Leggett & Platt Sales Fell 7% to $4.05 Billion. One Fund Just Built a $10.5 Million Stake Anyway
Key Points
Denver-based Towle & Co bought 953,080 shares of Leggett & Platt in the fourth quarter; the estimated trade size was $10.48 million.
The move marked a new position for Towle.
Leggett & Platt now represents 2.77% of reported U.S. equity holdings, which places it outside the fund's top five holdings.
Towle & Co initiated a new position in Leggett & Platt (NYSE:LEG), acquiring 953,080 shares in the fourth quarter, an estimated $10.48 million trade, according to a February 12 SEC filing.
What happened
According to a SEC filing dated February 12, Towle & Co established a new position in Leggett & Platt, acquiring 953,080 shares. The estimated transaction value was $10.48 million.
What else to know
This was a new position for Towle & Co, representing 2.77% of its 13F reportable assets under management as of December 31.
Top holdings after the filing:
- NYSE:HOUS: $16.08 million (4.3% of AUM)
- NYSE:AMR: $12.11 million (3.2% of AUM)
- NYSE:UNFI: $11.44 million (3.0% of AUM)
- NYSE:GOLD: $11.08 million (2.9% of AUM)
- NYSE:MGA: $10.79 million (2.9% of AUM)
As of February 11, shares were priced at $12.40, up 25.8% over the past year and outperforming the S&P 500 by 11.38 percentage points.
Company overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $4.17 billion |
| Net Income (TTM) | $224.40 million |
| Dividend Yield | 1.69% |
| Price (as of market close 2026-02-11) | $12.40 |
Company snapshot
- Leggett & Platt produces engineered components and finished products including steel rods, wire forms, innersprings, bedding systems, furniture mechanisms, automotive seat components, and flooring underlayment.
- The company operates a vertically integrated model, manufacturing and marketing proprietary and private-label products across bedding, furniture, flooring, and specialized industrial segments.
- It serves bedding and furniture manufacturers, automotive OEMs and suppliers, aerospace companies, retailers, contractors, and industrial clients globally.
Leggett & Platt, Incorporated is a diversified manufacturer with a global footprint, specializing in engineered components for bedding, furniture, automotive, and flooring markets. The company leverages vertical integration and proprietary product development to address a broad spectrum of end markets and customer needs. Its scale, established customer relationships, and product innovation contribute to a defensible competitive position within the furnishings and specialized industrial sectors.
What this transaction means for investors
Turnarounds get interesting when the balance sheet starts to heal before the top line does, and that is essentially the setup here.
On Wednesday, Leggett & Platt reported 2025 sales of $4.05 billion, down 7%, with fourth-quarter sales of $939 million, off 11%. Volume softness in residential markets is still real, but full-year EBIT swung to $356 million from a loss in 2024, and adjusted EPS held steady at $1.05. In a statement alongside earnings, CEO Karl Glassman pointed to a restructuring plan and lower-than-expected costs as reasons for the greater EBIT benefit. Management is now guiding toward 2026 sales of $3.8 billion to $4.0 billion and adjusted EPS of $1.00 to $1.20, with margin improvement expected from this ongoing cost discipline and restructuring benefits.
This new 2.77% position sits alongside cyclical and commodity exposure like coal and autos in the broader portfolio, suggesting a value-tilted mandate willing to underwrite volatility for operating leverage. Now, if housing demand stabilizes and restructuring gains stick, earnings power could look very different two years from now.
Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool recommends Magna International and United Natural Foods. The Motley Fool has a disclosure policy.