is captured in the net interest expense. The projection for Net Interest Expense for the entirety of 2025 was set at $65 million.

Here is a quick view of the key financial guidance and reported figures for 2025:

The cost structure is also influenced by external factors that affect material pricing and supply chain stability. You should track these key cost drivers:

• Cost of raw materials, specifically steel, wire, and foam.
• Impact of tariffs on material costs and pricing power.
• Disciplined cost management initiatives offsetting volume declines.
• Restructuring-related cash and non-cash costs.

Finance: draft 13-week cash view by Friday.

Leggett & Platt, Incorporated (LEG) - Canvas Business Model: Revenue Streams

You're looking at how Leggett & Platt, Incorporated brings in the money, which is heavily reliant on its three core operating segments. The total 2025 sales guidance, as of late in the year, sits in the range of $4.0-$4.1 billion. This revenue base is built from the sales of engineered components and products across these distinct areas.

Here's a quick look at the revenue sources, using some of the most recent reported quarterly figures to ground the discussion:

The Sales of Bedding Products is the company's largest segment, honestly. This stream includes critical components for mattresses, plus finished goods like private label mattresses and, importantly, adjustable beds. Volume in this segment has faced softness, with the midpoint guidance for volume decline in the mid-teens for the full year 2025.

Next up is Sales of Specialized Products, which supplies engineered parts for various demanding industries. This includes automotive seat support and lumbar systems, plus components for aerospace and hydraulic cylinders. You should note that the Aerospace business was divested in the third quarter of 2025, which will impact future revenue composition, though the 2025 guidance contemplates owning it for the full year.

The Sales of Furniture, Flooring & Textile Products stream covers components for home and work furniture, as well as flooring underlayment. This segment is expected to see a lower volume decline compared to Bedding, with the midpoint guidance for the full year being in the low single digits.

Finally, you need to factor in non-operational revenue tied to the ongoing restructuring. Leggett & Platt, Incorporated expects to receive proceeds from real estate sales associated with this plan, estimated to total $70-$80 million by the time transactions are largely complete by the end of 2025. They realized some of this in Q1 at $3 million and another $18 million in Q2.

Finance: draft 13-week cash view by Friday.