Track market-moving stories before they get noisy

- Strengthens Global Platform, Deepens Vertical Integration and Expands Component Engineering Expertise 

- Reduces Net Leverage to Approximately 2.8 Times Adjusted EBITDA at Close

- Upsizes Annual Run-Rate Synergy Target to $75 Million, Up from Initial $50 Million Estimate

- Hosting Business Update Call on September 2, 2026

, /PRNewswire/ -- Somnigroup International Inc. (NYSE: SGI, "Company" or "Somnigroup") today announced that it has completed its previously announced combination with Leggett & Platt, Incorporated ("Leggett & Platt"), a diversified manufacturer of engineered components and products.

The combined company today operates over 170 manufacturing facilities across 37 countries worldwide and is supported by a global workforce of more than 36,000 colleagues. 

Chairman and CEO Scott Thompson said, "Today marks an exciting milestone for Somnigroup as we complete the combination with Leggett & Platt. Building on nearly 50 years of collaboration, we are bringing together complementary businesses with shared values and a commitment to customer service and product innovation. By combining Leggett & Platt's engineering expertise and manufacturing capabilities with Somnigroup's global scale and industry-leading brands, we are fortifying our foundation for future growth and long-term value creation. The addition of Leggett & Platt deepens our vertical integration, secures a critical part of our supply chain, and adds a highly cash-generative business to our portfolio. We thank the employees of both organizations for their dedication and support throughout this process, as well as our suppliers, advisors, and shareholders for their continued partnership and confidence in our team."

Leggett & Platt Chairman and CEO Karl Glassman said, "For more than 140 years, Leggett & Platt has earned its reputation through engineering excellence, operational discipline, and an unwavering commitment to our customers, and I am incredibly proud of our teams for building that legacy. Joining Somnigroup gives our business the scale and resources to reach new markets and new opportunities, and I am confident this combination creates a stronger future for our employees, our customers, and the industry we have served for generations."

Financial Terms of the Acquisition

The combination was an all-stock transaction valued at approximately $2.3 billion based on Somnigroup's closing share price on August 25, 2026 and inclusive of Leggett & Platt's existing indebtedness. Leggett & Platt shareholders received 0.1455 shares of Somnigroup common stock in exchange for each share of Leggett & Platt common stock they owned. Upon completion of the transaction, former Leggett & Platt shareholders own approximately 9% of the combined company on a fully diluted basis.

Financial Impact

The transaction has reduced Somnigroup's net financial leverage by approximately 0.2 times, and Somnigroup expects to further reduce its leverage towards the midpoint of its target leverage range of 2.0 to 3.0 times adjusted EBITDA by year-end. The Company has identified $75 million in annual run-rate synergies, up from its initial estimate of $50 million, and expects to provide further detail on synergy realization on its business update call.

Leggett & Platt's financial results will be presented as a new reporting segment within the Somnigroup business. Leggett & Platt's sales to Somnigroup's other reporting segments will be eliminated, with no impact to reported Leggett & Platt segment profits. Additionally, consistent with prior expectations and in accordance with GAAP, Somnigroup expects to incur approximately $50 million of annualized non-cash expense from the adjustment to fair value of the acquired Leggett & Platt business, which will primarily impact cost of goods sold, and Somnigroup expects to incur approximately $10 million of annualized non-cash expense from the adjustment to fair value of the acquired Leggett & Platt bonds, which will impact interest expense. The Company anticipates these non-cash items will be financial adjustments in accordance with the terms of its credit facility.

Goldman Sachs & Co. LLC is serving as exclusive financial advisor and Cleary Gottlieb Steen & Hamilton LLP is serving as legal counsel to Somnigroup. J.P. Morgan Securities LLC is serving as exclusive financial advisor and Latham & Watkins LLP is serving as legal counsel to Leggett & Platt.

Business Update Call

The Company will hold a conference call on Wednesday, September 2, 2026 at 8:00 a.m. Eastern Time to discuss the information in this release and provide a preliminary update on its future plans.

The call will be webcast and can be accessed on the Company's investor relations website at investor.somnigroup.com. After the conference call, webcast replays will remain available on the investor relations section of the Company's website for 30 days.

Forward-Looking Statements

This communication contains statements that may be characterized as "forward-looking," within the meaning of the federal securities laws. Such statements might include information concerning one or more of Somnigroup's plans, guidance, objectives, goals, strategies and other information that is not historical information. When used in this release, the words "assumes," "estimates," "expects," "guidance," "anticipates," "might," "projects," "plans," "proposed," "targets," "intends," "believes," "will," "contemplates," "outlook" and variations of such words or similar expressions are intended to identify forward-looking statements. These forward-looking statements include, without limitation, statements regarding Somnigroup's expected future financial position, results of operations, cash flows, dividends, financing plans, business strategy, budgets, capital expenditures, competitive positions, growth opportunities, run-rate synergies, and plans and objectives of management. Any forward-looking statements contained herein are based upon current expectations and beliefs and various assumptions. There can be no assurance that Somnigroup will realize these expectations, meet its guidance or that these beliefs will prove correct.

Numerous factors, many of which are beyond the Company's control, could cause actual results to differ materially from any that may be expressed herein as forward-looking statements. These potential risks include risks associated with Leggett & Platt's ongoing operations; the ability to successfully integrate Leggett & Platt into Somnigroup's operations and realize synergies from the transaction; the possibility that the expected benefits of the acquisition are not realized when expected or at all; general economic, financial and industry conditions, particularly conditions relating to the financial performance and related credit issues present in the retail sector, as well as consumer confidence and the availability of consumer financing; the impact of the macroeconomic environment in both the U.S. and internationally on Leggett & Platt and the Company; uncertainties arising from national and global events; industry competition; the effects of consolidation of retailers on revenues and costs; and consumer acceptance and changes in demand for Leggett & Platt's and the Company's products and the factors discussed in the Company's Annual Report on Form 10-K for the year ended December 31, 2025. There may be other factors that may cause the Company's actual results to differ materially from the forward-looking statements. The Company undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made.

About Somnigroup

Somnigroup (NYSE: SGI) is the world's leading bedding company, dedicated to transforming how the world sleeps. With superior capabilities in design, component and finished goods manufacturing, distribution and retail, we deliver breakthrough solutions and serve the evolving needs of consumers in more than 100 countries worldwide through our fully-owned businesses, Tempur Sealy, Mattress Firm, Leggett & Platt, and Dreams.

Our portfolio includes the most highly recognized brands in the industry, including Tempur-Pedic®, Sealy®, Stearns & Foster®, and Sleepy's®, enhanced by Leggett & Platt's diversified component engineering expertise. Our global omni-channel platform and extensive consumer touchpoints enable us to meet consumers wherever they shop, offering a personal connection and innovation to provide a unique retail experience and tailored solutions.

Somnigroup Investor Relations Contact

Lauren Avritt
Investor Relations
Somnigroup International Inc.
[email protected]

SOURCE Somnigroup International

, /PRNewswire/ --

2Q sales of $1.0 billion, a 6% decrease vs 2Q25, including a 5% decrease from divestitures 2Q EPS of $.33, 2Q adjusted1 EPS of $.39, a $.09 increase vs adjusted1 2Q25 EPS 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 20th 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.

Second Quarter Results 1

EBIT (millions) 

EPS

Bedding

Specialized

FF&T

Other

Total

2Q26

2Q25

2Q26

2Q25

2Q26

2Q25

2Q26

2Q25

2Q26

2Q25

2Q26

2Q25

Reported results

$42

$27

$19

$39

$29

$24

$(10)

$—

$80

$90

$.33

$.38

Adjustment items:

Gain on sale of real estate

(11)

(17)

—

(2)

—

—

—

—

(11)

(19)

(.06)

(.10)

Restructuring, restructuring-related, and impairment charges

6

2

3

1

1

1

—

—

10

4

.05

.02

Somnigroup merger costs

—

—

—

—

—

—

10

—

10

—

.07

—

Total adjustments

(5)

(15)

3

(1)

1

1

10

—

9

(15)

.06

(.08)

Adjusted results

$37

$13

$22

$38

$30

$25

$—

$—

$89

$76

$.39

$.30

1 Calculations impacted by rounding 

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.

__________________________

1 Please refer to attached tables for Non-GAAP Reconciliations

2 Trade sales excluding acquisitions/divestitures in the last 12 months

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
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 [email protected] 

LEGGETT & PLATT

Page 5 of 7

August 6, 2026

RESULTS OF OPERATIONS 

SECOND QUARTER

YEAR TO DATE

(In millions, except per share data)

2026

2025

Change

2026

2025

Change

Trade sales 

$     999.7

$  1,058.0

(6) %

$  1,917.9

$  2,080.1

(8) %

Cost of goods sold

796.5

865.4

1,544.0

1,697.5

   Gross profit 

203.2

192.6

6 %

373.9

382.6

(2) %

Selling & administrative expenses 

119.8

118.4

1 %

241.3

242.0

— %

Amortization

3.1

3.6

6.7

8.6

Other (income) expense, net

0.2

(19.8)

1.3

(21.3)

Earnings before interest and income taxes

80.1

90.4

(11) %

124.6

153.3

(19) %

Net interest expense

11.7

18.7

24.3

36.5

Earnings before income taxes

68.4

71.7

100.3

116.8

Income taxes 

21.3

19.2

33.2

33.7

Net earnings

47.1

52.5

67.1

83.1

Less net income from noncontrolling interest

—

—

—

—

   Net Earnings (loss) Attributable to L&P

$       47.1

$       52.5

(10) %

$       67.1

$       83.1

(19) %

Earnings (loss) per diluted share 

Net earnings (loss) per diluted share

$       0.33

$       0.38

(13) %

$       0.47

$       0.60

(22) %

Shares outstanding

   Common stock (at end of period)

136.6

135.3

1.0 %

136.6

135.3

1.0 %

   Basic (average for period)

140.0

138.5

139.6

138.2

   Diluted (average for period)

141.6

139.6

1.4 %

141.3

139.1

1.6 %

CASH FLOW 

SECOND QUARTER

YEAR TO DATE

(In millions)

2026

2025

Change

2026

2025

Change

Net earnings

$       47.1

$       52.5

$       67.1

$       83.1

Depreciation and amortization

28.5

29.7

56.7

61.3

Working capital decrease (increase)

(28.3)

16.4

(146.5)

(47.8)

Impairments

0.2

0.9

3.0

1.2

Deferred income tax benefit (expense)

1.1

(3.2)

5.5

(1.6)

Other operating activities

(2.8)

(12.3)

3.9

(5.4)

   Net Cash from Operating Activities

$       45.8

$       84.0

(45) %

$      (10.3)

$       90.8

(111) %

Additions to PP&E

(20.5)

(8.5)

(44.8)

(21.8)

Proceeds from disposals of assets and businesses

12.6

23.5

26.9

29.1

Dividends paid

(6.8)

(6.8)

(13.6)

(13.5)

Repurchase of common stock, net

(0.3)

(0.3)

(3.7)

(2.3)

Additions to (payments of) debt, net

1.1

(146.4)

1.4

(77.4)

Other

3.4

10.7

2.5

13.7

   Increase (Decrease) in Cash & Equivalents

$       35.3

$      (43.8)

$      (41.6)

$       18.6

BALANCE SHEET

Jun 30,

Dec 31,

(In millions)

2026

2025

Change

Cash and equivalents 

$     545.8

$     587.4

Receivables 

568.4

475.9

Inventories 

638.3

622.6

Other current assets 

78.8

57.7

   Total current assets 

1,831.3

1,743.6

5 %

Net fixed assets 

646.9

664.0

Operating lease right-of-use assets

130.9

137.9

Goodwill

745.1

751.4

Intangible assets and deferred costs, both at net

248.6

239.5

   TOTAL ASSETS

$  3,602.8

$  3,536.4

2 %

Trade accounts payable

$     475.5

$     466.6

Current debt maturities 

1.5

1.5

Current operating lease liabilities

48.5

51.5

Other current liabilities 

253.8

255.4

   Total current liabilities 

779.3

775.0

1 %

Long-term debt

1,496.8

1,496.2

— %

Operating lease liabilities

100.3

106.7

Deferred taxes and other liabilities 

144.2

135.9

Equity

1,082.2

1,022.6

6 %

   Total Capitalization 

2,823.5

2,761.4

2 %

   TOTAL LIABILITIES & EQUITY

$  3,602.8

$  3,536.4

2 %

LEGGETT & PLATT

Page 6 of 7

August 6, 2026

SEGMENT RESULTS 1

SECOND QUARTER

YEAR TO DATE

(In millions)

2026

2025

Change

2026

2025

Change

Bedding Products

Trade sales

$     386.9

$     391.4

(1) %

$     751.8

$     782.1

(4) %

EBIT

42.1

27.2

55 %

67.8

36.8

84 %

EBIT margin

10.9 %

6.9 %

400 bps

2

9.0 %

4.7 %

430 bps2

Restructuring, restructuring-related, and impairment charges

6.0

2.1

10.7

5.5

Gain on sale of real estate

(11.5)

(16.7)

(21.0)

(16.7)

Adjusted EBIT 3

36.6

12.6

190 %

57.5

25.6

125 %

Adjusted EBIT margin 3

9.5 %

3.2 %

 630 bps 

7.6 %

3.3 %

 430 bps 

Depreciation and amortization

13.4

13.3

25.8

26.3

Adjusted EBITDA

50.0

25.9

93 %

83.3

51.9

61 %

Adjusted EBITDA margin

12.9 %

6.6 %

 630 bps 

11.1 %

6.6 %

 450 bps 

Specialized Products

Trade sales

$     247.0

$     304.1

(19) %

$     491.1

$     604.2

(19) %

EBIT

19.2

38.7

(50) %

36.9

67.1

(45) %

EBIT margin

7.8 %

12.7 %

(490) bps

7.5 %

11.1 %

(360) bps

Restructuring, restructuring-related, and impairment charges

3.3

0.6

3.3

4.0

Gain on sale of real estate

—

(1.7)

—

(1.7)

Adjusted EBIT 3

22.5

37.6

(40) %

40.2

69.4

(42) %

Adjusted EBIT margin 3

9.1 %

12.4 %

 (330) bps 

8.2 %

11.5 %

 (330) bps 

Depreciation and amortization

8.5

8.2

16.6

18.6

Adjusted EBITDA

31.0

45.8

(32) %

56.8

88.0

(35) %

Adjusted EBITDA margin

12.6 %

15.1 %

 (250) bps 

11.6 %

14.6 %

 (300) bps 

Furniture, Flooring & Textile Products

Trade sales

$     365.8

$     362.5

1 %

$     675.0

$     693.8

(3) %

EBIT

28.9

24.4

18 %

33.3

49.2

(32) %

EBIT margin

7.9 %

6.7 %

120 bps

4.9 %

7.1 %

(220) bps

Restructuring, restructuring-related, and impairment charges

1.0

0.9

1.2

1.0

Gain on sale of real estate

—

—

—

(3.2)

Adjusted EBIT 3

29.9

25.3

18 %

34.5

47.0

(27) %

Adjusted EBIT margin 3

8.2 %

7.0 %

 120 bps 

5.1 %

6.8 %

 (170) bps 

Depreciation and amortization

3.7

4.6

8.0

9.5

Adjusted EBITDA

33.6

29.9

12 %

42.5

56.5

(25) %

Adjusted EBITDA margin

9.2 %

8.2 %

 100 bps 

6.3 %

8.1 %

 (180) bps 

Total Company

Trade sales

$     999.7

$  1,058.0

(6) %

$  1,917.9

$  2,080.1

(8) %

EBIT - segments

90.2

90.3

— %

138.0

153.1

(10) %

Intersegment eliminations and other

(10.1)

0.1

(13.4)

0.2

EBIT

80.1

90.4

(11) %

124.6

153.3

(19) %

EBIT margin

8.0 %

8.5 %

(50) bps

6.5 %

7.4 %

(90) bps

Restructuring, restructuring-related, and impairment charges

10.3

3.6

15.2

10.5

Gain on sale of real estate

(11.5)

(18.4)

(21.0)

(21.6)

Somnigroup merger costs

10.1

—

13.6

—

Adjusted EBIT 3

89.0

75.6

18 %

132.4

142.2

(7) %

Adjusted EBIT margin 3

8.9 %

7.1 %

 180 bps 

6.9 %

6.8 %

 10 bps 

Depreciation and amortization - segments

25.6

26.1

50.4

54.4

Depreciation and amortization - unallocated 4

2.9

3.6

6.3

6.9

Adjusted EBITDA

$     117.5

$     105.3

12 %

$     189.1

$     203.5

(7) %

Adjusted EBITDA margin

11.8 %

10.0 %

 180 bps 

9.9 %

9.8 %

 10 bps 

LAST SIX QUARTERS 

2025

2026

Selected Figures                                                                                               (In millions)

1Q

2Q

3Q

4Q

1Q

2Q

Trade sales

1,022.1

1,058.0

1,036.4

938.6

918.2

999.7

Sales growth (vs. prior year)

(7) %

(6) %

(6) %

(11) %

(10) %

(6) %

Volume growth (same locations vs. prior year)

(5) %

(7) %

(6) %

(9) %

(9) %

(4) %

Adjusted EBIT 3

66.6

75.6

72.8

47.9

43.4

89.0

Cash from operations

6.8

84.0

125.9

121.5

(56.1)

45.8

Adjusted EBITDA (trailing twelve months) 3

404.1

405.6

395.4

385.3

358.7

370.9

(Long-term debt + current maturities - cash and equivalents) / adj. EBITDA 3,5

3.77

3.51

2.62

2.36

2.75

2.57

Organic Sales (Vs. Prior Year) 6

1Q

2Q

3Q

4Q

1Q

2Q

Bedding Products

(12) %

(10) %

(9) %

(10) %

(6) %

(1) %

Specialized Products

(5) %

(5) %

(2) %

(4) %

(2) %

(3) %

Furniture, Flooring & Textile Products

(1) %

(2) %

— %

(2) %

(6) %

1 %

     Overall 

(7) %

(6) %

(4) %

(6) %

(5) %

(1) %

1 Segment and overall company margins calculated on net trade sales.

2 bps = basis points; a unit of measure equal to 1/100th of 1%.

3 Refer to next page for non-GAAP reconciliations.

4 Consists primarily of depreciation of non-operating assets.

5 EBITDA based on trailing twelve months. 

6 Trade sales excluding sales attributable to acquisitions and divestitures consummated in the last 12 months.

LEGGETT & PLATT

Page 7 of 7

August 6, 2026

RECONCILIATION OF REPORTED (GAAP) TO ADJUSTED (Non-GAAP) FINANCIAL MEASURES 10

Non-GAAP Adjustments 7

2025

2026

(In millions, except per share data)

1Q

2Q

3Q

4Q

1Q

2Q

Gain on sale of Aerospace Products Group

—

—

(86.8)

(4.1)

—

—

Restructuring, restructuring-related, and impairment charges

6.9

3.6

4.1

21.6

4.9

10.3

Gain on sale of real estate

(3.2)

(18.4)

(2.5)

(5.0)

(9.5)

(11.5)

Net gain from insurance proceeds

—

—

(13.1)

(21.6)

—

—

Pension settlement

—

—

—

22.0

—

—

Somnigroup merger costs

—

—

—

3.4

3.5

10.1

Non-GAAP Adjustments (Pretax) 8

3.7

(14.8)

(98.3)

16.3

(1.1)

8.9

Income tax impact

(1.3)

3.6

9.0

(10.0)

1.9

0.1

Special tax item  9

—

—

2.3

—

—

—

Non-GAAP Adjustments (After Tax)

2.4

(11.2)

(87.0)

6.3

0.8

9.0

Diluted shares outstanding

138.6

139.6

140.2

140.4

141.0

141.6

EPS Impact of Non-GAAP Adjustments

0.02

(0.08)

(0.62)

0.04

0.01

0.06

Adjusted EBIT, EBITDA, Margin, and EPS 7

2025

2026

(In millions, except per share data)

1Q

2Q

3Q

4Q

1Q

2Q

Trade sales

1,022.1

1,058.0

1,036.4

938.6

918.2

999.7

EBIT (earnings before interest and taxes)

62.9

90.4

171.1

31.6

44.5

80.1

Non-GAAP adjustments (pretax)

3.7

(14.8)

(98.3)

16.3

(1.1)

8.9

Adjusted EBIT

66.6

75.6

72.8

47.9

43.4

89.0

EBIT margin

6.2 %

8.5 %

16.5 %

3.4 %

4.8 %

8.0 %

Adjusted EBIT Margin

6.5 %

7.1 %

7.0 %

5.1 %

4.7 %

8.9 %

EBIT

62.9

90.4

171.1

31.6

44.5

80.1

Depreciation and amortization

31.6

29.7

29.4

31.7

28.2

28.5

EBITDA

94.5

120.1

200.5

63.3

72.7

108.6

Non-GAAP adjustments (pretax)

3.7

(14.8)

(98.3)

16.3

(1.1)

8.9

Adjusted EBITDA

98.2

105.3

102.2

79.6

71.6

117.5

EBITDA margin

9.2 %

11.4 %

19.3 %

6.7 %

7.9 %

10.9 %

Adjusted EBITDA Margin

9.6 %

10.0 %

9.9 %

8.5 %

7.8 %

11.8 %

Diluted EPS

0.22

0.38

0.91

0.18

0.14

0.33

EPS impact of non-GAAP adjustments

0.02

(0.08)

(0.62)

0.04

0.01

0.06

Adjusted EPS

0.24

0.30

0.29

0.22

0.15

0.39

Net Debt to Adjusted EBITDA 11

2025

2026

(In millions, except ratios)

1Q

2Q

3Q

4Q

1Q

2Q

Total debt

1,936.4

1,793.5

1,497.2

1,497.7

1,498.2

1,498.3

Less: cash and equivalents

(412.6)

(368.8)

(460.7)

(587.4)

(510.5)

(545.8)

Net debt

1,523.8

1,424.7

1,036.5

910.3

987.7

952.5

Adjusted EBITDA, trailing 12 months

404.1

405.6

395.4

385.3

358.7

370.9

Net Debt / 12-month Adjusted EBITDA

3.77

3.51

2.62

2.36

2.75

2.57

Aerospace Products Group

2025

2026

(In millions)

1Q

2Q

3Q

4Q

1Q

2Q

Net trade sales

53.0

50.6

28.6

—

—

—

EBIT

7.2

9.3

3.2

—

—

—

Depreciation and amortization

2.5

—

—

—

—

—

Net earnings (assuming a 25% tax rate)

5.4

7.0

2.4

—

—

—

7 Management and investors use these measures as supplemental information to assess operational performance.

8 The non-GAAP adjustments are included in the following lines of the income statement:

2025

2026

1Q

2Q

3Q

4Q

1Q

2Q

Cost of goods sold

0.5

—

1.7

1.4

1.2

3.4

Selling & administrative expenses 

1.7

—

—

3.6

3.5

—

Other (income) expense, net

1.5

(14.8)

(100.0)

11.3

(5.8)

5.5

Total Non-GAAP Adjustments (Pretax)

3.7

(14.8)

(98.3)

16.3

(1.1)

8.9

9 The special tax item of $2.3 in Q3 2025 is related to U.S. corporate income tax law changes.

10 Calculations impacted by rounding.

11 Management and investors use this ratio as supplemental information to assess ability to pay off debt.  These ratios are calculated differently than the Company's credit
    facility covenant ratio.

SOURCE Leggett & Platt Incorporated

In August 2024, Gabriel Holding A/S announced that, as a result of an adjusted growth strategy with an increased focus on the development of the Group’s global textile business, it would initiate a full or partial divestment of the Group’s furniture manufacturing operations, the “FurnMaster business”.

FurnMaster has a leading position in the market and in Europe consists of two companies located in Poland and Lithuania respectively as well as a dedicated department in Gabriel A/S in Aalborg, Denmark.

The transaction agreement entails that a wholly owned subsidiary of Leggett & Platt, Incorporated acquires the shares in the two subsidiaries, UAB FurnMaster (Lithuania) and FurnMaster Sp. z o.o. (Poland), and will assume responsibility for the employees, assets and liabilities of the dedicated FurnMaster division within Gabriel A/S.

The Group’s Mexican FurnMaster business is not included in the transaction and will continue to be offered for sale.

The initial purchase price (Enterprise Value) has been agreed at DKK 67.3 million (approximately EUR 9 million). In addition, there is the possibility of a conditional deferred cash payment of up to DKK 7.5 million (approximately EUR 1 million).

The transaction remains subject to customary closing conditions.

Management has prioritised finding a qualified buyer who recognises FurnMaster’s strong market position and possesses the necessary capabilities and platform to further develop the business, while at the same time achieving a transaction value that positively impacts the Group’s financial position.

Management believes that the agreement fully satisfies these objectives, as the transaction both enables the continuing business to maintain its desired strategic focus on the development of the Group’s global textile operations and significantly strengthens the Group’s balance sheet through the cash proceeds from the sale.

With locations in North America, Europe and Asia, Legett and Platt’s Work Furniture business is a leading supplier of components and finished furniture to leading furniture brands. Through its strong global platform, including ownership of Trio Line in Poland, which it has successfully operated for a number of years, Leggett & Platt possesses the organisational structure and competencies required to support FurnMaster’s continued development. Consequently, management is highly satisfied that Leggett & Platt has become the new owner of the business.

For further information regarding the transaction, please contact CEO Anders Hedegaard Petersen, [email protected]
or telephone: +45 96 30 31 17.

Further Information:

Gabriel Holding A/S has been advised throughout the transaction by Deloitte Corporate Finance and DLA Piper.

About Leggett & Platt:

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.

For further information, please visit www.legget.com

This is a translation of the original Danish text. In the event of discrepancies between the Danish and English texts, the Danish version shall prevail.

Gabriel Holding AS - Announcement no 18_Gabriel agrees to sell its European FurnMaster business to Leggett & Platt