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AuMEGA Metals Ltd (ASX:AAM, TSX:AUM, OTCQB:AUMMF, FRA:FRA: MA30) will hold its 2026 Annual General Meeting in Newfoundland and Labrador, Canada, on May 28, 2026.

The AGM will be conducted as a hybrid meeting, allowing registered shareholders to attend either in person or online.

The meeting will begin at 10:00am Newfoundland Daylight Time, 8:30am Eastern Daylight Time and 8:30pm Western Australia Standard Time.

Registered shareholders attending virtually can access the meeting via Microsoft Teams at the following link:

https://teams.microsoft.com/l/meetup-join/19%3ameeting_MmU0ZTI4M2UtMDRjYi00NWFjLWI5NTMtM2I3N2ZjY2RhMmJj%40thread.v2/0?context=%7b%22Tid%22%3a%22e298ac65-1d9e-496a-8323-c8dcc7f9b3c1%22%2c%22Oid%22%3a%22e0ed3b49-3f32-443f-83cf-e694e2b4a750%22%7d

Teams Meeting ID: 235 063 491 814 82
Passcode: Cx3KG7jp

Shareholders attending virtually are encouraged to log in a few minutes before the scheduled start time.

AuMEGA Metals unveils fully funded 2026 exploration strategy in Newfoundland No doubt, AuMEGA will detail its fully funded 2026 exploration program aimed at expanding resources, making new discoveries and advancing drill-ready targets across its district-scale Cape Ray Shear Zone project in Newfoundland, Canada.

The company said the program will centre on three strategic priorities: growing the Cape Ray gold resource, pursuing new large-scale discoveries and building a pipeline of high-priority drill targets across its broader landholding.

Key focus areas for the 2026 campaign include Cape Ray West and the Isle aux Morts Granite, Bunker Hill and the Cape Ray Resource Corridor.

AuMEGA’s land package covers a significant portion of the Cape Ray Shear Zone, a structurally controlled gold belt considered prospective for both high-grade gold mineralisation and additional discovery opportunities.

Solis Minerals Ltd (TSX-V:SLMN, ASX:SLM, OTCQB:SLMFF, FRA:08WA) is preparing to launch its first diamond drilling campaign at the Mandacaru lithium prospect...

WeRoad, the Milan-based group travel startup, has raised a $58 million Series C round led by Airbnb as it prepares for its first major expansion outside Europe. The funding brings the company’s total capital raised to roughly $100 million and will finance WeRoad’s push into the U.S., beginning with Austin.

The new investment reflects a bet that the next generation of travel companies may look less like booking platforms and more like social platforms designed to facilitate real-world connections. 

The U.S. launch also arrives as loneliness, particularly among younger consumers, has become both a public health concern and an emerging business opportunity. When much of the tech industry remains focused on AI, WeRoad is positioning itself as part of the growing “IRL economy,” a category of startups monetizing offline interaction rather than screen time. Companies like Timeleft, 222, and Pie are pursuing similar ideas through dinners, clubs, events, and community-based experiences.

The idea behind WeRoad came from the founders — Paolo De Nadai, Fabio Bin, and Erika De Santi — seeking connection themselves. 

“It started from a very personal need. When you finish college and start working, it becomes harder to find people to travel with. Friends were settling down, having kids, moving away, or simply couldn’t align schedules anymore,” De Nadai told TechCrunch. “My co-founder Fabio and I both tried companies offering similar group travel experiences for solo travelers, but while the trips were good, something was missing. The guides were professional local experts, and the groups were mixed in age, and people didn’t really see eye to eye. People were traveling together, but not really connecting.”

Image Credits:WeRoad The founders’ response was to redesign group travel around shared interests. WeRoad trips are primarily designed for younger travelers and grouped around shared interests and travel styles. Customers can book trips through the platform based on themes such as beach vacations or skiing. 

“We asked ourselves, ‘What if we created trips for Millennials and Gen Z travelers, bringing together people from the same age groups with shared cultural references but completely different backgrounds, and focused on creating real bonds between them?’” De Nadai added.

Before each trip begins, travelers are added to a WhatsApp group managed by the group leader so members can begin getting to know one another ahead of time. Groups typically include between eight and 15 travelers.

“The biggest concern people have is rarely the destination,” De Nadai said, but usually concerns that they won’t connect with the group. To address that, WeRoad intentionally structures itineraries around social dynamics. More adventurous or collaborative activities are often scheduled early in the trip to help break the ice.

Most itineraries last between 10 and 12 days, though the company has also introduced shorter weekend formats aimed at first-time customers. According to WeRoad, roughly 60% of travelers eventually book another trip.

Additionally, instead of traditional tour guides, WeRoad has “group leaders,” coordinators closer in age to travelers who act more like travel companions. The company now works with more than 4,000 group leaders globally. 

“We’re not looking for destination experts, but for people with travel experience and strong soft skills. Can they lead a group, handle tension, adapt when plans change, and help strangers connect?” De Nadai said. 

Image Credits:Screenshot from App Store WeRoad has also begun expanding beyond travel itself. In 2025, the company launched WeMeet, an app focused on local in-person gatherings, including dinners, hikes, yoga classes, running groups, after-work drinks, and board game nights. WeRoad says more than 50,000 people attended WeMeet events across 35 cities last year, while the app reached 150,000 downloads.

The company says WeMeet will also play a central role in its U.S. expansion strategy. Rather than immediately scaling nationwide, WeRoad plans to focus on a small number of cities first, beginning with Austin, where it will recruit group leaders, organize local events, and build community partnerships before expanding further.

“We’ll be launching WeMeet events across multiple U.S. cities throughout 2026, starting with Austin because of its incredible energy and vibrant community scene,” De Nadai said.

Whether companies can build lasting businesses around loneliness and social connection remains an open question. But investors are increasingly betting that the demand is real.

WeRoad says it generated €130 million in revenue in 2025, up 30% year over year, while taking more than 100,000 travelers on trips last year alone. Since launching in 2017, the company says it has organized travel for more than 300,000 customers across over 1,000 itineraries globally.

When you purchase through links in our articles, we may earn a small commission. This doesn’t affect our editorial independence.

In Brief

Posted:

3:29 PM PDT · June 4, 2026

Image Credits:Michael Nagle / Bloomberg / Getty Images Airbnb CEO Brian Chesky has had enough of merely being an artificial intelligence kingmaker. He now plans to back a new AI lab of his own. The news, broken by Bloomberg and confirmed to TechCrunch by a person familiar with the situation, marks Chesky as one of many Silicon Valley machers who are unsatisfied with the models coming out of the frontier labs.

While Airbnb has adopted AI coding tools, Chesky said last year it hasn’t struck an LLM partnership because existing products weren’t quite ready.

Still, Chesky has plenty of insight. He met Sam Altman in 2006 through Y Combinator, which incubated Airbnb, and stayed in touch. When OpenAI took off, he began meeting regularly with Altman to offer advice about managing a hypergrowth tech company.

Chesky, who was reportedly considered a potential OpenAI board member, helped broker Altman’s return to power after its board of directors fired the CEO for lack of candor. Chesky advised Altman on public relations and rallied support for him among Silicon Valley bigwigs.

Now, however, he appears to be entering competition with his mentee’s company.

It’s not clear what the focus of Chesky’s new AI lab will be, although the Bloomberg article mentions user interaction and design, areas that he has emphasized at Airbnb.

That’s not unlike what Brett Adcock is doing at Hark, the AI lab he launched late last year to develop a novel user interface for an AI assistant, although the startup is also emphasizing hardware products.

Chesky also won’t be going into “founder mode” at this operation; a person familiar with the situation says he will remain as Airbnb’s CEO and not lead the new lab himself. Whoever gets the job will have to contend not only with the other AI labs, but also with a founding chair (we presume) known as a micromanager.

A representative for Airbnb and Chesky declined to comment.

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Airbnb Inc (NASDAQ:ABNB, XETRA:6Z1) is on track to sustain double-digit revenue growth through the end of the decade as its expansion into hotels, travel experiences, and higher take rates adds meaningful incremental revenue, Jefferies said, reiterating a Buy rating on the stock. Analysts at Jefferies project that each of the three growth drivers -- hotels, experiences, and take rate expansion -- could contribute roughly one percentage point to annual revenue growth between 2025 and 2030, underpinning estimates that now sit above Wall Street consensus.

The past couple of years have been a rollercoaster ride for Airbnb (ABNB +1.08%) stock investors. The company is widely viewed as a pioneer in the "sharing economy," carving out a successful niche in home rentals and the travel industry. Under the leadership of CEO Brian Chesky, Airbnb has grown from a scrappy start-up to a global travel platform with an ever-expanding suite of stays and experiences.

While the company's performance has been solid, short-term economic concerns have weighed on Airbnb stock, which is treading water so far in 2026. To add insult to injury, Chesky just sold millions of Airbnb shares, making some shareholders justifiably concerned. After all, if the CEO is selling shares, is it time for investors to follow suit?

Let's see what the evidence suggests.

Image source: The Motley Fool.

What's weighing on the stockBefore digging into the details, it's worthwhile to examine the company’s recent performance to see if there’s cause for concern -- and the most recent quarter is a good starting point.

In the first quarter, Airbnb generated revenue that climbed 18% year over year to $2.7 billion. This resulted in diluted earnings per share (EPS) of $0.26, which rose 8%. The company also delivered $1.7 billion in free cash flow (FCF), with a 64% FCF margin -- which shows that Airbnb is highly efficient at converting sales into cash, affording the company a degree of financial flexibility.

Other key business metrics were solid. The company's gross booking value -- which represents the total amount paid by guests for bookings on its platform -- increased 19% to $29.2 billion, while nights and seats booked rose 9% to 156.2 million.

Despite macroeconomic concerns, Airbnb continues to grow at a solid pace.

By the numbersSeveral regulatory filings with the Securities and Exchange Commission (SEC) provided details about the stock sales. Over the past week, Chesky sold a total of 181,316 shares at prices ranging from $134 to $136.14. In all, the sale totaled more than $24.5 million. A sale of that magnitude might make investors a bit concerned, especially since it was the CEO making the sale. It might be easy to reach the conclusion that the chief executive knows something we don't -- but that isn't the case here. A closer look at the filing provides important context.

Today's Change

(

1.08

%) $

1.41

Current Price

$

132.28

Chesky receives a base salary of $1 and is awarded restricted stock units (RSUs) for the vast majority of his compensation. This is a way to tie his compensation to long-term company performance and align his interests with those of Airbnb shareholders. Chesky has been holding these RSUs for more than three years, with these tranches issued in May 2023. Furthermore, vesting of these RSUs depends on the length of the CEO's service and the stock reaching certain price thresholds.

It's also important to note that this is a drop in the bucket compared to the chief executive's total stake, which amounts to roughly 66 million shares of Airbnb stock, which are collectively worth nearly $9 billion. He also controls roughly 32% of the company's voting power.

Finally, the sale was part of a 10b5-1 trading plan, a prearranged plan that allows company insiders to buy or sell shares of stock without running afoul of insider trading rules. This plan was previously arranged, providing investors with assurances that there's nothing nefarious going on here.

The old adageGiven Chesky's sizable sale of Airbnb stock, should investors follow suit? There's an old adage on Wall Street: There are plenty of reasons to sell a stock, but only one reason to buy. In this case, the reason for selling is that this is part of his regular compensation package, and the CEO needed to raise some cash.

Moreover, given that Chesky still holds Airbnb shares worth nearly $9 billion, I don't view the sale as being anything more than him managing his finances.

As a general rule, I would never sell a stock simply because a company executive is selling -- particularly if they still hold a substantial position.

Investors with an interest in Leisure and Recreation Services stocks have likely encountered both Atour Lifestyle Holdings Limited Sponsored ADR (ATAT) and Airbnb, Inc. (ABNB). But which of these two stocks is more attractive to value investors?

Better internet connectivity and smartphone technology laid the foundation for the launch of Airbnb (ABNB +1.45%). This company has been a notable success story of the mobile era. In less than two decades, it has become a dominant force in the travel industry.

For the business, the rise has been impressive. But its investors haven't profited lately. Over the past five years, shares have fallen by 11% (as of June 10). While the stock's movements have been choppy, Airbnb has basically traded sideways for years.

Knowing this backdrop might make it a challenge to be bullish about the stock. But long-term investors may recognize this as an opportunity to own a piece of a successful business with a bright future.

Here are three reasons Airbnb is a top growth stock to buy in June.

Image source: The Motley Fool.

Network effects support its powerful position Among the many things Warren Buffett is known for is popularizing the concept of economic moats -- durable characteristics that allow a company to outperform its rivals over extended periods. Moats are among the hallmarks of a high-quality business.

Airbnb can be categorized as such a company. Its most notable moat is that it benefits from a powerful network effect. The business has 5.5 million hosts with 9 million listings on its platform, which constitute the supply side of the equation. On the demand side, it has the attention of vast numbers of travelers -- there have been 2.5 billion guest arrivals in total since 2007.

This two-sided ecosystem provides a better and better value proposition to both hosts and travelers as it grows. Travelers benefit from a vast selection of accommodations. Hosts who join the network or stay connected to it gain access to a growing number of potential customers.

Airbnb's brand is another important facet of its robust competitive position. The company's name has become a verb, indicating its ubiquity in its industry. It's also worth noting that in 2020, 91% of the traffic that came to Airbnb was from direct or unpaid channels, showing just how much brand awareness it has among consumers.

Ongoing innovation drives financial success Airbnb's management team deserves praise for constantly focusing on product innovation, which is critical in supporting ongoing success. This was on full display last year when the business revamped its app layout and introduced experiences and services to the mix.

In May, Airbnb came out with more feature updates. New services include grocery delivery and luggage storage. New experiences include expert-led landmark visits.

The company is also leveraging artificial intelligence to help travelers compare homes and interpret reviews. And the tech is being deployed to streamline the onboarding process for hosts listing properties.

It's encouraging to see that Airbnb's ultimate focus centers on figuring out ways to improve the experience for its user base. This strategic priority is translating into impressive financial performances.

In Q1 2026, gross bookings and revenue increased by 19% and 18%, respectively. The consensus view among analysts is that sales will grow at a solid compound annual rate of 11.9% from 2025 to 2028.

As a scaled and asset-light operation, Airbnb's profits are sizable. Its average quarterly operating margin in the last 12 months was 18.4%.

Today's Change

(

1.45

%) $

1.87

Current Price

$

130.97

The valuation is reasonable Despite consistent net income and rising revenue, Airbnb's stock has failed to deliver positive returns for investors over the past five years. Yet the company is unquestionably better than it was in the past, which is why it presents a worthwhile buying opportunity today.

The stock trades at a reasonable valuation relative to its growth prospects. The forward price-to-earnings (P/E) ratio of 25.3 [https://finance.yahoo.com/quote/ABNB/key-statistics/] is 14% above the S&P 500 index's 22.2 multiple. But consider that Airbnb's diluted earnings per share (EPS) are projected to grow at an annualized rate of 21.1% between 2025 and 2028.

That bottom-line outlook is bolstered by the company's stock buybacks, which are funded by significant free cash flow. Its outstanding share count at the end of the first quarter was almost 4% smaller than 12 months earlier.

For all of these reasons, Airbnb looks like an underappreciated stock to buy this month.

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Insiders may stand to receive substantial financial benefits not available to ordinary shareholders.

The proposed transaction may contain terms that could limit superior competing offers.

Shareholders are encouraged to contact the firm to discuss their rights and options at no cost or obligation. We would handle any matter on a contingent fee basis, whereby you would not be responsible for out-of-pocket payment of our legal fees or expenses.

NEW YORK--(BUSINESS WIRE)--Halper Sadeh LLC, an investor rights law firm, is investigating the sale of Leggett & Platt, Incorporated (NYSE: LEG) to Somnigroup International Inc. for 0.1455 shares of Somnigroup common stock for each share of Leggett & Platt common stock. Upon closing of the proposed transaction, Leggett & Platt shareholders will own approximately 9% of the combined company.

Halper Sadeh encourages Leggett & Platt shareholders to click here to learn more about their rights and options or contact Daniel Sadeh or Zachary Halper free of charge at (212) 763-0060 or [email protected] or [email protected].

The investigation concerns whether Leggett & Platt and its board of directors violated the federal securities laws and/or breached their fiduciary duties by failing to: (1) obtain the best possible price for Leggett & Platt shareholders; (2) conduct a fair sales process free of any conflicts of interests; and (3) disclose all material information for Leggett & Platt shareholders to evaluate the transaction.

On behalf of shareholders, Halper Sadeh LLC may seek increased consideration, additional disclosures, or other relief and benefits.

Halper Sadeh LLC represents investors all over the world who have fallen victim to securities fraud and corporate misconduct. Our attorneys have been instrumental in implementing corporate reforms and recovering millions of dollars on behalf of defrauded investors.

Attorney Advertising. Prior results do not guarantee a similar outcome.

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NEW YORK, April 13, 2026 (GLOBE NEWSWIRE) --

Class Action Attorney Juan Monteverde with Monteverde & Associates PC (the “M&A Class Action Firm”), has recovered millions of dollars for shareholders and is recognized as a Top 50 Firm in the 2025 ISS Securities Class Action Services Report. The firm is headquartered at the Empire State Building in New York City and is investigating Leggett & Platt, Incorporated (NYSE: LEG) related to its sale to Somnigroup International Inc. Under the terms of the proposed transaction, Leggett & Platt shareholders will receive 0.1455 shares of Somnigroup common stock for each share of Leggett & Platt common stock. Is it a fair deal?

Click here for more info https://monteverdelaw.com/case/leggett-platt-incorporated/. It is free and there is no cost or obligation to you.

NOT ALL LAW FIRMS ARE EQUAL. Before you hire a law firm, you should talk to a lawyer and ask:

Do you file class actions and go to Court?When was the last time you recovered money for shareholders?What cases did you recover money in and how much? About Monteverde & Associates PC

Our firm litigates and has recovered money for shareholders…and we do it from our offices in the Empire State Building. We are a national class action securities firm with a successful track record in trial and appellate courts, including the U.S. Supreme Court. 

No one is above the law. If you own common stock in the above listed company and have concerns or wish to obtain additional information free of charge, please visit our website or contact Juan Monteverde, Esq. either via e-mail at [email protected] or by telephone at (212) 971-1341.

Contact:
Juan Monteverde, Esq.
MONTEVERDE & ASSOCIATES PC
The Empire State Building
350 Fifth Ave. Suite 4740
New York, NY 10118
United States of America
[email protected]
Tel: (212) 971-1341

Attorney Advertising. (C) 2026 Monteverde & Associates PC. The law firm responsible for this advertisement is Monteverde & Associates PC (www.monteverdelaw.com).  Prior results do not guarantee a similar outcome with respect to any future matter.

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Dividend investors have watched reliable income streams come under pressure lately as inflation, softer demand, and balance-sheet strain force tough choices even at established payout growers. In 2024 alone, three former Dividend Kings — Walgreens Boots Alliance, Leggett & Platt (NYSE:LEG), and 3M (NYSE:MMM | MMM Price Prediction) slashed their dividends. 

Walgreens later accepted a buyout from private-equity firm Sycamore Partners — completed last August –and now Leggett & Platt has taken a similar step: it agreed today to be acquired by Somnigroup International (NYSE:SGI) in a $2.5 billion all-stock transaction. The deal, announced this morning, lets Leggett shareholders trade their shares for 0.1455 shares of Somnigroup stock and own about 9% of the combined company.

What Separates Dividend Kings from the Pack A Dividend King earns its crown by raising its annual payout for at least 50 consecutive years. The bar is high because it demands steady cash flow, disciplined capital allocation, and a board committed to shareholders year after year. Leggett & Platt held that title with 52 straight years of increases before 2024. That streak signaled a company that consistently generated enough free cash to reward owners without overextending.

Simply put, though, the crown is no guarantee of permanence. High yields can mask trouble when earnings weaken. Leggett’s payout ratio had climbed above 128% heading into its cut, and when cash generation lags, even kings must choose between preserving the dividend or protecting the balance sheet. Investors learned this the hard way in 2024 when three longtime payers trimmed payouts to free up capital.

Why Leggett & Platt Cut Its Dividend Almost exactly two years ago, Leggett & Platt reported first-quarter sales of $1.1 billion, down 10% year-over-year, with adjusted EPS falling to $0.23 from $0.39. The board responded by slashing the quarterly dividend 89% — from $0.46 to $0.05 per share (where it stands today) — for Q2 2024. Full-year 2024 dividends dropped to $0.61 per share from $1.82 the prior year, as management directed the savings toward deleveraging; net debt stood at 3.61 times trailing adjusted EBITDA at the time.

That decision mirrored challenges at Walgreens Boots Alliance and 3M, where similar margin squeezes and debt loads forced cuts. Leggett’s 2024 trade sales totaled $4.384 billion, down from $4.725 billion in 2023. Bedding and furniture components — the heart of its business — faced weaker demand. The cut, though, freed roughly $110 million annually that had been earmarked for dividends, helping reduce net leverage to 2.4 times adjusted EBITDA by December 31, 2025.

The Somnigroup Buyout: Strategic Fit with Real Upside Today’s agreement pairs Leggett & Platt with its largest customer. Somnigroup, the world’s leading bedding company formed from Tempur Sealy International’s purchase of Mattress Firm, buys Leggett in an all-stock deal valued at $2.5 billion based on Somnigroup’s closing price on April 10. Shareholders receive 0.1455 Somnigroup shares per Leggett share on a tax-deferred basis. The combined entity projects 2025 net sales of $11.2 billion, adjusted EBITDA of $1.7 billion, and operating cash flow of $1.1 billion.

Somnigroup expects $50 million in annual run-rate cost synergies from sourcing, operations, and product innovation — $10 million in the first year — fully realized within three years. Leggett & Platt will operate as a separate business unit, preserving its 140-year track record of innovation while gaining vertical-integration benefits. Somnigroup already accounted for 7% of Leggett’s 2025 sales.

Key Takeaway Dividend Kings command respect, but 2024 proved the title alone does not protect payouts or stock prices. Leggett & Platt’s 89% cut and today’s buyout show how quickly conditions can change. However, shareholders now gain exposure to a larger, vertically integrated player with stronger cash flow and $50 million in identified synergies. The deal closes by the end of 2026. 

Regardless of how you look at it, the clearest lesson is this: diversify income sources and watch payout ratios closely. Kings can lose their crowns, but smart investors can still turn the transition into an opportunity.

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NEW YORK & NEW ORLEANS--(BUSINESS WIRE)--Former Attorney General of Louisiana Charles C. Foti, Jr., Esq. and the law firm of Kahn Swick & Foti, LLC (“KSF”) are investigating the proposed sale of Leggett & Platt, Incorporated (NYSE: LEG) to Somnigroup International Inc. (NYSE: SGI). Under the terms of the proposed transaction, shareholders of Leggett will receive 0.1455 shares of Somnigroup common stock for each share of Leggett & Platt that they own. KSF is seeking to determine whether this consideration and the process that led to it are adequate, or whether the consideration undervalues the Company.

If you believe that this transaction undervalues the Company and/or if you would like to discuss your legal rights regarding the proposed sale, you may, without obligation or cost to you, e-mail or call KSF Managing Partner Lewis S. Kahn ([email protected]) toll free at any time at 855-768-1857, or visit https://www.ksfcounsel.com/cases/nyse-leg/ to learn more.

To learn more about KSF, whose partners include the Former Louisiana Attorney General, visit www.ksfcounsel.com.

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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

Leggett & Platt (LEG - Free Report) is a stock many investors are watching right now. LEG is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. LEG has a P/S ratio of 0.39. This compares to its industry's average P/S of 0.4.

Finally, investors should note that LEG has a P/CF ratio of 4.78. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. LEG's P/CF compares to its industry's average P/CF of 7.42. Over the past year, LEG's P/CF has been as high as 61.65 and as low as 3.05, with a median of 4.80.

Value investors will likely look at more than just these metrics, but the above data helps show that Leggett & Platt is likely undervalued currently. And when considering the strength of its earnings outlook, LEG sticks out as one of the market's strongest value stocks.

April 23, 2026 09:00 ET  | Source: Leggett & Platt, Incorporated

Carthage, MO, April 23, 2026 (GLOBE NEWSWIRE) --  Leggett & Platt (NYSE:LEG), a diversified manufacturer of engineered products serving several major markets, will release first quarter earnings results on Thursday, May 7, 2026 before the market opens.

The Company will not host a call in connection with the earnings release. 

The earnings release will be available on the Investor Relations section of our website.

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; hydraulic cylinders for material handling and heavy construction applications.

INVESTOR CONTACTS:  
Ryan Kleiboeker, Executive Vice President
(417) 358-8131
[email protected]

, /PRNewswire/ --

1Q sales of $918 million, a 10% decrease vs 1Q25, including a 5% decrease from divestitures 1Q EPS of $.14, 1Q adjusted1 EPS of $.15, a $.09 decrease vs adjusted1 1Q25 EPS Withdrawing previously issued 2026 guidance due to the pending acquisition by Somnigroup International President and CEO Karl Glassman commented, "In aggregate, first quarter sales were in line with our expectations, and restructuring actions implemented over the past two years continued to deliver EBIT benefits, reflecting continued progress in structurally improving our earnings profile.

"At the same time, first quarter results reflected lower market demand across most of our businesses compared to the prior year, particularly in residential end markets. Demand in our domestic bedding business was lower than anticipated, as the overall health of the U.S. industry remains challenged across both manufacturers and retailers due to continued weakness in consumer activity. Market conditions were stable early in the quarter, and the President's Day promotional period generally met expectations. As the quarter progressed, however, weather-related closures, economic uncertainty, and lower consumer sentiment driven by the war in Iran weighed on demand. As a result, we believe the U.S. mattress market declined by high single to low double digits in the first quarter.

"In addition to weak demand, our teams navigated a dynamic global environment related to the war in Iran, which drove higher transportation costs and increased transit times late in the quarter, as well as higher chemical prices that will begin to impact our costs in the second quarter. The combination of lower volume and continued cost pressures – most notably in our Furniture, Flooring & Textile Products segment – resulted in lower margins. We are mitigating these pressures through product and sourcing actions and by passing through price increases where appropriate.  

"Despite these macroeconomic challenges and disruptions, we remain focused on our long-term priorities. As previously announced, we signed a merger agreement with Somnigroup, a valued long–standing customer and partner, that provides Leggett & Platt shareholders with an opportunity to participate in the future growth and value creation of a leading global company. For more than 140 years, Leggett & Platt has been defined by innovation, quality, and strong customer partnerships. We believe this combination positions us well to continue delivering compelling strategic and financial value for our customers, employees and shareholders."

FIRST QUARTER RESULTS

First quarter sales were $918 million, a 10% decrease versus first quarter last year

2025 divestitures decreased sales 5% Organic sales2 were down 5% Volume was down 9%, primarily from continued weak demand across most of our end markets and retailer merchandising changes in Adjustable Bed Raw material-related selling price increases added 2% to sales Currency benefit increased sales 2% First quarter EBIT was $45 million, down from $63 million in first quarter 2025. Adjusted1 EBIT was $43 million, down from first quarter 2025 adjusted1 EBIT of $67 million.

Adjusted1 EBIT decreased primarily from lower volume, earnings associated with the divested Aerospace business, and continued margin compression in our Flooring business driven by higher costs combined with pricing pressure resulting from the soft demand environment, partially offset by metal margin expansion in trade rod. Additionally, higher stock-based compensation expense and an increase in bad debt reserves related to Bedding customers contributed to the year-over-year decline. EBIT margin was 4.8%, down from 6.2% in the first quarter of 2025, and adjusted1 EBIT margin was 4.7%, down from 6.5%.

First quarter EPS was $.14, an $.08 decrease versus first quarter 2025 EPS of $.22. First quarter adjusted1 EPS was $.15, down $.09 versus first quarter 2025 adjusted1 EPS of $.24.

First Quarter Results 1

EBIT (millions)

EPS

Bedding

Specialized

FF&T

Other

Total

1Q26

1Q25

1Q26

1Q25

1Q26

1Q25

1Q26

1Q25

1Q26

1Q25

1Q26

1Q25

Reported results

$26

$10

$18

$28

$4

$25

($3)

$—

$45

$63

$.14

$.22

Adjustment items:

Gain on sale of real
estate

(10)

—

—

—

—

(3)

—

—

(10)

(3)

(.05)

(.02)

Restructuring,
restructuring-related, and
impairment charges

5

3

—

3

<1

—

—

—

5

7

.03

.04

Somnigroup merger costs     

—

—

—

—

—

—

4

—

4

—

.03

—

Total adjustments

(5)

3

—

3

<1

(3)

4

—

(1)

4

.01

.02

Adjusted results

$21

$13

$18

$32

$5

$22

<$1

$—

$43

$67

$.15

$.24

1 Calculations impacted by rounding

DEBT AND CASH FLOW

Net Debt1 was 2.8x trailing 12-month adjusted EBITDA1 Debt at March 31 Total debt of $1.5 billion in three tranches of long-term bonds at $500 million each Operating cash flow was negative $56 million in the first quarter, a decrease of $63 million versus first quarter 2025, reflecting an expected larger use of working capital and lower earnings Capital expenditures were $24 million Dividends were $7 million In February, Leggett & Platt's Board of Directors declared a first quarter dividend of $.05 per share, flat versus last year's first quarter dividend SEGMENT RESULTS – First Quarter 2026 (versus 1Q 2025)

Bedding Products –

Trade sales decreased 7% Volume decreased 12%, primarily due to retailer merchandising changes in Adjustable Bed, volume softness in Specialty Foam, and the decision during the fourth quarter 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 2025 divestiture of a small U.S. machinery business reduced sales 1% EBIT increased $16 million and adjusted1 EBIT increased $8 million Adjusted1 EBIT increased primarily from metal margin expansion in trade rod and restructuring benefit partially offset by lower volume We believe the U.S. mattress market was down high single to low double digits and domestic production was down high single digits in the first quarter Specialized Products –

Trade sales decreased 19% 2025 divestiture of Aerospace reduced sales 17% Volume decreased 5% from lower market demand Raw material-related selling price increases added 1% to sales Currency benefit increased sales 2% EBIT decreased $11 million and adjusted1 EBIT decreased $14 million Adjusted1 EBIT decreased primarily from earnings associated with the divested Aerospace business and lower volume Automotive volume outperformed major market production by ~1% in the quarter Furniture, Flooring & Textile Products –

Trade sales decreased 7% Volume decreased 7% from declines in Home Furniture, Flooring, and Textiles partially offset by growth in Work Furniture Raw material-related selling price increases and currency benefit increased sales 1% 2025 divestiture of a small facility in Work Furniture reduced sales 1% EBIT decreased $20 million and adjusted1 EBIT decreased $17 million Adjusted1 EBIT decreased primarily from lower volume impacts, margin compression in our Flooring business, currency impact, and start-up costs associated with a new Home Furniture facility in Vietnam 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 by year-end 2026, subject to customary closing conditions, including approval by Leggett & Platt's shareholders and receipt of applicable regulatory approvals. As is customary while a transaction is pending, Leggett & Platt's previously issued guidance for 2026 is not being updated in conjunction with this quarter's earnings release 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 March 31, 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," or by the context in which they appear, including, but not limited to, the health of the U.S. bedding industry, consumer activity, EBIT benefit from restructuring activities, future growth and value creation as well as the delivery of compelling strategic and financial value for customers, employees and shareholders associated with the Somnigroup Merger (as defined below), and the closing of the Somnigroup Merger by year-end 2026 subject to customary closing conditions. 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. 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 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) potential 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; 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. Leggett does not undertake any obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law.  

INVESTOR CONTACT: Investor Relations
Ryan M. Kleiboeker, Executive Vice President
(417) 358-8131 or [email protected]

LEGGETT & PLATT

Page 5 of 7

May 7, 2026

RESULTS OF OPERATIONS 

FIRST QUARTER

(In millions, except per share data)

2026

2025

Change

Trade sales 

$     918.2

$  1,022.1

(10) %

Cost of goods sold

747.5

832.1

   Gross profit 

170.7

190.0

(10) %

Selling & administrative expenses 

121.5

123.6

(2) %

Amortization

3.6

5.0

Other (income) expense, net

1.1

(1.5)

Earnings before interest and income taxes

44.5

62.9

(29) %

Net interest expense

12.6

17.8

Earnings before income taxes

31.9

45.1

Income taxes 

11.9

14.5

Net earnings

20.0

30.6

Less net income from noncontrolling interest

—

—

   Net Earnings (loss) Attributable to L&P

$       20.0

$       30.6

(35) %

Earnings (loss) per diluted share 

Net earnings (loss) per diluted share

$       0.14

$       0.22

(36) %

Shares outstanding

   Common stock (at end of period)

136.4

135.1

1.0 %

   Basic (average for period)

139.3

137.8

   Diluted (average for period)

141.0

138.6

1.7 %

CASH FLOW 

FIRST QUARTER

(In millions)

2026

2025

Change

Net earnings 

$       20.0

$       30.6

Depreciation and amortization

28.2

31.6

Working capital decrease (increase)

(118.2)

(64.2)

Impairments

2.8

0.3

Other operating activities

11.1

8.5

   Net Cash from Operating Activities

$      (56.1)

$         6.8

NM

Additions to PP&E

(24.3)

(13.3)

Proceeds from disposals of assets and businesses

14.3

5.6

Dividends paid

(6.8)

(6.7)

Repurchase of common stock, net

(3.4)

(2.0)

Additions (payments of) to debt, net

0.3

69.0

Other

(0.9)

3.0

   Increase (Decrease) in Cash & Equivalents

$      (76.9)

$       62.4

BALANCE SHEET

Mar 31,

Dec 31,

(In millions)

2026

2025

Change

Cash and equivalents 

$     510.5

$     587.4

Receivables 

520.2

475.9

Inventories 

663.3

622.6

Other current assets 

53.0

57.7

   Total current assets 

1,747.0

1,743.6

0 %

Net fixed assets 

658.4

664.0

Operating lease right-of-use assets

129.9

137.9

Goodwill

747.6

751.4

Intangible assets and deferred costs, both at net

236.2

239.5

   TOTAL ASSETS

$  3,519.1

$  3,536.4

— %

Trade accounts payable

$     467.9

$     466.6

Current debt maturities 

1.6

1.5

Current operating lease liabilities

50.0

51.5

Other current liabilities 

229.2

255.4

   Total current liabilities 

748.7

775.0

(3) %

Long-term debt

1,496.6

1,496.2

0 %

Operating lease liabilities

99.7

106.7

Deferred taxes and other liabilities 

134.4

135.9

Equity

1,039.7

1,022.6

2 %

   Total Capitalization 

2,770.4

2,761.4

0 %

   TOTAL LIABILITIES & EQUITY

$  3,519.1

$  3,536.4

— %

LEGGETT & PLATT

Page 6 of 7

May 7, 2026

SEGMENT RESULTS 1

FIRST QUARTER

(In millions)

2026

2025

Change

Bedding Products

Trade sales

$     364.9

$     390.7

(7) %

EBIT

25.7

9.6

168 %

EBIT margin

7.0 %

2.5 %

450 bps

2

Restructuring, restructuring-related, and impairment charges

4.7

3.4

Gain on sale of real estate

(9.5)

—

Adjusted EBIT 3

20.9

13.0

61 %

Adjusted EBIT margin 3

5.7 %

3.3 %

240 bps

Depreciation and amortization

12.4

13.0

Adjusted EBITDA

33.3

26.0

28 %

Adjusted EBITDA margin

9.1 %

6.7 %

240 bps

Specialized Products

Trade sales

$     244.1

$     300.1

(19) %

EBIT

17.7

28.4

(38) %

EBIT margin

7.3 %

9.5 %

 (220) bps 

Restructuring, restructuring-related, and impairment charges

—

3.4

Adjusted EBIT 3

17.7

31.8

(44) %

Adjusted EBIT margin 3

7.3 %

10.6 %

 (330) bps 

Depreciation and amortization

8.1

10.4

Adjusted EBITDA

25.8

42.2

(39) %

Adjusted EBITDA margin

10.6 %

14.1 %

 (350) bps 

Furniture, Flooring & Textile Products

Trade sales

$     309.2

$     331.3

(7) %

EBIT

4.4

24.8

(82) %

EBIT margin

1.4 %

7.5 %

 (610) bps 

Restructuring, restructuring-related, and impairment charges

0.2

0.1

Gain on sale of real estate

—

(3.2)

Adjusted EBIT 3

4.6

21.7

(79) %

Adjusted EBIT margin 3

1.5 %

6.5 %

 (500) bps 

Depreciation and amortization

4.3

4.9

Adjusted EBITDA

8.9

26.6

(67) %

Adjusted EBITDA margin

2.9 %

8.0 %

 (510) bps 

Total Company

Trade sales

$     918.2

$  1,022.1

(10) %

EBIT - segments

47.8

62.8

(24) %

Intersegment eliminations and other

(3.3)

0.1

EBIT

44.5

62.9

(29) %

EBIT margin

4.8 %

6.2 %

 (140) bps 

Restructuring, restructuring-related, and impairment charges

4.9

6.9

Gain on sale of real estate

(9.5)

(3.2)

Somnigroup merger costs

3.5

—

Adjusted EBIT 3

43.4

66.6

(35) %

Adjusted EBIT margin 3

4.7 %

6.5 %

 (180) bps 

Depreciation and amortization - segments

24.8

28.3

Depreciation and amortization - unallocated 4

3.4

3.3

Adjusted EBITDA

$       71.6

$       98.2

(27) %

Adjusted EBITDA margin

7.8 %

9.6 %

 (180) bps 

LAST SIX QUARTERS 

2024

2025

2026

Selected Figures (In Millions)

4Q

1Q

2Q

3Q

4Q

1Q

Trade sales

1,056.4

1,022.1

1,058.0

1,036.4

938.6

918.2

Sales growth (vs. prior year)

(5) %

(7) %

(6) %

(6) %

(11) %

(10) %

Volume growth (same locations vs. prior year)

(4) %

(5) %

(7) %

(6) %

(9) %

(9) %

Adjusted EBIT 3

55.6

66.6

75.6

72.8

47.9

43.4

Cash from operations

122.3

6.8

84.0

125.9

121.5

(56.1)

Adjusted EBITDA (trailing twelve months) 3

402.5

404.1

405.6

395.4

385.3

358.7

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

3.76

3.77

3.51

2.62

2.36

2.75

Organic Sales (Vs. Prior Year) 6

4Q

1Q

2Q

3Q

4Q

1Q

Bedding Products

(6) %

(12) %

(10) %

(9) %

(10) %

(6) %

Specialized Products

(5) %

(5) %

(5) %

(2) %

(4) %

(2) %

Furniture, Flooring & Textile Products

(4) %

(1) %

(2) %

— %

(2) %

(6) %

     Overall 

(5) %

(7) %

(6) %

(4) %

(6) %

(5) %

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

May 7, 2026

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

Non-GAAP Adjustments 7

2024

2025

2026

(In millions, except per share data)

4Q

1Q

2Q

3Q

4Q

1Q

Goodwill impairment

0.7

—

—

—

—

—

Gain on sale of Aerospace Products Group

—

—

—

(86.8)

(4.1)

—

Restructuring, restructuring-related, and impairment charges

15.5

6.9

3.6

4.1

21.6

4.9

Gain on sale of real estate

(4.3)

(3.2)

(18.4)

(2.5)

(5.0)

(9.5)

Net gain from insurance proceeds

—

—

—

(13.1)

(21.6)

—

Pension settlement

—

—

—

—

22.0

—

Somnigroup merger costs

—

—

—

—

3.4

3.5

Non-GAAP Adjustments (Pretax) 8

11.9

3.7

(14.8)

(98.3)

16.3

(1.1)

Income tax impact

(2.7)

(1.3)

3.6

9.0

(10.0)

1.9

Special tax item  9

5.4

—

—

2.3

—

—

Non-GAAP Adjustments (After Tax)

14.6

2.4

(11.2)

(87.0)

6.3

0.8

Diluted shares outstanding

138.2

138.6

139.6

140.2

140.4

141.0

EPS Impact of Non-GAAP Adjustments

0.11

0.02

(0.08)

(0.62)

0.04

0.01

Adjusted EBIT, EBITDA, Margin, and EPS 7

2024

2025

2026

(In millions, except per share data)

4Q

1Q

2Q

3Q

4Q

1Q

Trade sales

1,056.4

1,022.1

1,058.0

1,036.4

938.6

918.2

EBIT (earnings before interest and taxes)

43.7

62.9

90.4

171.1

31.6

44.5

Non-GAAP adjustments (pretax)

11.9

3.7

(14.8)

(98.3)

16.3

(1.1)

Adjusted EBIT

55.6

66.6

75.6

72.8

47.9

43.4

EBIT margin

4.1 %

6.2 %

8.5 %

16.5 %

3.4 %

4.8 %

Adjusted EBIT Margin

5.3 %

6.5 %

7.1 %

7.0 %

5.1 %

4.7 %

EBIT

43.7

62.9

90.4

171.1

31.6

44.5

Depreciation and amortization

34.1

31.6

29.7

29.4

31.7

28.2

EBITDA

77.8

94.5

120.1

200.5

63.3

72.7

Non-GAAP adjustments (pretax)

11.9

3.7

(14.8)

(98.3)

16.3

(1.1)

Adjusted EBITDA

89.7

98.2

105.3

102.2

79.6

71.6

EBITDA margin

7.4 %

9.2 %

11.4 %

19.3 %

6.7 %

7.9 %

Adjusted EBITDA Margin

8.5 %

9.6 %

10.0 %

9.9 %

8.5 %

7.8 %

Diluted EPS

0.10

0.22

0.38

0.91

0.18

0.14

EPS impact of non-GAAP adjustments

0.11

0.02

(0.08)

(0.62)

0.04

0.01

Adjusted EPS

0.21

0.24

0.30

0.29

0.22

0.15

Net Debt to Adjusted EBITDA 11

2024

2025

2026

(In millions, except ratios)

4Q

1Q

2Q

3Q

4Q

1Q

Total debt

1,864.1

1,936.4

1,793.5

1,497.2

1,497.7

1,498.2

Less: cash and equivalents

(350.2)

(412.6)

(368.8)

(460.7)

(587.4)

(510.5)

Net debt

1,513.9

1,523.8

1,424.7

1,036.5

910.3

987.7

Adjusted EBITDA, trailing 12 months

402.5

404.1

405.6

395.4

385.3

358.7

Net Debt / 12-month Adjusted EBITDA

3.76

3.77

3.51

2.62

2.36

2.75

Aerospace Products Group

2024

2025

2026

(In millions)

4Q

1Q

2Q

3Q

4Q

1Q

Net trade sales

52.2

53.0

50.6

28.6

—

—

EBIT

7.9

7.2

9.3

3.2

—

—

Depreciation and amortization

2.6

2.5

—

—

—

—

Net Earnings (assuming a 25% tax rate)

5.9

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:

2024

2025

2026

4Q

1Q

2Q

3Q

4Q

1Q

Cost of goods sold

8.7

0.5

—

1.7

1.4

1.2

Selling & administrative expenses 

4.5

1.7

—

—

3.6

3.5

Other (income) expense, net

(1.3)

1.5

(14.8)

(100.0)

11.3

(5.8)

Total Non-GAAP Adjustments (Pretax)

11.9

3.7

(14.8)

(98.3)

16.3

(1.1)

9 The special tax item of $2.3 in Q3 2025 is related to recent U.S. corporate income tax law changes, and the $5.4 in Q4 2024 is the deferred tax asset valuation allowance related to a 2022 acquisition in the Specialized Products segment.

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

Legget & Platt (LEG - Free Report) reported $918.2 million in revenue for the quarter ended March 2026, representing a year-over-year decline of 10.2%. EPS of $0.15 for the same period compares to $0.24 a year ago.

The reported revenue represents a surprise of -2.66% over the Zacks Consensus Estimate of $943.27 million. With the consensus EPS estimate being $0.26, the EPS surprise was -42.31%.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how Legget & Platt performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Trade sales- Furniture, Flooring and Textile Products: $309.2 million versus $328.53 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -6.7% change.Trade sales- Specialized Products: $244.1 million compared to the $245.86 million average estimate based on three analysts. The reported number represents a change of -18.7% year over year.Trade sales- Bedding Products: $364.9 million versus $368.89 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -6.6% change.EBIT- Bedding Products: $25.7 million versus $19.55 million estimated by two analysts on average.EBIT- Furniture, Flooring and Textile Products: $4.4 million versus the two-analyst average estimate of $19.95 million.EBIT- Specialized Products: $17.7 million versus the two-analyst average estimate of $20.56 million.View all Key Company Metrics for Legget & Platt here>>>

Shares of Legget & Platt have returned +14.3% over the past month versus the Zacks S&P 500 composite's +11.4% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

Investors in Leggett & Platt, Incorporated (LEG - Free Report) need to pay close attention to the stock based on moves in the options market lately. That is because the June 18, 2026 $05.00 Call had some of the highest implied volatility of all equity options today.

What is Implied Volatility?Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.

What do the Analysts Think?Clearly, options traders are pricing in a big move for Leggett & Platt share, but what is the fundamental picture for the company? Currently, Leggett & Platt is a Zacks Rank #5 (Strong Sell) in the Furniture Industry that ranks in the Bottom 8% of our Zacks Industry Rank. Over the last 60 days, no analyst has increased his estimate for the current quarter, while three have revised their estimates downward. The net effect has taken our Zacks Consensus Estimate for the current quarter to move from 31 cents per share to 29 cents per share in the same time period.

Given the way analysts feel about Leggett & Platt right now, this huge implied volatility could mean there’s a trade developing. Often times, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.

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Key Takeaways LEG's automotive unit is now Leggett Dynamics, targeting intelligent motion, comfort and software systems.Leggett Dynamics groups its offerings into Comfort, Motion, Software & Integration and Innovation Services.LEG shares fell 2.5% on the rebrand news, and the stock is down 11.9% over the past six months. Leggett & Platt, Incorporated (LEG - Free Report) recently announced that its automotive business division, Leggett & Platt Automotive, has rebranded as Leggett Dynamics. This marks a strategic evolution from a traditional automotive supplier to a technology-driven provider of intelligent motion, comfort and software-integrated systems. The new identity reflects LEG’s ambition to expand beyond automotive end markets and unlock new growth opportunities through innovation, diversification and advanced engineering solutions.

Following the news, LEG stock declined 2.5% during trading hours yesterday.

Portfolio Shift & Innovation With Leggett DynamicsThrough its new tagline, "eMotion & Comfort for everyone, everywhere, every day," Leggett Dynamics will aim to develop technologies that enhance movement, adjustability, wellness and user experience across a broad range of applications. Overall, this rebranding move signals a broader growth strategy designed to strengthen Leggett & Platt's market position, diversify its revenue streams and reduce reliance on traditional automotive markets.

Moreover, Leggett Dynamics has reorganized its products and services into four key platforms: Comfort Systems, covering massage, lumbar, bolster and suspension solutions; Motion Systems, focused on motors, actuators and cables; Software & Integration, including software, hardware and E/E architecture integration; and Innovation Services, which provides advanced engineering co-development and ergonomics studies.

The rebranding aligns with Leggett & Platt's long-standing focus on innovation and engineered solutions across the markets it serves. The company has historically leveraged its expertise in comfort, motion and component technologies to develop differentiated products, while continuously adapting its portfolio to evolving customer needs. Through Leggett Dynamics, the company is extending this innovation-driven approach by integrating advanced engineering, software capabilities and ergonomics expertise to create intelligent comfort and motion solutions. The move reflects Leggett & Platt's efforts to accelerate product development, strengthen customer collaboration and expand into adjacent growth markets.

LEG’s Share Price PerformanceShares of Leggett & Platt have declined 11.9% in the past six months compared with the Zacks Furniture industry’s 12.3% fall. Leggett & Platt continues to grapple with weak demand across residential end markets, subdued consumer spending, persistent softness in the U.S. mattress industry and retailer merchandising challenges. Margin pressures also remain due to lower sales volumes, elevated transportation and chemical costs, pricing headwinds within the Flooring business and ongoing supply-chain disruptions.

Image Source: Zacks Investment Research

However, the company has benefited from restructuring initiatives, improved manufacturing efficiency, disciplined cost-control measures and ongoing portfolio optimization efforts. Its Bedding Products segment remains a relative bright spot, supported by metal margin expansion and the realization of restructuring benefits. Additionally, the pending Somnigroup merger provides shareholders with an opportunity to participate in a larger, combined enterprise.

LEG’s Zacks Rank & Key PicksCurrently, Leggett & Platt carries a Zacks Rank #5 (Strong Sell).

Here are better-ranked stocks from the Consumer Discretionary sector:

Flexsteel Industries, Inc. (FLXS - Free Report) currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.

The company delivered a trailing four-quarter earnings surprise of 59%, on average. FLXS stock has rallied 47.3% in the year-to-date period. The Zacks Consensus Estimate for Flexsteel’s fiscal 2026 sales and EPS implies growth of 3.8% and 14.6%, respectively, from the year-ago levels.

Hasbro, Inc. (HAS - Free Report) currently sports a Zacks Rank #1. The company delivered a trailing four-quarter earnings surprise of 37.9%, on average. HAS stock has moved up 0.4% in the year-to-date period.

The Zacks Consensus Estimate for Hasbro’s 2026 sales and EPS indicates an increase of 5.9% and 7.6%, respectively, from the year-ago levels.

Vince Holding Corp. (VNCE - Free Report) currently sports a Zacks Rank of 1. The company delivered a trailing four-quarter earnings surprise of 647.2%, on average. VNCE stock has gained 6.9% in the year-to-date period.

The Zacks Consensus Estimate for Vince Holding’s 2026 sales and EPS implies growth of 4.5% and 25%, respectively, from the year-ago levels.

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Published in consumer-discretionary

Investors looking for stocks in the Industrial Services sector might want to consider either Global Industrial (GIC) or W.W. Grainger (GWW).

Resources Investor Relations Journalists Agencies Client Login Send a Release News Products Contact , /PRNewswire/ -- W.W. Grainger, Inc. (NYSE: GWW) held its annual meeting of shareholders virtually today. Chairman and CEO D.G. Macpherson provided a company update, which included 2025 financial and operational highlights.

Shareholders elected the following 12 directors:

Rodney C. Adkins

Neil S. Novich

George S. Davis

Beatriz R. Perez

Katherine D. Jaspon

E. Scott Santi

Christopher J. Klein

Susan Slavik Williams

D.G. Macpherson

Lucas E. Watson

Cindy J. Miller

Steven A. White

Additionally, the shareholders voted in favor of two proposals: (i) to ratify the appointment of Ernst & Young LLP as the company's independent auditor for the 2026 fiscal year, and (ii) to approve the advisory say-on-pay resolution on executive compensation.

About Grainger
W.W. Grainger, Inc., is a leading broad line distributor with operations primarily in North America and Japan. At Grainger, We Keep the World Working® by serving more than 4.6 million customers worldwide with maintenance, repair and operating (MRO) products and value-added solutions delivered through innovative technology and deep customer expertise. Known for its commitment to service and purpose-driven culture, the Company reported 2025 revenue of $17.9 billion.

For more information, visit www.grainger.com. 

SOURCE W.W. Grainger

Analysts on Wall Street project that W.W. Grainger (GWW - Free Report) will announce quarterly earnings of $10.20 per share in its forthcoming report, representing an increase of 3.5% year over year. Revenues are projected to reach $4.57 billion, increasing 6.1% from the same quarter last year.

The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.

Ahead of a company's earnings disclosure, it is crucial to give due consideration to changes in earnings estimates. These revisions serve as a noteworthy factor in predicting potential investor reactions to the stock. Numerous empirical studies consistently demonstrate a strong relationship between trends in earnings estimate revision and the short-term price performance of a stock.

While investors typically use consensus earnings and revenue estimates as indicators of quarterly business performance, exploring analysts' projections for specific key metrics can offer valuable insights.

In light of this perspective, let's dive into the average estimates of certain W.W. Grainger metrics that are commonly tracked and forecasted by Wall Street analysts.

Analysts' assessment points toward 'Net Sales- Endless Assortment' reaching $945.46 million. The estimate indicates a year-over-year change of +14.2%.

The average prediction of analysts places 'Net Sales- High-Touch Solutions N.A.' at $3.63 billion. The estimate indicates a change of +6.8% from the prior-year quarter.

The consensus among analysts is that 'Operating earnings (losses)- Endless Assortment' will reach $83.34 million. The estimate compares to the year-ago value of $72.00 million.

It is projected by analysts that the 'Operating earnings (losses)- High-Touch Solutions N.A.' will reach $620.56 million. The estimate compares to the year-ago value of $600.00 million.

View all Key Company Metrics for W.W. Grainger here>>>

Over the past month, shares of W.W. Grainger have returned +2.8% versus the Zacks S&P 500 composite's +10% change. Currently, GWW carries a Zacks Rank #3 (Hold), suggesting that its performance may align with the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

Strong results across the business;
Company increases full year 2026 outlook

First Quarter Highlights

Delivered sales of $4.7 billion, up 10.1%, or 12.2% on a daily, organic constant currency basis Achieved operating margin of 16.7%, up 110 basis points Generated diluted EPS of $11.65, up 18.2% Produced $739 million in operating cash flow and returned $345 million to Grainger shareholders through dividends and share repurchases Announced quarterly dividend increase of 10% Increasing full year 2026 guidance, including diluted adjusted EPS range of $44.25 to $46.25 , /PRNewswire/ -- Grainger (NYSE: GWW) today reported results for the first quarter of 2026 with sales of $4.7 billion, up 10.1%, or 12.2% on a daily, organic constant currency basis, and diluted EPS of $11.65, up 18.2% compared to the first quarter of 2025. 

"We delivered great results in the first quarter driven by strong execution across both segments," said D.G. Macpherson, Chairman and CEO. "Despite ongoing uncertainty with tariffs and the broader geopolitical climate, we're seeing positive signs with the demand environment and are increasing our 2026 guidance to reflect the strong start and continued momentum."

2026 First Quarter Financial Summary

($ in millions, except per share amounts)

Q1 2026(1)

Q1 2025(1)

Q1'26 vs. Q1'25

Fav. / (Unfav.)

Net Sales

$4,742

$4,306

10.1 %

Gross Profit

$1,896

$1,710

10.9 %

Operating Earnings

$793

$672

18.0 %

Net Earnings Attributable to W.W.
Grainger, Inc.

$555

$479

15.9 %

Diluted Earnings Per Share

$11.65

$9.86

18.2 %

Gross Profit Margin

40.0 %

39.7 %

30 bps

Operating Margin

16.7 %

15.6 %

110 bps

Effective Tax Rate

25.1 %

23.9 %

(120) bps

(1) Results are consistent on a reported and adjusted basis.

Revenue
Sales in the quarter increased 10.1% compared to the first quarter of 2025. When normalizing for the Company's exit from the U.K. market and the impact of foreign currency exchange, sales on a daily, organic constant currency basis increased 12.2% compared to the first quarter of 2025.

In the High-Touch Solutions - N.A. segment, sales were up 10.5%, or 10.0% on daily, constant currency basis compared to the first quarter of 2025. Results for the segment were driven by volume growth and price inflation as tariff costs are passed. In the Endless Assortment segment, sales were up 19.6%, or 21.9% on a daily, organic constant currency basis, compared to the first quarter of 2025. Growth for the segment was driven by strong performance at both MonotaRO and Zoro.

Gross Profit Margin
Gross profit margin was 40.0% in the first quarter of 2026, up 30 basis points compared to the first quarter of 2025 as strength from both segments and a benefit related to the Company's exit from the U.K. market drove results.

In the High-Touch Solutions - N.A. segment, gross profit margin was 42.6%, up 20 basis points compared to the prior year quarter largely due to favorable product mix and freight. In the Endless Assortment segment, gross profit margin increased by 40 basis points from the first quarter of 2025 due primarily to margin improvement at Zoro.

Earnings
For the first quarter of 2026, total Company operating earnings were $793 million, up 18.0% compared to the first quarter of 2025. Operating margin was 16.7%, a 110 basis point increase compared to the first quarter of 2025. This increase in operating margin was driven by gross margin and sales leverage improvement in both segments and a benefit related to the Company's exit from the U.K. market.

Diluted earnings per share for the first quarter of 2026 were $11.65, up 18.2% compared to the first quarter of 2025. The increase was due primarily to strong operating performance and fewer shares outstanding, partly offset by a higher effective tax rate.

Tax Rate
For the first quarter of 2026, the effective tax rate was 25.1%, compared to 23.9% in the first quarter of 2025. The increase in the effective tax rate was primarily due to decreased tax credit activity in the current year period and the impact of tax legislation effective in 2026.

Cash Flow
During the first quarter of 2026, the Company generated $739 million of cash flow from operating activities as net earnings were aided by favorable working capital. The Company invested $170 million in capital expenditures, resulting in free cash flow of $569 million. During the quarter, the Company returned $345 million to Grainger shareholders through dividends and share repurchases.

Guidance
The Company is updating the following guidance ranges for 2026:

Total Company(1)

Previous 2026 Guidance Range

(as of February 3, 2026)

Updated 2026 Guidance Range

(as of May 7, 2026)

Net Sales

$18.7 - $19.1 billion

$19.2 - $19.6 billion

Sales growth

4.2% - 6.7%

6.7% - 9.1%

Daily, organic constant currency sales growth

6.5% - 9.0%

9.5% - 12.0%

Gross Profit Margin

39.2% - 39.5%

39.2% - 39.5%

Operating Margin

15.4% - 15.9%

15.6% - 16.0%

Diluted Earnings per Share

$42.25 - $44.75

$44.25 - $46.25

Operating Cash Flow

$2.125 - $2.325 billion

$2.2 - $2.4 billion

CapEx (cash basis)

$0.55 - $0.65 billion

$0.55 - $0.65 billion

Share Buyback

$0.95 - $1.05 billion

$0.95 - $1.05 billion

Effective Tax Rate

~25.0%

~25.0%

Segment Operating Margin

High-Touch Solutions - N.A.

16.9% - 17.4%

17.0% - 17.4%

Endless Assortment

10.0% - 10.5%

10.2% - 10.6%

 (1) Guidance provided is on an adjusted basis. Daily, organic constant currency sales growth is adjusted for the impact of certain divested or closed businesses in the comparable prior year period post date of divestiture or closure and changes in foreign currency exchange. The Company does not reconcile forward-looking non-GAAP financial measures. For further details see the supplemental information of this release.

Webcast
The Company will conduct a live conference call and webcast at 11:00 a.m. ET on Thursday, May 7, 2026, to discuss the first quarter results. The event will be hosted by D.G. Macpherson, Chairman and CEO, and Deidra Merriwether, Senior Vice President and CFO, and can be accessed at invest.grainger.com. To access the conference call via phone, please send a request to [email protected]. For those unable to participate in the live event, a webcast replay will be available for 90 days at invest.grainger.com.

About Grainger
W.W. Grainger, Inc., is a leading broad line distributor with operations primarily in North America and Japan. At Grainger, We Keep the World Working® by serving more than 4.6 million customers worldwide with maintenance, repair and operating (MRO) products and value-added solutions delivered through innovative technology and deep customer expertise. Known for its commitment to service and purpose-driven culture, the Company reported 2025 revenue of $17.9 billion. For more information, visit www.grainger.com.

Visit invest.grainger.com to view information about the Company, including a supplement regarding 2026 first quarter results and additional Company information.

Safe Harbor Statement

All statements in this communication, other than those relating to historical facts, are "forward-looking statements" under the federal securities laws. Forward-looking statements can generally be identified by their use of terms such as "anticipate," "estimate," "believe," "expect," "could," "forecast," "may," "intend," "plan," "predict," "project," "will," or "would," and similar terms and phrases, including references to assumptions. Grainger cannot guarantee that any forward-looking statement will be realized and achievement of future results is subject to risks and uncertainties, many of which are beyond Grainger's control, which could cause Grainger's results to differ materially from those that are presented. Forward-looking statements include, but are not limited to, statements about future strategic plans and future financial and operating results. Important factors that could cause actual results to differ materially from those presented or implied in the forward-looking statements include, without limitation: inflation, higher product costs or other expenses, including operational and administrative expenses; a major loss of customers; loss or disruption of sources of supply; changes in customer or product mix; increased competitive pricing pressures; changes in third-party practices regarding digital advertising; failure to enter into or sustain contractual arrangements on a satisfactory basis with group purchasing organizations; failure to develop, manage or implement new technology initiatives or business strategies including with respect to Grainger's eCommerce platforms and artificial intelligence; failure to adequately protect intellectual property or successfully defend against infringement claims; fluctuations or declines in Grainger's gross profit margin; Grainger's responses to market pressures; the outcome of pending and future litigation or governmental or regulatory proceedings, including with respect to wage and hour, anti-bribery and corruption, environmental, regulations related to advertising, marketing and the internet, consumer protection, pricing (including disaster or emergency declaration pricing statutes), product liability, compliance or safety, trade and export compliance, general commercial disputes, or privacy and cybersecurity matters; investigations, inquiries, audits and changes in laws and regulations; failure to comply with laws, regulations and standards, including new or stricter environmental laws or regulations; government contract matters, including new or revised provisions relating to contract compliance or performance; the impact of any government shutdown; disruption or breaches of information technology or data security systems involving Grainger or third parties on which Grainger depends; general industry, economic, market or political conditions; general global economic conditions, including existing, new, or increased tariffs, trade issues and changes in trade policies, inflation, and interest rates; currency exchange rate fluctuations; market volatility, including price and trading volume volatility or price declines of Grainger's common stock; an incident that adversely impacts Grainger's reputation or brand; commodity price volatility; facilities disruptions or shutdowns; higher fuel costs or disruptions in transportation services; effects of outbreaks of pandemic disease or viral contagions, global conflicts, natural or human induced disasters, extreme weather, and other catastrophes or conditions; effects of climate change; failure to execute on our corporate responsibility efforts; competition for, or failure to attract, retain, train, motivate and develop executives and key team members; loss of key members of management or key team members; loss of operational flexibility and potential for work stoppages or slowdowns if team members unionize or join a collective bargaining arrangement; changes in effective tax rates; changes in credit ratings or outlook; Grainger's incurrence of indebtedness or failure to comply with restrictions and obligations under its debt agreements and instruments and other factors that can be found in our filings with the Securities and Exchange Commission, including our most recent periodic reports filed on Form 10-K and Form 10-Q, which are available on our Investor Relations website. Forward-looking statements are given only as of the date of this communication and we disclaim any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law.

W.W. Grainger, Inc. and Subsidiaries
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(In millions of dollars, except for share and per share amounts)
(Unaudited)

Three Months Ended March 31,

2026

2025

Net sales

$            4,742

$            4,306

Cost of goods sold

2,846

2,596

Gross profit

1,896

1,710

Selling, general and administrative expenses

1,103

1,038

Operating earnings

793

672

Other (income) expense:

Interest expense – net

21

21

Other – net

(3)

(6)

Total other expense – net

18

15

Earnings before income taxes

775

657

Income tax provision

194

157

Net earnings

581

500

Less net earnings attributable to noncontrolling interest

26

21

Net earnings attributable to W.W. Grainger, Inc.

$               555

$               479

Earnings per share:

Basic

$            11.67

$              9.88

Diluted

$            11.65

$              9.86

Weighted average number of shares outstanding:

Basic

47.3

48.2

Diluted

47.4

48.3

W.W. Grainger, Inc. and Subsidiaries 
CONDENSED CONSOLIDATED BALANCE SHEETS 
(In millions of dollars)
(Unaudited)

As of

(Unaudited)

Assets

March 31, 2026

December 31, 2025

Current assets

Cash and cash equivalents

$                            695

$                            585

Accounts receivable (less allowance for credit
losses of $32 and $32)

2,627

2,329

Inventories – net

2,385

2,394

Prepaid expenses and other current assets

200

176

Total current assets

5,907

5,484

Property, buildings and equipment – net

2,359

2,268

Goodwill

358

360

Intangibles – net

268

265

Operating lease right-of-use

342

345

Other assets

239

240

Total assets

$                          9,473

$                          8,962

Liabilities and Shareholders' Equity

Current liabilities

Current maturities

$                               2

$                            126

Trade accounts payable

1,220

963

Accrued compensation and benefits

285

343

Operating lease liability

71

73

Accrued expenses

423

386

Income taxes payable

198

49

Total current liabilities

2,199

1,940

Long-term debt

2,409

2,362

Long-term operating lease liability

299

301

Deferred income taxes and tax uncertainties

128

121

Other non-current liabilities

95

97

Shareholders' equity

4,343

4,141

Total liabilities and shareholders' equity

$                          9,473

$                          8,962

W.W. Grainger, Inc. and Subsidiaries 
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions of dollars)
(Unaudited)

Three Months Ended March 31,

2026

2025

Cash flows from operating activities:

Net earnings

$                  581

$                  500

Adjustments to reconcile net earnings to net cash provided by
operating activities:

Provision for credit losses

6

7

Deferred income taxes and tax uncertainties

8

(4)

Depreciation and amortization

62

61

Non-cash lease expense

20

20

Stock-based compensation

14

12

Change in operating assets and liabilities:

Accounts receivable

(303)

(128)

Inventories

5

6

Prepaid expenses and other assets

(50)

(19)

Trade accounts payable

253

154

Operating lease liabilities

(24)

(25)

Accrued liabilities

(5)

(42)

Income taxes – net

173

106

Other non-current liabilities

(1)

(2)

Net cash provided by operating activities

739

646

Cash flows from investing activities:

Capital expenditures

(170)

(125)

Other – net

(8)

—

Net cash used in investing activities

(178)

(125)

Cash flows from financing activities:

Short-term borrowings (repayments), original maturities of 90 days
or less, net

(125)

—

Proceeds from debt

50

1

Payments of debt

(1)

(502)

Proceeds from stock options exercised

6

2

Payments for employee taxes withheld from stock awards

(5)

(3)

Purchases of treasury stock

(237)

(281)

Purchases of noncontrolling interests

(25)

—

Cash dividends paid

(108)

(115)

Other – net

(1)

—

Net cash used in financing activities

(446)

(898)

Exchange rate effect on cash and cash equivalents

(5)

7

Net change in cash and cash equivalents

110

(370)

Cash and cash equivalents at beginning of period

585

1,036

Cash and cash equivalents at end of period

$                  695

$                  666

SUPPLEMENTAL INFORMATION - RECONCILIATION OF GAAP TO NON-GAAP 
FINANCIAL MEASURES (Unaudited)

The Company supplements the reporting of financial information determined under U.S. generally accepted accounting principles (GAAP) with the non-GAAP financial measures as defined below. The Company believes these non-GAAP financial measures provide meaningful information to assist investors in understanding financial results and assessing future performance as they provide a better baseline for analyzing the ongoing performance of its business by excluding items that may not be indicative of core operating results.

Basis of presentation
The Company has a controlling ownership interest in MonotaRO, which is part of the Endless Assortment segment. MonotaRO's results are fully consolidated, reflected in U.S. GAAP, and reported one-month in arrears. Results will differ from MonotaRO's externally reported financials which follow Japanese GAAP.

Adjusted gross profit, adjusted SG&A, adjusted operating earnings, adjusted operating margin, adjusted net earnings, adjusted diluted EPS
Exclude certain non-recurring items, like restructuring charges, asset impairments, gains and losses associated with business divestitures or closures and other non-recurring, infrequent or unusual gains and losses (together referred to as "non-GAAP adjustments"), from the Company's most directly comparable reported U.S. GAAP figures (reported gross profit, SG&A, operating earnings, net earnings and EPS). The Company believes these non-GAAP adjustments provide meaningful information to assist investors in understanding financial results and assessing future performance as they provide a better baseline for analyzing the ongoing performance of its business by excluding items that may not be indicative of core operating results.

Free cash flow (FCF)
Calculated using total cash provided by operating activities less capital expenditures. The Company believes the presentation of FCF allows investors to evaluate the capacity of the Company's operations to generate free cash flow.

Daily sales
Refers to sales for the period divided by the number of U.S. selling days for the period.

Daily, constant currency sales
Refers to daily sales adjusted for changes in foreign currency exchange rates.

Daily, organic constant currency sales
Refers to daily sales excluding the sales of certain divested or closed businesses in the comparable prior year period post date of divestiture or closure and changes in foreign currency exchange rates.

Foreign currency exchange
Calculated by dividing current period local currency daily sales by current period average exchange rate and subtracting the current period local currency daily sales divided by the prior period average exchange rate.

U.S. selling days:
2025: Q1-63, Q2-64, Q3-64, Q4-64, FY-255
2026: Q1-63, Q2-64, Q3-64, Q4-64, FY-255
2027: Q1-63, Q2-64, Q3-64, Q4-63, FY-254

As non-GAAP financial measures are not standardized, it may not be possible to compare these measures with other companies' non-GAAP measures having the same or similar names. These non-GAAP measures should not be considered in isolation or as a substitute for reported results. These non-GAAP measures reflect an additional way of viewing aspects of operations that, when viewed with GAAP results, provide a more complete understanding of the business. This press release also includes certain non-GAAP forward-looking information. The Company believes that a quantitative reconciliation of such forward-looking information to the most comparable financial measure calculated and presented in accordance with GAAP cannot be made available without unreasonable efforts. A reconciliation of these non-GAAP financial measures would require the Company to predict the timing and likelihood of future restructurings, asset impairments, and other charges. Neither of these forward-looking measures, nor their probable significance, can be quantified with a reasonable degree of accuracy. Accordingly, a reconciliation of the most directly comparable forward-looking GAAP measures is not provided.

The reconciliations provided below reconcile GAAP financial measures to non-GAAP financial measures used in this release: daily sales; daily, organic constant currency sales; and free cash flow.

Sales growth for the three months ended March 31, 2026
(percent change compared to prior year period) 
(unaudited)

Q1 2026

Total Company

High-Touch Solutions - N.A.

Endless Assortment

Reported sales

10.1 %

10.5 %

19.6 %

Daily impact

— %

— %

— %

Daily sales(1)

10.1 %

10.5 %

19.6 %

Foreign currency exchange(2)

(0.2) %

(0.5) %

0.9 %

Business divestiture(3)

2.3 %

— %

1.4 %

Daily, organic constant currency sales

12.2 %

10.0 %

21.9 %

(1) Based on U.S. selling days, there were 63 selling days in Q1 2026 and Q1 2025

(2) Excludes the impact of year-over-year foreign currency exchange rate fluctuations

(3) Excludes the net sales results of the divested Cromwell business and closed Zoro U.K. business, announced in the third quarter of 2025 and
     completed in the fourth quarter of 2025, in the prior year period on a daily basis

Free cash flow (FCF) for the three months ended March 31, 2026
(in millions of dollars) 
(unaudited)

Q1 2026

Net cash flows provided by operating activities

$                                           739

Capital expenditures

(170)

Free cash flow

$                                           569

SOURCE W.W. Grainger, Inc.

W.W. Grainger (GWW - Free Report) came out with quarterly earnings of $11.65 per share, beating the Zacks Consensus Estimate of $10.2 per share. This compares to earnings of $9.86 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +14.23%. A quarter ago, it was expected that this seller of maintenance and other supplies would post earnings of $9.43 per share when it actually produced earnings of $9.44, delivering a surprise of +0.11%.

Over the last four quarters, the company has surpassed consensus EPS estimates three times.

W.W. Grainger, which belongs to the Zacks Industrial Services industry, posted revenues of $4.74 billion for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 3.80%. This compares to year-ago revenues of $4.31 billion. The company has topped consensus revenue estimates four times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

W.W. Grainger shares have added about 15.9% since the beginning of the year versus the S&P 500's gain of 7.6%.

What's Next for W.W. Grainger?While W.W. Grainger has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for W.W. Grainger was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $10.96 on $4.78 billion in revenues for the coming quarter and $43.61 on $18.95 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Industrial Services is currently in the top 41% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Eos Energy Enterprises, Inc. (EOSE - Free Report) , another stock in the same industry, has yet to report results for the quarter ended March 2026. The results are expected to be released on May 13.

This company is expected to post quarterly loss of $0.28 per share in its upcoming report, which represents a year-over-year change of -40%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

Eos Energy Enterprises, Inc.'s revenues are expected to be $56.44 million, up 439.6% from the year-ago quarter.

W.W. Grainger (GWW - Free Report) reported $4.74 billion in revenue for the quarter ended March 2026, representing a year-over-year increase of 10.1%. EPS of $11.65 for the same period compares to $9.86 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $4.57 billion, representing a surprise of +3.8%. The company delivered an EPS surprise of +14.23%, with the consensus EPS estimate being $10.20.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how W.W. Grainger performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Total Reported Growth: 10.1% versus 6.1% estimated by six analysts on average.Net Sales- Endless Assortment: $990 million compared to the $945.46 million average estimate based on six analysts. The reported number represents a change of +19.6% year over year.Net Sales- High-Touch Solutions N.A.: $3.75 billion compared to the $3.63 billion average estimate based on six analysts. The reported number represents a change of +10.5% year over year.Operating earnings (losses)- Endless Assortment: $105 million compared to the $83.34 million average estimate based on five analysts.Operating earnings (losses)- High-Touch Solutions N.A.: $688 million versus the five-analyst average estimate of $620.56 million.View all Key Company Metrics for W.W. Grainger here>>>

Shares of W.W. Grainger have returned +5.3% over the past month versus the Zacks S&P 500 composite's +11% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.

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Stock to Watch: W.W. Grainger (GWW - Free Report) Incorporated in 1928, IL-based W.W. Grainger Inc. is a broad line, business-to-business distributor of maintenance, repair and operating (MRO) products and services. Its operations are primarily in North America, Japan and the U.K. Its customers represent a wide array of industries including government, manufacturing, transportation, commercial and contractors. Its products include material-handling equipment, safety and security supplies, lighting and electrical products, power and hand tools, pumps and plumbing supplies, cleaning and maintenance supplies, and metalworking tools.

GWW is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.

Momentum investors should take note of this Industrial Products stock. GWW has a Momentum Style Score of B, and shares are up 6.3% over the past four weeks.

For fiscal 2026, six analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $1.36 to $44.98 per share. GWW boasts an average earnings surprise of +4.2%.

With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, GWW should be on investors' short list.