UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

(Mark One)


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended ~~September~~March 3031, ~~2025~~2026


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number: 001-07845

LEGGETT & PLATT, INCORPORATED

(Exact name of registrant as specified in its charter)


Missouri		44-0324630
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

1 Leggett Road
Carthage,	Missouri	64836
(Address of principal executive offices)		(Zip Code)

(417) 358-8131

Registrant’s telephone number, including area code

N/A

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol	Name of each exchange on which registered
Common Stock, $.01 par value	LEG	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer

☒

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Common stock outstanding as of ~~October~~April 2830, ~~2025~~2026: ~~135~~136,~~436~~432,~~282~~456

LEGGETT & PLATT, INCORPORATED—10-Q

FOR THE PERIOD ENDED ~~SEPTEMBER~~MARCH 3031, ~~2025~~2026

TABLE OF CONTENTS

		PageNumber
	Forward-Looking Statements	1
PART I - FINANCIAL INFORMATION
Item 1.	Financial Statements.
	Consolidated Condensed Balance Sheets at September 30, 2025 and December 31, 2024	3
	Consolidated Condensed Balance Sheets at March 31, 2026 and December 31, 2025	3
	Consolidated Condensed Statements of Operations for the three and nine months ended September 30, 2025 and 2024	4
	Consolidated Condensed Statements of Operations for the three months ended March 31, 2026 and 2025	4
	Consolidated Condensed Statements of Comprehensive Income (Loss) for the three and nine months ended September 30, 2025 and 2024	5
	Consolidated Condensed Statements of Comprehensive Income (Loss) for the three months ended March 31, 2026 and 2025	5
	Consolidated Condensed Statements of Cash Flows for the nine months ended September 30, 2025 and 2024	6
	Consolidated Condensed Statements of Cash Flows for the three months ended March 31, 2026 and 2025	6
	Consolidated Condensed Statements of Changes in Equity for the three and nine months ended September 30, 2025 and 2024	7
	Consolidated Condensed Statements of Changes in Equity for the three months ended March 31, 2026 and 2025	7
	Notes to Consolidated Condensed Financial Statements	98
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations.	2521
Item 3.	Quantitative and Qualitative Disclosures About Market Risk.	4840
Item 4.	Controls and Procedures.	4941
PART II - OTHER INFORMATION
Item 1.	Legal Proceedings.	5042
Item 1A.	Risk Factors.	5144
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds.	6050
Item 5.	Other Information.	6050
Item 6.	Exhibits.	6151
SIGNATURES		6353

Forward-Looking Statements

This report may contain “forward-looking” statements including, but not limited to: the timing and closing of the Somnigroup Merger (as defined below) pursuant to 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., a Delaware corporation (Somnigroup), Sparrow Unity Corporation, a Missouri corporation and a direct, wholly-owned subsidiary of Somnigroup (Merger Sub) and the Company, whether Company shareholder approval is obtained, whether government and regulatory approvals are obtained, whether the proposed transaction occurs at all; and, if it occurs, the impact of the proposed transaction on our business, headquarters, and the timing of any CEO transition; projections of our revenue, capital expenditures, product demand, capital structure, cash flows, interest costs, ~~the payment of cash dividends,~~ stock repurchases, tax impacts, effective tax rate, maintenance of commercial paper indebtedness, ~~litigation~~legal expense, acquisition or disposition activity, collectability of receivables, ability to issue debt, cybersecurity protections and costs, cash expenditures, uses of cash, our technological competitiveness, compiling a GHG emissions inventory, hedge accounting treatment, ~~timing of corporate general and administrative expense reduction realization,~~ industry demand projections, growth of Chinese EV manufacturers and multinational OEM market share challenges, impact of accounts receivable and payable programs, access to liquidity and the commercial paper market, compliance with debt covenants, raw material and parts availability and pricing, supply chain disruptions, labor, raw material and part shortages, emissions reduction targets and costs, goodwill or other asset impairment; ~~final adjustments for working capital related to the sale of the Aerospace Products Group;~~ possible plans, goals, objectives, prospects, strategies, or trends concerning future operations; statements concerning future economic performance; items related to ~~the~~ restructuring, ~~plan (the "2024 Restructuring Plan" or "2024 Plan")~~ such as estimates of the amounts, types, and timing of facility closures, restructuring-related costs (cash and non-cash) and impairment charges, sales attrition, proceeds from the sale of facilities, and EBIT benefit; ~~the net positive impact of tariffs on our results of operations; potential insurance gain including timing~~ and ~~amount of additional proceeds; pension plan termination costs; and~~ the underlying assumptions relating to forward-looking statements. These statements are identified by the context in which they appear or words such as “anticipate,” “believe,” “estimate,” “expect,” “guidance,” “intend,” “may,” “plan,” or the like. All forward-looking statements, whether written or oral, and whether made by us or on our behalf, are expressly qualified by the cautionary statements described herein.

Any forward-looking statement reflects only the beliefs of Leggett & Platt at the time the statement is made, and is subject to risks, uncertainties, and developments, which might cause actual events or results to differ materially from those envisioned 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. Forward-looking statements should not be relied upon as a prediction of actual future events, objectives, strategies, trends, or results.

Readers should review Item 1A. Risk Factors in our Form 10-K filed February 26, ~~2025~~2026 and in this Form 10-Q for a description of factors that could cause actual events or results to differ materially from forward-looking statements. It is not possible to anticipate and list all risks, uncertainties, and developments which may cause actual events or results to differ materially from forward-looking statements. However, some of these risks and uncertainties include:

•the ~~2024~~risks ~~Restructuring~~associated ~~Plan~~with the Somnigroup Merger Agreement pursuant to which, subject to the terms and conditions of the Somnigroup Merger Agreement, Merger Sub will merge with and into the Company (Somnigroup Merger), with the Company surviving the Somnigroup Merger as a direct, wholly-owned subsidiary of Somnigroup, including ~~changes~~(i) the Company's shareholders may be unable to ~~certain~~determine ~~estimates~~the ~~relating~~value of consideration to ~~cash~~be received in a completed Somnigroup Merger because the exchange ratio is fixed and ~~non-cash~~the ~~costs~~market price of Somnigroup common stock will fluctuate; (ii) the completion of the Somnigroup Merger is subject to certain closing conditions that may not be satisfied or waived, ~~EBIT~~including ~~benefit~~Company shareholder approval and certain governmental and regulatory approvals; (iii) an event, ~~sales~~change ~~attrition~~or other circumstance could give rise to delays in completing the Somnigroup Merger or the termination of the Somnigroup Merger Agreement, (iv) the Company's business or employee relationships may be subject to disruption or change due to the Somnigroup Merger; (v) management's time may be diverted from ongoing business operations and opportunities as a result of the ~~sale~~Somnigroup Merger; (vi) failure to complete the Somnigroup Merger could negatively impact the share price and the future business and financial results of ~~real~~the ~~estate~~Company; (vii) potential litigation against the Company could result in substantial costs, ~~stakeholder~~an ~~impacts~~injunction preventing the completion of the Somnigroup Merger and/or ~~other~~a ~~restructuring~~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;

~~•tariff-related cost increases and demand impacts, and changes to the reciprocal tariff exemption for USMCA compliant products;~~1

•~~supply~~the ~~chain~~risks ~~disruption~~associated ~~from~~with ~~fire,~~the ~~explosion,~~conflict ~~terrorism,~~in the Middle East and related geopolitical ~~conflicts,~~instability ~~government~~and ~~action,~~its ~~labor~~potential ~~strikes~~effects, ~~delivery~~including ~~port~~its ~~shutdowns~~impact on global energy supplies, ~~trade~~inflationary ~~tensions~~pressures, ~~trucking~~global ~~constraints~~supply chains, ~~pandemics~~prices, ~~vendor~~shipping ~~quality~~rates, ~~issues~~customer demand, and ~~non-compliance~~overall ~~with~~economic ~~laws~~conditions;

•commercial paper and debt market access and increased borrowing costs due to credit rating changes, and our ability to reduce or maintain current debt levels;

•credit facility access and covenant compliance;

•product demand, growth rates, and reduced opportunities in the industries in which we participate;

•consumer confidence, housing turnover, employment levels, interest rates, and trends in capital spending;

•the loss of business with customers;

•tariff-related cost increases and demand impacts, and changes to the reciprocal tariff exemption for USMCA compliant products;

•supply chain disruption from fire, explosion, terrorism, geopolitical conflicts, government action, labor strikes, delivery port shutdowns, trade tensions, trucking constraints, vendor quality issues, and non-compliance with laws;

•impairment of goodwill and long-lived assets;

•the realization of deferred tax assets and challenges to tax positions pursuant to ongoing or future reviews, audits, or assessments in China and elsewhere;

•inability to collect any International Emergency Economic Powers Act (IEEPA) duty refunds from the U.S. Customs and Border Protection (CBP) resulting from previously paid IEEPA tariffs;

•demand for our Automotive products due to the growth of Chinese EV manufacturers and declines in market share among multinational OEMs;

•commercial paper and debt market access and increased borrowing costs due to credit rating changes, and our ability to reduce or maintain current debt levels;

•credit facility access and covenant compliance;

•our ability to manage working capital;

•our customers' inability to pay us and take delivery of previously ordered inventory;

•inflationary and deflationary impacts on raw materials, wage rates and energy costs, and availability and pricing of steel scrap and rod, chemicals, and semiconductors;

•our market share in goods and services we sell or provide;

•our ability to pass along cost increases through increased selling prices;

•competitive price and product pressures from Asian, European, Mexican, and domestic competitors;

•our ability to maintain profit margins if our customers change the quantity and mix of our products;

•political risk, legal and regulatory changes (including trade laws);

•the realization of deferred tax assets and challenges to tax positions pursuant to ongoing or future reviews and audits;

•cash repatriation from foreign accounts;

•the enforcement of antidumping and countervailing duties on the import of innersprings, steel wire rod, and finished mattresses;

•the disruption of the semiconductor industry and our global operations due to conflict between countries as well as evolving export controls over semiconductor chips, equipment, components and rare earth minerals;

•the development of commercially viable and innovative products;

•the functioning of our internal business processes and information systems through technology failures;

•cybersecurity incidents, via artificial intelligence or otherwise, on our business, supplier or customer relationships, cybersecurity protection and remediation costs, legal costs, insurance premiums, competitiveness, and reputation;

•the ~~unauthorized~~ use of artificial intelligence ~~that~~ could expose Company information, infringe intellectual property rights, violate privacy laws, and harm our reputation and competitive position;

•climate change and sustainability-related risks and costs;

•~~litigation~~legal risks;

•~~business~~ disruptions to our steel rod mill or wire drawing mills, including a lack of adequate supply of steel scrap;

•foreign operating risks, including credit, intellectual property rights, exchange rates, labor strikes, customs rates, asset seizure, business licensing, land use requirements, and inconsistent enforcement of laws; and

•~~potential~~compliance ~~insurance~~with ~~recovery~~privacy ~~related~~and todata ~~the~~protection ~~fire at a leased location for the Bedding Products segment;~~regulations.

•pension settlement charges;

•risks associated with post-closing adjustments related to the sale of the Aerospace Products Group;

•compliance with privacy and data protection regulations; and

•continuation of cash dividends on our common stock.

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements.

LEGGETT & PLATT, INCORPORATED

Consolidated Condensed Balance Sheets

(Unaudited)

(Amounts in millions)	~~September~~March 3031, ~~2025~~2026		December 31, ~~2024~~2025
ASSETS
Current Assets
Cash and cash equivalents	$	~~460~~510.75	$	~~350~~587.24
Trade receivables, net	~~536~~487.1		~~503~~433.07
Other receivables, net	3233.31		5642.42
Inventories	~~634~~663.03		~~722~~622.6
Prepaid expenses and other current assets	4553.70		5857.37
Total current assets	1,~~708~~747.80		1,~~690~~743.56
Property, Plant and Equipment—at cost
Machinery and equipment	1,~~437~~475.06		1,~~466~~440.30
Buildings and other	~~760~~717.89		~~780~~752.64
Land	3735.46		3936.07
Total property, plant and equipment	2,~~235~~229.21		2,~~285~~229.91
Less accumulated depreciation	1,~~562~~570.07		1,~~561~~565.51
Net property, plant and equipment	~~673~~658.24		~~724~~664.40
Other Assets
Goodwill	~~748~~747.56		~~794~~751.4
Other intangibles, net	9487.92		~~140~~91.43
Operating lease right-of-use assets	~~159~~129.9		~~175~~137.79
Sundry	~~139~~149.70		~~136~~148.2
Total other assets	1,~~143~~113.07		1,~~246~~128.78
TOTAL ASSETS	$	3,~~525~~519.01	$	3,~~661~~536.64
LIABILITIES AND EQUITY
Current Liabilities
Current maturities of long-term debt and short-term debt	$	1.46	$	1.35
Current portion of operating lease liabilities	4650.30		5351.45
Accounts payable	~~485~~467.39		~~497~~466.76
Accrued expenses	~~228~~196.8		~~242~~227.23
Other current liabilities	32.34		5128.81
Total current liabilities	~~794~~748.17		~~846~~775.40
Long-term Liabilities
Long-term debt	1,~~495~~496.86		1,~~862~~496.82
Operating lease liabilities	~~120~~99.07		~~131~~106.17
Other long-term liabilities	8680.10		8283.20
Deferred income taxes	5654.64		4852.9
Total long-term liabilities	1,~~758~~730.57		21,~~125~~738.08
Commitments and Contingencies
Equity
Common stock	2.0		2.0
Additional contributed capital	~~550~~533.40		~~568~~550.73
Retained earnings	2,~~253~~285.92		2,~~064~~272.52
Accumulated other comprehensive loss	(3817.4)		(~~115~~9.80)
Treasury stock	(1,~~796~~763.16)		(1,~~830~~793.04)
Total Leggett & Platt, Inc. equity	~~971~~1,039.82		~~689~~1,022.41
Noncontrolling interest	.65		.85
Total equity	~~972~~1,039.47		~~690~~1,022.26
TOTAL LIABILITIES AND EQUITY	$	3,~~525~~519.01	$	3,~~661~~536.64

See accompanying notes to consolidated condensed financial statements.

LEGGETT & PLATT, INCORPORATED

Consolidated Condensed Statements of Operations

(Unaudited)

	Nine Months Ended				Three Months Ended
	Three Months Ended
	September 30,				September 30,
	March 31,
(Amounts in millions, except per share data)	~~2025~~2026		~~2024~~2025		~~2025~~		~~2024~~
Net trade sales	$	~~3,116~~918.52	$	31,~~327~~022.21	$	~~1,036.4~~	$	~~1,101.7~~
Cost of goods sold	~~2,540~~747.25		~~2,753~~832.71		~~842.7~~		~~901.1~~
Gross profit	~~576~~170.37		~~573~~190.50		~~193.7~~		~~200.6~~
Selling and administrative expenses	~~366~~121.5		~~384~~123.46		~~124.5~~		~~127.0~~
Amortization of intangibles	123.46		165.80		~~3.8~~		~~7.2~~
Impairments	2.0		678.5		.8		.6
Net gain on disposal of assets and businesses	(9.4)		(2.1)
Gain on sale of Aerospace Products Group	(86.8)		—		(86.8)		—
Somnigroup International Inc. merger costs (See Note O)	3.5		—
Net gain on disposal of assets and businesses	(37.2)		(31.1)		(15.8)		(14.1)
Other expense (income), net	7.0		.6
Other (income) expense, net	(5.0)		(1.5)		(3.9)		2.2
Earnings before interest and income taxes	44.5		62.9
Earnings (loss) before interest and income taxes	324.4		(473.6)		171.1		77.7
Interest expense	14.5		18.8
Interest expense	57.8		65.0		18.5		21.0
Interest income	1.9		1.0
Interest income	4.6		4.4		1.8		1.0
Earnings before income taxes	31.9		45.1
Earnings (loss) before income taxes	271.2		(534.2)		154.4		57.7
Income taxes	11.9		14.5
Income taxes	60.9		(8.6)		27.2		12.8
Net earnings	20.0		30.6
Net earnings (loss)	210.3		(525.6)		127.2		44.9
(Earnings) attributable to noncontrolling interest, net of tax	—		—
(Earnings) attributable to noncontrolling interest, net of tax	(.1)		(.1)		(.1)		—
Net earnings attributable to Leggett & Platt, Inc. common shareholders	$	20.0	$	30.6
Net earnings (loss) attributable to Leggett & Platt, Inc. common shareholders	$	210.2	$	(525.7)	$	127.1	$	44.9
Net earnings per share attributable to Leggett & Platt, Inc. common shareholders
Net earnings (loss) per share attributable to Leggett & Platt, Inc. common shareholders
Basic	$	.14	$	.22
Basic	$	1.52	$	(3.83)	$	.92	$	.33
Diluted	$	.14	$	.22
Diluted	$	1.51	$	(3.83)	$	.91	$	.33
Weighted average shares outstanding
Basic	~~138~~139.43		137.28		~~138.7~~		~~137.4~~
Diluted	~~139~~141.50		~~137~~138.26		~~140.2~~		~~138.0~~

See accompanying notes to consolidated condensed financial statements.

LEGGETT & PLATT, INCORPORATED

Consolidated Condensed Statements of Comprehensive Income (Loss)

(Unaudited)

	Nine Months Ended				Three Months Ended
	Three Months Ended
	September 30,				September 30,
	March 31,
(Amounts in millions)	~~2025~~2026		~~2024~~2025		~~2025~~		~~2024~~
Net earnings (loss)	$	210.3	$	(525.6)	$	127.2	$	44.9
Net earnings	$	20.0	$	30.6
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	75(9.85)		(722.9)7		~~(6.1)~~		~~33.0~~
Cash flow hedges	1.72		(2.9)6		.5		—
Defined benefit pension plans	(.1)		.3—		.1		~~(.1)~~
Other comprehensive income (loss), net of tax	77(8.4)		~~(10~~23.5)3		~~(5.5)~~		~~32.9~~
Comprehensive income (loss)	~~287~~11.76		~~(536~~53.1)9		~~121.7~~		~~77.8~~
Add: comprehensive income attributable to noncontrolling interest	~~(.1)~~—		~~(.1)~~—		~~(.1)~~		~~(.1)~~
Comprehensive income (loss) attributable to Leggett & Platt, Inc.	$	~~287~~11.6	$	~~(536~~53.2)9	$	~~121.6~~	$	~~77.7~~

See accompanying notes to consolidated condensed financial statements.

LEGGETT & PLATT, INCORPORATED

Consolidated Condensed Statements of Cash Flows

(Unaudited)

	Nine Months Ended September 30,
	Three Months Ended March 31,
(Amounts in millions)	~~2025~~2026		~~2024~~2025
Operating Activities
Net earnings (loss)	$	210.3	$	(525.6)
Net earnings	$	20.0	$	30.6
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation	7724.2		8326.82
Amortization of intangibles and supply agreements	134.50		185.14
Long-lived asset impairment	2.08		3.23
Goodwill impairment	—		675.3
Increase in provision for losses on accounts receivable	2.2		1.2
Increase in provision for losses on accounts receivable	4.5		8.5
Write-down of inventories	3.2		4.5
Write-down of inventories	10.9		25.3
Net gain from disposal of assets and businesses	(9.4)		(2.1)
Gain on sale of Aerospace Products Group	(86.8)		—
Stock-based compensation	11.3		8.2
Net gain from disposal of assets and businesses	(37.2)		(31.1)
Other, net	3.8		(3.3)
Deferred income tax benefit	(.4)		(55.3)
Stock-based compensation	16.1		22.2
Other, net	(8.5)		(11.9)
Changes in working capital, excluding effects from acquisitions and divestitures:
Accounts and other receivables	(1053.60)		(1326.96)
Inventories	23(45.57)		40(12.54)
Other current assets	36.96		(45.8)3
Accounts payable	(5.05)		(205.81)
Accrued expenses and other current liabilities	3(25.36)		(3025.14)
Net Cash Provided by Operating Activities	216.7		183.4
Net Cash (Used for) Provided by Operating Activities	(56.1)		6.8
Investing Activities
Additions to property, plant and equipment	(3724.63)		(5913.83)
Net proceeds from disposal of Aerospace Products Group	276.1		—
Proceeds from disposal of Aerospace Products Group	4.2		—
Proceeds from disposals of assets and businesses	4710.01		405.6
Other, net	2(.6)		1.46
Net Cash Provided by (Used for) Investing Activities	288.1		(18.8)
Net Cash (Used for) Provided by Investing Activities	(10.6)		(6.1)
Financing Activities
Payments on long-term debt	~~(.1)~~—		(.1)
Change in commercial paper and short-term debt	~~(376~~.9)3		~~(110~~69.2)1
Dividends paid	(206.28)		(~~129~~6.7)
Purchases of common stock	(23.4)		(42.50)
Other, net	(7.14)		(2.13)
Net Cash Used for Financing Activities	(406.7)		(246.6)
Net Cash (Used for) Provided by Financing Activities	(10.3)		60.0
Effect of Exchange Rate Changes on Cash	12.41		(61.3)7
Increase (Decrease) in Cash and Cash Equivalents	110.5		(88.3)
(Decrease) Increase in Cash and Cash Equivalents	(76.9)		62.4
Cash and Cash Equivalents—January 1,	~~350~~587.24		~~365~~350.52
Cash and Cash Equivalents—September 30,	$	460.7	$	277.2
Cash and Cash Equivalents—March 31,	$	510.5	$	412.6

See accompanying notes to consolidated condensed financial statements.

LEGGETT & PLATT, INCORPORATED

Consolidated Condensed Statements of Changes in Equity

(Unaudited)

	Three Months Ended September 30, 2025
	Three Months Ended March 31, 2026
	Common Stock& AdditionalContributedCapital		RetainedEarnings		AccumulatedOtherComprehensiveIncome (Loss)		TreasuryStock		NoncontrollingInterest		TotalEquity
	Common Stock & AdditionalContributedCapital		RetainedEarnings		AccumulatedOtherComprehensiveIncome (Loss)		TreasuryStock		NoncontrollingInterest		TotalEquity
(Amounts in millions)
Beginning balance, July 1, 2025	$	554.0	$	2,133.8	$	(32.9)	$	(1,799.9)	$	.8	$	855.8
Beginning balance, January 1, 2026	$	552.3	$	2,272.2	$	(9.0)	$	(1,793.4)	$	.5	$	1,022.6
Net earnings (loss)	—		127.1		—		—		.1		127.2
Net earnings	—		20.0		—		—		—		20.0
Dividends declared (See Note D)	.2		(7.0)		—		—		(.3)		(7.1)
Dividends declared (Note D)	.2		(7.0)		—		—		—		(6.8)
Treasury stock purchased	—		—		—		(3.14)		—		(3.14)
Treasury stock issued	(331.35)		—		—		333.92		—		1.67
Other comprehensive income (loss), net of tax (See Note L)	—		—		(5.5)		—		—		(5.5)
Other comprehensive income (loss), net of tax (Note I)	—		—		(8.4)				—		(8.4)
Stock-based compensation transactions, net of tax	114.50		—		—		—		—		114.50
Ending balance, September 30, 2025	$	552.4	$	2,253.9	$	(38.4)	$	(1,796.1)	$	.6	$	972.4
Ending balance, March 31, 2026	$	535.0	$	2,285.2	$	(17.4)	$	(1,763.6)	$	.5	$	1,039.7

	Three Months Ended September 30, 2024
	Three Months Ended March 31, 2025
	Common Stock& AdditionalContributedCapital		RetainedEarnings		AccumulatedOtherComprehensiveIncome (Loss)		TreasuryStock		NoncontrollingInterest		TotalEquity
	Common Stock & AdditionalContributedCapital		RetainedEarnings		AccumulatedOtherComprehensiveIncome (Loss)		TreasuryStock		NoncontrollingInterest		TotalEquity
(Amounts in millions)
Beginning balance, July 1, 2024	$	573.8	$	2,019.3	$	(87.0)	$	(1,838.5)	$	.7	$	668.3
Beginning balance, January 1, 2025	$	570.7	$	2,064.5	$	(115.8)	$	(1,830.0)	$	.8	$	690.2
Net earnings (loss)	—		44.9		—		—		—		44.9
Net earnings	—		30.6		—		—		—		30.6
Dividends declared (See Note D)	.1		(6.9)		—		—		—		(6.8)
Dividends declared (Note D)	.2		(6.9)		—		—		—		(6.7)
Treasury stock purchased	—		—		—		(.2.0)		—		(.2.0)
Treasury stock issued	(224.95)		—		—		325.87		—		1.92
Other comprehensive income (loss), net of tax (See Note L)	—		—		32.8		—		.1		32.9
Other comprehensive income (loss), net of tax (Note I)	—		—		23.3		—		—		23.3
Stock-based compensation transactions, net of tax	111.80		—		—		—		—		111.80
Ending balance, September 30, 2024	$	572.8	$	2,057.3	$	(54.2)	$	(1,834.9)	$	.8	$	741.8
Ending balance, March 31, 2025	$	557.4	$	2,088.2	$	(92.5)	$	(1,806.3)	$	.8	$	747.6

	Nine Months Ended September 30, 2025
	Common Stock & AdditionalContributedCapital		RetainedEarnings		AccumulatedOtherComprehensiveIncome (Loss)		TreasuryStock		NoncontrollingInterest		TotalEquity
(Amounts in millions)
Beginning balance, January 1, 2025	$	570.7	$	2,064.5	$	(115.8)	$	(1,830.0)	$	.8	$	690.2
Net earnings (loss)	—		210.2		—		—		.1		210.3
Dividends declared (Note D)	.5		(20.8)		—		—		(.3)		(20.6)
Treasury stock purchased	—		—		—		(2.4)		—		(2.4)
Treasury stock issued	(33.6)		—		—		36.3		—		2.7
Other comprehensive income (loss), net of tax (Note L)	—		—		77.4		—		—		77.4
Stock-based compensation transactions, net of tax	14.8		—		—		—		—		14.8
Ending balance, September 30, 2025	$	552.4	$	2,253.9	$	(38.4)	$	(1,796.1)	$	.6	$	972.4

	Nine Months Ended September 30, 2024
	Common Stock & AdditionalContributedCapital		RetainedEarnings		AccumulatedOtherComprehensiveIncome (Loss)		TreasuryStock		NoncontrollingInterest		TotalEquity
(Amounts in millions)
Beginning balance, January 1, 2024	$	577.8	$	2,661.1	$	(43.7)	$	(1,861.9)	$	.7	$	1,334.0
Net earnings (loss)	—		(525.7)		—		—		.1		(525.6)
Dividends declared (Note D)	3.1		(78.1)		—		—		—		(75.0)
Treasury stock purchased	—		—		—		(4.5)		—		(4.5)
Treasury stock issued	(27.4)		—		—		31.5		—		4.1
Other comprehensive income (loss), net of tax (Note L)	—		—		(10.5)		—		—		(10.5)
Stock-based compensation transactions, net of tax	19.3		—		—		—		—		19.3
Ending balance, September 30, 2024	$	572.8	$	2,057.3	$	(54.2)	$	(1,834.9)	$	.8	$	741.8

See accompanying notes to consolidated condensed financial statements.

LEGGETT & PLATT, INCORPORATED

Notes to Consolidated Condensed Financial Statements

(Unaudited)

(Amounts in millions, except per share data)

A—Interim Presentation

The interim financial statements of Leggett & Platt, Incorporated (we, us, or our) included herein have not been audited by an independent registered public accounting firm. The statements include all adjustments, including normal recurring accruals, which management considers necessary for a fair statement of our financial position and operating results for the periods presented. We have prepared the statements pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). Accordingly, certain information and footnote disclosures normally included in financial statements prepared in conformity with accounting principles generally accepted in the United States of America (GAAP) have been condensed or omitted pursuant to such rules and regulations. The operating results for interim periods are not necessarily indicative of results to be expected for an entire year.

The December 31, ~~2024~~2025 financial position data included herein was derived from the audited consolidated financial statements, but does not include all disclosures required by GAAP.

Accounts Receivable and Accounts Payable Programs

We participate in trade receivables sales programs in combination with third-party banking institutions and certain customers. Under each of these programs, we sell our entire interest in the trade receivable for 100% of face value, less a discount. Because control of the sold receivable is transferred to the buyer at the time of sale, accounts receivable balances sold are removed from the Consolidated Condensed Balance Sheets and the related proceeds are reported as cash provided by operating activities in the Consolidated Condensed Statements of Cash Flows. Approximately $40.0 and $45.0 of trade receivables were sold and removed from our balance sheets at ~~September~~March 3031, ~~2025~~2026 and December 31, ~~2024~~2025, respectively.

We occasionally utilize third-party programs that allow our suppliers to be paid earlier at a discount. While we continue to make payments based on our customary terms, a supplier can elect to take payment from a third party earlier with a discount, and in that case, we pay the third party on the original due date of the invoice. Contracts with our suppliers are negotiated independently of supplier participation in the programs, and we cannot increase payment terms pursuant to the programs. The accounts payable settled through the third-party programs, which remain on our Consolidated Condensed Balance Sheets, were approximately $~~105~~110.0 and $~~120~~115.0 at ~~September~~March 3031, ~~2025~~2026 and December 31, ~~2024~~2025, respectively.

New Accounting Guidance

The Financial Accounting Standards Board (FASB) regularly issues updates to the FASB Accounting Standards Codification that are communicated through issuance of an Accounting Standards Update (ASU). Below is a summary of the ASUs effective for future periods that are most relevant to our financial statements:

•ASU ~~2023~~2024-0903 “"Income ~~Taxes~~Statement (~~Topic~~Subtopic ~~740~~220-40):—Reporting ~~Improvements~~Comprehensive to Income—Expense ~~Tax~~Disaggregation Disclosures”": This ASU requires ~~disclosure~~disaggregated ofdisclosures for specific categories insuch ~~the~~as ~~rate~~inventory ~~reconciliation~~purchases, employee compensation, depreciation, and ~~income~~amortization, ~~taxes~~as ~~paid~~well ~~disaggregated~~as byother ~~jurisdiction~~qualitative descriptions. This guidance iswill be effective for our annual periods beginning January 1, ~~2025~~2027, and interim periods beginning January 1, 2028. Early adoption is permitted and may be applied prospectively or retrospectively. We ~~expect~~are ~~the~~currently ~~adoption~~evaluating tothe ~~result~~impact inof ~~disclosure~~adopting ~~changes~~this ~~only~~guidance.

•ASU ~~2024~~2025-0306 "~~Income~~Intangibles—Goodwill ~~Statement~~and Other—Internal-Use Software (Subtopic ~~220~~350-40)~~—Reporting~~: ~~Comprehensive~~Targeted ~~Income—Expense~~Improvements ~~Disaggregation~~to ~~Disclosures~~the Accounting for Internal-Use Software": This ASU ~~requires~~removes ~~disaggregated~~the ~~disclosures~~prescriptive ~~for~~and ~~specific~~sequential ~~categories~~software ~~such~~development stages (referred to as ~~inventory~~"project ~~purchases,~~stages") ~~employee~~and ~~compensation,~~requires ~~depreciation,~~capitalization to begin when management has authorized and ~~amortization,~~committed asto ~~well~~funding asthe ~~other~~project ~~qualitative~~and ~~descriptions~~it is probable that the project will be both completed and used to perform its intended function. This guidance will be effective January 1, 2028 (for ~~our~~both annual and interim reporting periods). ~~beginning~~Early ~~January~~adoption 1,is ~~2027,~~permitted and ~~interim~~may ~~periods~~be ~~beginning~~applied ~~January~~prospectively, 1retrospectively, ~~2028~~or using a modified transition approach. We are currently evaluating the impact of adopting this guidance.

•ASU 2025-06 "Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software": This ASU removes the prescriptive and sequential software development stages (referred to as "project stages") and requires capitalization to begin when management has authorized and committed to funding the project and it is probable that the project will be both completed and used to perform its intended function. This guidance will 8

LEGGETT & PLATT, INCORPORATED

Notes to Consolidated Condensed Financial Statements—(Continued)

(Unaudited)

•ASU 2025-09 “Derivatives and Hedging (Topic 815): Hedge Accounting Improvements”: This ASU clarifies certain aspects of the guidance on hedge accounting. This guidance will be effective January 1, ~~2028~~2027 (for both annual and interim reporting periods). Early adoption is permitted and must be applied prospectively. We are currently evaluating the impact of adopting this guidance.

The FASB has issued accounting guidance, in addition to the issuances discussed above, effective for current and future periods. This guidance did not have a material impact on our current financial statements, and we do not believe it will have a material impact on our future financial statements.

B—Revenue

Revenue by Product Family

We disaggregate revenue by customer group, which is the same as our product families for each of our segments, as we believe this best depicts how the nature, amount, timing, and uncertainty of our revenue and cash flows are affected by economic factors. For information on our segment structure, see Note C.

	Nine Months Ended September 30,				Three Months Ended September 30,
	Three Months Ended March 31,
	2025		2024		2025		2024
	2026		2025
Bedding Products
Bedding Group	$	~~1,184~~364.69	$	~~1,331~~390.57	$	~~402.5~~	$	~~445.5~~
Specialized Products
Automotive Group	~~599~~194.42		~~629~~197.52		~~199.5~~		~~204.6~~
Aerospace Products Group (Note O)	132.2		138.0		28.6		44.9
Aerospace Products Group (Note L)	—		53.0
Hydraulic Cylinders Group	~~150~~49.19		~~167~~49.9		~~49.4~~		~~50.4~~
	881.7		935.4		277.5		299.9
	244.1		300.1
Furniture, Flooring & Textile Products
Home Furniture Group	~~189~~58.94		~~207~~66.58		~~61.9~~		~~65.6~~
Work Furniture Group	~~209~~68.98		~~207~~68.29		~~68.9~~		~~67.9~~
Flooring & Textile Products Group	~~650~~182.40		~~645~~195.6		~~225.6~~		~~222.8~~
	1,050.2		1,060.3		356.4		356.3
	309.2		331.3
	$	~~3,116~~918.52	$	31,~~327~~022.21	$	~~1,036.4~~	$	~~1,101.7~~

C—Segment Information

We have three operating segments that supply a wide range of products:

•Bedding Products: This segment supplies a variety of components used by bedding manufacturers in the production and assembly of their finished products, as well as produces private label finished mattresses and adjustable bed bases. This segment is also vertically integrated in the production and supply of specialty foam chemicals, steel rod, and drawn steel wire to our own operations and to external customers. We also supply steel rod and wire to trade customers that operate in a broad range of markets.

•Specialized Products: From this segment, we supply lumbar support systems, seat suspension systems, motors and actuators, and control cables used by automotive manufacturers. We also produce and distribute engineered hydraulic cylinders used in the material- handling and heavy- construction industries. On August 29, 2025, we divested our Aerospace Products Group, as discussed in Note OL to the Consolidated Condensed Financial Statements on page 2419.

•Furniture, Flooring & Textile Products: Operations in this segment supply a wide range of components for residential and work furniture manufacturers, as well as select lines of private label finished furniture. We also produce or distribute carpet cushion, hard surface flooring underlayment, and textile and geo components.

109

LEGGETT & PLATT, INCORPORATED

Notes to Consolidated Condensed Financial Statements—(Continued)

(Unaudited)

Our reportable segments are the same as our operating segments, which correspond with our management organizational structure. Each of our segments has an executive vice president who has accountability to, and maintains regular contact with, our CEO, who is the chief operating decision maker (CODM).

The accounting policies used in the preparation of the segment information are the same as those used for the consolidated financial statements. Earnings Before Interest and Taxes (EBIT) is used by the CODM to evaluate segment performance, allocate overall resources, and determine management incentive compensation. Intersegment sales are made primarily at prices that approximate market-based selling prices. Centrally incurred costs are allocated to the segments based on estimates of services used by the segment. Certain of our general and administrative costs and miscellaneous corporate income and expenses are allocated to the segments based on sales or other appropriate metrics. These allocated corporate costs include depreciation and other costs and income related to assets that are not allocated or otherwise included in the segment assets.

	Bedding Products		Specialized Products		Furniture, Flooring & Textile Products		Total
Three Months Ended September 30, 2025
Trade sales 1	$	402.5	$	277.5	$	356.4	$	1,036.4
Inter-segment sales	5.0		.6		2.1		7.7
Total segment sales	407.5		278.1		358.5		1,044.1
Less:
Depreciation and amortization	13.2		7.9		4.4		25.5
Nonoperating assets depreciation and amortization 2	1.5		1.0		1.4		3.9
Total depreciation and amortization	14.7		8.9		5.8		29.4
Gain on sale of Aerospace Products Group (Note O)	—		(86.8)		—		(86.8)
Restructuring, restructuring-related, and impairment charges (Note E and Note F)	3.1		.9		.1		4.1
Gain on sale of real estate	—		—		(2.5)		(2.5)
Gain from net insurance proceeds	(13.1)		—		—		(13.1)
Other segment items 3	366.4		242.2		333.1		941.7
Segment EBIT	$	36.4	$	112.9	$	22.0	171.3
Intersegment eliminations and other							(.2)
Interest expense net of interest income							(16.7)
Earnings (loss) before income taxes							$	154.4

LEGGETT & PLATT, INCORPORATED

Notes to Consolidated Condensed Financial Statements—(Continued)

(Unaudited)

A summary of segment results for the periods presented is as follows:

	Bedding Products		Specialized Products		Furniture, Flooring & Textile Products		Total
Three Months Ended September 30, 2024
Trade sales 1	$	445.5	$	299.9	$	356.3	$	1,101.7
Inter-segment sales	6.1		1.5		2.1		9.7
Total segment sales	451.6		301.4		358.4		1,111.4
Less:
Depreciation and amortization	14.8		11.0		5.4		31.2
Nonoperating assets depreciation and amortization 2	2.1		1.4		1.7		5.2
Total depreciation and amortization	16.9		12.4		7.1		36.4
Other segment items:
Restructuring, restructuring-related, and impairment charges (Note E and Note F)	8.0		3.8		.5		12.3
Gain on sale of real estate	(14.0)		—		—		(14.0)
Other segment items 3	415.2		260.4		323.4		999.0
Segment EBIT	$	25.5	$	24.8	$	27.4	77.7
Intersegment eliminations and other							—
Interest expense net of interest income							(20.0)
Earnings (loss) before income taxes							$	57.7

LEGGETT & PLATT, INCORPORATED


	Bedding Products		Specialized Products		Furniture, Flooring & Textile Products		Total
Three Months Ended March 31, 2026
Trade sales 1	$	364.9	$	244.1	$	309.2	$	918.2
Inter-segment sales	5.8		1.3		1.8		8.9
Total segment sales	370.7		245.4		311.0		927.1
Less:

Depreciation and amortization	12.4		8.1		4.3		24.8
Nonoperating assets depreciation and amortization 2	1.4		.9		1.1		3.4
Total depreciation and amortization	13.8		9.0		5.4		28.2


Restructuring, restructuring-related, and impairment charges (Note E)	4.7		—		.2		4.9
Gain on sale of real estate	(9.5)		—		—		(9.5)

Other segment items 3	336.0		218.7		301.0		855.7
Segment EBIT	$	25.7	$	17.7	$	4.4	47.8
Intersegment eliminations and other 4							(3.3)

Interest expense net of interest income							(12.6)
Earnings before income taxes							$	31.9

Notes to Consolidated Condensed Financial Statements—(Continued)


Three Months Ended March 31, 2025
Trade sales 1	$	390.7	$	300.1	$	331.3	$	1,022.1
Inter-segment sales	5.2		.2		2.3		7.7
Total segment sales	395.9		300.3		333.6		1,029.8
Less:

Depreciation and amortization	13.0		10.4		4.9		28.3
Nonoperating assets depreciation and amortization 2	1.3		.9		1.1		3.3
Total depreciation and amortization	14.3		11.3		6.0		31.6
Other segment items:


Restructuring, restructuring-related, and impairment charges (Note E)	3.4		3.4		.1		6.9
Gain on sale of real estate	—		—		(3.2)		(3.2)

Other segment items 3	368.6		257.2		305.9		931.7
Segment EBIT	$	9.6	$	28.4	$	24.8	62.8
Intersegment eliminations and other							.1

Interest expense net of interest income							(17.8)
Earnings before income taxes							$	45.1

(Unaudited)

	Bedding Products		Specialized Products		Furniture, Flooring & Textile Products		Total
Nine Months Ended September 30, 2025
Trade sales 1	$	1,184.6	$	881.7	$	1,050.2	$	3,116.5
Inter-segment sales	15.4		.9		5.8		22.1
Total segment sales	1,200.0		882.6		1,056.0		3,138.6
Less:
Depreciation and amortization	39.5		26.5		13.9		79.9
Nonoperating assets depreciation and amortization 2	4.1		3.0		3.7		10.8
Total depreciation and amortization	43.6		29.5		17.6		90.7
Gain on sale of Aerospace Products Group (Note O)	—		(86.8)		—		(86.8)
Restructuring, restructuring-related, and impairment charges (Note E and Note F)	8.6		4.9		1.1		14.6
Gain on sale of real estate	(16.7)		(1.7)		(5.7)		(24.1)
Gain from net insurance proceeds	(13.1)		—		—		(13.1)
Other segment items 3	1,104.4		756.7		971.8		2,832.9
Segment EBIT	$	73.2	$	180.0	$	71.2	324.4
Intersegment eliminations and other							—
Interest expense net of interest income							(53.2)
Earnings (loss) before income taxes							$	271.2

Nine Months Ended September 30, 2024
Trade sales 1	$	1,331.5	$	935.4	$	1,060.3	$	3,327.2
Inter-segment sales	19.0		3.2		7.6		29.8
Total segment sales	1,350.5		938.6		1,067.9		3,357.0
Less:
Depreciation and amortization	43.7		31.4		16.2		91.3
Nonoperating assets depreciation and amortization 2	4.3		2.9		3.4		10.6
Total depreciation and amortization	48.0		34.3		19.6		101.9
Other segment items:
Goodwill impairment (Note F)	587.2		43.6		44.5		675.3
Restructuring, restructuring-related, and impairment charges (Note E and Note F)	27.2		5.1		2.0		34.3
Gain on sale of real estate	(26.6)		—		—		(26.6)
Gain from net insurance proceeds	—		—		(2.2)		(2.2)
Other segment items 3	1,265.3		816.6		962.4		3,044.3
Segment EBIT	$	(550.6)	$	39.0	$	41.6	(470.0)
Intersegment eliminations and other 4							(3.6)
Interest expense net of interest income							(60.6)
Earnings (loss) before income taxes							$	(534.2)

1 See Note B for revenue by product family.

2 Assets are not allocated to segments for internal reporting presentations. A portion of amortization and depreciation is included with various other costs in an overhead allocation to each segment.

133 Other segment items included in segment EBIT but not regularly provided to the CODM are comprised of cost of goods sold, selling and administrative expenses, and other expense (income), net.

4 Intersegment eliminations and other included $3.5 for Somnigroup International Inc. merger costs (see Note O).

LEGGETT & PLATT, INCORPORATED

Notes to Consolidated Condensed Financial Statements—(Continued)

(Unaudited)

3 Other segment items included in segment EBIT but not regularly provided to the CODM are comprised of cost of goods sold, selling and administrative expenses, and other expense (income), net.

4 For Intersegment eliminations and other, the nine months ended September 30, 2024, included $3.7 in CEO transition compensation costs.

Average assets for our segments are shown in the table below and reflect the basis for return measures used by management to evaluate segment performance. These segment totals include the average of both working capital (current assets and current liabilities utilized in operations) plus net property, plant and equipment.

Average Assets by Segment

~~September~~March 3031, ~~2025~~2026

December 31, ~~2024~~2025

Bedding Products

~~649~~578.17

~~741~~635.85

Specialized Products

~~383~~289.75

~~398~~363.70

Furniture, Flooring & Textile Products

~~336~~313.81

~~346~~331.1

Average current liabilities included in segment numbers above

~~659~~589.06

~~692~~650.70

Unallocated assets 1

1,~~621~~735.06

1,~~634~~807.03

Difference between average assets and period-end balance sheet

~~(124~~12.6)

(~~151~~250.75)

Total assets

3,~~525~~519.01

3,~~661~~536.64

1 Unallocated assets consist primarily of goodwill, other intangibles, cash, and net operating leases.

D—Earnings (Loss) Per Share (EPS)

Basic and diluted earnings (loss) per share were calculated as follows:

	Nine Months Ended September 30,				Three Months Ended September 30,
	Three Months Ended March 31,
	2025		2024		2025		2024
	2026		2025
Net earnings (loss)
Net earnings
Net earnings (loss)	$	210.3	$	(525.6)	$	127.2	$	44.9
Net earnings	$	20.0	$	30.6
Earnings attributable to noncontrolling interest, net of tax	~~(.1)~~—		~~(.1)~~—		~~(.1)~~		—
Net earnings (loss) attributable to Leggett & Platt, Inc. common shareholders	$	210.2	$	(525.7)	$	127.1	$	44.9
Net earnings attributable to Leggett & Platt, Inc. common shareholders	$	20.0	$	30.6
Weighted average number of shares (in millions)
Weighted average number of common shares used in basic EPS	~~138~~139.43		137.28		~~138.7~~		~~137.4~~
Dilutive effect of stock-based compensation	1.17		—.8		~~1.5~~		.6
Weighted average number of common shares and dilutive potential common shares used in diluted EPS	~~139~~141.50		~~137~~138.26		~~140.2~~		~~138.0~~
Basic and diluted EPS
Basic EPS attributable to Leggett & Platt common shareholders	$	1.52	$	(3.83)	$	.92	$	.33
Basic EPS attributable to Leggett & Platt, Inc. common shareholders	$	.14	$	.22
Diluted EPS attributable to Leggett & Platt common shareholders	$	1.51	$	(3.83)	$	.91	$	.33
Diluted EPS attributable to Leggett & Platt, Inc. common shareholders	$	.14	$	.22
Other information
Anti-dilutive shares excluded from diluted EPS computation	.58		.58		.4		.5
Cash dividends declared per share	$	.1505	$	.5605	$	~~.05~~	$	~~.05~~

1412

LEGGETT & PLATT, INCORPORATED

Notes to Consolidated Condensed Financial Statements—(Continued)

(Unaudited)

E—Restructuring and Related Activities

In 2024, we committed to a restructuring plan (the 2024 Restructuring Plan or 2024 Plan)., ~~The~~which ~~2024~~was ~~Plan is~~ primarily associated with our Bedding Products segment ~~and includes, to a lesser extent, our Furniture, Flooring & Textile Products segment, an opportunity within the Specialized Products segment, and general and administrative cost structure initiatives~~.

~~Over~~We ~~the~~consolidated ~~course~~17 ~~of the restructuring timeline, we plan to consolidate between 15 and 20~~ production and distribution facilities in the Bedding Products segment and afour ~~small number of~~ production facilities in the Furniture, Flooring & Textile Products segment. ~~Our~~We ~~total~~optimized ~~restructuring,~~manufacturing ~~restructuring-related,~~ and ~~impairment~~operating ~~costs~~efficiencies ~~for~~in the ~~2024~~Hydraulic ~~Plan~~Cylinders ~~are~~Group, ~~expected~~and toreduced beour ~~approximately~~corporate ~~$75.0,~~general ofand ~~which~~administrative ~~$47~~expenses.8 ~~was~~The ~~incurred in~~ 2024, ~~with~~Plan ~~the~~costs ~~remainder~~were ~~expected to be~~ substantially complete inat ~~2025.~~the Asend of ~~September 30,~~ 2025~~, we have incurred life-to-date 2024 Plan costs of $58~~.4.

The following table presents all 2024 Plan restructuring and restructuring-related activity, including impairments, for the periods presented:

	Total Approximate Amount Expected to be Incurred		Total Amount Incurred to Date Since January 1, 2024		~~Nine~~Three Months Ended ~~September~~March 3031, ~~2025~~2026		Total Amount Incurred in ~~2024~~2025		Total Amount Incurred in 2024
2024 Restructuring Plan activity:
Net cash restructuring and restructuring-related	$	40.0	$	3839.12	$	7.82	$	308.37	$	30.3
Net non-cash restructuring and restructuring-related	2517.0		1415.13		.8—		132.30		13.3
Total net restructuring and restructuring-related costs	6557.0		5254.25		8.62		4310.67		43.6
Goodwill and long-lived asset impairment costs 1	10.0		6.2		2.0		4.2
Long-lived asset and goodwill impairment costs	23.0		26.0		2.8		19.0		4.2
Total 2024 Restructuring Plan activity	$	7580.0	$	5880.45	$	103.60	$	4729.87	$	47.8

~~1 This~~In ~~includes~~February ~~$.7~~2026, ofwe ~~goodwill~~committed ~~impairment~~to ina ~~2024~~smaller ~~related~~restructuring plan to aconsolidate ~~small~~two ~~U.S.~~manufacturing ~~machinery~~facilities in our Specialty Foam business ~~within~~unit ~~the~~in our Bedding Products segment ~~that~~and ~~reached~~one ~~held-for-sale~~manufacturing ~~status~~facility inwithin our Furniture, Flooring & Textile Products segment into other existing facilities (the ~~fourth~~2026 ~~quarter~~Restructuring ofPlan ~~2024~~or 2026 Plan). These actions are expected to improve our manufacturing efficiency and ~~was~~enhance ~~sold~~profitability inand are anticipated to be substantially complete by the ~~first~~end ~~quarter~~of 2026. We expect to incur restructuring and restructuring-related pretax costs of ~~2025~~approximately as$15.0 ~~discussed~~for inthe ~~Note~~2026 ORestructuring Plan, including approximately $10.0 of cash charges.


	Total Approximate Amount Expected to be Incurred		Three Months Ended March 31, 2026

2026 Restructuring Plan activity:
Net cash restructuring and restructuring-related	$	10.0	$	.5
Net non-cash restructuring and restructuring-related	5.0		1.0


Total 2026 Restructuring Plan activity	$	15.0	$	1.5

LEGGETT & PLATT, INCORPORATED

Notes to Consolidated Condensed Financial Statements—(Continued)

(Unaudited)

The table below presents the restructuring and restructuring-related activity for the periods presented:

	Income Statement Presentation	Nine Months Ended September 30, 2025		Nine Months Ended September 30, 2024		Three Months Ended September 30, 2025		Three Months Ended September 30, 2024
	Consolidated Condensed Statements of Operations Presentation	Three Months Ended March 31, 2026		Three Months Ended March 31, 2025
2024 Plan restructuring costs (gains):
2024 Plan restructuring costs:
Termination benefits, relocation, and other restructuring costs	Other expense (income) ~~expense~~, net	$	.2	$	2.3
	(See Note K)	$	5.1	$	16.5	$	.7	$	4.8
2024 Plan restructuring-related costs:
2024 Plan restructuring-related costs (gains):
Inventory obsolescence and other	Cost of goods sold	—		.5
Inventory obsolescence and other	Cost of goods sold	.8		4.5		.3		.7
Professional services and other	Selling and administrative expenses	—		1.0
Professional services and other	Selling and administrative expenses	1.1		11.7		—		6.3
Net loss on disposal of assets and businesses	Net gain on disposal of assets and businesses	—		1.4
Net loss (gain) on disposal of assets and businesses	Net gain on disposal of assets and businesses	1.6		(1.6)		—		(.1)
Total 2024 Plan restructuring-related costs		—		2.9
Total 2024 Plan restructuring-related costs (gains)		3.5		14.6		.3		6.9
Total 2024 Plan net restructuring and restructuring-related costs		$	.2	$	5.2
Total 2024 Plan net restructuring and restructuring-related costs (gains)		$	8.6	$	31.1	$	1.0	$	11.7
2026 Plan restructuring costs:
Other restructuring costs (gains):
Termination benefits, relocation, and other restructuring costs	Other expense (income), net	.5		—
Termination benefits, relocation, and other restructuring costs 1, 2	Other (income) expense, net
2026 Plan restructuring-related costs:
	(See Note K)	$	2.5	$	—	$	1.0	$	—
Inventory obsolescence and other	Cost of goods sold	1.0		—
Other restructuring-related (gains) costs:
Total 2026 Plan net restructuring and restructuring-related costs		$	1.5	$	—
Inventory obsolescence and other 2	Cost of goods sold	1.5		—		1.5		—
Other restructuring costs:
Professional services and other 1	Selling and administrative expenses	.6		—		—		—
Termination benefits, relocation, and other restructuring costs 1	Other expense (income), net	$	.2	$	1.4
Net (gain) loss on disposal of assets and businesses	Net gain on disposal of assets and businesses	(1.0)		—		(.1)		—
Other restructuring-related costs:
Gain on sale of Aerospace Products Group	Gain on sale of Aerospace Products Group	(86.8)		—		(86.8)		—
Inventory obsolescence and other	Cost of goods sold	.2		—
Total other restructuring-related (gains) costs		(85.7)		—		(85.4)		—
Total other net restructuring and restructuring-related costs		$	.4	$	1.4
Total other net restructuring and restructuring-related costs (gains)		$	(83.2)	$	—	$	(84.4)	$	—
Total net restructuring and restructuring-related costs		$	2.1	$	6.6

1 ~~This~~The ~~includes~~three months ended March 31, 2025 represents cash charges for divestiture-related expenses associated with the sale of our Aerospace Products Group onin August ~~29,~~ 2025, as discussed in Note OL. ~~Costs were $2.0 for the nine months ended September 30, 2025. There were no costs for the nine months ended September 30, 2024.~~

~~2 In~~Net ~~September~~restructuring ~~2025,~~and werestructuring-related ~~announced~~2024 ~~the~~Plan ~~consolidation~~and of2026 ~~our~~Plan ~~Kentucky~~costs ~~Adjustable Bed manufacturing operation into our Mexico operation~~ by ~~the~~segment ~~end~~were ofas ~~this year. We have incurred costs of $2.0 related to this consolidation for the nine months ended September 30, 2025.~~follows:


	Three Months Ended March 31, 2026		Three Months Ended March 31, 2025
2024 Plan
Bedding Products	$	.2	$	3.1
Specialized Products	—		2.0
Furniture, Flooring & Textile Products	—		.1
Total net restructuring and restructuring-related costs	$	.2	$	5.2
2026 Plan
Bedding Products	$	1.5	$	—


Total net restructuring and restructuring-related costs	$	1.5	$	—

LEGGETT & PLATT, INCORPORATED

Notes to Consolidated Condensed Financial Statements—(Continued)

(Unaudited)

~~Net~~We ~~restructuring~~recognized ~~and~~gains ~~restructuring-related~~from the sale of real estate associated with the 2024 Plan ~~costs~~of by$9.5 ~~segment~~in the first three months of 2026. There were asno ~~follows:~~real estate gains associated with the 2026 Plan in the first three months of 2026 or associated with the 2024 Plan in the first three months of 2025. Real estate gains are not reflected in the tables above.

The accrued liabilities associated with our total restructuring initiatives were $.9 and $1.7 at March 31, 2026 and December 31, 2025, respectively.

	Nine Months Ended September 30, 2025		Nine Months Ended September 30, 2024		Three Months Ended September 30, 2025		Three Months Ended September 30, 2024
Bedding Products	$	4.6	$	24.0	$	.3	$	7.4
Specialized Products	2.9		5.1		.6		3.8
Furniture, Flooring & Textile Products	1.1		2.0		.1		.5
Total net restructuring and restructuring-related costs	$	8.6	$	31.1	$	1.0	$	11.7

WeF—Accounts ~~recognized gains from the sale of real estate associated with the 2024 Plan of $19.2~~ and ~~$14.0~~Other ~~in the first nine months of 2025 and 2024, respectively. These gains are not reflected in the tables above.~~ Receivables

Accounts and other receivables consisted of the following:

The accrued liability associated with the 2024 Plan consisted of the following:


	March 31, 2026				December 31, 2025
	Current		Long-term		Current		Long-term
Total trade receivables	$	504.9	$	—	$	453.4	$	.1
Allowance for doubtful accounts	(17.8)		—		(19.7)		—
Trade receivables, net	$	487.1	$	—	$	433.7	$	.1


Taxes receivable, including income taxes	$	6.2	$	—	$	8.0	$	—
Value-added taxes recoverable	11.7		—		11.8		—
Rebates receivable	3.3		—		5.9		—
Divestiture receivable	—		—		4.2		—
Other receivables	11.9		4.6		12.3		5.0

Other receivables, net	$	33.1	$	4.6	$	42.2	$	5.0

	Balance at December 31, 2024		Add: 2025 Charges		Less: 2025 Payments		Balance at September 30, 2025
Termination benefits	$	.8	$	2.2	$	2.8	$	.2
Contract termination costs	—		.1		.1		—
Relocation and other restructuring costs	—		2.8		2.8		—
Total	$	.8	$	5.1	$	5.7	$	.2

F—Impairment Charges

Pretax impairment charges are reported in “Impairments” in the Consolidated Statements of Operations and are summarized in the table below.

	Nine Months Ended September 30, 2025			Nine Months Ended September 30, 2024
		Other Long-Lived Assets Impairment			Goodwill Impairment		Other Long-Lived Assets Impairment		Total Impairments
Bedding Products		$	2.0		$	587.2	$	3.2	$	590.4
Specialized Products		—			43.6		—		43.6
Furniture, Flooring & Textile Products		—			44.5		—		44.5
Total impairment charges		$	2.0		$	675.3	$	3.2	$	678.5

	Three Months Ended September 30, 2025		Three Months Ended September 30, 2024
	Other Long-Lived Assets Impairment			Goodwill Impairment		Other Long-Lived Assets Impairment		Total Impairments
Bedding Products	$	.8		$	—	$	.6	$	.6
Total impairment charges	$	.8		$	—	$	.6	$	.6

Goodwill

We test goodwill for impairment at the reporting unit level (the business groups that are one level below the operating segments) when triggering events occur, or at least annually. We perform our annual goodwill impairment testing in the second quarter.

Our 2025 annual goodwill testing did not indicate any impairments. There were no triggering events or impairments indicated in the three and nine months ending September 30, 2025.

The 2024 annual goodwill impairment testing resulted in a $675.3 non-cash goodwill impairment charge. In general, the fair values for our reporting units decreased versus 2023 due to macroeconomic pressures, including low demand, particularly in residential end markets. The fair values of our reporting units were

LEGGETT & PLATT, INCORPORATED

Notes to Consolidated Condensed Financial Statements—(Continued)

(Unaudited)

reconciled to our consolidated market capitalization, which decreased due to the significant decline in stock price during the second quarter of 2024.

The fair values of our reporting units in relation to their respective carrying values and significant assumptions used are presented in the tables below. If actual results differ materially from estimates used in our calculations, we could incur future impairment charges. These tables exclude Hydraulic Cylinders, as this unit had no goodwill remaining after the second quarter 2024 impairment of $43.6.

2025
Fair Value over Carrying Value divided by Carrying Value	September 30, 2025 Goodwill Value		Compound Annual Growth Rate (CAGR)Range for Sales	Terminal Values Long-term Growth Rate for Debt-Free Cash Flow		Discount Rate Ranges
Less than 50% 1	$	445.4	<1% - 4%	3	%	15% - 17%
50% - 100%	303.1		(2) - 4	3		15 - 17
	$	748.5	(2%) - 8%	3	%	15% - 20%

2024
Fair Value over Carrying Value divided by Carrying Value	December 31, 2024 Goodwill Value		CAGR Range for Sales	Terminal Values Long-term Growth Rate for Debt-Free Cash Flow		Discount Rate Ranges
Less than 50% 1	$	430.4	(1%) - 12%	3	%	14% - 17%
101% - 300%	364.0		3 - 7	3		14
	$	794.4	(1%) - 12%	3	%	14% - 17%

1 This category includes Bedding, Home Furniture, and Work Furniture for 2025 and Bedding, Aerospace, and Work Furniture for 2024.

•The fair value of our Bedding reporting unit exceeded its carrying value by 20% at our second quarter 2025 testing date. The fair value of our Bedding reporting unit was less than its carrying value at our second quarter 2024 testing date, resulting in a partial goodwill impairment of $587.2. Goodwill associated with this reporting unit was $322.7 at September 30, 2025 and $310.0 at December 31, 2024.

•We sold our Aerospace reporting unit in the third quarter of 2025 as discussed in Note O. At our second quarter 2025 testing date its fair value exceeded its carrying value by 48%. Goodwill was $66.8 at December 31, 2024.

•The fair value of our Home Furniture reporting unit exceeded its carrying value by 34% at our second quarter 2025 testing date. Goodwill associated with this reporting unit was $68.3 at September 30, 2025 and $67.7 at December 31, 2024.

Other long-lived assets

We review material intangibles mid-year and other long-lived assets for recoverability at year end and whenever events or changes in circumstances indicate that the carrying value may not be recoverable.

All long-lived asset impairment charges for the three and nine months ended September 30, 2025 and September 30, 2024 were related to the 2024 Restructuring Plan.

LEGGETT & PLATT, INCORPORATED

Notes to Consolidated Condensed Financial Statements—(Continued)

(Unaudited)

G—Accounts and Other Receivables

	September 30, 2025				December 31, 2024
	Current		Long-term		Current		Long-term
Total trade receivables	$	554.0	$	.1	$	517.2	$	—
Allowance for doubtful accounts - trade receivables	(17.9)		—		(14.2)		—
Trade receivables, net	$	536.1	$	.1	$	503.0	$	—
Taxes receivable, including income taxes	$	5.7	$	—	$	4.1	$	—
Value-added taxes (VAT) recoverable 1	12.2		—		40.1		6.0
Other receivables	14.4		5.0		12.2		4.5
Other receivables, net	$	32.3	$	5.0	$	56.4	$	10.5

We sold our Aerospace Products Group in the third quarter of 2025 as discussed in Note O. Accounts receivable were $27.8 at December 31, 2024.

1 This includes recoverable amounts from various countries. As of December 31, 2024, we had outstanding Mexico VAT receivables of $35.5, primarily due to delays in processing refunds by the local tax authorities. Refunds received in the first nine months of 2025 reduced this receivable to $2.1 at September 30, 2025.

Activity related to the allowance for doubtful accounts is reflected below:

	Balance at December 31, 2024		Change inProvision		Less: NetCharge-offs/(Recoveries) andOther		Balance at September 30, 2025
	Balance at December 31, 2025		Change inProvision		Less: NetCharge-offs/(Recoveries) andOther		Balance at March 31, 2026
Total allowance for doubtful accounts on trade receivables	$	14.2	$	4.5	$	.8	$	17.9
Allowance for doubtful accounts	$	19.7	$	2.2	$	4.1	$	17.8

HG—Inventories

The following table recaps the components of inventory for each period presented:

	September 30, 2025		December 31, 2024
	March 31, 2026		December 31, 2025
Finished goods	$	~~264~~333.78	$	~~321~~297.68
Work in process	4447.7		7239.10
Raw materials and supplies	~~324~~281.68		~~328~~285.98
Inventories	$	~~634~~663.03	$	~~722~~622.6

~~We sold our Aerospace Products Group in the third quarter of 2025 as discussed in Note O. Inventories were $57.1 at December 31, 2024.~~ 15

All inventories are stated at the lower of cost or net realizable value. For the majority of our inventories, we use the first-in, first-out method, which is representative of our standard costs (includes materials, labor, and production overhead at normal production capacity). Remaining inventories are valued using an average-cost method.

Inventories are reviewed at least quarterly for slow-moving and potentially obsolete items using actual inventory turnover and, if necessary, are written down to estimated net realizable value.

I—Credit Facility Amendment

In July 2025, we amended our credit facility. The amendment extended the maturity date to July 24, 2030 (previously September 30, 2026) and reduced the lenders' revolving commitments to $1,000.0 (previously $1,200.0).

LEGGETT & PLATT, INCORPORATED

Notes to Consolidated Condensed Financial Statements—(Continued)

(Unaudited)

JH—Stock-Based Compensation

The following table recaps the impact of stock-based compensation on the results of operations for each of the periods presented:

	Nine Months Ended September 30, 2025				Nine Months Ended September 30, 2024
	Three Months Ended March 31, 2026				Three Months Ended March 31, 2025
	To be settled with stock		To be settled in cash		To be settled with stock		To be settled in cash
Restricted Stock Unit awards	$	78.49	$	—	$	107.0	$	—
All other stock plans	5.2.0		1.96		~~6.3~~—		—.3
Total stock-based compensation expense (income)	12.6		$	1.9	16.3		$	—
Total stock-based compensation expense	10.9		$	.6	7.0		$	.3
Employee contributions for above stock plans	3.54				51.92
Total stock-based compensation	$	1611.13			$	228.2
Tax benefits on stock-based compensation expense	$	32.07			$	41.07
Tax (expense)/benefits on stock-based compensation payments	(2.8)				(1.1)
Tax expense on stock-based compensation payments	(1.2)				(2.5)
Total tax benefits associated with stock-based compensation	$	.2			$	2.9
Total tax benefits (expense) associated with stock-based compensation	$	1.5			$	(.8)

	Three Months Ended				Three Months Ended
	September 30, 2025				September 30, 2024
	To be settled with stock		To be settled in cash		To be settled with stock		To be settled in cash
Restricted Stock Unit awards	$	—	$	—	$	.8	—
All other stock plans	2.5		.7		1.6		.4
Total stock-based compensation expense (income)	2.5		$	.7	2.4		$	.4
Employee contributions for above stock plans	1.1				2.0
Total stock-based compensation	$	3.6			$	4.4
Tax benefits on stock-based compensation expense	$	.6			$	.6
Tax (expense)/benefits on stock-based compensation payments	(.1)				.1
Total tax benefits associated with stock-based compensation	$	.5			$	.7

I—Accumulated Other Comprehensive Income (Loss)

The following tables set forth the components of and changes in each component of accumulated other comprehensive income (loss) for each of the periods presented:

K—Other (income) expense, net


	Three Months Ended March 31,
	Foreign Currency Translation Adjustments		Cash Flow Hedges		Defined Benefit Pension Plans		Accumulated Other Comprehensive Income (Loss)
Balance, January 1, 2026	$	(26.9)	$	11.6	$	6.3	$	(9.0)
Other comprehensive income (loss)	(9.5)		2.0		—		(7.5)
Reclassifications, pretax	—		(.6)		(.1)		(.7)
Income tax effect	—		(.2)		—		(.2)

Balance, March 31, 2026	$	(36.4)	$	12.8	$	6.2	$	(17.4)

Balance, January 1, 2025	$	(115.8)	$	7.2	$	(7.2)	$	(115.8)
Other comprehensive income (loss)	22.7		(.2)		(.2)		22.3
Reclassifications, pretax	—		.9		.1		1.0
Income tax effect	—		(.1)		.1		—

Balance, March 31, 2025	$	(93.1)	$	7.8	$	(7.2)	$	(92.5)

~~The components of "Other (income) expense, net" were as follows:~~

	Nine Months Ended September 30,				Three Months Ended September 30,
	2025		2024		2025		2024
Restructuring charges	$	7.6	$	16.5	$	1.7	$	4.8
Currency (gain) loss	(1.3)		(1.0)		(.3)		1.6
Gains from diversified investments associated with the ESU Program	(7.1)		(7.0)		(3.3)		(3.2)
Reduction to contingent purchase price liability	—		(6.4)		—		—
Other (income) expense	(4.2)		(3.6)		(2.0)		(1.0)
	$	(5.0)	$	(1.5)	$	(3.9)	$	2.2

LEGGETT & PLATT, INCORPORATED

Notes to Consolidated Condensed Financial Statements—(Continued)

(Unaudited)

LJ—~~Accumulated~~Fair ~~Other Comprehensive Income (Loss)~~Value

The areas in which we utilize fair value measures of financial assets and liabilities are presented in the table below.

			Three Months Ended September 30,
	As of March 31, 2026
			Foreign CurrencyTranslationAdjustments		Cash FlowHedges		Defined BenefitPension Plans		Accumulated OtherComprehensiveIncome (Loss)
	Level 1		Level 2		Level 3		Total
Balance, July 1, 2025			$	(33.9)	$	8.4	$	(7.4)	$	(32.9)
Assets:
Other comprehensive income (loss)			(6.1)		—		—		(6.1)
Cash equivalents:
Reclassifications, pretax			—		.4		.1		.5
Bank time deposits with original maturities of three months or less	$	—	$	210.2	$	—	$	210.2
Income tax effect			—		.1		—		.1
Derivative assets (Note K)	—		4.5		—		4.5
Balance, September 30, 2025			$	(40.0)	$	8.9	$	(7.3)	$	(38.4)
Diversified investments associated with the Executive Stock Unit (ESU) Program	58.7		—		—		58.7
Balance, July 1, 2024			$	(83.4)	$	9.6	$	(13.2)	$	(87.0)
Total assets	$	58.7	$	214.7	$	—	$	273.4
Other comprehensive income (loss)			33.0		.9		(.4)		33.5
Liabilities:
Reclassifications, pretax			—		(.7)		.3		(.4)
Derivative liabilities (Note K)	$	—	$	2.9	$	—	$	2.9
Income tax effect			—		(.2)		—		(.2)
Liabilities associated with the ESU Program	59.6		—		—		59.6
Attributable to noncontrolling interest			(.1)		—		—		(.1)
Total liabilities	$	59.6	$	2.9	$	—	$	62.5
Balance, September 30, 2024			$	(50.5)	$	9.6	$	(13.3)	$	(54.2)

			Nine Months Ended September 30,
	As of December 31, 2025
			Foreign CurrencyTranslationAdjustments		Cash FlowHedges		Defined BenefitPension Plans		Accumulated OtherComprehensiveIncome (Loss)
	Level 1		Level 2		Level 3		Total
Balance, January 1, 2025			$	(115.8)	$	7.2	$	(7.2)	$	(115.8)
Assets:
Other comprehensive income (loss)			75.8		(.4)		(.5)		74.9
Cash equivalents:
Reclassifications, pretax			—		2.0		.3		2.3
Bank time deposits with original maturities of three months or less	$	—	$	217.0	$	—	$	217.0
Income tax effect			—		.1		.1		.2
Derivative assets (Note K)	—		4.5		—		4.5
Balance, September 30, 2025			$	(40.0)	$	8.9	$	(7.3)	$	(38.4)
Diversified investments associated with the ESU Program	60.2		—		—		60.2
Balance, January 1, 2024			$	(42.6)	$	12.5	$	(13.6)	$	(43.7)
Total assets	$	60.2	$	221.5	$	—	$	281.7
Other comprehensive income (loss)			(7.9)		(.6)		(.4)		(8.9)
Liabilities:
Reclassifications, pretax			—		(2.6)		.8		(1.8)
Derivative liabilities (Note K)	$	—	$	1.2	$	—	$	1.2
Income tax effect			—		.3		(.1)		.2
Liabilities associated with the ESU Program	62.4		—		—		62.4
Balance, September 30, 2024			$	(50.5)	$	9.6	$	(13.3)	$	(54.2)
Total liabilities	$	62.4	$	1.2	$	—	$	63.6

M—Fair Value

We utilize fair value measures for both financial and non-financial assets and liabilities.

Items measured at fair value on a recurring basis

Fair value measurements are established using a three-level valuation hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into the following categories:

•Level 1: Quoted prices for identical assets or liabilities in active markets.

•Level 2: Inputs, other than quoted prices included in Level 1, that are observable for the asset or liability either directly or indirectly. Short-term investments in this category are valued using discounted cash flow techniques with all significant inputs derived from or supported by observable market data. Derivative assets and liabilities in this category are valued using models that consider various assumptions and information from market-corroborated sources. The models used are primarily industry-standard models that consider items such as quoted prices, market interest rate curves applicable to the instruments being valued as of the end of each period, discounted cash flows, volatility factors, current market and contractual prices for the underlying instruments, as well as other relevant

LEGGETT & PLATT, INCORPORATED

Notes to Consolidated Condensed Financial Statements—(Continued)

(Unaudited)

economic measures. Substantially all of these assumptions are observable in the marketplace, can be derived from observable data, or are supported by observable levels at which transactions are executed in the marketplace.

•Level 3: Unobservable inputs that are not corroborated by market data.

	As of September 30, 2025
	Level 1		Level 2		Level 3		Total
Assets:
Cash equivalents:
Bank time deposits with original maturities of three months or less	$	—	$	185.8	$	—	$	185.8
Derivative assets (Note N)	—		2.7		—		2.7
Diversified investments associated with the Executive Stock Unit (ESU) Program	58.5		—		—		58.5
Total assets	$	58.5	$	188.5	$	—	$	247.0
Liabilities:
Derivative liabilities (Note N)	$	—	$	3.8	$	—	$	3.8
Liabilities associated with the ESU Program	59.7		—		—		59.7
Total liabilities	$	59.7	$	3.8	$	—	$	63.5

	As of December 31, 2024
	Level 1		Level 2		Level 3		Total
Assets:
Cash equivalents:
Bank time deposits with original maturities of three months or less	$	—	$	156.0	$	—	$	156.0
Derivative assets (Note N)	—		5.1		—		5.1
Diversified investments associated with the ESU Program	55.1		—		—		55.1
Total assets	$	55.1	$	161.1	$	—	$	216.2
Liabilities:
Derivative liabilities (Note N)	$	—	$	7.0	$	—	$	7.0
Liabilities associated with the ESU Program	53.9		—		—		53.9
Total liabilities	$	53.9	$	7.0	$	—	$	60.9

There were no transfers between Level 1 and Level 2 for any of the periods presented.

The fair value for fixed rate debt (Level 1) was approximately $~~180~~205.0 less than carrying value of $1,~~489~~490.64 at ~~September~~March 3031, ~~2025~~2026 and approximately $~~245~~175.0 less than carrying value of $1,~~488~~490.30 at December 31, ~~2024~~2025.

~~Items measured at fair value on a non-recurring basis~~17

The primary areas in which we utilize fair value measurements of non-financial assets and liabilities are allocating purchase price to the assets and liabilities of acquired companies and evaluating long-term assets (including goodwill) for potential impairment. Determining fair values for these items requires significant judgment and includes a variety of methods and models that utilize significant Level 3 inputs.

LEGGETT & PLATT, INCORPORATED

Notes to Consolidated Condensed Financial Statements—(Continued)

(Unaudited)

NK—Derivative Financial Instruments

The following table presents assets and liabilities representing the fair value of our most significant derivative financial instruments. The fair values of the derivatives reflect the change in the market value of the derivative from the date of the trade execution and do not consider the offsetting underlying hedged item.

	Expiring at various dates through:	Total USDEquivalentNotionalAmount		As of ~~September~~March 3031, ~~2025~~2026
Derivatives				Assets				Liabilities
				OtherCurrentAssets		Sundry		OtherCurrentLiabilities		Other Long-Term Liabilities
Designated as hedging instruments
Total cash flow hedges-currency hedges	~~Mar~~Sep 2027	$	~~213~~239.06	$	14.81	$	.13	$	2.62	$	.1
Total fair value hedges	~~Feb~~Sep 2026	~~173~~123.36		.71		—		2.64		—
Not designated as hedging instruments	Jun 2026	~~108~~62.91		.1—		—		.52		—
Total derivatives				$	24.62	$	.13	$	32.78	$	.1

	Expiring at various dates through:	Total USDEquivalentNotionalAmount		As of December 31, ~~2024~~2025
Derivatives				Assets				Liabilities
				OtherCurrentAssets		Sundry		OtherCurrentLiabilities		Other Long-Term Liabilities
Designated as hedging instruments
Total cash flow hedges-currency hedges	Jun ~~2026~~2027	$	~~254~~240.05	$	3.13	$	.3	$	5.89	$	.3—
Total fair value hedges	~~Jun~~Apr ~~2025~~2026	1983.07		.17		—		.1—		—
Not designated as hedging instruments	~~Dec~~Jun ~~2025~~2026	~~166~~100.56		1.62		—		.83		—
Total derivatives				$	4.82	$	.3	$	61.72	$	.3—

The following table sets forth the pretax losses (gains) for our hedging activities for the periods presented. This schedule includes reclassifications from accumulated other comprehensive income (see Note LI) as well as derivative settlements recorded directly to income or expense.

Derivatives	~~Income~~Consolidated ~~Statement~~Condensed ~~Caption~~Statements of Operations Presentation	Amount of Loss (Gain)Recorded in ~~IncomeNine~~IncomeThree Months Ended ~~September~~March 3031,				~~Amount of Loss (Gain)Recorded in IncomeThree Months Ended September 30,~~
		2025		2024		2025		2024
		2026		2025
Designated as hedging instruments
Interest rate cash flow hedges	Interest expense	$	(.31)	$	(.31)	$	~~(.1)~~	$	~~(.1)~~
Currency cash flow hedges	Net trade sales	2(.61)		1.05		.6		.3
Currency cash flow hedges	Cost of goods sold	(.68)		(1.43)		—		~~(.3)~~
Currency cash flow hedges	Other (income) expense, net	(.2)		—		(.2)		—
Total cash flow hedges		(1.0)		1.1
Total cash flow hedges		1.5		(.7)		.3		(.1)
Fair value hedges	Other expense (income), net	2.1		(.1)
Fair value hedges	Other (income) expense, net	(.2)		.2		—		(.3)
Not designated as hedging instruments	Other expense (income), net	(1.1)		3.0
Not designated as hedging instruments	Other (income) expense, net	7.7		.4		(.8)		2.3
Total derivative instruments		$	—	$	4.0
Total derivative instruments		$	9.0	$	(.1)	$	(.5)	$	1.9

2318

LEGGETT & PLATT, INCORPORATED

Notes to Consolidated Condensed Financial Statements—(Continued)

(Unaudited)

OL—Divestitures

On August 29, 2025, we divested our Aerospace Products Group (within our Specialized Products segment) for net cash proceeds of $~~276~~280.13 and recognized a pretax gain of $8690.8,9 ~~subject~~after to final adjustments for working capital, ~~which~~were ~~we expect to be~~ completed byin ~~early~~December ~~2026~~2025.

The Aerospace Products Group did not meet the criteria for discontinued operations because it did not represent a strategic shift that would have a major effect on our financial results and had external sales and pretax earnings as shown below:

	Nine Months Ended September 30,				Three Months Ended September 30,
			Three Months Ended March 31, 2025
	2025		2024		2025		2024
External sales			$	53.0
External sales	$	132.2	$	138.0	$	28.6	$	44.9
Pretax earnings (excluding corporate overhead)			7.2
Pretax earnings (excluding corporate overhead)	19.7		13.2		3.2		5.3

~~Depreciation~~In ~~and~~March ~~amortization~~2025, ~~were~~we ~~discontinued~~divested ~~upon~~a ~~classification~~small asU.S. ~~held~~machinery ~~for~~business ~~sale~~within ~~(March~~our ~~25,~~Bedding ~~2025,~~Products ~~concurrent~~segment ~~with~~which ~~the~~had ~~date~~immaterial ~~our~~amounts ~~Board~~ of ~~Directors~~annual ~~approved~~external ~~the~~sales ~~sale). Accordingly, depreciation~~ and ~~amortization~~pretax ~~expense~~earnings. ~~included~~The innet ~~pre-tax~~sales ~~earnings~~price was $01.2 and ~~$2.5~~approximated ~~for~~ the ~~three~~carrying ~~months~~cost ~~ended~~of ~~September 30,~~the ~~2025,~~business. ~~and~~This ~~September 30,~~business ~~2024,~~divestiture ~~respectively,~~was ~~and~~part ~~$2.5~~of ~~and $7.7 for~~ the ~~nine months ended September 30, 2025 and September 30,~~ 2024, ~~respectively~~Plan.

~~Also~~M—Contingencies in 2025, we divested a small U.S. machinery business (in March) within our Bedding Products segment for $1.2 and a small Mexican Work Furniture operation (in May) within our Furniture, Flooring & Textile Products segment for $3.8. For both of these transactions, the net sales price approximated the carrying costs and both businesses had immaterial amounts of annual external sales and pretax earnings. The U.S. machinery business divestiture was also a part of the 2024 Plan.

P—Contingencies

We are a party to various proceedings and matters involving employment, intellectual property, environmental, taxation, vehicle-related personal injury, and other laws. When it is probable, in management's judgment, that we may incur monetary damages or other costs resulting from these proceedings or other claims, and we can reasonably estimate the amounts, we record appropriate accruals in the financial statements and make charges against earnings. For all periods presented, we have recorded no material charges against earnings. Also, when it is reasonably possible that we may incur additional loss in excess of recorded accruals, and we can reasonably estimate the additional losses or range of losses, we disclose such additional reasonably possible losses in these notes.

Accruals and Reasonably Possible Losses in Excess of Accruals

Accruals for Probable Losses. Although we deny liability in all currently threatened or pending litigation proceedings, we have recorded a litigation contingency accrual for our reasonable estimate of probable loss, in the aggregate, of $1.4 and $1.8 at March 31, 2026 and December 31, 2025, respectively. There were no material adjustments to the accrual, including cash payments and expense, for the three-month periods ending March 31, 2026 and March 31, 2025. The accruals do not include accrued expenses related to employment, workers' compensation, vehicle-related personal injury, product and general liability claims, taxation issues, and environmental matters, some of which may contain a portion of litigation expense. However, any litigation expense associated with these categories is not anticipated to have a material effect on our financial condition, results of operations, or cash flows.

Reasonably Possible Losses in Excess of Accruals. Although there are a number of uncertainties and potential outcomes associated with our pending or threatened litigation proceedings, we believe, based on current known facts, that additional losses, if any, are not expected to materially affect our consolidated financial position, results of operations, or cash flows. However, based upon current known facts, as of ~~September~~March 3031, ~~2025~~2026, aggregate reasonably possible ~~(but not probable, and therefore, not accrued)~~ losses in excess of the accruals noted above are estimated to be $1615.0. If our assumptions or analyses regarding any of our contingencies are incorrect, or if facts change or future litigation arises, we could realize losses in excess of the recorded accruals (including losses in excess of the $1615.0 referenced above), which could have a material negative impact on our financial condition, results of operations, and cash flows.

2419

LEGGETT & PLATT, INCORPORATED

Notes to Consolidated Condensed Financial Statements—(Continued)

(Unaudited)

N—Income Taxes

China Withholding Tax Matters

The Company’s Chinese subsidiaries received formal tax assessments from three local tax authorities in China (Zhaoqing, Jiaxing, and Wuxi) totaling approximately $24.0, in the aggregate, with each assessment relating to an alleged failure to satisfy beneficial owner requirements for purposes of applying reduced dividend withholding tax rates. The assessments assert that dividends paid by our Chinese subsidiaries to a non-Chinese parent within the Company’s organizational structure should have been subject to a 10% withholding tax rate rather than the 5% rate applied.

Zhaoqing Assessment. On January 26, 2026, our subsidiary, Hong Kong Veilon Limited, received an assessment from the Zhaoqing High-tech Industrial Development Zone Tax Bureau associated with dividends it received covering the 2021 through 2024 tax periods. The assessment includes tax and penalties totaling approximately $12.0. We plan to make this payment to preserve the Company’s appeal rights. The matter is expected to proceed through the administrative appeal process, and litigation may occur if administrative remedies are exhausted.

Jiaxing Assessment. On April 3, 2026, our subsidiary, Leggett & Platt Asia Limited, received an assessment from the Wangjiangjing Tax Office, Xiuzhou District Tax Bureau, Jiaxing City associated with dividends it received covering the 2021 through 2024 tax periods. The assessment includes tax and penalties totaling approximately $5.0. This assessment is currently under review. The Company has posted a guarantee and is preparing responses and evaluating next steps.

Wuxi Assessment. On April 8, 2026, our subsidiary, Leggett & Platt Asia Limited, received an assessment from the Wuxi Huishan District Tax Bureau – Luoshe Tax Branch associated with dividends it received covering the 2021 through 2025 tax periods. The assessment includes tax and penalties totaling approximately $7.0. This assessment is currently under review. The Company has posted a guarantee and is preparing responses and evaluating next steps.

Although the outcome is uncertain, we believe we have valid defenses and have notified the Chinese tax authorities of our intent to rigorously contest each of the assessments through the administrative appeal process in China, and we have not recorded any income tax expense associated with these matters. While we believe we will be successful, it is reasonably possible over the next 12 months we could incur additional income tax expense that could have a material negative effect on our results of operations or financial condition.

O—Subsequent Events

On April 13, 2026, Leggett & Platt and Somnigroup International Inc. (Somnigroup) announced that the companies have signed the Somnigroup Merger Agreement pursuant to which, subject to the terms and conditions of the Somnigroup Merger Agreement, Sparrow Unity Corporation, a Missouri corporation and a direct, wholly-owned subsidiary of Somnigroup, will merge with and into Leggett & Platt (the Somnigroup Merger), with Leggett & Platt surviving the Somnigroup Merger as a direct, wholly-owned subsidiary of Somnigroup. The Somnigroup Merger is an all-stock transaction. Under the terms of the Somnigroup Merger Agreement, Leggett & Platt shareholders will receive 0.1455 shares of common stock, par value $.01 per share, of Somnigroup in exchange for each share of common stock, par value $.01 per share, of Leggett & Platt they own. As a result of the transaction, Leggett & Platt’s shareholders will own approximately 9% of the combined company on a fully diluted basis. The Somnigroup Merger Agreement has been unanimously approved by each of the Board of Directors of Somnigroup and Leggett & Platt.

As of March 31, 2026, we have incurred $6.9 of costs associated with this activity, of which $3.5 was incurred in the first three months of 2026.

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.

		Page No.
•	Highlights	2521
•	Introduction	2521
•	Results of Operations	3428
•	Liquidity and Capitalization	3830
•	Critical Accounting Policies and Estimates	4537
•	Contingencies	4537
•	New Accounting Standards	4740

HIGHLIGHTS

WeIn ~~had~~April, ~~trade~~we ~~sales~~entered ofinto ~~$1,036~~the ~~million~~Somnigroup ~~for~~Merger ~~the~~Agreement ~~three~~pursuant ~~months~~to ~~ending~~which ~~September 30,~~Somnigroup ~~2025,~~will aacquire ~~decrease~~Leggett of& 6%Platt ~~versus~~in ~~the~~an ~~third~~all-stock ~~quarter 2024~~transaction. InThe ~~the~~transaction ~~first~~is ~~nine~~currently ~~months~~anticipated ofto ~~2025~~close by year-end 2026, ~~trade~~subject ~~sales~~to ~~were~~the ~~$3,117~~satisfaction ~~million~~of ~~versus~~customary $3closing conditions,~~327~~ ~~million~~including ~~for~~approval by the ~~same~~Company ~~period~~shareholders and receipt of ~~2024~~certain governmental and regulatory approvals.

~~Earnings~~We ~~Before~~had ~~Interest~~trade ~~and~~sales Taxes (EBIT) for the third quarter and nine months ending September 30, 2025 was $171 million and $324 million, respectively. This is up $93 million and $798 million compared to the same periods in 2024. Third quarter includes an $87 million gain from the sale of ~~the Aerospace Products Group, a~~ $13918 million gain from net insurance proceeds related to a storage facility fire in the Bedding Products segment, a $2 million gain from the sale of real estate, and $4 million of restructuring and restructuring-related costs. EBIT for the ~~nine~~three months ending ~~September~~March 3031, ~~2025 includes an $87 million gain from the sale the Aerospace Products Group~~2026, a ~~$24~~decrease ~~million~~of ~~gain~~10% ~~from~~versus the ~~sale~~first ofquarter ~~real estate~~2025, including a ~~$13~~5% ~~million~~decrease ~~gain~~ from ~~net insurance proceeds related to a storage facility fire in the Bedding Products segment, and $15 million of restructuring and restructuring-related costs~~divestitures.

Earnings ~~Per~~Before ~~Share~~Interest and Taxes (~~EPS~~EBIT) ~~was $.91~~ for the ~~third~~three ~~quarter and $1.51 for the nine~~ months ending ~~September~~March 3031, ~~2025~~2026 was $45 million, ~~compared~~a todecrease of $~~.33~~18 ~~and~~million ~~$(3.83)~~compared into the same ~~periods~~period ofin ~~2024~~2025. ~~Third~~First quarter ~~EPS~~EBIT includes a $~~.58~~10 ~~gain~~million ~~from the sale of the Aerospace Products Group, a $.07~~ gain from ~~net insurance proceeds related to a storage facility fire in~~ the ~~Bedding Products segment, a $.01 gain on the~~ sale of real estate, $~~.02~~5 inmillion of restructuring and restructuring-related ~~charges~~costs, and $3.025 ~~charge~~million ~~related to a special tax item. EPS for the nine months ending September 30, 2025 includes $.58 gain from the sale~~ of ~~the~~costs ~~Aerospace Products Group, $.13 gain on the sale of real estate, $.07 gain from net insurance proceeds~~ related to ~~a storage facility fire in~~ the ~~Bedding~~Somnigroup ~~Products segment, $~~Merger.08 ~~in restructuring and restructuring-related charges, and $.02 charge related to a special tax item.~~

~~Operating~~Earnings ~~cash~~Per ~~flow~~Share (EPS) was $~~217~~.14 ~~million~~for in the ~~first~~three ~~nine~~ months ofending ~~2025~~March 31, an2026, ~~increase~~compared ofto $~~33 million~~.22 ~~versus~~in the same period of ~~2024~~2025. First quarter EPS includes a $.05 gain from the sale of real estate, $.03 in restructuring and restructuring-related charges, and $.03 of costs related to the Somnigroup Merger.

InOperating ~~July~~cash ~~2025,~~flow wewas ~~amended~~$(56) ~~our~~million ~~credit~~in ~~agreement to extend~~ the ~~maturity~~first ~~date~~three tomonths ~~2030~~of ~~and~~2026, ~~reduce~~a ~~the~~decrease ~~lending~~of ~~commitments~~$63 million ~~from~~versus ~~$1.2~~the ~~billion~~same toperiod ~~$1.0~~of ~~billion~~2025.

In August 2025, we sold our Aerospace Products Group for net cash proceeds of $276 million, subject to the final adjustments for working capital, which we expect to be completed by early 2026. We used the Aerospace Products Group proceeds and cash generated from operations to strengthen our balance sheet by reducing debt by $296 million.

INTRODUCTION

What We Do

We are a diversified manufacturer that conceives, designs, and produces a wide range of engineered components and products found in many homes, offices, and automobiles. We make components that are often hidden within, but integral to, our customers’ products.

25We are a leading supplier of bedding components; automotive seat comfort and convenience systems; home and work furniture components; geo components; flooring underlayment; and hydraulic cylinders for material handling and heavy construction industries.

We are a leading supplier of bedding components and private label finished goods; automotive seat comfort and convenience systems; home and work furniture components; geo components; flooring underlayment; and hydraulic cylinders for material-handling and heavy-construction industries.

Our Segments

Our operations are comprised of approximately ~~110~~100 production facilities located in 18 countries around the world. Our reportable segments are the same as our operating segments, which also correspond with our management organizational structure. Our segments are described below.

Bedding Products: This segment supplies a variety of components used by bedding manufacturers in the production and assembly of their finished products, as well as produces private label finished mattresses and adjustable bed bases. This segment is also vertically integrated in the production and supply of specialty foam chemicals, steel rod, and drawn steel wire to our own operations and to external customers. We also supply steel rod and wire to trade customers that operate in a broad range of markets. This segment contributed 3840% of our trade sales during the first ~~nine~~three months of ~~2025~~2026.

Specialized Products: From this segment, we supply lumbar support systems, seat suspension systems, motors and actuators, and control cables used by automotive manufacturers. We also produce and distribute engineered hydraulic cylinders used in the material-handling and heavy-construction industries. This segment contributed 28% of our trade sales in the first nine months of 2025. On August 29, 2025, we divested our Aerospace Products Group, as discussed in Note O to the Consolidated Condensed Financial Statements on page 24. 21

~~Furniture,~~Specialized ~~Flooring & Textile~~ Products: ~~Operations~~From in this segment, we supply alumbar ~~wide~~support ~~range~~systems, ofseat ~~components~~suspension ~~for~~systems, ~~residential~~motors and ~~work furniture manufacturers~~actuators, asand ~~well~~control ascables ~~select~~used ~~lines~~by ofautomotive ~~private label finished furniture~~manufacturers. We also produce orand distribute ~~carpet~~engineered ~~cushion,~~hydraulic ~~hard~~cylinders ~~surface~~used ~~flooring~~in ~~underlayment,~~the ~~and~~material ~~textile~~handling and ~~geo~~heavy ~~components~~construction industries. This segment contributed 3426% of our trade sales in the first ~~nine~~three months of 2026. On August 29, 2025, we divested our Aerospace Products Group, as discussed in Note L to the Consolidated Condensed Financial Statements on page 19.

Furniture, Flooring & Textile Products: Operations in this segment supply a wide range of components for residential and work furniture manufacturers, as well as select lines of private label finished furniture. We also produce or distribute carpet cushion, hard surface flooring underlayment, and textile and geo components. This segment contributed 34% of our trade sales in the first three months of 2026.

Somnigroup Agreement and Plan of Merger

On April 13, 2026, we entered into the Somnigroup Merger Agreement pursuant to which Somnigroup will acquire Leggett & Platt in an all-stock transaction. Under the terms of the Somnigroup Merger Agreement, Leggett & Platt shareholders will receive 0.1455 shares of common stock, par value $.01 per share, of Somnigroup in exchange for each share of common stock, par value $.01 per share, of Leggett & Platt they own. As a result of the transaction, Leggett & Platt’s shareholders will own approximately 9% of the combined company on a fully diluted basis. The Somnigroup Merger Agreement has been unanimously approved by each of the Board of Directors of Somnigroup and Leggett & Platt.

The transaction is currently anticipated to close by year-end 2026, subject to the satisfaction of customary closing conditions, including approval by Leggett & Platt’s shareholders and receipt of certain governmental and regulatory approvals. The transaction does not require Somnigroup shareholder approval. For a more detailed description of the Somnigroup Merger Agreement, please see our Form 8 -K filed April 13, 2026. Reference is also made to the Somnigroup Merger Agreement which is included as Exhibit 2.1 hereof. As of March 31, 2026, we have incurred $6.9 million of costs associated with this activity, of which $3.5 million was incurred in the first three months of 2026. Based on information currently available, we expect total costs incurred during 2026 to be approximately $20 million.

Following the closing of the Somnigroup Merger, Leggett & Platt is expected to operate as a separate business unit within Somnigroup and to maintain its offices in Carthage, Missouri. Leggett & Platt's Chairman and CEO, Karl G. Glassman, will continue to lead Leggett & Platt following the closing date and will assist with a transition to a new CEO of the Leggett & Platt business unit which is expected to take place within twelve months of the closing date.

There are numerous risks, many of which are beyond our control, that could cause the financial, market, and business impacts of the Somnigroup Merger to materially adversely affect us and our shareholders. For additional information, see Forward-Looking Statements beginning on page 1 and Item 1A Risk Factors beginning on page 44.

Customers

We serve athousands ~~broad suite~~ of customers worldwide, ~~with~~sustaining ~~our~~many long-term business relationships. Our largest customer, ~~representing~~Somnigroup, ~~less~~represented ~~than~~approximately 87% of our trade sales in ~~2024~~2025. Our top 10 customers accounted for approximately 31% of our trade sales in 2025. Many are companies whose names are widely recognized. They include bedding brands and manufacturers, residential and office furniture producers, automotive OEM and Tier 1 manufacturers, big box retailers, and a variety of other companies. The loss of some of these customers, including Somnigroup, would have a material adverse effect on our financial condition, results of operations, and cash flows.

Organic Sales

We calculate organic sales as trade sales excluding sales attributable to acquisitions and divestitures consummated within the last twelve months. Management uses the metric, and it is useful to investors, as supplemental information to analyze our underlying sales performance from period to period in our legacy businesses.

Major Factors That Impact Our Business

Tariffs Impacting ~~our~~Our Business

We continue to monitor and evaluate policy changes impacting global trade, including tariff regulations, the effects of ~~recently~~ announced tariffs, ~~and~~the ~~tariff~~judicial ~~warning~~invalidation ~~letters~~of certain tariffs, and the potential imposition of modified or additional tariffs. ~~Prior~~These topolicy ~~tariff~~changes ~~announcements~~create inuncertainty ~~2025,~~regarding ~~our~~the ~~U.S.~~scope, ~~businesses~~duration, ~~sourced~~and ~~approximately~~financial ~~$400~~impact ~~million~~ of ~~products annually from trade and intercompany suppliers located in foreign countries~~tariffs, ~~including~~as ~~approximately~~well ~~$100~~as ~~million from China. Approximately 60% of our trade sales are produced and consumed in~~ the ~~United~~potential ~~States,~~refund ~~while another 8%~~ of ~~sales~~duties ~~produced~~previously ~~abroad~~paid ~~are~~for ~~consumed~~invalidated intariffs. ~~the~~It ~~United~~is ~~States,~~possible ~~with~~that ~~5% currently exempt under the United States~~wide-~~Mexico-Canada~~ranging ~~Agreement (USMCA). We expect~~ tariffs tocould ~~present~~drive ~~both~~inflation, ~~positive~~weaken ~~and~~consumer ~~negative impacts across our businesses~~confidence, and ~~tariffs~~ultimately ~~overall~~reduce ~~have~~consumer ~~had~~demand afor ~~net~~our ~~positive~~products ~~benefit~~and tonegatively impact our consolidated results of operations ~~through the third quarter~~. In addition, based on limited information, we expect tariffs may continue to produce a net positive impact to our aggregate results, subject to change as tariffs evolve. However, it is possible that wide-ranging tariffs could drive inflation, weaken consumer confidence, and

26Tariffs present both positive and negative impacts across our businesses, and we continue to be actively engaged with customers and suppliers to mitigate the impact of tariffs. Our efforts include leveraging our global footprint to shift production and sourcing to less-impacted regions, implementing pricing actions where appropriate, and pursuing increased demand opportunities domestically.

~~ultimately~~In ~~reduce~~Bedding ~~consumer~~Products, Section 232 steel tariffs have had the largest impact on our business and have contributed to expanded metal margins and increased demand for our Steel Rod and Drawn Wire operations; however, we have not observed a corresponding improvement in innerspring demand. In April 2026, the U.S. government implemented changes to the Section 232 tariff framework applicable to certain steel and steel‑containing products. While these changes may affect trade flows and ~~negatively~~pricing dynamics, it is too early to determine their impact on our ~~consolidated~~ results of operations. Section 232 steel tariffs were not impacted by the recent Supreme Court ruling invalidating certain tariffs previously imposed under the International Emergency Economic Powers Act.

~~Across~~In ~~our~~Furniture, ~~businesses~~Flooring & Textile Products, weour ~~continue~~Home Furniture operations in China primarily sell components to beAsian ~~actively~~customers ~~engaged~~who ~~with~~export finished furniture to the United States. Additionally, we sell components to U.S. customers and ~~suppliers~~maintain tosome intercompany supply from our Chinese operations. To help mitigate our tariff exposure, we began production in Vietnam in the ~~impact~~third quarter of ~~tariffs~~2025. ~~Our~~Within ~~efforts~~Work ~~include~~Furniture, ~~leveraging~~ our ~~global~~teams ~~footprint~~continue to ~~shift~~pursue ~~production~~potential ~~and~~opportunities ~~sourcing~~with tocustomers ~~less~~who have shown interest in regionally-~~impacted~~supplied ~~regions~~components and finished furniture. However, ~~implementing~~industry ~~pricing~~specific ~~actions~~dynamics ~~where~~and ~~appropriate~~the ever-changing global trade landscape are impacting our progress in this area. Finally, ~~and~~our ~~pursuing~~Textiles ~~increased~~business ~~demand~~continues ~~opportunities~~to ~~domestically~~mitigate most tariff exposure by shifting to alternative sources in countries with lower tariff rates.

In ~~Bedding~~February ~~Products~~2026, ~~although~~the ~~reciprocal~~Supreme ~~tariffs~~Court ~~could~~issued ~~benefit~~a ~~our~~ruling ~~U.S.~~invalidating ~~mattress~~tariffs ~~operations~~imposed byunder ~~creating~~the aInternational ~~more~~Emergency ~~level~~Economic ~~playing~~Powers ~~field~~Act ~~between~~(IEEPA). ~~domestic~~In ~~and~~April ~~foreign producers~~2026, ~~enforcement~~U.S. ~~remains~~Customs anand ~~unknown.~~Border ~~Historically,~~Protection ~~duties~~(CBP) ~~have~~launched ~~led~~the toConsolidated ~~more~~Administration ~~transshipment~~and Processing of ~~mattresses~~Entries to(CAPE) ~~avoid~~system ~~higher~~to ~~rates,~~manage ~~but~~refund ~~recent~~claims. ~~comments~~The byCompany ~~the~~paid ~~current~~approximately ~~administration~~$23 ~~appear~~million toin ~~contemplate~~IEEPA ~~penalties~~tariffs ~~for~~that ~~those~~may ~~activities~~be recoverable. ~~This~~We ~~will~~submitted beapproximately an$8 ~~important~~million ~~consideration~~in ~~for~~refund ~~the~~requests ~~actual~~to ~~impact~~CBP ofon ~~reciprocal~~April ~~tariffs.~~27, ~~Additionally~~2026, ~~the~~and ~~White~~expect ~~House~~to ~~announced~~submit ~~the~~additional ~~suspension~~requests offor ~~the~~approximately de$15 ~~minimis~~million. ~~rule,~~It ~~effective~~is ~~August~~unclear 29whether, ~~2025.~~and ~~The~~to ~~rule~~what ~~generally~~extent, ~~allowed~~duties ~~for~~will ~~goods valued at $800 or less to~~ be ~~imported~~refunded. ~~into~~In ~~the~~addition, ~~United~~any ~~States~~potential ~~without~~refunds ~~duties.~~may ~~While~~be weoffset ~~are~~by ~~currently~~refunds ~~unable~~due to ~~quantify~~customers ~~the~~for ~~specific~~payments ~~impact~~made onin ~~our~~connection ~~business,~~with wethe ~~believe~~IEEPA ~~this~~tariffs. ~~policy~~Because ~~change~~the ~~may~~recoverability ~~create~~and atiming ~~more~~of ~~level~~these ~~playing~~tariffs ~~field~~is byuncertain, ~~reducing~~we ~~the~~have ~~cost~~not ~~advantage~~recorded ~~associated~~any ~~with~~amounts ~~imported~~related ~~mattresses~~to ~~previously~~potential ~~enjoyed~~tariff ~~by foreign competitors~~recoveries.

~~Section~~We ~~232~~continue ~~steel~~to ~~tariffs~~actively ~~have~~evaluate ~~had~~ the ~~largest~~potential impact of tariffs and counter-tariffs on our ~~business~~results of operations and ~~have~~financial ~~led~~condition, towhile ~~expanded~~also ~~metal~~exploring ~~margins~~possible ~~and~~opportunities ~~increased~~to ~~demand~~mitigate ~~for~~their impact. Although our ~~Steel~~analysis ~~Rod~~is based on limited and ~~Drawn~~changing ~~Wire~~information, ~~operations~~we currently do not expect tariffs, ~~but~~as wepresently ~~have~~implemented ~~yet~~or anticipated, to ~~see~~have ~~noticeable~~a ~~improvement~~material inadverse effect on our ~~innerspring~~consolidated ~~demand~~results of operations. However, if tariffs are further invalidated, modified or expanded, additional tariffs are implemented, or our information is incorrect, our consolidated results of operations could be materially negatively impacted. Moreover, tariffs may decrease demand for our products which may negatively impact our sales and results of operations.

In addition, in September 2025, we announced the consolidation of our Kentucky Adjustable Bed manufacturing operation into our Mexico operation by the end of this year. This decision was driven by lower volume and tariffs on imported components, which resulted in a cost disadvantage for domestic production in a category that primarily competes with imported products. We expect our Mexican Adjustable Bed operation to remain cost competitive, assuming that the reciprocal tariff exemption for USMCA compliant products remains in place.

Within Specialized Products, our Automotive business, which generally operates as a Tier 2 supplier to the automotive industry, continues to face the largest potential indirect tariff exposure. The majority of our North American production is in Canada and Mexico and is USMCA compliant and currently exempt from most tariffs. As a result, implementation of global tariffs on automotive parts has not directly impacted our operations. However, tariffs could cause reduced demand from our OEM and Tier 1 manufacturer customers if consumer affordability becomes an issue and they need to reduce production. Additionally, there is an emerging disruption risk of the critical rare earth supply chain, which feeds into Chinese-sourced magnets used in semiconductors and electronics in vehicles. While this has impacted some of our customers, it has had minimal impact on us to date. In addition, higher tariff rates on imports from India have impacted our Hydraulic Cylinders business, and we are evaluating whether to shift production of certain cylinders and components to other locations.

In Furniture, Flooring & Textile Products, our Home Furniture operations in China primarily sell components to Asian customers who export finished furniture to the United States. Our Chinese operations experienced meaningful disruptions early in the second quarter, including shipment delays, order cancellations, and customer shutdowns, which began to normalize later in the quarter with the postponement of tariffs. Additionally, we sell components to U.S. customers and maintain some intercompany supply from our Chinese operations. To help mitigate our tariff exposure, we set up production in another low-cost country and began production late in the third quarter. Within Work Furniture, our teams are pursuing new opportunities with customers who are seeking regionally-supplied finished furniture and components. Finally, our Textile business continues to mitigate most tariff exposure by shifting to alternative sources in countries with lower tariff rates.

We are actively evaluating the potential impact of tariffs and counter-tariffs on our results of operations and financial condition, while also exploring possible opportunities to mitigate their impact. Although our analysis is preliminary and based on limited and changing information, we currently do not expect tariffs, as presently implemented or anticipated, to have a material adverse effect on our consolidated results of operations. However, if tariffs are modified or expanded, additional tariffs are implemented, or our preliminary information is incorrect, our consolidated results of operations could be materially negatively impacted. Moreover, tariffs may decrease demand for our products which may negatively impact our sales and results of operations.

Sale of the Aerospace Products Group

Late in the first quarter 2025, the Aerospace Products Group (within our Specialized Products segment) met the criteria to be classified as held for sale, but did not meet the criteria for discontinued operations because it did not represent a strategic shift that would have a major effect on our financial results.

On August 29, 2025, we divested the Aerospace Products Group for a cash price, net of selling expenses and cash sold, of $276 million and recognized a pretax gain of $87 million, subject to the final adjustments for working capital, which we expect to be completed by early 2026. The proceeds from the sale were primarily used to reduce debt. Our Aerospace Products Group was a supplier of complex, highly-engineered tube and duct assemblies for use primarily in commercial and military aircraft platforms and space launch vehicles. The business was comprised of seven manufacturing facilities located in the United States, the United Kingdom, and France, with approximately 700 employees at the time of the sale.23

~~For~~On August 29, 2025, we divested the Aerospace Products Group ~~sales~~for a cash price, net of selling expenses and ~~pre-tax~~cash ~~earnings~~sold, ~~see~~of ~~Note~~$280 Omillion and recognized a pretax gain of $91 million after final adjustments for working capital were completed in December 2025. We collected the final working capital adjustment of $4 million in January 2026. The proceeds from the sale were primarily used to reduce debt. Our Aerospace Products Group was a supplier of complex, highly-engineered tube and duct assemblies for use primarily in commercial and military aircraft platforms and space launch vehicles. The business was comprised of seven manufacturing facilities located in the ~~Consolidated~~United ~~Condensed~~States, ~~Financial~~the ~~Statements~~United onKingdom, ~~page~~and 24France, with approximately 700 employees at the time of the sale.

For the Aerospace Products Group sales and pretax earnings, see Note L to the Consolidated Condensed Financial Statements on page 19.

Goodwill and Long-Lived Asset Impairment Testing

A significant portion of our assets consists of goodwill and other long-lived assets, the carrying value of which would be reduced if we determine that those assets are impaired. At ~~September~~March 3031, ~~2025~~2026, goodwill and other intangible assets represented $~~843~~835 million, or 24% of our total assets. In addition, ~~all~~net ~~other~~property, ~~long~~plant and equipment, operating lease right-~~lived~~of-use assets, and other noncurrent assets totaled $~~973~~937 million, or 2827% of total assets.

We test goodwill for impairment at the reporting unit level (the business groups that are one level below the operating segments) when triggering events occur or at least annually in the second quarter. We conduct impairment testing based on our current business strategy in light of present industry and economic conditions, as well as future expectations. In addition, our long-lived assets are reviewed for recoverability at year end and whenever events or changes in circumstances indicate carrying values may not be recoverable.

The annual goodwill impairment testing in the second quarter of 2025 indicated no impairments. As of June 30, 2025, the fair values of all reporting units exceeded their respective carrying amounts by less than 100%. Bedding, Home Furniture, and Work Furniture reporting units had fair values that exceeded their respective carrying amounts by less than 50%.

The annual goodwill impairment testing in the second quarter of 2025 indicated no impairments. As of June 30, 2025, the fair values of all reporting units exceeded their respective carrying amounts by less than 100% in part due to ongoing macroeconomic uncertainties, including the announcement of tariffs. The fair values of our reporting units were reconciled to our consolidated market capitalization, which decreased due to the decline in the stock price compared to the prior year. Fair value exceeded carrying value by less than 50% at June 30, 2025 for the reporting units summarized in the table below, which excludes the Aerospace Products Group which was divested in August 2025 as discussed in Note O to the Consolidated Condensed Financial Statements on page 24.

Reporting Unit(Dollar amounts in millions)	September 30, 2025 Goodwill Value		Fair value in excess of carrying value as of June 30, 2025
Bedding	$	323	20	%
Home Furniture	68		34
Work Furniture	54		29

Conducting impairment tests involves considerable judgment when establishing assumptions regarding future operating performance, business trends, and market and economic performance, including future sales, operating margins, growth rates, and discount rates. If actual results differ from these assumptions, if general economic conditions worsen, or if our stock price experiences a sustained decline, we could be required to record future impairment charges. Any such non‑cash charges could have a material adverse effect on our results of operations.

In evaluating the potential for impairment of goodwill and other long-lived assets, we make assumptions and estimates regarding future operating performance, business trends, and market and economic performance, including future sales, operating margins, growth rates, and discount rates.

We are continuing to monitor all factors impacting these reporting units. If actual results or the long-term outlook of any of our reporting units materially differ from the assumptions and estimates used in the goodwill and other long-lived assets valuation calculations, along with a sustained decrease in our stock price, we could incur future non-cash impairment charges, which would have a material negative impact on our earnings.

The annual goodwill impairment testing in the second quarter of 2024 indicated that fair value had fallen below carrying value for three reporting units. We had impairments for the nine months ending September 30, 2024 of $587 million, $44 million, and $44 million in our Bedding, Work Furniture, and Hydraulic Cylinders reporting units, respectively. After this impairment, the Hydraulic Cylinders reporting unit did not have any goodwill remaining.

We regularly evaluate long-lived assets for indicators of impairment, such as market conditions, operating performance, strategic decisions, or technical obsolescence. While we believe our current asset valuations are appropriate, future assessments may result in non-cash charges, which would have a material negative impact to our earnings.

2024 Restructuring Plan

In 2024, we committed to a restructuring plan. The 2024 Plan is primarily associated with our Bedding Products segment and includes, to a lesser extent, our Furniture, Flooring & Textile Products segment, an opportunity within the Specialized Products segment, and general and administrative cost structure initiatives. Over the course of the restructuring timeline, we expect to consolidate between 15 and 20 production and distribution facilities in the Bedding Products segment and a small number of production facilities in the Furniture, Flooring & Textile Products segment. The following summarizes the 2024 Plan activity:

2024 ACCOMPLISHMENTS Bedding Products segment •Consolidated 14 production and distribution facilities (ten in U.S. Spring, three in Specialty Foam, one in Adjustable Bed) ◦Consolidated all domestic innerspring production into our four remaining locations ◦Exited our Mexican innerspring operation •Downsized our Chinese innerspring operation •Sold two properties Specialized Products segment •Launched restructuring activities in our Hydraulic Cylinders business to optimize manufacturing and improve operating efficiencies Furniture, Flooring & Textile Products segment •Closed one facility in Home Furniture •Closed one facility in Flooring Products and substantially completed Phase 1 of Flooring Products restructuring Corporate •Reduced corporate general and administrative expenses to be realized fully in 2025

2025 PROGRESS Bedding Products segment •Divested a small U.S. machinery business (two facilities) •Consolidated one Specialty Foam production facility •Sold two properties Specialized Products segment •Continued implementation of manufacturing efficiency improvement activities in Hydraulic Cylinders •Right-sized our Hydraulic Cylinders facility in the UK Furniture, Flooring & Textile Products segment •Completed Phase 1 and launched Phase 2 of Flooring Products restructuring ◦Consolidated two Flooring Products production facilities •Sold one property

ADDITIONAL EXPECTATIONS Bedding Products segment •Completion of Specialty Foam consolidation Specialized Products segment •Completion of restructuring initiatives in Hydraulic Cylinders Furniture, Flooring & Textile Products segment •Completion of Phase 2 of Flooring Products restructuring

(Dollar amounts in millions-all pretax)	2024Actual		Nine Months Ended September 30, 2025		Full Year Estimatesfor 2025		Total PlanEstimate
Plan activity:
Restructuring and restructuring-related costs:
Cash	$	30	$	8	$	10	$	40
Non-cash	18		3		15		35
Total costs	$	48	$	11	$	25	$	75
Pretax net cash from real estate 1	$	20	$	23	$23 to $40		$70 to $80

1 This is only related to the 2024 Plan and does not include the sale of idle real estate. The proceeds from the 2024 sale of real estate resulted in a pretax gain of $17 million. Real estate sold through the nine months ending September 30, 2025 resulted in a pretax gain of $19 million. The remaining real estate sales proceeds are expected to be received either in the fourth quarter of 2025 or during 2026 due to timing of listing properties.

EBIT Benefit:

We expect annualized EBIT benefit of $60–$70 million to be realized after initiatives are fully implemented.

•We realized $22 million for the full year 2024.

•We expect approximately $40 million of incremental benefit to be realized in the full year 2025, of which $36 million was realized in the nine months ended September 30, 2025.

•We expect up to $10 million of incremental benefit in 2026.

Sales Attrition:

We anticipate approximately $60 million of annual sales attrition after initiatives are fully implemented.

•We realized $15 million for the full year 2024.

•We expect approximately $40 million of incremental sales attrition in 2025, of which $33 million was realized in the nine months ended September 30, 2025 (including $3 million from the divestiture of a small U.S. machinery business in our Bedding Products segment).

•We expect approximately $5 million of incremental sales attrition in 2026.

Restructuring Unrelated to the 2024 Plan:

•We have incurred cash charges for divestiture-related expenses associated with the sale of our Aerospace Products Group on August 29, 2025, as discussed in Note O to the Consolidated Condensed Financial Statements on page 24. Costs were $2 million for the nine months ended September 30, 2025. There were no costs for the nine months ended September 30, 2024.

•In September 2025, we announced the consolidation of our Kentucky Adjustable Bed manufacturing operation into our Mexico operation by the end of this year. We have incurred $2 million ($1 million cash and $1 million non-cash) for the nine months ended September 30, 2025.

Total restructuring and restructuring-related costs, including the 2024 Plan and activities unrelated to the 2024 Plan (discussed above), for the nine months ended September 30, 2025 were $15 million ($11 million cash and $4 million non-cash charges).

2024 Plan costs are expected to be substantially complete by the end of 2025.

Because of certain risks and uncertainties, the estimates of the number of facilities to be consolidated, EBIT benefit, sales attrition, proceeds from the sale of real estate, and the cash and non-cash costs and impairments associated with the 2024 Plan may change as additional information is obtained. Moreover, we may not be able to dispose of the remaining real estate pursuant to the 2024 Plan or obtain the expected proceeds in a timely manner. The 2024 Plan may not achieve its intended outcomes. Any failure to achieve the intended outcomes could materially adversely affect our business, financial condition, results of operations, cash flows, and liquidity.

We continue to evaluate our businesses for further restructuring opportunities in addition to those activities included in the 2024 Plan. The execution of any of these opportunities may result in additional material restructuring costs, restructuring-related costs, or impairments.

Market Demand

Market demand (including product mix) is impacted by several economic factors, with housing turnover and consumer confidence being the most significant. Other important factors include disposable income levels, employment levels, and interest rates. All of these factors influence consumer spending on durable goods, and therefore affect demand for our products and components. Some of these factors also influence spending on infrastructure, facilities, and equipment, which has ~~historically~~ impacted approximately ~~25%-~~30% of our sales. The dynamic macroeconomic environment has pressured most of our end markets and negatively affected the demand for our products. We are also concerned that wide-ranging tariffs and the geopolitical conflict in the Middle East will drive inflation, weaken consumer confidence, and pressure consumer demand.

In recent years, the U..S. mattress market has become increasingly bifurcated. High volume imports have dominated online sales and pressured opening and mid-tier price points for traditional domestic OEMs. Additionally, some mattress manufacturers and retailers have faced financial stress as overall consumer demand for mattresses has declined. In the near-term, the domestic mattress industry is expected to continue to experience some level of volatility resulting from industry bankruptcies, consolidations, and import pressure.

Volatility related to the growth of Chinese EV manufacturers and multinational OEM market share challenges are expected to continue to impact the automotive industry. Delays in EV programs in Europe and changing expectations for internal combustion engines to EV program transitions in North America, along with consumer affordability issues, add additional uncertainty to OEM demand.

As a result of these uncertainties, we expect ~~2025~~demand ~~overall~~in ~~demand~~2026 to beremain ~~down from 2024 levels~~muted.

Trends in Cost of Goods Sold

Our costs can vary significantly as market prices for raw materials (many of which are commodities) fluctuate. We typically have short-term commitments from our suppliers; accordingly, our raw material costs generally move with the market. We have also been impacted by fluctuations in transportation, energy, and labor costs. Our ability to recover higher costs (through selling price increases) is crucial. When we experience significant increases in costs, we typically implement price increases to recover the higher costs. Conversely, when costs decrease significantly, we generally pass those lower costs through to our customers. The timing of our price increases or decreases is important; we typically experience a lag in recovering higher costs, and we also realize a lag as costs decline.

Steel is our principal raw material. At various times in past years, we have experienced significant cost fluctuations in this commodity. In most cases, the major changes (both increases and decreases) were passed through to customers with selling price adjustments. ~~Steel costs modestly declined throughout 2024 as U.S. steel markets continued to face soft demand and increased foreign competition.~~ In ~~early~~ 2025, steel costs increased ~~versus the end of 2024~~ largely due to higher demand and, intariffs ~~early~~implemented in April 2025, ~~costs~~that ~~continued~~reduced ~~to increase due to recently implemented tariffs reducing~~ foreign competition. Steel costs inincreased during the ~~third~~first quarter of ~~2025~~2026, ~~modestly~~driven ~~increased~~primarily ~~sequentially~~by ~~versus~~reduced ~~those~~foreign ~~costs~~competition indue ~~the~~to ~~second~~ongoing ~~quarter~~trade ofmeasures ~~2025,~~and ~~but~~higher ~~increased~~input ~~significantly versus the third quarter of 2024~~costs.

31As a producer of steel rod, we are also impacted by changes in metal margins (the difference in the cost of steel scrap and the market price for steel rod). In 2025, steel rod costs increased while average steel scrap costs remained relatively flat, resulting in metal margin expansion during the year. During the first quarter of 2026, steel rod prices increased while steel scrap costs also trended higher, resulting in relatively stable metal margins during the quarter, continuing to be much higher year over year. In addition, producing steel rod is energy intensive and depends on electricity and other utilities at commercially reasonable rates. Periods of extreme weather, including prolonged hot or cold weather events, have increased and may continue to increase overall electricity and natural gas demand, place stress on regional power grids, and contribute to higher or more volatile utility rates, impacting our utility costs. Such conditions may also increase the risk of service interruptions.

AsWe ahave ~~producer~~exposure ofto ~~steel~~the ~~rod~~cost of chemicals, weincluding ~~are~~TDI, ~~also~~MDI, ~~impacted~~and bypolyol. ~~changes~~The incost ~~metal~~of ~~margins~~these ~~(the~~chemicals ~~difference~~has influctuated ~~the~~at ~~cost~~times, ofbut ~~steel~~we ~~scrap~~have ~~and~~generally passed the ~~market~~changes ~~price~~through ~~for~~to ~~steel~~our ~~rod)~~customers. ~~Steel~~Average ~~rod and steel scrap~~ costs ~~both~~in ~~declined~~2025 ~~modestly~~were ~~during~~relatively ~~2024~~stable, ~~leading~~but tobegan ~~metal~~increasing ~~margin~~late ~~compression.~~in In the first quarter of ~~2025~~2026, ~~metal~~primarily ~~margins~~due ~~expanded~~to ~~sequentially~~a ~~but~~fire ~~were~~at ~~lower~~a ~~year~~U.S. ~~over~~chemical ~~year.~~plant ~~Second~~in ~~and~~March ~~third~~impacting ~~quarter~~domestic ~~average~~supply ~~metal~~and ~~margins~~the ~~have~~impact ~~continued~~of tothe ~~grow~~Middle onEast ~~both~~conflict aon ~~sequential~~global supply and ~~year~~price of petroleum-~~over-year~~based ~~basis~~products.

WeOur other raw materials include woven and nonwoven fabrics. When we have ~~exposure~~experienced tochanges in the ~~cost~~costs of ~~chemicals~~these materials, ~~including~~we ~~TDI~~generally have been able to pass them through to our customers. In 2025, ~~MDI~~aggressive competitive discounting, particularly in Flooring and ~~polyol~~Textiles, led to pricing adjustments that impacted our profitability. ~~The~~In ~~cost~~order to mitigate tariff exposure, our Textiles business has proactively been sourcing the majority of these ~~chemicals~~materials ~~has~~from ~~fluctuated~~outside atof ~~times~~China. In early 2026, ~~but~~our weTextiles ~~have~~business ~~generally~~began ~~passed~~to ~~the~~see ~~changes~~upward ~~through~~pressure toon ~~our~~raw ~~customers~~material costs. ~~Average~~This ~~costs~~trend continued and grew late in the ~~first~~quarter ~~three~~due ~~quarters~~to the impact of ~~2025~~the ~~were~~Middle inEast ~~line~~conflict ~~with~~on ~~2024~~the ~~average~~price ~~costs~~of petroleum-based products and uncertainty around shipments through the Strait of Hormuz.

Our other raw materials include woven and nonwoven fabrics. When we have experienced changes in the costs of these materials, we generally have been able to pass them through to our customers. In order to mitigate exposure under recently announced tariffs, our Textile business has proactively been sourcing the majority of these materials from outside of China. We are well positioned to serve customers that may face supply disruption from their existing vendors.

When we raise our prices to recover higher raw material costs, this sometimes causes customers to modify their product designs and replace higher cost components with lower cost components. We must continue providing product options to our customers that enable them to improve the functionality of their products and manage their costs, while providing higher profits for our operations.

Supply Chain Disruptions

Beginning in February 2026, the conflict in the Middle East has led to disruptions in shipping through the Strait of Hormuz. This resulted in higher transportation costs and increased transit times late in the first quarter, as well as increased chemical prices, which will begin to impact our costs in the second quarter. Our teams are mitigating these pressures through product and sourcing actions and by passing through price increases where appropriate.

2026 Restructuring Plan

On February 24, 2026, we committed to a smaller restructuring plan to consolidate two manufacturing facilities in our Specialty Foam business unit in our Bedding Products segment and one manufacturing facility within our Furniture, Flooring & Textile Products segment into other existing facilities (2026 Restructuring Plan). These actions are expected to improve our manufacturing efficiency and enhance profitability and are anticipated to be substantially complete by the end of 2026. We expect to incur restructuring and restructuring-related pretax costs of approximately $15 million for the 2026 Restructuring Plan, including approximately $10 million of cash charges.

We are continuing to evaluate opportunities to proactively improve our cost structure and profitability across our businesses. The execution of any of these opportunities may result in additional restructuring costs, restructuring-related costs, or impairments.

Competition

Many of our markets are highly competitive, with the number of competitors varying by product line. In general, our competitors tend to be smaller, private companies. Many of our competitors, both domestic and foreign, compete primarily on the basis of price. Our success has stemmed from the ability to remain price competitive, while delivering innovation, ~~better~~ product quality, and customer service.

We continue to face pressure from foreign competitors, as some of our customers source a portion of their components and finished products offshore. In addition to lower labor rates, foreign competitors benefit (at times) from lower raw material costs. They may also benefit from currency factors and more lenient regulatory climates. We typically compete in market segments that value product differentiation. When we do compete on cost, we typically remain price competitive in most of our business units, even versus many foreign manufacturers, as a result of our efficient operations, automation, vertical integration in steel rod and wire, logistics and distribution efficiencies, and large-scale purchasing of raw materials and commodities. We have also reacted to foreign competition in certain cases by developing new proprietary products that help our customers reduce total costs and by shifting production offshore to take advantage of lower input costs.

We manufacture innersprings for mattresses, finished mattresses, and steel rod wire (used internally and sold to third parties). Our operations have been impacted by several trade proceedings involving unfair pricing and foreign subsidies.

Anti-Dumping and Countervailing Orders on Innerspring Imports. In 2025, the U.S. Department of Commerce (DOC) and the U.S. International Trade Commission (ITC) determined that the revocation of certain mattress innerspring orders would likely lead to the continuation or reoccurrence of material injury and dumping of uncovered innersprings from China, Vietnam, and South Africa. Consequently, the antidumping duty orders on innerspring imports from these countries, with duties ranging from 116% to 234%, were extended for an additional five years through April 2030.

Anti-Dumping and Countervailing Orders on Mattress Imports. In 2025, the DOC and the ITC completed sunset reviews of existing antidumping duty orders on finished mattresses from China. The DOC and ITC determined that revocation of the 2019 antidumping duty order on mattresses from China would likely lead to continued or recurring material injury and dumping. As a result, the DOC extended the order, and duties of up to 1,732% on mattresses from China will remain in effect through May 2030.

In March 2020, the Company, along with other companies, filed petitions with the DOC and ITC alleging that manufacturers of mattresses in seven countries (Cambodia, Indonesia, Malaysia, Serbia, Thailand, Turkey, and Vietnam) were selling mattresses in the United States at less than fair value, and that manufacturers in China were receiving unfair subsidies. These petitions resulted in the imposition of antidumping and countervailing duty orders, which are scheduled to remain in effect through May 2026. A sunset review will be conducted at that time to determine whether to extend the orders for an additional five years. Following appeals filed with the U.S. Court of International Trade (CIT), the CIT upheld the ITC’s unanimous injury determination. However, the DOC revoked the antidumping duty order on mattresses from Indonesia. In response, the Company filed an appeal with the U.S. Court of Appeals for the Federal Circuit in April 2025, challenging that decision.

32In July 2023, the Company, along with other companies, filed petitions with the DOC and ITC alleging that manufacturers of mattresses in twelve additional countries (Bosnia and Herzegovina, Bulgaria, Burma, India,

filed with the U.S. Court of International Trade (CIT), the CIT upheld the ITC’s unanimous injury determination. However, the DOC revoked the antidumping duty order on mattresses from Indonesia. In response, the Company filed an appeal with the U.S. Court of Appeals for the Federal Circuit in April 2025, challenging that decision.26

In July 2023, the Company, along with other companies, filed petitions with the DOC and ITC alleging that manufacturers of mattresses in twelve additional countries (Bosnia and Herzegovina, Bulgaria, Burma, India, Italy, Kosovo, Mexico, the Philippines, Poland, Slovenia, Spain, and Taiwan) were selling their mattresses in the United States at less than fair value, and that manufacturers in Indonesia were receiving unfair subsidies. Final dumping determinations for eight countries were issued in May 2024, followed by the ITC’s final injury determination in June 2024. These orders are scheduled for sunset review in June 2029. For the remaining countries, the DOC issued final determinations in July 2024, and the ITC issued its final injury determination in September 2024. Although the case is resolved with respect to duties and injury findings, an importer has filed an appeal challenging the ITC’s critical circumstances determination, which imposed retroactive duties. That appeal remains pending. A sunset review of these orders is scheduled for September 2029.

~~Anti-Dumping~~On ~~and~~November ~~Countervailing~~18, ~~Orders~~2025, onthe ~~Steel~~Company, ~~Wire~~along ~~Rod~~with ~~Imports.~~other ~~Sunset~~companies, ~~reviews~~filed bywith the ~~ITC~~DOC ~~are~~requests ~~currently~~to ~~being~~initiate ~~conducted~~anti-circumvention inquiries on ~~imports~~mattress ofcomponent ~~steel~~imports ~~rod wire~~ from ~~Brazil~~Poland, ~~Indonesia,~~ Mexico, ~~Moldova~~ and ~~Trinidad & Tobago~~Malaysia. The ~~current~~requests ~~anti-dumping~~state ~~and~~that ~~countervailing~~mattress ~~duty~~components ~~orders~~are ~~range~~being imported from 3%these tothree ~~369%.~~countries Ifand ~~the~~assembled ~~ITC~~into ~~and~~finished ~~DOC~~mattresses ~~rule~~in ~~favorably,~~ the ~~duties~~United ~~will be extended another five years. Also~~States, ~~through~~which ~~August~~are ~~2030,~~then ~~imports~~sold ofin ~~steel~~the ~~wire~~United ~~rod~~States. ~~from~~The ~~China~~anti-circumvention ~~are~~requests ~~covered~~allege bythat ~~antidumping~~the ~~and~~assembly ~~countervailing~~of ~~duties~~these ~~ranging~~components ~~from~~is ~~106%~~minor toor ~~193%.~~insignificant ~~Additionally,~~under ~~through~~the ~~August~~law ~~2028, antidumping~~ and ~~countervailing~~as ~~duty~~a ~~orders~~result, ~~are~~the inmattress ~~place~~component onimports ~~steel wire rod~~ from ~~Belarus~~Poland, ~~Italy~~Mexico, ~~Korea, Russia, South Africa, Spain, Turkey, Ukraine, United Arab Emirates,~~ and ~~the~~Malaysia ~~United~~are ~~Kingdom~~allegedly ~~ranging~~circumventing ~~from~~anti-dumping ~~less than 1% to 757%~~orders.

~~See~~Anti-Dumping ~~Item~~and 1Countervailing ~~Legal~~Orders ~~Proceedings~~on Steel Wire Rod Imports. On February 10, 2026, the ITC made affirmative determinations in its expedited sunset reviews of the antidumping and countervailing duty orders on ~~page~~imports 50of steel wire rod from Brazil, Indonesia, Mexico, Moldova, and Trinidad & Tobago. Consequently, the antidumping and countervailing duties on steel wire rod imports from these countries, which range from less than 1% to 369%, will be extended for ~~more~~another ~~information~~five years until approximately March 2031. Also, through August 2030, imports of steel wire rod from China are covered by antidumping and countervailing duties ranging from 106% to 193%. Additionally, through August 2028, antidumping and countervailing duty orders are in place on steel wire rod from Belarus, Italy, Korea, Russia, South Africa, Spain, Turkey, Ukraine, United Arab Emirates, and the United Kingdom ranging from less than 1% to 757%.

On April 6, 2026, certain domestic producers filed with the DOC a petition seeking countervailing duties on carbon and alloy steel wire rod from the People's Democratic Republic of Algeria (Algeria). The petitioners allege that Algeria maintains a system of economic programs and policies that confer unfair subsidies to Algerian producers. Petitioners also allege that China is providing transnational subsidies to Algerian carbon and alloy steel wire rod producers. The DOC announced on April 28, 2026, that it will initiate a countervailing duty investigation and plans to make a preliminary determination by July 2, 2026.

See Item 1 Legal Proceedings on page 42 for more information.

If any of the foregoing existing or future antidumping and countervailing duties are overturned on appeal or not extended beyond their current terms and dumping and/or subsidization recurs, or manufacturers in the subject countries continue to circumvent the existing duties through transshipment in other jurisdictions or otherwise, our market share, sales, profit margins, and earnings have been, and could continue to be, adversely affected.

~~Strategic Initiatives~~27

In addition to the sale of the Aerospace Products Group, we completed the sale of a small Work Furniture operation in the second quarter. We continuously evaluate the market attractiveness and competitive position of all our businesses and assess opportunities for profitable, long-term growth.

In addition, within our Bedding Products segment, we have begun exploring alternative sales channels, including private-label initiatives, to expand our market position, increase profitability, and drive growth.

Insurance Gain

In the third quarter of 2025, a fire damaged and destroyed equipment and machinery that had been stored in a leased location for the Bedding Products segment. Insurance proceeds of $25 million were received during the third quarter as an advance payment on the claim, resulting in a net $13 million gain. The claim is still being assessed and is subject to review and approval from our insurance carriers that may materially change the eventual outcome of the claim, including the timing and amount of additional proceeds received. However, we currently expect to receive additional cash proceeds and record an additional net gain of $10 million to $30 million in multiple payments over the next 12 months.

Termination of Pension Plan

In September 2024, the Company approved the merger of two of our domestic defined benefit pension plans and the termination of the resulting merged plan effective December 31, 2024. Participants in the plan have stopped earning benefits. All regulatory requirements were satisfied during the second quarter of 2025, and the distribution of plan assets and settlement of benefit obligations are expected to occur during the fourth quarter of 2025. Upon completion, we expect to recognize an estimated pretax pension settlement charge (a non-cash charge for the recognition of pretax actuarial losses in Accumulated Other Comprehensive Loss) of approximately $20 million to $25 million and an estimated cash contribution of approximately $10 million to $15 million. However, these estimates are subject to change and will depend on various factors.

RESULTS OF OPERATIONS

Discussion of Consolidated Results

~~Third~~Three ~~Quarter~~Months:

Trade sales were $~~1,036~~918 million in the ~~current~~first ~~quarter~~three months of 2026, a 610% decrease versus the ~~third~~same ~~quarter~~period ~~2024~~last year. Organic sales decreased 45%. Volume was down 69%, primarily from continued ~~soft~~weak demand inacross ~~residential~~most of our end markets, ~~Automotive~~ and ~~Hydraulic~~retailer ~~Cylinders.~~merchandising ~~These~~changes ~~declines were partially offset by growth~~ in ~~Textiles~~Adjustable ~~and Work Furniture~~Bed. Raw material-related selling price increases added 2% to sales and currency benefit increased sales 2%. Divestitures of the Aerospace Products Group and small operations in Bedding and Work Furniture in 2025 reduced sales 25%.

EBIT ~~increased~~was $9345 million toin ~~$171~~the ~~million.~~first ~~The~~three ~~increase~~months ~~includes~~of an2026, a decrease of $8718 million ~~gain~~versus ~~from~~ the ~~Aerospace~~same ~~Products~~period ~~Group~~of ~~divestiture~~2025, aprimarily ~~gain~~ from ~~net~~lower ~~insurance~~volume, ~~proceeds~~earnings associated with the divested Aerospace business, restructuring and restructuring-related costs, costs related to athe ~~storage~~Somnigroup ~~facility~~Merger, ~~fire~~and margin compression in our Flooring business driven by higher costs combined with pricing pressure resulting from the ~~Bedding~~soft ~~Products~~demand ~~segment,~~environment. ~~restructuring~~These ~~benefit,~~items ~~reduced~~were ~~restructuring~~partially ~~charges,~~offset ~~and~~by metal margin expansion in trade rod, ~~partially~~and ~~offset~~a bygain ~~lower~~from the sale of real estate. ~~gains~~Additionally, higher stock-based compensation expense and ~~lower~~an ~~volume~~increase in bad debt reserves related to Bedding customers contributed to the year-over-year decline.

EPS ~~increased~~decreased to $.9114 infor the ~~current~~first ~~quarter~~three months of 2026, versus $.3322 in the ~~third~~same ~~quarter~~period of ~~2024~~2025. The ~~increase~~decrease primarily reflects ~~higher~~lower EBIT as discussed above. EPS was also impacted by net interest benefit and income tax expense impacts discussed below.

Nine Months:

Trade sales were $3,117 million in the first nine months of 2025, a 6% decrease versus the same period last year. Organic sales decreased 6%. Volume was down 6%, primarily from continued weak demand in residential end markets, demand softness in Automotive and Hydraulic Cylinders, restructuring-related sales attrition, and the expected exit of a customer in Specialty Foam. These declines were partially offset by higher trade rod and wire sales and growth in Textiles and Work Furniture. Raw material-related selling price decreases and currency impact increased sales less than 1%. Divestitures of the Aerospace Products Group and small operations in Bedding and Work Furniture reduced sales less than 1%.

EBIT increased $798 million to $324 million, primarily from the non-recurrence of a $675 million non-cash goodwill impairment charge, an $87 million gain from the Aerospace Products Group divestiture, restructuring benefit, metal margin expansion, lower restructuring costs, a gain from net insurance proceeds related to a storage facility fire in the Bedding Products segment, disciplined cost management, and the non-recurrence of CEO transition compensation costs. These increases were partially offset by lower volume, lower real estate gains, and the non-recurrence of a gain on net insurance proceeds from tornado damage.

EPS increased to $1.51 for the first nine months of 2025, versus ($3.83) in the same period of 2024. The increase primarily reflects higher EBIT as discussed above. EPS was also impacted by net interest benefit and income tax expense impacts discussed below.

Net Interest Expense and Income Taxes

~~2025~~2026 net interest expense was $75 million ~~and $3 million~~ lower than the ~~nine and~~ three months ended ~~September~~March 3031, ~~2024~~2025 primarily due to lower average net debt levels in ~~2025~~2026 versus ~~2024~~2025.

Our worldwide effective tax rate was 1837% for the ~~third~~first quarter of ~~2025~~2026, compared to 2232% for the same quarter last year. While the U.S. statutory federal income tax rate was 21% in both years, ~~impacts~~foreign withholding taxes increased the rate by 6% in 2026 and 5% in 2025. Discrete stock compensation-related items added 4% in 2026 and 6% in 2025. In addition, full-year expected nondeductible costs associated with the Somnigroup activity contributed 5% to the 2026 rate, with less significant items adding 1%.

34For the full year, we are anticipating an effective tax rate of approximately 30%, including the impact of discrete tax items that we expect to occur from quarter to quarter. We utilize prudent tax planning strategies for opportunities to optimize our tax rate, but other factors, such as our overall profitability, the mix and level of earnings among jurisdictions, the type of income earned, business acquisitions and dispositions, the impact of tax audits, and the effect of tax law changes can also influence our rate.

with our foreign operations including foreign withholding taxes, foreign rate differentials, and Global Intangible Low-Taxed Income, added 4% to our tax rate in both years. Our rate in 2025 has been favorably impacted by 11% due to beneficial tax impacts from the Aerospace Products Group divestiture (see Note O to the Consolidated Condensed Financial Statements on page 24), which was partially offset by an increase of 2% related to the enactment of Public Law 119-21 in the quarter (discussed below) and by another 2% related to other less significant items. Our rate in 2024 was reduced by 3% due to a combination of changes in estimates related to tax filings and from other less significant items. 28

For the full year, we are anticipating an effective tax rate of approximately 22%, including the impact of discrete tax items that we expect to occur from quarter to quarter. We utilize prudent tax planning strategies for opportunities to optimize our tax rate, but other factors, such as our overall profitability, the mix and level of earnings among jurisdictions, the type of income earned, business acquisitions and dispositions, the impact of tax audits, and the effect of tax law changes can also influence our rate.

On July 4, 2025, President Trump signed Public Law 119-21, also known as the “One Big Beautiful Bill,” which includes changes to the U.S. corporate income tax system, such as modifications to the limitation on interest deductibility, the reinstatement of 100% bonus depreciation, and the allowable immediate expensing of qualifying research and experimentation expenses, which resulted in a 2% increase in our effective tax rate for the third quarter of 2025. In addition, other U.S. corporate tax changes embodied in the legislation, including certain modifications to the international tax system, will be effective for the Company in 2026, but we do not expect these to have a material impact on our financial statements.

Discussion of Segment Results

~~Third~~Three ~~Quarter~~Months:

A description of the products included in each segment, along with segment financial data, appears in Note C to the Consolidated Condensed Financial Statements on page 9. A summary of segment results is shown in the following tables. We use EBIT to assess operational performance, and it is useful to investors as it aids in understanding of underlying operational profitability.

A description of the products included in each segment, along with segment financial data, appears in Note C to the Consolidated Condensed Financial Statements on page 10. A summary of segment results is shown in the following tables. We use EBIT to assess operational performance, and it is useful to investors as it aids in understanding of underlying operational profitability.


Trade Sales (Dollar amounts in millions)	Three Months Ended March 31, 2026		Three Months Ended March 31, 2025		Change in Sales				% Change in Organic Sales 1
					$		%
Bedding Products	$	364.9	$	390.7	$	(25.8)	(6.6	%)	(6.3	%)
Specialized Products	244.1		300.1		(56.0)		(18.7)		(1.5)
Furniture, Flooring & Textile Products	309.2		331.3		(22.1)		(6.7)		(6.1)


Total trade sales	$	918.2	$	1,022.1	$	(103.9)	(10.2	%)	(5.0	%)

Trade Sales(Dollar amounts in millions)	Three Months Ended September 30, 2025		Three Months Ended September 30, 2024		Change in Trade Sales				% Change in Organic Sales 1
	Three Months Ended March 31, 2026		Three Months Ended March 31, 2025		Change in EBIT				EBIT Margins
					$		%
EBIT(Dollar amounts in millions)					$		%		Three Months Ended March 31, 2026		Three Months Ended March 31, 2025
Bedding Products	$	~~402~~25.57	$	~~445~~9.56	$	~~(43~~16.0)1	(9167.7	%)	(97.10	%)	2.5	%
Specialized Products	~~277~~17.57		~~299~~28.94		(2210.47)		(737.57)		(27.0)3		9.5
Furniture, Flooring & Textile Products	~~356~~4.4		~~356~~24.38		(20.14)		—(82.3)		(1.5)4		7.5
Total trade sales	$	1,036.4	$	1,101.7	$	(65.3)	(5.9	%)	4.1	%
Intersegment eliminations and other	(3.3)		.1		(3.4)
Total EBIT 2	$	44.5	$	62.9	$	(18.4)	(29.3)	%	4.8	%	6.2	%

	Three Months Ended September 30, 2025		Three Months Ended September 30, 2024		Change in EBIT				EBIT Margins
Depreciation and Amortization(Dollar amounts in millions)	Three Months Ended March 31, 2026		Three Months Ended March 31, 2025
EBIT(Dollar amounts in millions)					$		%		Three Months Ended September 30, 2025		Three Months Ended September 30, 2024
Bedding Products	$	12.4	$	13.0
Bedding Products	$	36.4	$	25.5	$	10.9	42.7	%	9.0	%	5.7	%
Specialized Products	8.1		10.4
Specialized Products	112.9		24.8		88.1		355.2		40.7		8.3
Furniture, Flooring & Textile Products	4.3		4.9
Furniture, Flooring & Textile Products	22.0		27.4		(5.4)		(19.7)		6.2		7.7
Unallocated 3	3.4		3.3
Intersegment eliminations and other	(.2)		—		(.2)
Total depreciation and amortization	$	28.2	$	31.6
Total EBIT 2	$	171.1	$	77.7	$	93.4	120.2	%	16.5	%	7.1	%

351This column represents a change in trade sales not attributable to acquisitions or divestitures in the last 12 months. Refer to the respective segment discussion below for a reconciliation of the change in total segment trade sales to organic sales.

Depreciation and Amortization (Dollar amounts in millions)	Three Months Ended September 30, 2025		Three Months Ended September 30, 2024
Bedding Products	$	13.2	$	14.8
Specialized Products	7.9		11.0
Furniture, Flooring & Textile Products	4.4		5.4
Unallocated 3	3.9		5.2
Total depreciation and amortization	$	29.4	$	36.4

2Total three months ended March 31, 2026 EBIT of $44.5 million less interest expense net of interest income of $12.6 million and income tax of $11.9 million equals three months ended March 31, 2026 Net earnings of $20.0 million. Total three months ended March 31, 2025 EBIT of $62.9 million less interest expense net of interest income of $17.8 million and income tax of $14.5 million equals three months ended March 31, 2025 Net earnings of $30.6 million.

1 This is a change in trade sales not attributable to acquisitions or divestitures in the last 12 months. Refer to the respective segment discussion below for a reconciliation of the change in total segment trade sales to organic sales.

2 Total three months ended September 30, 2025 EBIT of $171.1 million less interest expense net of interest income of $16.7 million and income tax of $27.2 million equals three months ended September 30, 2025 Net earnings (loss) of $127.2 million. Total three months ended September 30, 2024 EBIT of $77.7 million less interest expense net of interest income of $20.0 million and income tax of $12.8 million equals three months ended September 30, 2024 Net earnings (loss) of $44.9 million.

3 Unallocated consists primarily of depreciation and amortization of non-operating assets.

Bedding Products

Trade sales decreased $43 million, or 10%. Organic sales decreased 9%. Volume decreased 13%, primarily due to customer weakness and retailer merchandising changes in Adjustable Bed and Specialty Foam, lower trade rod sales, and restructuring-related sales attrition. Raw material-related selling price increases and currency benefit increased sales 4%. Divestiture of a small U.S. machinery business that was part of the 2024 Plan reduced sales 1%.

EBIT increased $11 million, primarily from $13 million gain on net insurance proceeds related to a storage facility fire, metal margin expansion in trade rod, and reduced restructuring costs, partially offset by reduced volume and a lower gain on the sale of real estate.

Specialized Products

Trade sales decreased $22 million, or 7%. Organic sales decreased 2% and volume decreased 4%, with declines in Automotive and Hydraulic Cylinders. Raw material-related selling price increases and currency benefit added 2% to sales. The divestiture of the Aerospace Products Group reduced sales 5%.

EBIT increased $88 million, primarily from an $87 million gain from the Aerospace Products Group divestiture, reduced restructuring charges, and restructuring benefit, partially offset by lower volume and earnings associated with the divested Aerospace Products Group.

Furniture, Flooring & Textile Products

Trade sales and organic sales remained flat. Volume increased 1% from growth in Textiles and Work Furniture, partially offset by declines in Home Furniture and Flooring. Raw material-related selling price decreases, net of currency benefit, reduced sales 1%. Divestiture of a small Work Furniture operation reduced sales less than 1%.

EBIT decreased $5 million, primarily from pricing adjustments, particularly in Flooring and Textiles, and other smaller items.

Nine Months:

Trade Sales(Dollar amounts in millions)	Nine Months Ended September 30, 2025		Nine Months Ended September 30, 2024		Change in Sales				% Change in Organic Sales 1
					$		%
Bedding Products	$	1,184.6	$	1,331.5	$	(146.9)	(11.0	%)	(10.4	%)
Specialized Products	881.7		935.4		(53.7)		(5.7)		(4.0)
Furniture, Flooring & Textile Products	1,050.2		1,060.3		(10.1)		(1.0)		(.8)
Total trade sales	$	3,116.5	$	3,327.2	$	(210.7)	(6.3	%)	(5.6	%)

	Nine Months Ended September 30, 2025		Nine Months Ended September 30, 2024		Change in EBIT				EBIT Margins
EBIT(Dollar amounts in millions)					$		%		Nine Months Ended September 30, 2025		Nine Months Ended September 30, 2024
Bedding Products	$	73.2	$	(550.6)	$	623.8	113.3	%	6.2	%	(41.4	%)
Specialized Products	180.0		39.0		141.0		361.5		20.4		4.2
Furniture, Flooring & Textile Products	71.2		41.6		29.6		71.2		6.8		3.9
Intersegment eliminations and other	—		(3.6)		3.6
Total EBIT 2	$	324.4	$	(473.6)	$	798.0	168.5	%	10.4	%	(14.2	%)

Depreciation and Amortization(Dollar amounts in millions)	Nine Months Ended September 30, 2025		Nine Months Ended September 30, 2024
Bedding Products	$	39.5	$	43.7
Specialized Products	26.5		31.4
Furniture, Flooring & Textile Products	13.9		16.2
Unallocated 3	10.8		10.6
Total depreciation and amortization	$	90.7	$	101.9

1This is a change in trade sales not attributable to acquisitions or divestitures in the last 12 months. Refer to the respective segment discussion below for a reconciliation of the change in total segment trade sales to organic sales.

2Total nine months ended September 30, 2025 EBIT of $324.4 million less interest expense net of interest income of $53.2 million and income tax of $60.9 million equals nine months ended September 30, 2025 Net earnings (loss) of $210.3 million. Total nine months ended September 30, 2024 EBIT of ($473.6) million less interest expense net of interest income of $60.6 million and income tax of ($8.6) million equals nine months ended September 30, 2024 Net earnings (loss) of ($525.6) million.

3Unallocated consists primarily of depreciation and amortization of non-operating assets.

Bedding Products

Trade sales decreased $~~147~~26 million, or 117%. Organic sales decreased 106%. Volume decreased 12%, primarily due to ~~demand softness in U.S. and European bedding markets,~~ retailer merchandising changes in Adjustable Bed, ~~and~~volume softness in Specialty Foam, and the ~~expected~~decision ~~loss~~during the fourth quarter of 2025 to walk away from a financially challenged customer in ~~Specialty~~U.S. ~~Foam,~~Spring. These declines were partially offset by higher trade rod and ~~restructuring-related~~wire sales ~~attrition~~. Raw material-related selling price increases and currency benefit added 26% to sales. The 2025 divestiture of a small U.S. machinery business ~~that was part of the 2024 Plan~~ reduced sales less than 1%.

3729

EBIT increased $~~624~~16 million, primarily from ~~the non-recurrence of a $587 million non-cash goodwill impairment charge,~~ metal margin expansion, ~~lower~~in ~~restructuring~~trade ~~charges~~rod, ~~and~~ gain on ~~net~~the ~~insurance~~sale ~~proceeds~~of ~~related~~real toestate, aand ~~storage~~restructuring ~~facility~~benefit, ~~fire.~~partially ~~These~~offset ~~increases~~by ~~were~~restructuring ~~partially~~and ~~offset~~restructuring-related bycosts and lower volume.

Specialized Products

Trade sales decreased $5456 million, or 619%. Organic sales decreased 42%. Volume decreased 5% ~~due~~from tolower ~~declines~~market ~~in Automotive and Hydraulic Cylinders, partially offset by growth in Aerospace Products Group before the divestiture~~demand. Raw material-related selling price increases, ~~net of currency impact,~~ added 1% to sales and currency benefit increased sales 2%. The 2025 divestiture of the Aerospace Products Group ~~on August 29, 2025~~ reduced sales 217%.

EBIT ~~increased~~decreased $~~141~~11 million, primarily from ~~the~~earnings ~~gain~~associated onwith the ~~sale~~divested of Aerospace Products Group ~~of $87 million, the non-recurrence of a $44 million non-cash goodwill impairment charge, disciplined cost management, restructuring benefit, lower depreciation~~ and ~~amortization due to Aerospace Products Group meeting held-for-sale criteria, and gain from the sale of real estate. These increases were partially offset by~~ lower volume, the non-recurrence of benefit from a reduction to a contingent purchase price liability associated with a prior year acquisition, and lower earnings associated with the divested Aerospace Products Group.

Furniture, Flooring & Textile Products

Trade sales decreased $1022 million, or 17%. Organic sales decreased 16%. Volume ~~increased~~decreased 17% ~~with~~from ~~growth~~declines in ~~Textiles~~Home ~~and~~Furniture, ~~Work~~Flooring, ~~Furniture~~and Textiles partially offset by ~~declines~~growth in ~~Home~~Work Furniture ~~and Flooring~~. Raw material-related selling price ~~decreases,~~increases ~~net~~and of currency benefit, ~~reduced~~increased sales 21%. ~~Divestiture~~The 2025 divestiture of a small Work Furniture operation reduced sales less than 1%.

EBIT ~~increased~~decreased $3020 million, primarily from ~~the~~lower ~~non-recurrence~~volume ~~of a $44 million non-cash goodwill impairment charge~~impacts, ~~gain~~margin ~~from~~compression ~~the~~in ~~sale~~our ofFlooring ~~real estate~~business, ~~restructuring~~currency ~~benefit~~impact, and ~~lower~~start-up ~~restructuring~~ costs. ~~These~~associated ~~increases~~with ~~were partially offset by pricing adjustments, the non-recurrence of~~ a ~~gain~~new onHome ~~net~~Furniture ~~insurance~~facility ~~proceeds~~in ~~from tornado damage, and other smaller items~~Vietnam.

LIQUIDITY AND CAPITALIZATION

Liquidity

Sources of Cash

Cash on Hand

At ~~September~~March 3031, ~~2025~~2026, we had cash and cash equivalents of $~~461~~511 million primarily invested in interest-bearing bank accounts and in bank time deposits with original maturities of three months or less. Substantially all of these funds are held in the international accounts of our foreign operations.

If we were to bring back immediately all our foreign cash to the United States in the form of dividends, we would pay foreign withholding taxes of approximately $2231 million based on current withholding tax rates. Due to capital requirements in various jurisdictions, approximately $54111 million of this cash was inaccessible for repatriation at ~~September~~March 3031, ~~2025~~2026. Inaccessible cash balances can fluctuate from quarter to quarter based on the amount of foreign distributable profits available and the variability of our foreign cash balances.

Cash from Operations

The primary source of funds for our short-term cash requirements is our cash generated from operating activities. Earnings and changes in working capital levels are the two factors that generally have the greatest impact on our cash from operations. Cash from operations for the ~~nine~~three months ended ~~September~~March 3031, ~~2025~~2026 was $~~217~~(56) million, updown $3363 million from the same period last year, primarily driven by a larger use of cash for working capital, ~~improvements~~as well as lower earnings.

3830

We ended the quarter with working capital at 27.2% and adjusted working capital at 14.7% of annualized trade sales. The table below explains this non-GAAP calculation. We eliminate cash, current debt maturities, and the current portion of operating lease liabilities from working capital to monitor our operating efficiency and performance related to trade receivables, inventories, and accounts payable. We believe this provides a more useful measurement to investors since cash and current maturities can fluctuate significantly from period to period. As discussed in Cash on Hand above, a substantial majority of these funds are held by international operations and may not be immediately accessible.

(Dollar amounts in millions)	~~September~~March 3031, ~~2025~~2026			December 31, ~~2024~~2025
Current assets	$	1,~~708~~747.80		$	1,~~690~~743.56
Current liabilities	~~794~~748.17			~~846~~775.40
Working capital	~~914~~998.73			~~844~~968.16
Less: Cash and cash equivalents included in current assets	~~460~~510.75			~~350~~587.24
Add: Current debt maturities and current portion of operating lease liabilities included in current liabilities	4751.76			5453.70
Adjusted working capital	$	~~501~~539.74		$	~~548~~434.62
Annualized trade sales 1	$	4,145.6		$	4,225.6
Annualized sales 1	$	3,672.8		$	3,754.4
Working capital as a percent of annualized trade sales	2227.12		%	2025.08		%
Adjusted working capital as a percent of annualized trade sales	1214.17		%	1311.06		%

1 Annualized ~~trade~~ sales is the respective quarter's ~~trade~~ sales multiplied by 4 (~~third~~first quarter ~~2025~~2026 and fourth quarter ~~2024~~2025 ~~trade~~ sales were $~~1,036~~918.42 million and $~~1,056~~938.46 million, respectively). We believe measuring our working capital against this sales metric is more useful, since efficient management of working capital includes adjusting those net asset levels to reflect current business volume.

Primary Components of our Working Capital

Amount (in millions)

Days

Three Months Ended

Twelve Months Ended

Three Months Ended

September 30, 2025

December 31, 2024

September 30, 2024

September 30, 2025

December 31, 2024

September 30, 2024

March 31, 2026

December 31, 2025

March 31, 2025

March 31, 2026

December 31, 2025

March 31, 2025

Trade Receivables

~~536~~487.1

~~503~~433.07

~~583~~522.93

DSO 1

4442

4946

Inventories

~~634~~663.03

~~722~~622.6

~~754~~678.43

DIO 2

6980

7774

7773

Accounts Payable

~~485~~467.39

~~497~~466.76

~~516~~476.05

DPO 3

5356

5253

5352

1Days sales outstanding

a. Quarterly: end of period trade receivables ÷ (quarterly net trade sales ÷ number of days in the period)

b. Annually: ((beginning of year trade receivables + end of period trade receivables) ÷ 2) ÷ (net trade sales ÷ number of days in the period)

2Days inventory on hand

a. Quarterly: end of period inventory ÷ (quarterly cost of goods sold ÷ number of days in the period)

b. Annually: ((beginning of year inventory + end of period inventory) ÷ 2) ÷ (cost of goods sold ÷ number of days in the period)

3Days payables outstanding

a. Quarterly: end of period accounts payable ÷ (quarterly cost of goods sold ÷ number of days in the period)

b. Annually: ((beginning of year accounts payable + end of period accounts payable) ÷ 2) ÷ (cost of goods sold ÷ number of days in the period)

We continue to monitor all elements of working capital in order to optimize cash flow.

On August 29, 2025, we divested our Aerospace Products Group, as discussed in Note O to the Consolidated Condensed Financial Statements on page 24. Due to the divestiture, trade receivables decreased $23 million, inventories decreased $68 million, and accounts payable decreased $15 million. As a result, our DSO and DPO decreased by approximately two days and DIO decreased by seven days due to the long lead times typical in the aerospace industry.31

~~Trade~~At ~~Receivables~~March -31, ~~Our~~2025, ~~trade~~our ~~receivables~~Aerospace ~~and~~Products ~~DSO~~Group ~~increased~~met atthe ~~September 30~~criteria to be classified as held for sale, ~~2025~~and ~~compared~~was tosubsequently ~~December 31~~divested on August 29, ~~2024~~2025, ~~primarily~~as ~~due~~discussed in Note L to ~~volume~~the ~~increases~~Consolidated inCondensed ~~our~~Financial ~~Textile~~Statements ~~business,~~on ~~timing~~page 19. As a result of ~~collections~~the held-for-sale classification, ~~and~~trade ~~currency.~~receivables, ~~These~~inventories, ~~were~~and ~~partially~~accounts ~~offset~~payable bybalances for the Aerospace Products Group ~~divestiture~~at March 31, 2025 are excluded in the table above. ~~Trade~~If ~~receivables~~net trade sales and ~~DSO~~cost ~~decreased~~of ~~compared~~goods tofor ~~September 30~~the three months ended March 31, ~~2024~~2025 ~~due~~are toexcluded from the ~~Aerospace~~days ~~Products~~calculations, ~~Group~~our ~~divestiture,~~DSO ~~restructuring~~and ~~plan~~DPO ~~impacts,~~for that time period would be approximately two days higher and ~~demand~~DIO ~~softness~~would be approximately four days higher.

WeTrade ~~recorded~~Receivables ~~bad~~- ~~debt~~Our ~~expense~~trade ofreceivables ~~$5 million~~ and $9DSO ~~million~~increased ~~during~~at ~~the~~March 31, ~~first~~2026 ~~nine~~compared ~~months~~to ofDecember 31, 2025 ~~and~~primarily ~~2024,~~due ~~respectively.~~to ~~Weak~~increased ~~demand~~trade ~~and~~sales ~~changing~~of ~~market~~steel ~~dynamics~~rod ~~have~~and ~~created~~wire ~~disruption~~ and ~~financial~~timing ~~instability for some~~ of ~~our customers~~collections, ~~particularly~~partially inoffset ~~the~~by ~~Bedding~~lower ~~Products~~sales ~~segment.~~volumes ~~Recently,~~in weresidential ~~have~~end ~~seen slower payment trends among certain customers, and we are actively managing and maintaining close oversight of these receivables~~markets. WeTrade ~~monitor our~~ receivables ~~closely~~decreased ~~and~~compared ~~make~~to ~~reserve decisions based upon individual customer risk reviews~~March 31, ~~aging~~2025 ofprimarily ~~customer~~due ~~accounts,~~to ~~historical~~lower ~~loss~~sales ~~experience, and general macroeconomic and industry trends that could impact the expected collectability of all customers or pools of customers with similar risk~~volumes.

~~Inventories~~We -recorded ~~Our~~bad ~~inventories~~debt expense of $2 million and ~~DIO~~$1 ~~decreased~~million atduring ~~September 30,~~the ~~2025~~first ~~compared~~three tomonths ~~both~~of ~~December 31~~2026 and 2025, ~~2024~~respectively. Weak demand and ~~September 30,~~changing ~~2024~~market ~~due~~dynamics tohave created disruption and financial instability for some of our customers, particularly in the ~~Aerospace~~Bedding Products ~~Group~~segment. ~~divestiture~~Recently, we have seen slower payment trends among certain customers, and ~~inventory~~we ~~reductions~~are toactively ~~align~~managing ~~with~~and ~~demand~~maintaining ~~softness~~close oversight of these receivables. We monitor our receivables closely and make reserve decisions based upon individual customer risk reviews, ~~partially~~aging ~~offset~~of bycustomer ~~currency~~accounts, historical loss experience, and general macroeconomic and industry trends that could impact the expected collectability of all customers or pools of customers with similar risk.

WeInventories ~~continuously monitor our slower~~-~~moving~~ ~~and~~Our ~~potentially~~inventories ~~obsolete~~increased ~~inventory~~at ~~through~~March 31, ~~reports~~2026 ~~on inventory quantities~~ compared to ~~usage~~December 31, ~~within~~2025 ~~the~~and ~~previous~~DIO 12increased ~~months.~~compared Weto ~~also~~both ~~monitor~~December 31, ~~potential~~2025 ~~inventory~~and ~~implications~~March 31, ~~for~~2025 ~~customers~~due ~~experiencing~~to ~~financial~~increased ~~challenges~~scrap ~~which~~steel ~~may~~purchases ~~impact~~and ~~their~~maintaining ~~ability~~higher tolevels ~~take delivery~~ of ~~previously~~certain ~~ordered~~materials ~~inventory.~~to ~~When~~ensure ~~potential~~adequate ~~inventory~~supply ~~obsolescence~~to ismitigate ~~indicated~~potential bysupply ~~these~~chain ~~controls,~~disruptions. weInventories ~~will~~decreased ~~take~~compared ~~charges for write-downs~~ to ~~maintain~~March 31, an2025 ~~adequate~~due ~~level~~to ofinventory ~~reserves.~~reductions ~~Inventory~~to ~~write-downs~~align ~~for~~with ~~the~~demand ~~first~~softness, ~~nine~~partially ~~months~~offset ofby ~~2025~~increased ~~were~~scrap ~~$11~~steel ~~million~~purchases ~~versus~~and ~~$25~~higher ~~million~~steel ~~in the first nine months of 2024~~costs.

~~Accounts~~We ~~Payable~~continuously -monitor ~~Our~~our ~~accounts~~slower-moving ~~payable~~and ~~decreased~~potentially ~~compared~~obsolete toinventory ~~both~~through ~~December 31,~~reports ~~2024~~on ~~and~~inventory ~~September 30,~~quantities ~~2024~~compared ~~primarily~~to ~~due~~usage towithin the ~~Aerospace~~previous ~~Products~~12 ~~Group~~months. ~~divestiture,~~We ~~demand~~also ~~softness,~~monitor ~~and~~potential ~~timing~~inventory ofimplications ~~payments,~~for ~~partially~~customers ~~offset~~experiencing byfinancial ~~currency~~challenges ~~impacts.~~which ~~DPO~~may ~~was~~impact ~~relatively~~their ~~flat~~ability ~~compared~~ to ~~both~~take ~~December 31,~~delivery ~~2024~~of ~~and~~previously ~~September 30,~~ordered ~~2024~~inventory. WeWhen ~~continue~~potential toinventory ~~look~~obsolescence ~~for~~is ~~ways~~indicated toby ~~establish~~these ~~and~~controls, ~~maintain~~we ~~favorable~~will ~~payment~~take ~~terms~~charges ~~through~~for ~~purchasing~~write-downs ~~synergies~~to ~~and~~maintain ~~also~~an ~~utilize~~adequate ~~third~~level of reserves. Inventory write-~~party~~downs ~~services~~for ~~that~~the ~~offer~~first ~~flexibility~~three tomonths ~~our~~of ~~vendors,~~2026 ~~which,~~were in$3 ~~turn,~~million ~~helps~~versus us$5 ~~manage~~million ~~our~~in ~~DPO~~the asfirst ~~discussed~~three ~~below~~months of 2025.

Accounts ~~Receivable and Accounts~~ Payable ~~Programs~~ - WeOur ~~participate~~accounts inpayable ~~trade~~decreased ~~receivables~~compared ~~sales~~to ~~programs~~March 31, in2025 ~~combination~~primarily ~~with~~due ~~certain~~to ~~customers~~demand softness and ~~third-party~~timing ~~banking institutions. Under each~~ of ~~these programs~~payments, wepartially ~~sell~~offset ~~our~~by ~~entire~~increased ~~interest~~scrap insteel ~~the~~purchases. ~~trade~~DPO ~~receivable~~increased ~~for~~compared ~~100%~~to ofboth ~~face value~~December 31, ~~less~~2025 aand ~~discount.~~March 31, ~~Because~~2025 ~~control~~primarily ofdue ~~the sold receivable is transferred~~ to ~~the~~increased ~~buyer~~purchases ~~at the time~~ of ~~sale,~~certain ~~accounts~~inventories ~~receivable~~to ~~balances~~mitigate ~~sold~~potential ~~are~~supply ~~removed~~chain ~~from~~disruptions, ~~the Consolidated Condensed Balance Sheets and the related proceeds are reported~~ as ~~cash~~discussed ~~provided by operating activities in the Consolidated Condensed Statements of Cash Flows~~above. We ~~had~~continue ~~approximately~~to ~~$40~~look ~~and~~for ~~$45~~ways ~~million~~to ofestablish ~~trade receivables that were sold~~ and ~~removed~~maintain ~~from~~favorable ~~our~~payment ~~balance~~terms ~~sheets~~through atpurchasing ~~September 30,~~synergies ~~2025~~ and ~~December 31,~~also ~~2024,~~utilize ~~respectively.~~third-party ~~These~~services ~~sales~~that ~~reduced~~offer ~~our~~flexibility ~~quarterly~~to ~~DSO~~our ~~by roughly three days at September 30~~vendors, ~~2025 and four days at December 31~~which, ~~2024. Activities~~ in ~~these~~turn, ~~programs~~helps ~~decreased~~us ~~year-to-date~~manage ~~operating~~our ~~cash~~DPO ~~flow~~as bydiscussed ~~approximately $5 million for the nine months ended September 30, 2025~~below.

~~For~~Accounts ~~accounts~~Receivable ~~payable,~~and weAccounts ~~have~~Payable ~~historically~~Programs ~~looked~~- ~~for~~We ~~ways~~participate toin ~~optimize~~trade ~~payment~~receivables ~~terms~~sales ~~through~~programs ~~utilizing~~in combination with third-party banking institutions and certain customers. Under each of these programs, ~~that~~we ~~allow~~sell our ~~suppliers~~entire tointerest bein ~~paid~~the ~~earlier~~trade atreceivable for 100% of face value, less a discount. ~~Contracts~~Because ~~with~~control ~~our~~of ~~suppliers~~the ~~are~~sold ~~negotiated~~receivable ~~independently~~is oftransferred ~~supplier~~to ~~participation~~the inbuyer at the ~~programs~~time of sale, ~~and~~accounts wereceivable ~~cannot~~balances ~~increase~~sold ~~payment~~are ~~terms~~removed ~~pursuant~~from tothe Consolidated Condensed Balance Sheets and the ~~programs.~~related ~~While~~proceeds weare ~~continue~~reported toas ~~make~~cash ~~payments~~provided ~~based~~by onoperating ~~our~~activities ~~customary~~in ~~terms,~~the aConsolidated ~~supplier~~Condensed ~~can~~Statements ~~elect~~of toCash ~~take~~Flows. ~~payment~~Approximately ~~from~~$40 aand ~~third~~$45 ~~party~~million ~~earlier~~of ~~with~~trade areceivables ~~discount,~~were sold and inremoved ~~that~~from ~~case,~~our webalance ~~pay~~sheets ~~the~~at ~~third~~March 31, ~~party~~2026 onand ~~the~~December 31, ~~original~~2025, ~~due~~respectively. ~~date~~These ofsales ~~the~~reduced ~~invoice.~~our Asquarterly ~~such,~~DSO ~~there~~by isroughly nofour ~~direct~~days ~~impact~~at onboth ~~our~~at ~~DPO~~March 31, ~~accounts~~2026 ~~payable~~and December 31, 2025. The impact to operating cash ~~flows,~~flow orwas ~~liquidity.~~an ~~The~~approximate ~~accounts~~$5 ~~payable~~million ~~settled~~decrease ~~through~~for the ~~third-party~~three months ended March 31, 2026.

40For accounts payable, we occasionally utilize third-party programs that allow our suppliers to be paid earlier at a discount. While we continue to make payments based on our customary terms, a supplier can elect to take payment from a third party earlier with a discount, and in that case, we pay the third party on the original due date of the invoice. Contracts with our suppliers are negotiated independently of supplier participation in the programs, and we cannot increase payment terms pursuant to the programs. As such,

~~programs, which remain on our Consolidated Condensed Balance Sheets, were approximately $105 million and $120 million at September 30, 2025 and December 31, 2024, respectively.~~32

there is no direct impact on our DPO, accounts payable, operating cash flows, or liquidity. The accounts payable settled through the third-party programs, which remain on our Consolidated Condensed Balance Sheets, were approximately $110 million and $115 million at March 31, 2026 and December 31, 2025, respectively.

The above items encompass multiple individual programs that are utilized as tools in our cash flow management, and we offer them as options to facilitate customer and vendor operating cycles. Because many of these programs operate independently, and a cessation of all these programs at the same time is not reasonably likely, we do not expect changes in these programs to have a material impact on our operating cash flows or liquidity.

Mexico Value-Added Taxes (VAT) Recoverable - We are subject to VAT in various jurisdictions. Where we are entitled to a refund of the VAT we have paid, we submit claims to the government authorities and establish receivables for these claims. As of December 31, 2024, we had outstanding Mexico VAT receivables of $36 million, primarily due to delays in processing refunds by the local tax authorities. Refunds received in the first nine months of 2025 reduced this receivable to $2 million at September 30, 2025. To mitigate the impact of future VAT outflows in Mexico, we obtained a temporary tax exemption for one of our primary Mexico entities, thereby improving cash flow and reducing the need to submit refund claims.

Commercial Paper Program

Another source of funds for our short-term cash requirements is our $1.0 billion commercial paper program. WeAs of March 31, 2026, we had $~~513~~602 million available ~~for~~under ~~borrowing~~the asprogram. ofFor ~~September 30,~~more ~~2025.~~information Inon ~~conjunction~~our ~~with~~commercial ~~the~~paper ~~credit~~program, ~~facility~~see ~~amendment~~Commercial inPaper ~~late~~Program ~~July~~on aspage ~~discussed~~35. ~~below~~However, ~~the~~pursuant ~~authorized~~to ~~amount~~the terms of ~~commercial~~the ~~paper~~Somnigroup ~~that~~Merger ~~can~~Agreement, bethe ~~issued~~Company ~~was~~may ~~reduced~~not ~~from~~incur ~~$1.2~~indebtedness ~~billion~~for toborrowed ~~$1.0~~money ~~billion.~~under ~~For~~the ~~more~~credit ~~information~~facility ~~regarding~~or the ~~borrowing~~commercial ~~capacity~~paper ~~under~~program, ~~our~~in ~~commercial~~the ~~paper~~aggregate, ~~program~~in excess of $150 million unless consented to by Somnigroup, ~~see~~in ~~Commercial~~writing, ~~Paper~~and ~~Program~~such onconsent ~~page~~cannot 43be unreasonably withheld.

Credit Facility

Our credit facility is a multi-currency facility providing us ~~with~~ the ability, from time to time, to borrow, repay, and re-borrow up to $1.0 billion, ~~subject to financial covenants,~~ until the maturity date, at which time our ability to borrow under the facility will terminate. The credit facility ~~serves as a back-up for our commercial paper program, is subject to covenants restricting our borrowing capacity, and~~ matures in July 2030. Currently, there are no borrowings under the credit facility. For more information on our credit facility, see Credit Facility on page 4436. However, pursuant to the terms of the Somnigroup Merger Agreement, the Company may not incur indebtedness for borrowed money under the credit facility or the commercial paper program, in the aggregate, in excess of $150 million unless consented to by Somnigroup, in writing, and such consent cannot be unreasonably withheld.

Capital Markets

Our cost of borrowing and ability to access the capital markets are affected by market conditions and the credit ratings assigned to our debt. While we believe that we have the ability to raise debt in the capital markets which acts as a source of funding of long-term cash requirements, a downgrade of our credit rating could limit our access to the capital markets and result in increased borrowing costs. Currently, we have $1.5 billion of ~~total~~senior ~~debt~~notes outstanding in equal tranches maturing in 2027, 2029, and 2051. For more information, please see Long-Term Debt ~~(including~~on ~~Current~~page ~~Maturities)~~36. onHowever, ~~page~~our 44ability to raise debt in the capital markets is subject to the terms of the Somnigroup Merger Agreement. In particular, unless consented to by Somnigroup, in writing, which may not be unreasonably withheld, we may not raise debt in the capital markets, unless subject to certain conditions, we refinance our outstanding senior notes within three months of maturity.

Uses of Cash

WePrior ~~reduced~~to ~~debt using a combination of net proceeds from~~ the ~~Aerospace~~Somnigroup ~~Products~~Merger ~~Group divestiture and cash generated by operations. In the near term~~Agreement, we ~~anticipate~~expected ~~applying~~to ~~most~~use ~~of our~~ cash ~~flow from operations~~ to reduce net debt, ~~while~~grow ~~also~~our ~~considering~~business, ~~other~~both ~~uses~~organically ~~such~~and asthrough ~~small~~ strategic acquisitions, ~~and~~while ~~share~~also ~~repurchases.~~returning Incash ~~the~~to ~~longer~~shareholders ~~term,~~through weshare ~~expect~~repurchases toand ~~use~~dividends. ~~cash~~However, tothe ~~grow~~Somnigroup ~~our~~Merger ~~business,~~Agreement ~~both~~restricts ~~organically~~our ~~and~~uses ~~through~~of ~~strategic~~cash ~~acquisitions,~~as ~~while~~described ~~also~~below ~~returning~~unless ~~cash~~consented to ~~shareholders~~by ~~through~~Somnigroup, ain ~~combination~~writing, ofand ~~dividends~~such ~~and~~consent ~~share~~cannot ~~buybacks~~be unreasonably withheld.

4133

Capital Expenditures

We are making investments to support expansion in businesses and product lines where sales are profitably growing, ~~for~~maintenance, efficiency ~~improvement and maintenance~~improvements, and ~~for~~ system enhancements. We ~~also~~ expect capital expenditures of $100 million to ~~make~~$115 ~~future~~million ~~investments~~in 2026, with $24 million spent during the three months ended March 31, 2026. For the periods covered, our employee incentive plans emphasized returns on capital, including capital expenditures and working capital. This emphasis focuses our management on asset utilization and helps ensure that we are investing additional capital dollars where attractive return potential exists. Pursuant to ~~replace~~the ~~equipment~~terms ~~destroyed~~of the Somnigroup Merger Agreement, the Company may not make capital expenditures in excess of $150 million in the ~~July~~aggregate ~~2025~~in ~~Bedding~~any ~~Products~~calendar ~~storage~~year, ~~facility~~unless ~~fire~~consented to by Somnigroup, in writing, and such consent cannot be unreasonably withheld.

We expect lower capital expenditures of $60-$70 million in 2025. We have spent $38 million as of September 30, 2025. For the periods covered, our employee incentive plans emphasized returns on capital, including capital expenditures and working capital. This emphasis focuses our management on asset utilization and helps ensure that we are investing additional capital dollars where attractive return potential exists.

Acquisitions

We seek strategic acquisitions that complement our current products and capabilities.

We did not acquire any businesses in the first nine months of 2025. For the full year 2025, we currently expect acquisition activity to be minimal.

Dividends

In the ~~third~~first quarter of ~~2025~~2026, we declared a quarterly dividend of $.05 per share, consistent with the quarterly dividend declared in the ~~third~~first quarter of ~~2024~~2025. We paid $7 million in each of the ~~third~~first quarters of ~~2025~~2026 and ~~2024~~2025 for the quarterly dividend declared in the ~~second~~fourth quarter of each prior year. Pursuant to the terms of the Somnigroup Merger Agreement, the Company may continue the dividend of $.05 per share per calendar quarter and may increase the dividend by up to $.01 per share per calendar year, unless consented to by Somnigroup, in writing, and such consent cannot be unreasonably withheld.

~~Stock~~Share Repurchases

During the ~~third~~first quarter of ~~2025~~2026, ~~there were no material share repurchases and~~ we ~~issued .1 million shares through employee benefit plans. For the first nine months of 2025, we~~ repurchased .23 million shares of our stock (at an average purchase price of $911.8067) and issued 1.32 million shares through employee benefit plans.

We have been authorized by the Board to repurchase up to 10 million shares each calendar year, but we have established no specific repurchase commitment or timetable. ~~The~~Pursuant ~~amount~~to ofthe ~~future~~terms ~~repurchases~~of isthe ~~dependent~~Somnigroup ~~upon~~Merger Agreement, the ~~price~~Company may not purchase any of ~~the~~its shares of common stock, except with respect to (a) the ~~amount~~satisfaction of ~~discretionary~~exercise ~~cash~~price ~~flow~~or ~~generated~~the bytax ~~the~~withholding ~~Company,~~obligations ~~alternative~~in ~~uses~~connection ~~for~~with the ~~cash~~vesting, ~~(including~~exercise ~~organic~~and/or ~~growth~~settlement ~~opportunities,~~of ~~stock~~Company ~~repurchases~~equity ~~and~~awards ~~acquisitions~~or (b) ~~and~~upon ~~other~~the ~~factors.~~forfeiture Weof ~~expect~~outstanding ~~stock~~Company ~~repurchases~~equity awards pursuant to betheir ~~minimal~~terms ~~for~~upon the ~~remainder~~termination of ~~2025~~the employment of the holder thereof or otherwise, in each case, unless consented to by Somnigroup, in writing, and such consent cannot be unreasonably withheld.

Acquisitions

We seek acquisitions that add capabilities in our businesses. We expect all acquisitions to have a clear strategic rationale, a sustainable competitive advantage, a strong fit with the Company, and be in attractive and growing markets. We did not acquire any businesses in the first three months of 2026. For the full year 2026, we currently expect acquisition activity to be minimal. Pursuant to the terms of the Somnigroup Merger Agreement, the Company may not make any acquisitions with consideration of $10 million or more individually or with aggregate consideration of $25 million (across all such acquisitions), unless consented to by Somnigroup, in writing, and such consent cannot be unreasonably withheld.

Short-Term and Long-Term Cash Requirements

In addition to the expected uses of cash discussed above, we have various material short-term (12 months or less) and long-term (more than 12 months) cash requirements. There have been no material changes in the ~~third~~first quarter of ~~2025~~2026 to our short-term or long-term cash requirements as previously reported in our cash requirements table on page 5556 of our Form 10-K filed February 26, ~~2025 other than the repayment of $368 million of commercial paper~~2026. We expect to have adequate liquidity to meet our short-term and long-term cash requirements.

4234

Capitalization

Capitalization Table

This table presents key debt and capitalization statistics for the periods presented:

(Dollar amounts in millions)	~~September~~March 3031, ~~2025~~2026			December 31, ~~2024~~2025
Total debt excluding credit facility/commercial paper	$	1,~~497~~498.2		$	1,~~496~~497.17
Less: Current maturities of long-term debt and short-term debt	1.46			1.35
Scheduled maturities of long-term debt	1,~~495~~496.86			1,~~494~~496.82
Average interest rates 1	3.8		%	3.8		%
Average maturities in years 1	10.61			1110.4
Credit facility/commercial paper 2	—			368.0
Average interest rate during the period (2026-three months; 2025-twelve months)	4.1		%	5.0		%
Weighted average interest rate on period-end balance outstanding	—		%	5.1		%
Total long-term debt	1,496.6			1,496.2
Average interest rate during the period (2025-three months; 2024-twelve months)	4.9		%	5.6		%
Deferred income taxes and other liabilities	234.1			242.6
Total long-term debt	1,495.8			1,862.8
Total equity	1,039.7			1,022.6
Deferred income taxes and other liabilities	262.7			262.2
Total capitalization	$	2,770.4		$	2,761.4
Total equity	972.4			690.2
Total capitalization	$	2,730.9		$	2,815.2
Unused committed credit: 2
Long-term	$	1,000.0		$	~~832~~1,000.0
Short-term	—			—
Total unused committed credit	$	1,000.0		$	~~832~~1,000.0
Cash and cash equivalents	$	~~460~~510.75		$	~~350~~587.24

1			These rates include current maturities, but exclude commercial paper to reflect the averages of outstanding debt with scheduled maturities.
2			The unused committed credit amount is based on our revolving credit facility and commercial paper program which, at year-end ~~2024~~2025 and at the end of the ~~third~~first quarter of ~~2025~~2026, had a total authorized program amount of $1.~~2 billion and $1.~~0 billion~~, respectively~~. However, our borrowing capacity is limited by covenants to our credit facility and restrictions in the Somnigroup Merger Agreement. Reference is made to the discussion under Commercial Paper Program below and Credit Facility on page 4436 for more details about our borrowing capacity at ~~September~~March 3031, ~~2025~~2026.

Commercial Paper Program

Amounts outstanding related to our commercial paper program were:

(Amounts in millions)	~~September~~March 3031, ~~2025~~2026		December 31, ~~2024~~2025
Total authorized program	$	1,000.0	$	1,~~200~~000.0
Commercial paper outstanding (classified as long-term debt)	—		~~368.0~~—
Letters of credit issued under the credit agreement	—		—
Amount limited by restrictive covenants of credit facility 1	~~486~~398.72		~~388~~291.80
Total program available	$	513.3	$	443.2
Total program available 2	$	601.8	$	709.0

1 Our borrowing capacity is limited by covenants to our credit facility. Reference is made to the discussion under Credit Facility on page 44 for more details about our borrowing capacity at September 30, 2025.


1			Our borrowing capacity is limited by covenants to our credit facility. Reference is made to the discussion under Credit Facility on page 36 for more details about our borrowing capacity at March 31, 2026.
2			Pursuant to the terms of the Somnigroup Merger Agreement, the Company may not incur indebtedness for borrowed money under the credit facility or the commercial paper program, in the aggregate, in excess of $150 million unless consented to by Somnigroup, in writing, and such consent cannot be unreasonably withheld.

4335

The average and maximum amounts of commercial paper outstanding during the ~~third~~first quarter of ~~2025~~2026 were $~~235~~10 million and $~~338~~44 million, respectively. At quarter end, we had no letters of credit outstanding under the credit facility, but we had issued $9293 million of stand-by letters of credit under other bank agreements to take advantage of better pricing.

Over the long term, and subject to our credit ratings, market conditions, capital needs, and alternative capital market opportunities, we ~~generally~~may ~~expect~~borrow ~~to maintain the indebtedness~~ under the commercial paper program ~~by continuously repaying and reissuing the commercial paper notes~~. We view the notes as a source of long-term funds and have classified the borrowings under the commercial paper program as long-term borrowings on our balance sheet. We have the intent to roll over such obligations on a long-term basis and have the ability to refinance these borrowings on a long-term basis as evidenced by our amended revolving credit facility maturing in July 2030 discussed below in Credit Facility.

The Company has multiple credit rating agencies that provide ratings of our short- and long-term debt. ~~One~~In ofthe ~~our~~past, ~~credit~~rating ~~ratings~~downgrades ~~agencies~~have ~~recently~~resulted ~~lowered our ratings. As such~~in, weand ~~are~~could ~~currently~~continue ~~evaluating the degree~~ to ~~which~~result wein, ~~have~~higher ~~access~~interest ~~to the commercial paper market~~rates. ~~Our~~Lower ~~current~~credit ratings ~~(and if ratings are lowered further)~~ could adversely affect our ~~borrowing~~sources ~~capacity~~of borrowing and our financial arrangements, including access to the capital markets, commercial paper market, our lending agreements, and supply chain financing arrangements. As a result of the announcement of the Somnigroup Merger Agreement, independent rating agencies have placed us under a negative credit watch, which could lead to a downgrade and affect our ability to borrow in the commercial paper market. If we are unable to meet our short-term borrowing needs in the commercial paper market, we may rely more heavily on bank debt to fund short-term working capital needs at higher interest costs.

Credit Facility

~~We amended our Credit Agreement in July 2025.~~ Our ~~credit facility is a~~ multi-currency credit facility ~~maturing~~matures in July 2030,. ~~providing~~It provides us ~~with~~ the ability, from time to time, ~~to borrow, repay, and re-borrow up to $1.0 billion,~~ subject to certain restrictive covenants and customary conditions., ~~Prior~~ to ~~the~~borrow, ~~amendment~~repay, ~~the maturity date was September 2026~~ and ~~our~~re-borrow ~~authorized~~up ~~amount~~to ~~was~~ $1.20 billion. ~~The~~At ~~credit~~March 31, ~~facility serves as back-up for our commercial paper borrowing. However~~2026, if we ~~are~~were ~~unable~~in tocompliance ~~access~~with ~~the~~all ~~commercial~~of ~~paper~~our ~~market,~~debt ~~we may borrow directly under the Credit Agreement~~covenants. Capitalized terms used in this section but not defined herein have the meanings set forth in the Credit Agreement.

Our credit facility contains restrictive covenants, which include: (a) a Leverage Ratio requiring us to maintain, as of the last day of each fiscal quarter, (i) Consolidated Funded Indebtedness minus the lesser of: (A) Unrestricted Cash, or (B) $750 million to (ii) Consolidated EBITDA for the four consecutive trailing quarters most recently ended on or prior to such date, such ratio not being greater than 3.50 to 1.00; provided however, subject to certain limitations, if we make a Material Acquisition, at our election, the maximum Leverage Ratio shall be 4.00 to 1.00 for the fiscal quarter during which such Material Acquisition is consummated and the next three consecutive fiscal quarters; (b) a limitation of the amount of total secured obligations to 15% of our total consolidated assets; and (c) a limitation on our ability to sell, lease, transfer, or dispose of all or substantially all of our assets and the assets of our subsidiaries, taken as a whole (other than accounts receivable sold in a Permitted Securitization Transaction, products sold in the ordinary course of business and our ability to sell, lease, transfer, or dispose of any of our assets or the assets of one of our subsidiaries to us or one of our subsidiaries, as applicable) at any given point in time. We were in compliance with all of our debt covenants at the end of third quarter 2025. For more information about long-term debt, please see Note J on page 101 of the Notes to Consolidated Financial Statements in our Form 10-K filed February 26, 2025.

AtFor ~~September 30,~~more ~~2025,~~information weabout ~~had no commercial paper outstanding and had no borrowing under the credit facility. As our trailing 12~~long-~~month~~term ~~Consolidated EBITDA, Unrestricted Cash, and~~ debt ~~levels change~~, ~~our~~please ~~borrowing~~see ~~capacity~~Note ~~increases~~J ~~or decreases. Based~~ on ~~our~~page ~~trailing~~101 ~~12-month Consolidated EBITDA, Unrestricted Cash, leverage ratio covenant~~ of ~~3.50 to 1.00, and debt levels at September 30, 2025, our borrowing capacity under~~ the ~~credit~~Notes ~~facility~~to ~~was~~Consolidated ~~$513~~Financial ~~million.~~Statements ~~However,~~in ~~this may not be indicative of the actual borrowing capacity moving forward, which may be materially different depending on~~ our ~~Consolidated~~Form ~~EBITDA,~~10-K ~~Unrestricted~~filed ~~Cash~~February 26, ~~and debt levels~~2026.

~~Long~~Our credit facility serves as back-~~Term~~up ~~Debt~~for ~~(including~~our ~~Current~~commercial ~~Maturities)~~paper program. At March 31, 2026, we had no commercial paper outstanding and had no borrowing under the credit facility. As our trailing 12-month Consolidated EBITDA, Unrestricted Cash, and debt levels change, our borrowing capacity increases or decreases. Based on our trailing 12-month Consolidated EBITDA, Unrestricted Cash, leverage ratio covenant of 3.50 to 1.00, and debt levels at March 31, 2026, our borrowing capacity under the credit facility was $602 million. However, this may not be indicative of the actual borrowing capacity moving forward, which may be materially different depending on our Consolidated EBITDA, Unrestricted Cash, and debt levels. Pursuant to the terms of the Somnigroup Merger Agreement, the Company may not incur indebtedness for borrowed money under the credit facility or the commercial paper program, in the aggregate, in excess of $150 million unless consented to by Somnigroup, in writing, and such consent cannot be unreasonably withheld.

Currently, we have $1.5 billion of total debt outstanding in equal tranches maturing in 2027, 2029, and 2051. Given that we have no commercial paper borrowings at quarter end, we expect to realize lower interest expense for the remainder of 2025. For more details on longLong-~~term~~Term ~~debt, please refer to Note J on page 101 of the Notes to Consolidated Financial Statements in our Form 10-K filed February 26, 2025.~~Debt

44Currently, we have $1.5 billion of senior notes outstanding in equal tranches maturing in 2027, 2029, and 2051. Given that we have no commercial paper borrowings at quarter end, we expect to realize lower interest

expense for the remainder of 2026. For more details on long-term debt, please refer to Note J on page 101 of the Notes to Consolidated Financial Statements in our Form 10-K filed February 26, 2026.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

We prepare our consolidated financial statements in accordance with accounting principles generally accepted in the United States of America. To do so, we must make estimates and judgments that affect the reported amounts of assets, liabilities, revenues, expenses, and disclosures. If we used different estimates or judgments, our financial statements could change. Some of these changes could be significant. Our estimates are considered by management, at the time they are made, to be reasonable and appropriate. Estimates are adjusted for actual events as they occur.

Critical accounting estimates are those that are: (a) subject to uncertainty and change and (b) of material impact to our financial statements. There were no newly identified critical accounting policies or estimates in the first ~~nine~~three months of ~~2025~~2026, and there have been no material changes to our critical accounting policies and estimates as previously disclosed beginning on page 5859 in our Form 10-K filed February 26, ~~2025~~2026.

CONTINGENCIES

Litigation

Litigation Contingencies

We are exposed to litigation contingencies that, if realized, could have a material negative impact on our financial condition, results of operations, and cash flows.

Although we deny liability in all currently threatened or pending litigation proceedings, we have recorded an immaterial aggregate litigation contingency accrual at ~~September~~March 3031, ~~2025~~2026 (which does not include accrued expenses related to employment, workers' compensation, vehicle-related personal injury, product and general liability claims, taxation issues, and environmental matters). Based on current known facts, aggregate reasonably possible (but not probable, and therefore, not accrued) losses in excess of accruals for litigation contingencies are estimated to be $1615 million. If our assumptions or analyses regarding any of our contingencies are incorrect, or if facts change or future litigation arises, we could realize losses in excess of the recorded accruals (including losses in excess of the $1615 million referenced above), which could have a material negative impact on our financial condition, results of operations, and cash flows. Also, we could be subject to future litigation of various types that could negatively impact our financial condition, results of operations, and cash flows. ~~For more information regarding our litigation contingencies, see Item 1 Legal Proceedings on page 50 and Note P Contingencies on page 24 of the Notes to Consolidated Condensed Financial Statements.~~

~~Chinese~~For ~~Tax~~more ~~Authority~~information ~~Reviews~~regarding our litigation contingencies, see Item 1 Legal Proceedings on page 42 and Note M Contingencies on page 19 of the Notes to Consolidated Condensed Financial Statements.

China ~~has~~Withholding ~~recently~~Tax intensified its review of tax compliance among foreign enterprises. We underwent reviews in 2023 and 2024 resulting in no material assessments, while in 2025, we have seen an increased number of these reviews initiated by various Chinese tax authorities. One has been favorably resolved with no assessment, while others are ongoing. If the remainder are not resolved favorably to the Company, they could have a material negative effect on our results of operations or financial condition.Matters

China recently intensified its review of tax compliance among foreign enterprises. We underwent reviews in 2023 and 2024 resulting in no material assessments, while in 2025 and early 2026, we have seen an increased number of these reviews initiated by various Chinese tax authorities. In 2026, we received three formal tax assessments for approximately $24 million, in the aggregate, each alleging failures to satisfy beneficial owner requirements for purposes of applying reduced dividend withholding tax rates. Although the outcome is uncertain, we believe we have valid defenses and have notified the Chinese tax authorities of our intent to rigorously contest each of the assessments through the administrative appeal process in China, and we have not recorded any income tax expense associated with these matters. While we believe we will be successful, we could incur additional income tax expense that could have a material negative effect on our results of operations or financial condition.

Climate Change

Transition Risks

Change in Laws, Regulations, and Policies. Climate change, is commonly attributed to increased greenhouse gas (GHG) emissions, including carbon dioxide, which has led to significant legislative and regulatory efforts to limit such emissions. At September 30, 2025, we had approximately 110 production facilities in 18 countries, primarily located in North America, Europe, and Asia. We also maintain a fleet of semi-trucks that emit GHG. Certain transition risks, or risks related to the process of reducing our carbon footprint, could materially affect our business, capital expenditures, results of operations, financial condition, competitive position, and reputation. One transition risk is the change in laws, regulations, and policies that could impose significant operational and compliance burdens. Also, if our customers incur additional costs to comply with such laws, regulations, and policies, impacting their ability to operate at the same or similar levels, the demand for our products could be adversely affected. Inconsistent climate legislation in jurisdictions where we operate creates economic and regulatory uncertainty and could increase our costs if such laws, regulations, or policies impose significant operational restrictions and compliance requirements on us. Non-compliance with such laws, regulations, and

4537

regulatory efforts to limit such emissions. At March 31, 2026, we had approximately 100 production facilities in 18 countries, primarily located in North America, Europe, and Asia. We also maintain a fleet of semi-trucks that emit GHG emissions. Certain transition risks, or risks related to the process of reducing our carbon footprint, could materially affect our business, capital expenditures, results of operations, financial condition, competitive position, and reputation. One transition risk is the change in laws, regulations, and policies that could impose significant operational and compliance burdens. Also, if our customers incur additional costs to comply with such laws, regulations, and policies, impacting their ability to operate at the same or similar levels, the demand for our products could be adversely affected. Inconsistent climate legislation in jurisdictions where we operate creates economic and regulatory uncertainty and could increase our costs if such laws, regulations, or policies impose significant operational restrictions and compliance requirements on us. Non-compliance with such laws, regulations, and policies could also negatively impact our reputation. To date, however, we have not experienced a material impact from these legislative and regulatory efforts.

Market Transition. We manufacture various automotive components, including lumbar support and massage systems for seating, seat suspension systems, motors, actuators, and cables. For decades, automotive manufacturers have sought lightweight components to increase the fuel efficiency of automobiles. Replacing traditional steel components with lightweight alternative components can directly reduce vehicle weight and fuel consumption. This increased fuel efficiency also indirectly reduces GHG emissions. If we are unable to react to technological changes, develop new and innovative products, or respond to evolving business trends, including continuing to produce comparatively lightweight components, our share in these markets could be negatively impacted.

These long-standing market transitions have negatively impacted our market share, although not materially. However, if we are unable to react to technological changes, develop new and innovative products, or respond to evolving business trends, including continuing to produce comparatively lightweight components, our share in these markets could be negatively impacted.

Driven in part by climate change legislation, the global automotive industry has experienced a rapid acceleration in the transition from internal combustion engine vehicles to electric vehicles (EVs). ~~According to the International Energy Agency, EVs are expected to represent more than 25% of all new car sales worldwide in 2025.~~ China has emerged as a global leader in EV adoption, with Chinese EV manufacturers gaining market share at the expense of our multinational automotive OEM customer base. This shift has intensified competitive pressures across traditional automotive supply chains and has begun to impact our market share, particularly in regions where Chinese EV manufacturers have seen success in competing on price. If our multinational automotive OEM customers are unable to compete effectively with the Chinese EV manufacturers, their market share could continue to be further reduced, which could continue to negatively impact the demand for our Automotive products.

Physical Climate Change Risks

Direct Physical Effects. The acute and chronic physical effects of severe weather-related events, natural disasters, and/or significant climate pattern changes could have an increasingly ~~adversely~~adverse impact on our business and customers. As ofmentioned ~~September~~above, at March 3031, ~~2025~~2026, we had approximately ~~110~~100 manufacturing facilities in 18 countries, primarily located in North America, Europe, and Asia. We serve thousands of customers worldwide. ~~In 2024, our largest customer represented less than 8% of our sales, and our customers were located~~ in ~~approximately~~over ~~100~~70 countries. Although our diverse geographical manufacturing footprint and our broad geographical customer base mitigates the potential risks of any local or regional severe weather-related event having a material effect on our operations and results, the increased frequency and severity of such weather-related events could damage our physical assets, local infrastructure, transportation systems, water delivery systems, and our customers' or suppliers' operations, and disrupt our manufacturing operations (including our steel rod mill and wire drawing mills), all of which could harm our business, results of operations, and financial condition.

~~Indirect~~ ~~Physical~~Although ~~Effects.~~our ~~The~~diverse ~~physical~~geographical ~~effects~~manufacturing offootprint ~~climate~~and ~~change~~our ~~could~~broad ~~continue~~geographical tocustomer ~~adversely~~base ~~impact~~mitigates ~~our supply chain. In~~ the ~~past,~~potential wephysical ~~experienced~~risks ~~(due,~~of inany ~~part,~~local toor regional severe weather-related ~~impacts)~~event ~~supply~~having ~~shortages~~a inmaterial ~~chemicals,~~effect ~~which~~on ~~restricted~~our ~~foam~~operations ~~supply~~ and ~~constrained~~results, ~~overall mattress production in~~ the ~~bedding~~increased ~~industry.~~frequency ~~This reduced our production levels~~ and ~~increased~~severity ~~our cost~~ of ~~chemicals~~such ~~and foam. Severe~~ weather-related ~~impacts~~events could ~~also~~damage ~~reduce the supply of other products in~~ our ~~supply~~physical ~~chain~~assets, ~~resulting~~local ininfrastructure, ~~higher~~transportation ~~prices~~systems, ~~for~~water ~~our~~delivery ~~products~~systems, and ~~the~~our ~~resources~~customers' ~~needed~~or tosuppliers' ~~produce~~operations, ~~them.~~and Ifdisrupt weour ~~are~~manufacturing ~~unable~~operations to(including ~~secure~~our ansteel ~~adequate~~rod mill and ~~timely~~wire ~~supply~~drawing ~~of products in our supply chain~~mills), orall ~~the cost~~ of ~~these~~which ~~raw materials or products materially increases, it~~ could ~~negatively~~harm ~~impact~~ our business, results of operations, and financial condition.

InIndirect ~~recent~~Physical ~~years,~~Effects. ~~drought~~The ~~conditions~~physical ~~lowered~~effects ~~the~~of ~~water~~climate ~~levels~~change ofcould continue to adversely impact our supply chain. In the ~~Mississippi~~past, ~~River~~we ~~and~~experienced ~~Panama~~(due, ~~Canal~~in part, ~~reducing~~to ~~traffic~~severe ~~through~~weather-related ~~these~~impacts) ~~waterways~~supply shortages in chemicals, which restricted foam supply and ~~impacting~~constrained ~~some~~overall ofmattress ~~our~~production ~~shipments~~in the bedding industry. ~~Although~~This ~~these~~reduced ~~issues~~our ~~did~~production ~~not~~levels ~~materially~~and ~~impact~~increased our ~~results~~cost of ~~operations,~~chemicals ~~additional~~and ~~logistical~~foam. ~~disruptions~~Severe weather impacts could ~~result~~also inreduce ~~additional~~the ~~costs~~supply ~~and~~of ~~delays~~other products in our ~~ability~~supply tochain, ~~deliver~~resulting in higher prices for our products ~~timely~~and the resources needed to ~~customers~~produce them. If we are unable to secure an adequate and timely supply of raw

materials and products in our supply chain, or the cost of these raw materials or products materially increases, it could negatively impact our business, results of operations, and financial condition.

In recent years, drought conditions lowered the water levels of the Mississippi River and Panama Canal, reducing traffic through these waterways and impacting some of our shipments. Although these issues did not materially impact our results of operations, additional logistical disruptions could result in additional costs and delays in our ability to deliver products timely to certain customers.

In addition, although the costs have not been material to our business, results of operations, and financial condition, severe weather-related incidents have resulted and may, in the future, result in increased costs of our property insurance.

GHG Emissions Reduction Strategy

To date, we have not experienced material climate-related compliance costs. However, evaluating opportunities to reduce our emissions, setting GHG emissions reduction goals, and measuring performance in achieving those goals are part of our sustainability and corporate governance strategy. We completed our GHG emissions inventory covering 2019 through 2024. To ensure our information is complete and accurate, we engaged a third-party limited assurance provider for these years. Our emissions inventory includes Scope 1 and Scope 2 carbon dioxide equivalent emissions. We considered the principles and guidance of the GHG Protocol Corporate Accounting and Reporting Standard. At the end of 2024, our total GHG emissions, measured using a market-based approach, were approximately 21% less than our combined Scope 1 and 2 GHG emissions over our baseline year of 2019, which was due in significant part to the decrease in production over the same time period.

46Our baseline measurement informed our long-term GHG emissions reduction strategy, including setting GHG reduction goals and other key performance areas. Our GHG emissions reduction strategy will continue to evolve, but we have established GHG emissions reduction goals which can be found in Addendum 1 to our Sustainability Progress Report available at www.leggett.com/sustainability. Our ability to achieve any stated goal is subject to numerous factors and conditions, many of which are outside of our control, including but not limited to, evolving regulatory requirements affecting sustainability standards or disclosures or imposing different requirements, and the pace of changes in available materials and technology. Neither our Sustainability Progress Report, Addendum 1 to such report, nor the Leggett website, constitute part of this Quarterly Report on Form 10-Q.

~~achieving~~Our ~~those~~key ~~goals~~initiatives ~~are~~for ~~part~~2026 ofinclude ~~our~~undertaking ~~sustainability~~a ~~and~~Scope ~~corporate~~3 ~~governance strategy. We completed our GHG~~ emissions inventory ~~covering 2019 through 2024. To ensure our information is complete~~ and ~~accurate,~~preparing ~~we engaged a third-party limited assurance provider~~ for ~~these years. Our emissions inventory includes Scope 1~~ and ~~Scope~~complying 2with ~~carbon~~new ~~dioxide~~reporting ~~equivalent emissions~~requirements. We ~~considered~~have ~~the~~developed ~~principles~~preliminary ~~and~~estimates ~~guidance~~ of ~~the~~capital ~~GHG~~expenditures ~~Protocol Corporate Accounting~~ and ~~Reporting~~operating ~~Standard.~~costs Atthat ~~the~~may ~~end~~be ofrequired ~~2024,~~to implement our ~~total~~ GHG emissions, ~~measured~~reduction ~~using~~strategy. aBased ~~market-based~~on ~~approach, were approximately 21% less than~~ our ~~combined~~preliminary ~~Scope~~analysis, 1we ~~and~~do 2not ~~GHG~~expect ~~emissions~~that ~~over~~such ~~our~~capital ~~baseline~~expenditures ~~year~~or ofoperating ~~2019,~~costs ~~which~~will ~~was~~be ~~due~~material ~~in significant part~~ to ~~the~~our ~~decrease~~financial incondition ~~production~~or ~~over~~results ~~the~~of ~~same time period~~operations.

Our baseline measurement will inform a long-term GHG emissions reduction strategy, including setting reduction goals and other key performance areas. Our key initiatives for 2025 and 2026 include: developing our emissions reduction pathways to reduce GHG emissions, undertaking our first Scope 3 emissions inventory, assessing where emission reduction opportunities lie within our value chain, and preparing for and complying with new reporting requirements. We expect to set an emissions reduction goal by the end of 2025 or in early 2026. Our ability to achieve any stated goal is subject to numerous factors and conditions, many of which are outside of our control, including but not limited to, evolving regulatory requirements affecting sustainability standards or disclosures or imposing different requirements, and the pace of changes in available materials and technology. We are currently evaluating our capital expenditures or operating costs that may be required to implement our GHG emissions reduction strategy. However, we do not expect that such capital expenditures or operating costs will be material to our financial condition or results of operations.

Our GHG emissions reduction strategy will continue to evolve, and we expect to share more specific information by the end of 2025 or in early 2026, in conjunction with our emissions reduction target. For information regarding our GHG emissions goals, please see our Sustainability Progress Report, as well as any related addendum or supplement available at www.leggett.com/sustainability. Neither our Sustainability Progress Report, any related addendum or supplement, nor the Leggett website, constitute part of this Quarterly Report on Form 10-Q.

Cybersecurity Risks

We rely on information systems to obtain, process, analyze, and manage data, as well as to facilitate the manufacture and distribution of inventory to and from our facilities. We receive, process, and ship orders, manage the billing of and collections from our customers, and manage the accounting for and payment to our vendors. We also manage our production processes with certain industrial control systems. Consequently, we are subject to cybersecurity risk.

Although we have purchased broad form cyber insurance coverage and strive to provide a balanced level of cybersecurity protections, cybersecurity risk has increased due to ~~remote~~growing ~~access and increased~~ sophistication of cybersecurity adversaries, as well as the increased frequency of cybersecurity attacks, including through the use of artificial intelligence or otherwise. As such, information technology failures or cybersecurity breaches could still create system disruptions or unauthorized disclosure or alterations of confidential information and disruptions to the systems of our third-party suppliers and providers. We cannot be certain that the attacker’s capabilities will not compromise our cybersecurity defenses surrounding our information systems or bypass our detection capabilities, including those resulting from ransomware attached to our industrial control systems. If these systems are interrupted or damaged by any incident or fail for any extended period of time, then our results of operations could be adversely affected. We may incur material remediation costs and cybersecurity protection costs, lost revenues resulting from unauthorized use of proprietary information, material litigation costs, ~~and~~ increases in insurance premiums, reputational damage, damage to our competitiveness, and negative impact on our stock price and long-term shareholder value. We may also be required to devote significant management resources and expend significant additional resources to address problems created by any such interruption, damage, or failure.

on our stock price and long-term shareholder value. We may also be required to devote significant management resources and expend significant additional resources to address problems created by any such interruption, damage, or failure.

NEW ACCOUNTING STANDARDS

The FASB has issued accounting guidance effective for current and future periods. See Note A Interim Presentation to the Consolidated Condensed Financial Statements on page 98 for a more complete discussion.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Interest Rates

Substantially all of our debt is denominated in United States dollars. The fair value of fixed rate debt was approximately $~~180~~205.0 million less than carrying value of $1,~~489~~490.64 million at ~~September~~March 3031, ~~2025~~2026 and approximately $~~245~~175.0 million less than carrying value of $1,~~488~~490.30 million at December 31, ~~2024~~2025. The fair value of fixed rate debt was based on quoted market prices in an active market. The fair value of variable rate debt is not significantly different from its recorded amount.

Investment in Foreign Subsidiaries

We view our investment in foreign subsidiaries as a long-term commitment, and it can vary based on operating cycles and currency rate fluctuations. This investment may take the form of either permanent capital or notes. Our net investment (i.e., total assets less total liabilities subject to translation exposure) in foreign operations with functional currencies other than the U.S. dollar was $1,~~269~~349.58 million at ~~September~~March 3031, ~~2025~~2026 compared to $1,~~022~~315.82 million at December 31, ~~2024~~2025.

Derivative Financial Instruments

We are subject to market and financial risks related to interest rates and foreign currency. In the normal course of business, we utilize derivative instruments (individually or in combinations) to reduce or eliminate these risks. We seek to use derivative contracts that qualify for hedge accounting treatment; however, some instruments may not qualify for hedge accounting treatment. It is our policy not to speculate using derivative instruments. Information regarding cash flow hedges and fair value hedges is provided in Note A Summary of Significant Accounting Policies in the Notes to Consolidated Financial Statements in our Form 10-K filed February 26, ~~2025~~2026 and Note NK Derivative Financial Instruments beginning on page 2318 of the Notes to Consolidated Condensed Financial Statements and is incorporated by reference into this section.

MARKET AND INDUSTRY DATA

Unless indicated otherwise, the information concerning our industries contained herein is based on our general knowledge of and expectations concerning the industries. Our market share is based on estimates using our internal data, data from various industry analyses, internal research, and adjustments and assumptions that we believe to be reasonable. We have not independently verified data from industry analyses and cannot guarantee their accuracy or completeness.

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

The Quantitative and Qualitative Disclosures About Market Risk section under Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations is incorporated herein by reference.

4840

Item 4. Controls and Procedures.

EFFECTIVENESS OF COMPANY'S DISCLOSURE CONTROLS AND PROCEDURES

An evaluation as of ~~September~~March 3031, ~~2025~~2026 was carried out by the Company’s management, with the participation of the Company’s Chief Executive Officer and Chief Financial Officer, of the effectiveness of the Company’s disclosure controls and procedures (as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934, as amended (the Exchange Act)). Based upon this evaluation, the Chief Executive Officer and Chief Financial Officer have concluded the Company’s disclosure controls and procedures were effective, as of ~~September~~March 3031, ~~2025~~2026, to provide assurance that information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified by the Securities and Exchange Commission’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act is accumulated and communicated to the Company’s management, including its Chief Executive Officer and Chief Financial Officer, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.

CHANGES IN THE COMPANY'S INTERNAL CONTROL OVER FINANCIAL REPORTING

There were no changes during the quarter ended ~~September~~March 3031, ~~2025~~2026 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

4941

PART II - OTHER INFORMATION

Item 1. Legal Proceedings.

The information in Note PM Contingencies ~~beginning~~on page 19 and Note N Income Taxes on page 2420 of our Notes to Consolidated Condensed Financial Statements is incorporated into this section by reference. Reference is made to Item 3. Legal Proceedings, ~~and~~ Note TO ~~Contingencies~~Income ~~in the Notes to Consolidated Financial Statements in our Form 10-K filed February 26~~Taxes, ~~2025, Item 1. Legal Proceedings~~ and Note MT Contingencies in the Notes to Consolidated ~~Condensed~~ Financial Statements in our Form 10-QK filed ~~May 7~~February 26, ~~2025, and Item 1~~2026. ~~Legal Proceedings and Note O Contingencies in our Notes to the Consolidated Condensed Financial Statements in our Form 10-Q filed August 7, 2025.~~

MATTRESS ANTIDUMPING MATTERS

Anti-Dumping and Countervailing Order Petitions Regarding Mattresses from China, Cambodia, Indonesia, Malaysia, Serbia, Thailand, Turkey, and Vietnam. On March 31, 2020, the Company, along with Brooklyn Bedding LLC, Corsicana Mattress Company, Elite Comfort Solutions (a Leggett subsidiary), FXI, Inc., Innocor, Inc., Kolcraft Enterprises, Inc., and two labor unions—the International Brotherhood of Teamsters and the United Steelworkers (collectively, the “2020 Petitioners”)—filed petitions with the U.S. Department of Commerce (DOC) and the U.S. International Trade Commission (ITC). The petitions alleged that mattress manufacturers in Cambodia, Indonesia, Malaysia, Serbia, Thailand, Turkey, and Vietnam were selling products in the United States at less than fair value, and that manufacturers in China were receiving unfair subsidies. The DOC imposed antidumping and countervailing duties ranging from 2% to 763%, effective through May 2026. Following appeals, the U.S. Court of International Trade (CIT) upheld the ITC’s injury determination. However, the DOC revoked the order on mattresses from Indonesia, and the 2020 Petitioners filed an appeal with the U.S. Court of Appeals for the Federal Circuit on April 17, 2025, which remains pending. Separately, on February 6, 2025, the DOC determined that revocation of the 2019 antidumping duty order on mattresses from China would likely lead to continued dumping. The DOC extended the order, and duties of up to 1,732% will remain in effect through May 2030.

Anti-Dumping and Countervailing Order Petitions Regarding Mattresses Imported From Indonesia, Bosnia and Herzegovina, Bulgaria, Burma, India, Italy, Kosovo, Mexico, the Philippines, Poland, Slovenia, Spain, and Taiwan. On July 28, 2023, the Company, along with Brooklyn Bedding LLC, Carpenter Company, Corsicana Mattress Company, Future Foam, Inc., FXI, Inc., Kolcraft Enterprises Inc., Serta Simmons Bedding, LLC, Southerland Inc., Tempur Sealy International, and the same two labor unions (collectively, the “2023 Petitioners”), filed petitions with the DOC and ITC. These petitions alleged that mattress manufacturers in Bosnia and Herzegovina, Bulgaria, Burma, India, Italy, Kosovo, Mexico, the Philippines, Poland, Slovenia, Spain, and Taiwan were selling products in the United States at less than fair value, and that manufacturers in Indonesia were receiving unfair subsidies. The ITC issued a preliminary injury determination on September 11, 2023. The DOC made a negative preliminary finding on Indonesian subsidies on December 26, 2023, and therefore did not impose countervailing duties. Final determinations for Bosnia and Herzegovina, Bulgaria, Burma, Italy, Philippines, Poland, Slovenia, and Taiwan were issued on May 9, 2024, with duties ranging from 106% to 745%. The ITC issued its final injury determination on June 11, 2024, and sunset reviews are scheduled for June 2029. For India, Kosovo, Mexico, and Spain, final DOC determinations were published on July 22, 2024, with duties ranging from 5% to 345%. The ITC issued its final injury determination for those countries on August 28, 2024. Although the case is resolved with respect to duties and injury findings, an importer has appealed the ITC’s critical circumstances determination imposing retroactive duties. That appeal remains pending.

~~Environmental~~Bosnia ~~Matters~~and Herzegovina, Bulgaria, Burma, India, Italy, Kosovo, Mexico, the Philippines, Poland, Slovenia, Spain, and Taiwan. On July 28, 2023, the Company, along with Brooklyn Bedding LLC, Carpenter Company, Corsicana Mattress Company, Future Foam, Inc., FXI, Inc., Kolcraft Enterprises Inc., Serta Simmons Bedding, LLC, Southerland Inc., Tempur Sealy International, and the same two labor unions (collectively, the “2023 Petitioners”), filed petitions with the DOC and ITC. These petitions alleged that mattress manufacturers in Bosnia and Herzegovina, Bulgaria, Burma, India, Italy, Kosovo, Mexico, the Philippines, Poland, Slovenia, Spain, and Taiwan were selling products in the United States at less than fair value, and that manufacturers in Indonesia were receiving unfair subsidies. The ITC issued a preliminary injury determination on September 11, 2023. The DOC made a negative preliminary finding on Indonesian subsidies on December 26, 2023, and therefore did not impose countervailing duties. Final determinations for Bosnia and Herzegovina, Bulgaria, Burma, Italy, Philippines, Poland, Slovenia, and Taiwan were issued on May 9, 2024, with duties ranging from 106% to 745%. The ITC issued its final injury determination on June 11, 2024, and sunset reviews are scheduled for June 2029. For India, Kosovo, Mexico, and Spain, final DOC determinations were published on July 22, 2024, with duties ranging from 5% to 345%. The ITC issued its final injury determination for those countries on August 28, 2024. Although the case is resolved with respect to duties and injury findings, an importer has appealed the ITC’s critical circumstances determination imposing retroactive duties. That appeal remains pending.

~~Item~~On ~~103~~November of18, 2025, the ~~SEC's~~Company, ~~Regulation~~along ~~S-K~~with ~~requires~~the ~~disclosure~~2023 ofPetitioners, ~~certain~~filed ~~environmental~~with ~~matters~~the ~~when~~DOC arequests ~~governmental authority is a party~~ to ~~the~~initiate ~~proceedings~~anti-circumvention ~~and~~inquiries ~~the~~on ~~proceedings~~mattress ~~involve~~component ~~potential~~imports ~~monetary~~from ~~sanctions~~Poland, ~~unless we reasonably believe the monetary sanctions~~Mexico, ~~exclusive~~and ofMalaysia. ~~interest~~The ~~and~~requests ~~costs,~~allege ~~will~~that ~~not~~mattress ~~equal~~components orare ~~exceed~~being aimported ~~threshold~~from ~~which~~these wethree ~~determine~~countries isand ~~reasonably~~assembled ~~designed~~into tofinished ~~result~~mattresses in ~~disclosure~~the ofUnited ~~any~~States, ~~such~~which ~~proceeding~~are ~~that~~then issold ~~material~~in tothe ~~our~~United ~~business or financial condition~~States. ~~Item~~The ~~103~~anti-circumvention ~~states~~requests allege that the ~~disclosure~~assembly ~~threshold~~of these components is ~~$300,000,~~minor or atinsignificant ~~our~~under ~~election,~~the alaw ~~threshold~~and ~~that~~as ~~does~~a ~~not~~result, ~~exceed~~ the ~~lesser~~mattress ofcomponent $1imports ~~million~~from orPoland, ~~one~~Mexico, ~~percent~~and ofMalaysia ~~our~~are ~~consolidated~~allegedly ~~current~~circumventing anti-dumping orders.

5042

~~assets.~~CHINA WeWITHHOLDING ~~have~~TAX ~~determined such disclosure threshold to be $1 million. We have no environmental matters to disclose for this period under this threshold.~~MATTERS

The Company’s Chinese subsidiaries received formal tax assessments from three local tax authorities in China (Zhaoqing, Jiaxing, and Wuxi) totaling approximately $24 million, in the aggregate, with each assessment relating to an alleged failure to satisfy beneficial owner requirements for purposes of applying reduced dividend withholding tax rates. The assessments assert that dividends paid by our Chinese subsidiaries to a non-Chinese parent within the Company’s organizational structure should have been subject to a 10% withholding tax rate rather than the 5% rate applied.

Zhaoqing Assessment. On January 26, 2026, our subsidiary, Hong Kong Veilon Limited, received an assessment from the Zhaoqing High-tech Industrial Development Zone Tax Bureau associated with dividends it received covering the 2021 through 2024 tax periods. The assessment includes tax and penalties totaling approximately $12 million. We plan to make this payment to preserve the Company’s appeal rights. The matter is expected to proceed through the administrative appeal process, and litigation may occur if administrative remedies are exhausted.

Jiaxing Assessment. On April 3, 2026, our subsidiary, Leggett & Platt Asia Limited, received an assessment from the Wangjiangjing Tax Office, Xiuzhou District Tax Bureau, Jiaxing City associated with dividends it received covering the 2021 through 2024 tax periods. The assessment includes tax and penalties totaling approximately $5 million. This assessment is currently under review. The Company has posted a guarantee and is preparing responses and evaluating next steps.

Wuxi Assessment. On April 8, 2026, our subsidiary, Leggett & Platt Asia Limited, received an assessment from the Wuxi Huishan District Tax Bureau – Luoshe Tax Branch associated with dividends it received covering the 2021 through 2025 tax periods. The assessment includes tax and penalties totaling approximately $7 million. This assessment is currently under review. The Company has posted a guarantee and is preparing responses and evaluating next steps.

IEEPA DUTY REFUNDS

Information regarding potential International Emergency Economic Powers Act (IEEPA) duty refunds is provided in the “Major Factors That Impact Our Business: Tariffs Impacting Our Business” section in Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations on page 23 and is incorporated by reference into this section.

ENVIRONMENTAL MATTERS

Item 103 of the SEC's Regulation S-K requires disclosure of certain environmental matters when a governmental authority is a party to the proceedings and the proceedings involve potential monetary sanctions, unless we reasonably believe the monetary sanctions, exclusive of interest and costs, will not equal or exceed a threshold which we determine is reasonably designed to result in disclosure of any such proceeding that is material to our business or financial condition. Item 103 states that the disclosure threshold is $300,000, or at our election, a threshold that does not exceed the lesser of $1 million or one percent of our consolidated current assets. We have determined such disclosure threshold to be $1 million. We have no environmental matters to disclose for this period under this threshold.

Item 1A. Risk Factors.

Our ~~2024~~2025 Annual Report on Form 10-K, filed on February 26, ~~2025~~2026, includes a detailed discussion of our risk factors in Item 1A. Risk Factors, which is incorporated herein by reference. The information presented below updates and should be read in conjunction with the risk factors and information disclosed in that Form 10-K.

Investing in our securities involves risk. Set forth below and elsewhere in this report are risk factors that could cause actual results to differ materially from the results contemplated by the forward-looking statements contained in this report. We may amend or supplement these risk factors from time to time by other reports we file with the SEC.

~~OPERATIONAL~~SOMNIGROUP MERGER RISK FACTORS

~~Supply~~The ~~chain~~Company's ~~disruptions~~shareholders ~~and~~cannot ~~shortages~~be ~~impacting~~sure ~~our~~of ~~ability~~the tovalue ~~timely~~of ~~receive~~the ~~competitively~~consideration ~~priced~~they ~~raw~~will ~~materials~~receive ~~and~~in ~~parts~~the ~~used~~Somnigroup inMerger, ~~our~~if ~~products~~completed, orbecause ~~impacting~~the ~~our~~exchange ~~ability~~ratio tois ~~timely~~fixed ~~deliver~~and ~~our~~the ~~finished~~market ~~products to~~price ~~customers,~~of ~~may~~Somnigroup ~~adversely~~common ~~affect~~stock ~~our~~has ~~manufacturing~~fluctuated ~~processes,~~and ~~financial~~will ~~condition,~~continue ~~results~~to ~~of operations, and cash flows~~fluctuate.

WeIf ~~have~~the ~~manufacturing~~Somnigroup ~~facilities~~Merger inis ~~18 countries~~completed, ~~primarily~~each ~~located~~share inof ~~North~~the ~~America,~~Company's ~~Europe,~~common ~~and~~stock ~~Asia.~~outstanding Inimmediately ~~our~~prior ~~manufacturing~~to ~~processes,~~the weSomnigroup ~~source~~Merger ~~raw~~will ~~materials~~automatically ~~and~~be ~~parts~~converted ~~from~~into athe ~~global~~right ~~supply~~to ~~chain~~receive 0.1455 Weshares ~~sell~~of Somnigroup common stock and, ~~deliver~~if ~~our~~applicable, ~~finished~~cash ~~products~~in tolieu ~~customers~~of ~~all~~fractional ~~over~~shares (the ~~world~~Somnigroup Merger Consideration). WeBecause ~~rely~~the onexchange ~~third~~ratio ~~parties~~is tofixed, ~~supply~~the ~~certain~~value ~~raw~~of ~~materials,~~the ~~components,~~Somnigroup ~~and~~Merger ~~packaging~~Consideration ~~and~~will ~~deliver~~depend ~~our~~on ~~finished~~the ~~products.~~market ~~Any~~price ~~interruption~~of orSomnigroup ~~failure~~common bystock ~~our~~at ~~suppliers~~the totime ~~meet~~the ~~their~~Somnigroup ~~obligations~~Merger onis ~~schedule~~completed. ~~could~~The ~~adversely~~value ~~affect~~of ~~our~~Somnigroup ~~business~~common ~~and~~stock ~~financial~~has ~~results.~~fluctuated Insince ~~past~~the ~~years,~~date weof ~~have~~the ~~experienced~~announcement ~~supply~~of ~~chain~~the ~~disruptions~~unsolicited ~~related~~offer made by Somnigroup to ~~foam~~acquire ~~chemical~~the ~~shortages,~~Company ~~semiconductor~~and ~~shortages,~~will ~~labor~~continue ~~availability~~to fluctuate. Accordingly, ~~and~~the ~~freight~~Company's ~~challenges,~~shareholders aswill ~~well~~not asknow ~~higher~~or ~~costs~~be ~~associated~~able ~~with~~to ~~each~~determine the market value of ~~these~~the ~~issues~~Somnigroup Merger Consideration they would receive upon completion of the Somnigroup Merger. WeShare ~~have~~price ~~also~~changes ~~experienced~~may ~~delays~~result infrom ~~delivery~~a variety of ~~materials~~factors, ~~parts~~including, among others, general market and ~~finished~~economic ~~goods~~conditions, ~~because~~changes ofin ~~delivery~~Somnigroup’s ~~port~~and ~~disruptions,~~the ~~trucking~~Company's ~~constraints~~respective businesses, operations and ~~inclement~~prospects, ~~weather.~~market Atassessments ~~times,~~of ~~this~~the ~~has~~likelihood ~~resulted~~that inthe ~~reduced~~Somnigroup ~~volume~~Merger ~~and~~will ~~higher~~be ~~costs~~completed inand ~~many~~the timing of ~~our~~the ~~businesses,~~Somnigroup ~~including~~Merger ~~our~~and ~~Specialized~~regulatory ~~Products~~considerations. ~~and~~Many ~~Bedding~~of ~~Products~~these ~~segments~~factors are beyond the Company's control.

WeCompletion ~~also~~of ~~bear~~ the ~~risk~~Somnigroup ofMerger ~~delays~~is orsubject ~~non-delivery~~to ~~from~~certain ~~our~~conditions, ~~suppliers~~including orapproval ~~reduced~~of ~~demand from~~ our ~~customers~~shareholders ~~because~~and ofcertain ~~natural~~governmental ~~disasters,~~and ~~fires,~~regulatory ~~explosions~~approvals, ~~terrorism,~~and ~~pandemics,~~if ~~labor~~these ~~strikes,~~conditions ~~foreign~~are ~~government~~not ~~action~~satisfied ~~including asset seizure, changed licensing,~~ or ~~land use requirements which restrict operations~~waived, ~~or other reasons beyond our control or~~ the ~~control~~Somnigroup ofMerger ~~our~~will ~~suppliers,~~not ~~some~~be ~~of which have impaired and could continue to impair our ability to timely manufacture and deliver our products~~completed.

~~Labor~~The ~~strikes~~completion of the Somnigroup Merger is subject to satisfaction or ~~shutdowns~~waiver atof ~~delivery~~certain ~~ports~~customary closing conditions, ~~loss~~including (i) the adoption of orthe ~~damage~~Somnigroup toMerger ~~raw~~Agreement ~~materials,~~by ~~parts~~the Company's shareholders, (ii) the expiration or ~~finished~~termination ~~products~~of ~~while~~any ~~they~~applicable ~~are~~waiting inperiod ~~transit~~under orthe ~~storage~~Hart-Scott-Rodino Antitrust Improvements Act of 1976, ~~losses~~as ~~due~~amended to(the ~~tampering~~HSR Act), ~~third-party~~and ~~vendor~~the ~~issues~~receipt ~~with~~of ~~quality~~any consents, ~~failure~~authorizations, byapprovals, ~~our~~orders, ~~suppliers~~filings and declarations relating to ~~comply~~the ~~with~~Somnigroup ~~applicable~~Merger pursuant to certain specified competition laws ~~and~~in ~~regulations~~the U.S. or foreign jurisdictions, ~~tariffs~~(iii) the absence of any injunction or other ~~trade~~order ~~restrictions,~~issued by a court of competent jurisdiction or ~~similar~~applicable ~~problems~~law or legal prohibition prohibiting or making illegal the consummation of the Somnigroup Merger, ~~some~~(iv) the effectiveness of the Registration Statement on Form S-4 to be filed by Somnigroup pursuant to which ~~have~~the ~~and~~shares ~~could~~of ~~continue~~Somnigroup common stock to ~~restrict~~be issued in connection with the Somnigroup Merger will be registered with the SEC, and the absence of any stop order suspending such effectiveness or ~~delay~~proceeding for the ~~supply~~purpose of ~~raw~~suspending ~~materials,~~such ~~parts,~~effectiveness being pending before or ~~finished~~threatened ~~products~~by the SEC, ~~resulting~~and (v) approval for listing on the NYSE of the shares of Somnigroup common stock to be issued in ~~harm~~connection with the Somnigroup Merger. The obligation of each party to ~~our~~consummate ~~business~~the Somnigroup Merger is also conditioned upon (i) the other party having performed in all material respects its obligations under the Somnigroup Merger Agreement, (ii) the other party's representations and warranties in the Somnigroup Merger Agreement being true and correct (subject to certain materiality qualifiers) and (iii) the other party having not experienced a material adverse effect. There can be no assurance that the conditions to the closing of the Somnigroup Merger will be satisfied or waived or that the Somnigroup Merger will be completed.

In addition, our business has been and may continue to be adversely impacted by disruptions in our customers’ production schedules resulting from supply chain disruptions. A key supplier of aluminum components to multiple automotive OEM manufacturers recently experienced operational challenges that have negatively impacted the automotive OEM manufacturers' production schedules. As a result, our Automotive Group's U.S. sales have been adversely affected. If such disruptions continue or expand to other suppliers or customers, our business, financial condition, and results of operations could continue to be adversely impacted.44

~~The~~Failure ~~aforementioned~~to ~~supply~~complete ~~chain~~the ~~risks~~Somnigroup ~~can~~Merger ~~materially~~could ~~adversely~~negatively ~~affect~~impact ~~our~~the ~~manufacturing~~share ~~processes,~~price ~~financial~~and ~~condition,~~the ~~results~~future ofbusiness ~~operations,~~ and ~~cash~~financial ~~flows~~results of the Company.

51The Somnigroup Merger may not be completed within the expected timeframe, or at all, as a result of various factors and conditions, some of which may be beyond our control. If the Somnigroup Merger is not completed for any reason or any other condition not being satisfied or waived, the ongoing businesses of the Company may be adversely affected, and without realizing any of the benefits of having completed the Somnigroup Merger, the Company would be subject to a number of risks, including the following:

~~Our~~•the ~~2024~~Company ~~Restructuring Plan~~ may ~~not~~experience ~~achieve~~negative ~~its~~reactions ~~intended~~from ~~outcomes,~~the ~~and~~financial ~~we may incur restructuring costs~~markets, ~~restructuring-related~~including ~~costs,~~negative ~~and~~impacts ~~impairments~~on inits ~~addition~~stock ~~to those anticipated to be incurred in connection with our announced 2024 Restructuring Plan.~~price;

~~In 2024, we committed to a restructuring plan (~~•the ~~2024~~Company ~~Restructuring~~may ~~Plan~~experience ornegative ~~2024~~reactions ~~Plan).~~from ~~The~~its ~~2024 Plan is primarily associated with our Bedding Products segment and includes~~customers, toregulators ~~a lesser extent, our Furniture, Flooring & Textile Products segment, an opportunity within the Specialized Products segment,~~ and general and administrative cost structure initiatives. Over the course of the restructuring timeline, we expect to consolidate between 15 and 20 production and distribution facilities in the Bedding Products segment and a small number of production facilities in the Furniture, Flooring & Textile Products segment.employees;

~~Our 2024 accomplishments pursuant to~~ •the ~~2024~~Company ~~Plan~~will ~~included~~be ~~the~~required ~~following:~~to Inpay ~~Bedding~~certain ~~Products,~~costs werelating (i) consolidated 14 production and distribution facilities (ten in U.S. Spring, three in Specialty Foam, and one in Adjustable Bed), which included consolidating all domestic innerspring production into our four larger remaining innerspring production facilities and exiting our Mexican innerspring operation; (ii) downsized our Chinese innerspring operation; and (iii) sold two properties. In Specialized Products, we launched restructuring activities in our Hydraulic Cylinders business to ~~optimize~~the ~~manufacturing~~Somnigroup ~~and improve operating efficiencies. In Furniture~~Merger, ~~Flooring~~whether &or ~~Textile~~not ~~Products, we closed one facility each in~~ the ~~Home~~Somnigroup ~~Furniture~~Merger ~~and~~is ~~Flooring Products business units. Finally, we reduced corporate general and administrative expenses, which are expected to be realized fully in 2025.~~ completed;

~~2025~~•the ~~progress~~Somnigroup ~~pursuant~~Merger toAgreement ~~the~~places ~~2024~~certain ~~Plan~~restrictions ~~included~~on the ~~following:~~conduct Inof ~~Bedding~~the ~~Products,~~Company's webusinesses ~~divested~~prior ato ~~small~~completion ~~U.S.~~of ~~machinery~~the ~~business,~~Somnigroup ~~consolidated one Specialty Foam production facility~~Merger, and ~~sold~~such ~~two~~restrictions, ~~properties.~~the Inwaiver ~~Specialized~~of ~~Products,~~which weare ~~continued~~subject to the ~~implementation~~written consent of ~~manufacturing~~Somnigroup, ~~efficiency~~and ~~improvement~~subject ~~activities~~to incertain ~~Hydraulic~~exceptions ~~Cylinders~~ and ~~right-sized~~qualifications, ~~our~~may ~~Hydraulic~~prevent ~~Cylinders~~the ~~facility~~Company infrom ~~the~~taking ~~UK.~~certain Inother ~~Furniture,~~specified ~~Flooring~~actions &or ~~Textile~~otherwise ~~Products,~~pursuing webusiness ~~completed~~opportunities ~~Phase~~during 1the ~~and~~pendency ~~launched~~of ~~Phase~~the 2Somnigroup ofMerger ~~our~~that ~~consolidation~~the ~~efforts~~Company inwould ~~Flooring~~have ~~Products~~made, ~~consolidated~~taken ~~two~~or ~~Flooring~~pursued ~~Products~~if ~~production~~these ~~facilities,~~restrictions ~~and~~were ~~sold~~not ~~one~~in ~~property.~~place; and

~~Below~~•matters isrelating ato ~~table containing~~ the ~~2024~~Somnigroup ~~Restructuring~~Merger ~~Plan~~(including ~~costs~~integration ~~and~~planning) ~~proceeds~~will ~~from~~require ~~the~~substantial ~~sale~~commitments of ~~real~~time ~~estate~~and ~~incurred~~resources orby ~~realized~~the inCompany's ~~2024~~management, ~~and~~which inwould ~~the~~otherwise ~~nine~~have ~~months~~been ~~ended~~devoted ~~September 30,~~to ~~2025,~~day-to-day ~~along~~operations ~~with~~and ~~our~~other ~~estimates~~opportunities ~~for~~that ~~the~~may ~~full~~have ~~year~~been ~~2025~~beneficial ~~and~~to ~~for~~ the ~~total~~Company ~~Plan:~~as an independent company.

(Dollar amounts in millions-all pretax)	2024Actual		Nine Months Ended September 30, 2025		Full Year Estimatesfor 2025		Total PlanEstimate
Plan activity:
Restructuring and restructuring-related costs:
Cash	$	30	$	8	$	10	$	40
Non-cash	18		3		15		35
Total costs	$	48	$	11	$	25	$	75
Pretax net cash from real estate 1	$	20	$	23	$23 to $40		$70 to $80

The Somnigroup Merger Agreement does not allow the Company to solicit alternative acquisition proposals. In the event of a termination of the Somnigroup Merger Agreement under certain circumstances specified in such agreement, the Company may be required to pay a termination fee of $64 million to Somnigroup. This payment could affect the structure, pricing and terms proposed by a third party seeking to acquire or merge with the Company and could discourage a third party from making a competing acquisition proposal, including a proposal that would be more favorable to the Company’s shareholders than the Somnigroup Merger.

~~1 This~~There iscan ~~only~~be ~~related~~no toassurance that the ~~2024~~risks ~~Plan~~described ~~and~~above ~~does~~will not ~~include the sale of idle real estate~~materialize. ~~The~~If ~~proceeds~~any ~~from the 2024 sale~~ of ~~real~~those ~~estate~~risks ~~resulted~~materialize, inthey amay ~~pretax~~materially ~~gain~~and ofadversely ~~$17~~affect ~~million. Real estate sold through~~ the ~~nine~~Company's ~~months~~businesses, ~~ending~~financial ~~September 30~~condition, ~~2025~~financial ~~resulted~~results, inratings, abond ~~pretax~~prices ~~gain of $19 million. The remaining real estate sales proceeds are expected to be received either in the fourth quarter of 2025~~ and/or ~~during~~share ~~2026 due to timing of listing properties~~price.

~~EBIT~~The ~~Benefit:~~Company will be subject to various uncertainties while the Somnigroup Merger is pending that may cause disruption and may make it more difficult to maintain relationships with customers and other third-party business partners.

WeThe ~~expect~~Company’s ~~annualized~~efforts ~~EBIT~~to ~~benefit~~complete the Somnigroup Merger could cause substantial disruptions in, and create uncertainty surrounding, its business, which may materially adversely affect its results of ~~$60–$70~~operation ~~million~~and its business. Uncertainty as to whether the Somnigroup Merger will be ~~realized~~completed ~~after~~may ~~initiatives~~affect ~~are~~the ~~fully~~Company’s ~~implemented~~ability to recruit prospective employees or to retain and motivate existing employees. Employee retention may be particularly challenging while the Somnigroup Merger is pending because employees may experience uncertainty about their roles following the Somnigroup Merger. As mentioned above, a substantial amount of our management’s and employees’ attention is being directed toward the completion of the Somnigroup Merger and thus is being diverted from our day-to-day operations. Uncertainty as to the Company’s future could materially adversely affect its business and its relationship with customers and potential customers, including the loss of business with Somnigroup. For example, customers, suppliers and other third parties may defer decisions concerning working with the Company, or seek to change existing business relationships with the Company. Changes to or termination of existing business relationships could adversely affect the Company’s revenue, earnings and financial condition, as well as the market price of Leggett & Platt common stock. The adverse effects of the pendency of the Somnigroup Merger could be exacerbated by any delays in completion of the Somnigroup Merger or termination of the Somnigroup Merger Agreement.

~~•We realized $22 million for the full year 2024.~~45

~~•We~~Potential ~~expect~~litigation ~~approximately~~against ~~$40~~the ~~million~~Company ofcould ~~incremental~~result ~~benefit~~in tosubstantial becosts, ~~realized~~prevention inor ~~the~~delay ~~full~~of ~~year~~the ~~2025,~~completion of ~~which~~the ~~$36~~Somnigroup ~~million~~Merger, ~~was~~and/or ~~realized~~a judgment resulting in the ~~nine~~payment ~~months~~of ~~ended September 30, 2025~~damages.

~~•We~~The ~~expect~~Company upcould be subject to ~~$10~~litigation ~~million~~related ofto ~~incremental~~any ~~benefit~~failure into ~~2026~~complete the Somnigroup Merger or related to any enforcement proceeding commenced against the Company to perform its obligations under the Somnigroup Merger Agreement. If the Somnigroup Merger is not completed, these risks may materialize and may adversely affect the Company's businesses, financial condition, financial results, ratings, share prices and/or bond prices.

52Securities class action lawsuits and derivative lawsuits are often brought against public companies that have entered into merger agreements. Shareholders of the Company may file lawsuits against Somnigroup, the Company and/or the directors and officers of either company in connection with the Somnigroup Merger, which may result in payment of damages. These lawsuits could prevent or delay the completion of the Somnigroup Merger and result in substantial costs to the Company, including any costs associated with the indemnification of directors and officers. There can be no assurance that any of the defendants will be successful in the outcome of any potential lawsuits.

~~Sales~~The ~~Attrition:~~Company has incurred and will continue to incur significant transaction and merger-related costs in connection with the Somnigroup Merger.

WeThe ~~anticipate~~Company ~~approximately~~has ~~$60~~incurred ~~million~~and expects to continue to incur a number of ~~annual~~non-recurring ~~sales~~costs ~~attrition~~associated ~~after~~with ~~initiatives~~the ~~are~~Somnigroup ~~fully~~Merger. ~~implemented~~The significant non-recurring costs associated with the Somnigroup Merger include, among others, fees and expenses of financial advisors and other advisors and representatives, certain employment-related costs relating to employees of the Company and filing fees due in connection with filings required under the HSR Act. Some of these costs have already been incurred or may be incurred regardless of whether the Somnigroup Merger is completed, including a portion of the fees and expenses of financial advisors and other advisors and representatives.

•We realized $15 million for the full year 2024.

•We expect approximately $5 million of incremental sales attrition in 2026.

2024 Plan costs are expected to be substantially complete by the end of 2025.

The market transition risks related to climate change could adversely affect our business, results of operations, and financial condition.

We are engaged in the manufacture of various automotive components, including lumbar supports and massage systems for seating, seat suspension systems, motors and actuators, and cables.

For several decades, automotive manufacturers have sought lightweight components designed to increase fuel efficiency in the automobiles they manufacture. Replacing traditional steel components with lightweight alternatives can directly reduce the weight of a vehicle's body and chassis and therefore reduce a vehicle's fuel consumption. This increased fuel efficiency also indirectly reduces greenhouse gas (GHG) emissions. If we are unable to respond effectively to these evolving market dynamics, continue to react to changes in technology, successfully develop new and innovative products, or successfully respond to evolving business trends, including continuing to produce comparatively lightweight and EV-compatible components, our share in these markets could be materially negatively impacted.

Driven in part by climate change legislation, the global automotive industry has experienced a rapid acceleration in the transition from internal combustion engine vehicles to electric vehicles (EVs). According to the International Energy Agency, EVs are expected to represent more than 25% of all new car sales worldwide in 2025. China has emerged as a global leader in EV adoption, with Chinese EV manufacturers gaining market share at the expense of our multinational automotive OEM customer base. This shift has intensified competitive pressures across traditional automotive supply chains and has begun to impact our market share, particularly in regions where Chinese EV manufacturers have seen success in competing on price. If our multinational automotive OEM customers are unable to compete effectively with the Chinese EV manufacturers, their market share could continue to be further reduced, which could negatively impact the demand for our Automotive products and adversely harm our business, financial condition, and results of operations.

Global economic, political, legal, and business factors could adversely impact our business.

We operate in global markets. Approximately 40% of our sales in 2024 were generated outside the United States. In addition, as of December 31, 2024, 48 manufacturing facilities and approximately one-third of our tangible long-lived assets were located outside the United States. Our reliance on sales and manufacturing facilities outside the United States expose us to a number of risks, including price and currency controls; sanctions, export controls or trade restrictions, including import and export tariffs; extraterritorial effects of U.S. laws; expropriation of assets; war; civil uprisings; political instability; nationalization of manufacturing facilities or private enterprises; hyperinflationary conditions; the necessity of governmental approvals for products and operations, currency conversion, cash repatriation; and laws and regulations that may be arbitrarily applied.

We have 13 manufacturing facilities in China as of December 31, 2024 that contribute significantly to our earnings (through both trade sales and as intercompany suppliers to our operating locations outside of China),

primarily within our Specialized Products segment. We also have third-party suppliers who are located in China. China presents unique risks due to ongoing tensions in U.S.-China relations, China’s distinct regulatory landscape, tariffs and counter-tariffs specific to China, China’s level of integration with key components in our global supply chain, and the limited availability of various components and materials, including certain rare earth elements, that are largely unique to China, among other risks.

These factors have resulted in, and could continue to result in, among other things, supply chain or production disruptions, lower consumer demand, compressed profit margins, unfavorable foreign currency exchange rates, and new laws, regulations, restrictions, and tariffs, any of which could materially negatively impact our business, results of operations, financial condition, and cash flows.

GEOPOLITICAL RISK FACTORS

~~Geopolitical~~The ~~conflicts~~conflict orinvolving ~~export~~the ~~restrictions~~United ~~have~~States, ~~decreased~~Israel, and ~~could~~Iran ~~continue~~and torelated ~~decrease,~~geopolitical ~~the~~instability ~~availability~~has ofaffected, ~~semiconductors~~ and~~/or~~ ~~other~~may ~~automotive~~continue ~~products,~~to ~~impacting~~adversely affect, our ~~operations globally~~business.

~~Our~~A ~~OEM~~military ~~and~~conflict ~~Tier~~involving 1the ~~manufacturer~~United ~~customers~~States, ~~use semiconductors~~Israel, orand ~~components~~Iran ~~containing~~commenced ~~semiconductors~~in February 2026, ~~and~~which ~~other~~has ~~automotive~~led ~~components,~~to ~~such~~disruptions asin ~~electric~~shipping through the Strait of Hormuz. The conflict and ~~hybrid~~any ~~vehicle~~further ~~motors~~escalation, ~~batteries~~including additional military actions, ~~etc.~~retaliatory measures, insanctions, ~~their~~disruptions ~~manufacture~~to oftrade ~~automotive~~or ~~components~~transportation ~~and/~~routes, cyberattacks (including via artificial intelligence or ~~vehicles.~~otherwise), ~~This~~or ~~supply~~other isgovernmental ~~currently~~or ~~challenged~~market responses, has led and could continue to belead ~~challenged.~~to, ~~According~~significant disruptions to ~~certain~~global ~~market~~energy ~~reports~~supplies, ~~Taiwan~~increases ~~and~~in global energy prices, toheightened ainflationary ~~lesser~~pressures, ~~extent~~and adverse impacts on global supply chains, ~~China~~energy ~~are~~markets, ~~leading~~commodity ~~manufacturers~~prices, prices of ~~the~~inputs ~~world’s~~and ~~semiconductor~~raw ~~supply.~~materials, ~~Conflict~~gasoline ~~between~~prices, ~~China~~shipping ~~and~~rates, ~~Taiwan~~currency ~~has~~exchange ~~led~~rates, financial markets and ~~could~~overall ~~continue~~macroeconomic toconditions. ~~lead~~Although not material, toin ~~trade~~April ~~sanctions~~2026, ~~export~~the ~~controls,~~Iranian ~~technology~~government ~~disputes~~seized a commercial vessel transporting containers of goods purchased by one of our subsidiaries. Furthermore, orIranian strikes on two energy fields in Qatar that supply ~~chain~~a ~~disruptions,~~meaningful ~~which~~percentage ~~has~~of ~~affected~~the ~~and~~world ~~could~~supply ~~continue~~of tohelium ~~affect~~have resulted in a global shortage of this gas that is essential to the semiconductor ~~industry~~manufacturing process. InWe ~~addition,~~continue ~~China~~to ~~has~~monitor ~~implemented~~the ~~export~~potential ~~restrictions~~impact this conflict could have on ~~several~~the ~~critical~~availability ~~minerals,~~of ~~including~~semiconductors ~~rare~~and ~~earth~~on ~~elements~~our ~~like~~Automotive ~~dysprosium,~~Group. ~~terbium~~In addition, ~~and~~the ~~samarium~~conflict has placed, asand ~~well~~may ascontinue ~~tungsten,~~to ~~tellurium~~place, ~~bismuth,~~further ~~indium,~~pressure ~~and~~on ~~molybdenum.~~the ~~These~~availability ~~minerals~~and ~~are~~pricing ~~crucial~~of ~~for~~petroleum‑based ~~semiconductors~~products and chemicals, ~~electric~~including ~~and~~chemicals ~~hybrid~~used ~~vehicle~~in ~~motors,~~foam ~~batteries,~~production in our Bedding Products segment and ~~other~~petroleum-based ~~automotive~~products ~~components.~~sold ~~Geopolitical~~by ~~conflicts~~our Furniture, ~~export~~Flooring ~~restrictions,~~& ~~and~~Textile ~~tariffs~~Products ~~have~~segment. ~~led~~If ~~and~~we ~~could~~are ~~continue~~unable to ~~lead~~pass tothrough ~~decreased~~additional ~~availability~~costs ofcreated ~~these~~by ~~components~~this conflict, ~~negatively~~it ~~impacting~~could ~~our~~result ~~OEM~~in materially lower margins, lost sales, and ~~Tier~~an 1overall ~~manufacturer~~adverse ~~customers'~~effect ~~supply~~on ~~chains~~our ~~and~~results ~~production~~of ~~schedules~~operations.

InThe ~~September~~conflict ~~2025~~has contributed, aand ~~Chinese-owned~~may ~~chip~~continue ~~maker~~to contribute, ~~who~~to isbroader ainflationary ~~key~~pressures ~~supplier~~and ofincreased ~~basic~~energy ~~automotive~~costs ~~semiconductors~~for consumers, ~~halted~~which ~~shipments~~has ~~following~~affected ~~the~~and ~~Dutch~~may ~~government's~~continue ~~seizure~~to ofadversely affect customer spending patterns and demand for products in the ~~company's~~markets ~~Netherlands~~we ~~operations~~serve. ~~This~~Heightened ~~supply~~geopolitical ~~chain~~uncertainty, ~~disruption~~reduced consumer confidence, ~~coupled~~inflationary ~~with~~pressures ~~newly~~on ~~adopted~~consumer ~~Chinese~~goods, ~~export~~or ~~restrictions~~sustained ~~targeting~~increases ~~the~~in ~~company's~~gasoline ~~Chinese~~and ~~operations,~~other ~~has~~energy‑linked ~~led~~costs, have adversely impacted and could continue to ~~lead~~adversely affect demand for our products and negatively impact our business, tofinancial ~~decreased~~condition, ~~availability~~and results of ~~these components~~operations.

If our OEM and Tier 1 manufacturer customers are unable to obtain appropriate amounts of these components for vehicle production, then demand for our Automotive products could be reduced, which could adversely harm our business, financial condition, and results of operations. In addition, any outbreak of hostilities or conflict between China and Taiwan could harm our operations globally and the operations of our customers and suppliers.46

FINANCIAL RISK FACTORS

Our borrowing costs have been and may continue to be, and access to liquidity could be, impacted by lower credit ratings.

Independent rating agencies evaluate our credit profile and have assigned ratings for our debt, which are reevaluated from time to time. ~~One of our credit rating agencies recently lowered our credit rating. Our credit ratings could be lowered further.~~ In the past, rating downgrades have resulted in, and could continue to result in, higher interest rates. Lower credit ratings could adversely affect our sources of borrowing and our financial arrangements, including access to the capital markets, commercial paper market, our lending agreements, and supply chain financing arrangements. As a result of the announcement of the Somnigroup Merger Agreement, independent rating agencies have placed us under a negative credit watch, which could lead to a downgrade and affect our ability to borrow in the commercial paper market. If our ability to access and raise debt in the capital markets or meet our short-term borrowing needs in the commercial paper market is limited, we may be required to borrow under our credit facility to fund our liquidity needs. Lower credit ratings have resulted in, and could continue to result in, increased borrowing costs.

Our customers' inability to pay us and take delivery of previously ordered inventory in accordance with their terms could negatively impact our earnings, liquidity, cash flow, and financial condition.

Some of our customers have suffered financial difficulty. As a result, some of our customers have been unable to pay their debts to us, have exhibited slow payments, have rejected their contractual obligations to us under bankruptcy laws or otherwise, or we have had to negotiate significant discounts and/or extend financing terms with these parties. In addition, we have had to write down inventory related to these customers. These issues may continue.

We monitor our receivables and inventory closely and make reserve decisions based upon individual customer risk reviews, aging of customer accounts, historical loss experience, and general macroeconomic and industry trends that could impact the expected collectability of all customers or pools of customers with similar risk.

We recorded bad debt expense of $5 million and $9 million during the first nine months of 2025 and 2024, respectively. Inventory write-downs for the first nine months of 2025 were $11 million versus $25 million in the first nine months of 2024, some of which were related to customer-specific inventory. If our customers are unable to pay us and take delivery of previously ordered inventory on a timely basis, larger reserves may be required and may result in a negative impact on our earnings, liquidity, cash flow, and financial condition.

Our goodwill and other long-lived assets have been, and could be, subject to impairment which could negatively impact our earnings.

The annual goodwill impairment testing in the second quarter of 2025 indicated no impairments. As of June 30, 2025, the fair values of all reporting units exceeded their respective carrying amounts by less than 100%. Bedding, Home Furniture, and Work Furniture reporting units had fair values that exceeded their respective carrying amounts by less than 50%.

The annual goodwill impairment testing in the second quarter of 2025 indicated no impairments. As of June 30, 2025, the fair values of all reporting units exceeded their respective carrying amounts by less than 100% in part due to ongoing macroeconomic uncertainties, including the announcement of tariffs. The fair values of our reporting units were reconciled to our consolidated market capitalization, which decreased due to the decline in the stock price compared to the prior year. Fair value exceeded carrying value by less than 50% at June 30, 2025 for the reporting units summarized in the table below, which excludes the Aerospace Products Group which was divested in August 2025 as discussed in Note O to the Consolidated Condensed Financial Statements on page 24.

Reporting Unit(Dollar amounts in millions)	September 30, 2025 Goodwill Value		Fair value in excess of carrying value as of June 30, 2025
Bedding	$	323	20	%
Home Furniture	68		34
Work Furniture	54		29

If expectations are not met in future quarters, additional goodwill impairment(s) may be required. In evaluating the potential for impairment of goodwill and other long-lived assets, we make assumptions and estimates regarding future operating performance, business trends, and market and economic performance, including future sales, operating margins, growth rates, and discount rates.

2024 of $587 million, $44 million, and $44 million in our Bedding, Work Furniture, and Hydraulic Cylinders reporting units, respectively. After this impairment, the Hydraulic Cylinders reporting unit did not have any goodwill remaining.

If we do not comply with the restrictive covenants in our credit facility, we may not be able to borrow in the commercial paper market or under our credit facility and our outstanding debt instruments may default, all of which would adversely impact our liquidity.

Our ~~credit facility is a~~ multi-currency credit facility ~~maturing~~matures in July 2030,. ~~providing~~It provides us ~~with~~ the ability, from time to time, subject to certain restrictive covenants and customary conditions, to borrow, repay, and re-borrow up to $1.0 billion,. ~~subject~~At toMarch 31, ~~certain~~2026, ~~restrictive~~we ~~covenants~~were ~~and~~in ~~customary~~compliance ~~conditions.~~with ~~The~~all ~~credit~~of ~~facility serves as back-up for~~ our ~~commercial~~debt ~~paper borrowing~~covenants. Capitalized terms used in this section but not defined herein have the meanings set forth in the Credit Agreement.

At September 30, 2025, we had no commercial paper outstanding and had no borrowing under the credit facility. Based on our trailing 12-month Consolidated EBITDA, Unrestricted Cash, debt levels, and a leverage ratio covenant of 3.50 to 1.00 at September 30, 2025, our borrowing capacity under the credit facility was $513 million. This may not be indicative of the actual borrowing capacity moving forward, which may be materially different depending on our Consolidated EBITDA, Unrestricted Cash, debt levels at the time, and leverage ratio requirements. As our trailing 12-month Consolidated EBITDA, Unrestricted Cash, debt levels, and leverage ratio requirements change, our borrowing capacity increases or decreases. 47

Permitted Securitization Transaction, products sold in the ordinary course of business and our ability to sell, lease, transfer, or dispose of any of our assets or the assets of one of our subsidiaries to us or one of our subsidiaries, as applicable) at any given point in time.

At March 31, 2026, we had no commercial paper outstanding and had no borrowing under the credit facility. Based on our trailing 12-month Consolidated EBITDA, Unrestricted Cash, debt levels, and a leverage ratio covenant of 3.50 to 1.00 at March 31, 2026, our borrowing capacity under the credit facility was $602 million. This may not be indicative of the actual borrowing capacity moving forward, which may be materially different depending on our trailing 12-month Consolidated EBITDA, Unrestricted Cash, debt levels at the time, and leverage ratio requirements. As these factors change, our borrowing capacity may increase or decrease. Notwithstanding the foregoing borrowing capacity under the credit facility, pursuant to the terms of the Somnigroup Merger Agreement, the Company may not incur indebtedness for borrowed money under the credit facility or the commercial paper program, in the aggregate, in excess of $150 million, unless consented to by Somnigroup, in writing, and such consent cannot be unreasonably withheld.

If our earnings are reduced, the covenants in the credit facility will continue to limit our borrowing capacity, both under the credit facility or through commercial paper issuances. Depending on the degree of earnings reduction, our liquidity could be materially negatively impacted. This covenant may also restrict our current and future operations, including (i) our flexibility to plan for, or react to, changes in our businesses and industries; and (ii) our ability to use our cash flows, or obtain additional financing, for future working capital, capital expenditures, acquisitions, or other general corporate purposes. If we are not in compliance with the restrictive covenants in our credit facility, and are unable to negotiate more lenient terms, we may not be able to access the commercial paper market or borrow under the credit facility.

Also, if we fail to comply with the covenants specified in the credit facility, we may trigger an event of default, in which case the lenders would have the right to: (i) terminate their commitment to provide loans under the credit facility; and (ii) declare all borrowings outstanding, together with accrued and unpaid interest and fees, to be immediately due and payable. Additionally, our senior notes contain cross-default provisions which could make outstanding amounts under the senior notes immediately payable in the event of an acceleration of amounts due under the credit facility following a material uncured default. If debt under the credit facility or senior notes were to be accelerated, we may not have sufficient cash to repay this debt, which would have an immediate material adverse effect on our business, results of operations, and financial condition.

We may not be able to realize deferred tax assets on our balance sheet depending upon the amount and source of future taxable income.

Our ability to realize deferred tax assets on our balance sheet is dependent upon the amount and source of future taxable income. As of September 30, 2025, we had $162 million of deferred tax assets (net of a $24 million valuation allowance). After netting of deferred tax liabilities, the net amount presented within Sundry assets on our Consolidated Condensed Balance Sheets is $24 million. It is possible the amount and source of our taxable income could materially change in the future. This change may impact our underlying assumptions on which valuation allowances are established and negatively affect future period earnings and balance sheets. As a result, we may not be able to realize deferred tax assets on our balance sheet.

MARKET RISK FACTORS

Unfair competition could adversely affect our market share, sales, profit margins, and earnings.

We manufacture innersprings, steel wire rod, and finished mattresses. Our products have been subject to competition from foreign manufacturers alleged to be selling at less than fair value or benefiting from unfair subsidies. In response to petitions filed with the U.S. Department of Commerce (DOC) and the U.S. International Trade Commission (ITC), antidumping and countervailing duties have been imposed on imports of innersprings, steel wire rod, and mattresses from certain countries.

Some of these orders remain subject to appeal. In February 2025, the DOC determined that revoking the 2019 antidumping duty order on mattresses from China would likely lead to continued dumping. The ITC extended the order, and duties of up to 1,732% will remain in effect through May 2030. Also in 2025, the DOC and ITC extended antidumping duty orders on uncovered innersprings from China, Vietnam, and South Africa through April 2030, with duties ranging from 116% to 234%.

~~Currently~~On February 10, ~~sunset~~2026, ~~reviews~~the ~~are~~ITC ~~being~~made ~~conducted~~affirmative bydeterminations in its expedited sunset reviews of the ~~ITC~~antidumping ~~regarding~~and ~~existing~~countervailing ~~duties~~duty orders on imports of steel ~~rod~~ wire rod from Brazil, Indonesia, Mexico, Moldova, and Trinidad ~~and~~& Tobago. ~~The~~Consequently, ~~current~~the ~~anti-dumping~~antidumping and countervailing ~~duty~~duties ~~orders~~on steel wire rod imports from these countries, which range from 3less than 1% to 369%, will be extended for another five years until approximately March 2031. IfAlso, ~~the~~through ~~ITC~~August 2030, imports of steel wire rod from China are covered by antidumping and ~~DOC~~countervailing ~~rule~~duties ~~favorably~~ranging from 106% to 193%. Additionally, ~~the~~through ~~duties~~August ~~will~~2028, beantidumping ~~extended~~and ~~another~~countervailing ~~five~~duty ~~years.~~orders Ifare ~~the~~in ~~ITC~~place ~~rules~~on ~~against~~steel ~~the~~wire ~~Company~~rod from Belarus, itItaly, ~~could~~Korea, ~~negatively~~Russia, ~~impact~~South ~~our~~Africa, ~~results~~Spain, ofTurkey, ~~operations~~Ukraine, United Arab Emirates, and the United Kingdom ranging from less than 1% to 757%.

Also, if any of these duties are overturned on appeal, allowed to expire, or circumvented through transshipment or other means, and dumping or subsidization resumes, our competitive position and financial results could be materially and adversely affected. For more information on antidumping and/or countervailing duties regarding innersprings, steel wire rod and mattresses, please refer to the Competition section on page 32 in the Management's Discussion and Analysis of Financial Conditions and Results of Operations of this Form 10-Q, and Item 1 Legal Proceedings on page 50 of this Form 10-Q. 48

~~INFORMATION~~If ~~TECHNOLOGY~~any ~~AND~~of ~~CYBERSECURITY~~these ~~RISK~~duties ~~FACTORS~~are overturned on appeal, allowed to expire, or circumvented through transshipment or other means, and dumping or subsidization resumes, our competitive position and financial results could be materially and adversely affected. For more information on antidumping and/or countervailing duties regarding innersprings, steel wire rod and mattresses, please refer to the Competition section on page 26 in the Management's Discussion and Analysis of Financial Conditions and Results of Operations of this Form 10-Q, and Item 1 Legal Proceedings on page 42 of this Form 10-Q.

Challenges in managing the use of artificial intelligence could result in legal liability, reputational harm, competitive harm, and adversely affect our results of operations.

Our business currently uses artificial intelligence (AI) technologies, including those offered by third parties, on a limited basis, and takes a measured approach to expansion of uses where it can create value. While we prohibit the use of unauthorized AI technologies, our employees may use AI in an unauthorized manner, which could expose our sensitive data to disclosure, violate third-party intellectual property rights or privacy laws, produce inaccurate or biased responses that could lead to errors in our business activities, and harm our reputation. Our ability to mitigate these risks will depend on our continued effective maintenance, training, monitoring, and enforcement of appropriate policies governing the use of AI technologies, and the results of any such use, by us. The legal and regulatory landscape relating to AI and its use is uncertain and rapidly evolving. These evolving laws and regulations could require changes in our implementation of AI technology and increase our compliance costs and the risk of non-compliance. In addition, if we fail to adapt or are unable to deploy AI successfully, or if our competitors and other third parties adopt AI into their operations and processes more rapidly or effectively than us, we could be placed at a competitive disadvantage and our ability to compete could be negatively impacted. If any of these risks are realized, it could adversely impact our results of operations, cash flow, financial condition, and stock price.

TRADE RISK FACTORS

Tariffs by the United States and counter-tariffs by other countries could result in materially lower margins, lost sales, and an overall adverse effect on our results of operations.

The United States has imposed, and could impose in the future, broad-ranging tariffs on imports. In retaliation, many countries have imposed, and could impose in the future, counter-tariffs on U.S.-produced items. Tariffs have spurred, and could continue to spur, additional retaliatory moves by affected countries, including by Canada, China, India, and Mexico.

We import into the United States various raw materials, components, or finished goods across all segments, with our Bedding Products and Furniture, Flooring & Textile Products segments being the most impacted. We are indirectly impacted by tariffs when our customers import our products or sell their foreign-produced products containing our foreign-produced components from our Specialized Products and Furniture, Flooring & Textile Products segments into the United States. We also export various products to countries outside the United States, some of which may be impacted by tariffs.

We expect tariffs to present both positive and negative impacts across our businesses, and tariffs overall have had a net positive benefit to our consolidated results of operations through the third quarter. In addition, based on limited information, we expect tariffs may continue to produce a net positive impact to our aggregate results, subject to change as tariffs evolve. However, it is possible that wide-ranging tariffs could drive inflation, weaken consumer confidence, and ultimately reduce consumer demand for our products and negatively impact our consolidated results of operations. Also, if we are unable to pass through additional costs created by current or new tariffs, it could result in materially lower margins, lost sales, and an overall adverse effect on our results of operations. Tariffs could also negatively impact our customers' demand for our products, as they may face significantly increased costs from importing our products or from selling their foreign-produced products containing our foreign-produced components into the United States. If tariffs are modified or expanded, additional tariffs are implemented, or our preliminary information is incorrect, our consolidated results of operations could be materially negatively impacted.

REGULATORY RISK FACTORS

Increased scrutiny from stakeholders regarding our sustainability responsibilities and financial performance could expose us to additional costs or risks, including, but not limited to, shareholder activism, and could adversely impact our liquidity, results of operations, reputation, employee retention, and stock price.

Investor advocacy groups, certain institutional investors, investment funds, lenders, market participants, shareholders, customers, and other stakeholders have increasingly focused on the sustainability practices of companies. These parties have placed increased importance on the social cost implications of their investments. If our sustainability practices do not meet these stakeholder expectations and standards, which continue to evolve, our access to capital may be negatively impacted based on an assessment of our sustainability practices. These limitations, in both the debt and equity markets, may materially negatively affect our ability to manage our liquidity, refinance existing debt, grow our businesses, and implement our strategies, as well as adversely impact our results of operations and the price of our common stock.

Our Sustainability Progress Report details how we seek to manage our operations responsibly and ethically. It includes our sustainability policies and practices on a variety of matters, including, but not limited to, Board and management sustainability oversight, governance and ethics, environmental sustainability, greenhouse gas emissions reduction, employee health, safety, product stewardship, quality and safety management, and supply chain social standards and compliance. The Board’s Nominating, Governance and Sustainability Committee oversees our sustainability programs and related risks. However, it is possible that stakeholders may not be satisfied with our sustainability practices or the speed of their adoption. We could also incur additional costs and require more resources to monitor, report, and comply with various sustainability practices. Furthermore, our failure, or perceived failure, to meet the standards set forth in the Sustainability Progress Report could negatively impact our reputation, employee retention, and the willingness of our customers and suppliers to do business with us. Our Sustainability Progress Report can be found at www.leggett.com. Our website does not constitute part of this Form 10-Q.

Publicly traded companies are increasingly subject to campaigns by activist shareholders regarding sustainability and other financial matters. The actions of activist shareholders may cause fluctuations in our stock price based upon speculation about our future. Speculation about our future can harm relationships with investors, customers, suppliers, and employees and can be costly and time consuming, disrupting our business and diverting the attention of our Board of Directors and management from pursuing our business strategies. In addition, decreases in our stock price make us more susceptible to unwarranted shareholder activism. Shareholder activism could adversely affect our business, results of operations, and stock price.

Changes in tax laws or challenges to our tax positions pursuant to ongoing tax reviews and/or audits could negatively impact our earnings and cash flows.

We are subject to the tax laws and reporting rules of the United States (federal, state, and local) and several foreign jurisdictions. Current economic and political conditions make these tax rules (and governmental interpretation of these rules) subject to significant change and uncertainty. There are proposals by the Organization for Economic Co-operation and Development, the European Union, and other tax jurisdictions, some of which have already been adopted in various countries, to reform tax laws or change interpretations of existing tax rules. These proposals generally center around global base erosion and profit shifting (BEPS) concepts, and, as they are adopted, could continue to impact how our earnings and transactions are taxed as a multinational corporation. Whether, or in what form, these proposals become law in various countries around the world, or how such laws might be interpreted, could impact our assumptions related to the taxation of certain foreign earnings and have an adverse effect on our earnings and cash flows.

We are subject to reviews and/or audits by taxing authorities in the countries where we operate and are currently in various stages of examination in several jurisdictions. WeChina ~~have~~recently ~~established~~intensified ~~liabilities~~its wereview ~~believe~~of ~~are~~tax ~~appropriate,~~compliance ~~with~~among ~~such~~foreign ~~amounts~~enterprises. ~~representing~~We ~~what~~underwent wereviews ~~believe~~in is2023 aand ~~reasonable~~2024 ~~provision~~resulting ~~for~~in ~~taxes~~no ~~that~~material weassessments, ~~ultimately~~while ~~might~~in be2025 ~~required~~and toearly ~~pay. However~~2026, ~~these~~we ~~liabilities~~have ~~could~~seen bean increased ~~over~~number ~~time~~of asthese ~~more~~reviews ~~information~~initiated ~~becomes~~by ~~known~~various ~~relative~~Chinese totax ~~the~~authorities. ~~resolution~~In of2026, ~~these~~we ~~reviews~~received ~~and/or~~three ~~audits,~~formal ~~as governmental~~ tax ~~positions~~assessments ~~may~~for beapproximately ~~sustained~~$24 million, orin wethe ~~may~~aggregate, ~~agree~~each toalleging ~~certain~~failures ~~tax~~to ~~adjustments.~~satisfy Webeneficial ~~could~~owner ~~incur~~requirements ~~additional~~for ~~tax~~purposes ~~expense~~of ifapplying wereduced ~~have~~dividend ~~adjustments~~withholding ~~higher~~tax ~~than the liabilities recorded~~rates.

~~China~~Although ~~has~~the ~~recently~~outcome ~~intensified~~is ~~its~~uncertain, ~~review~~we ofbelieve ~~tax~~we ~~compliance~~have ~~among~~valid ~~foreign~~defenses ~~enterprises.~~and Wehave ~~underwent~~notified ~~reviews~~the inChinese ~~2023~~tax ~~and~~authorities ~~2024~~of ~~resulting~~our inintent noto ~~material~~rigorously contest each of the assessments, ~~while~~through the administrative appeal process in ~~2025~~China, and we have ~~seen~~not anrecorded ~~increased~~any ~~number~~income oftax expense associated with these ~~reviews~~matters. ~~initiated~~We byhave ~~various~~established ~~Chinese~~liabilities ~~tax~~for ~~authorities.~~other ~~One~~matters ~~has~~we ~~been~~believe ~~favorably~~are ~~resolved~~appropriate, with nosuch ~~assessment,~~amounts ~~while~~representing ~~others~~what ~~are~~we ~~ongoing~~believe is a reasonable provision for taxes that we ultimately might be required to pay. IfHowever, ~~the~~our ~~remainder~~exposure ~~are~~could ~~not~~increase ~~resolved~~over ~~favorably~~time as more information becomes known relative to the ~~Company~~resolution of these reviews, ~~they~~audits, and assessments, as governmental tax positions may be sustained, or we may agree to certain tax adjustments. We could incur additional tax expense if we have adjustments higher than the liabilities recorded that could have a material negative effect on our results of operations or financial condition.

~~LITIGATION~~LEGAL RISK FACTORS

We are exposed to ~~litigation~~legal contingencies that, if realized, could have a material negative impact on our financial condition, results of operations, and cash flows.

Although we deny liability in all currently threatened or pending ~~litigation~~legal proceedings, we have recorded an immaterial aggregate ~~litigation~~legal contingency accrual at ~~September~~March 3031, ~~2025~~2026. Based on current known facts and circumstances, aggregate reasonably possible (but not probable, and therefore not accrued) losses in excess of the recorded accruals for ~~litigation~~legal contingencies are estimated to be $1615 million. If our assumptions or analyses regarding any of our contingencies are incorrect, if facts and circumstances change, or if future litigation arises, we could realize losses in excess of the recorded accruals (~~and~~including losses in excess of the $1615 million referenced above) which could have a material negative impact on our financial condition, results of operations, and cash flows. For more information regarding our legal contingencies, please see Item 1 Legal Proceedings on page 5042 and Note PM Contingencies on page 2419 of the Notes to Consolidated Condensed Financial Statements.

5949

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

ISSUER PURCHASES OF EQUITY SECURITIES

The table below is a listing of our purchases of the Company’s common stock by calendar month for the periods presented.

Period	TotalNumber ofSharesPurchased 1	AveragePricePaidperShare 1		Total Numberof SharesPurchasedas Part ofPubliclyAnnouncedPlans orPrograms 2	MaximumNumber ofShares thatmay yet bePurchasedUnder thePlans orPrograms 2
July 2025	—	$	—	—	10,000,000
January 2026	—	$	—	—	10,000,000
August 2025	—	$	—	—	10,000,000
February 2026	—	$	—	—	10,000,000
September 2025	—	$	—	—	10,000,000
March 2026	—	$	—	—	10,000,000
Total	—	$	—	—

1 This column does not include shares withheld for taxes on stock unit conversions, as well as forfeitures of stock units, all of which totaled 18291,~~364~~096 shares in the ~~third~~first quarter of ~~2025~~2026. The average price paid per share for these shares was $911.3767.

2 On August 7, 2024, the Board authorized the Company to repurchase up to 10 million shares each calendar year. This standing authorization was first announced on Form 10-Q for the quarter ended June 30, 2024, filed August 7, 2024, and will remain in force until repealed by the Board of Directors. ~~This~~However, ~~standing~~pursuant ~~Board~~to ~~authorization~~the ~~replaced~~terms of the ~~prior~~Somnigroup ~~Board~~Merger ~~authorization~~Agreement, ~~adopted~~unless consented to by Somnigroup, in ~~2022~~writing, which ~~provided~~consent ~~the~~cannot ~~same~~be ~~repurchase~~unreasonably ~~authority~~withheld, to the Company ~~with~~may ~~only~~not ~~minor~~purchase ~~administrative~~any ~~differences.~~of Weits ~~substantively~~shares ~~have~~of ~~had~~common ~~the~~stock, ~~same~~except ~~share~~with ~~repurchase~~respect ~~authority~~to ~~since~~(a) ~~2004,~~the ~~and~~satisfaction ~~this~~of ~~authority~~exercise ~~includes~~price or the ~~2025~~tax ~~calendar~~withholding ~~year.~~obligations Noin ~~specific~~connection ~~repurchase~~with ~~schedule~~the ~~has~~vesting, ~~been~~exercise ~~established.~~and/or ~~The~~settlement ~~authority~~of ~~does~~Company ~~not~~equity ~~obligate~~awards or (b) upon the forfeiture of outstanding Company equity awards pursuant to ~~purchase~~their aterms ~~minimum~~upon ~~number~~the termination of ~~shares.~~the employment of the holder thereof or otherwise.

Pursuant to the terms of the Somnigroup Merger Agreement, the Company may continue its current quarterly cash dividend of $.05 per share but may only increase the dividend by up to $.01 per share per calendar year.

Item 5. Other Information.

DIRECTOR AND OFFICER TRADING ARRANGEMENTS

During the three months ended ~~September~~March 3031, ~~2025~~2026, no director or officer (as defined in Rule 16a-1(f) under the Securities Exchange Act of 1934, as amended) of the Company adopted, modified, or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408(a) of Regulation S-K.

6050


Item 6.			Exhibits.

EXHIBIT INDEX

Exhibit No.						Description
2.1****						~~Share~~Agreement ~~Purchase~~and ~~Agreement~~Plan of Merger by and ~~between~~among ~~Leggett~~Somnigroup &International ~~Platt~~Inc., ~~Incorporated,~~Sparrow ~~Flow~~Unity ~~Intermediate~~Corporation ~~II, LLC~~ and ~~Flow~~Leggett UK& ~~Holdco~~Platt, ~~Limited~~Incorporated dated as of April 213, ~~2025~~2026, filed April 213, ~~2025~~2026 as Exhibit 2.1 to the Company's Form 8-K, is incorporated herein by reference.
2.2*						First Amendment to Share Purchase Agreement by and between Leggett & Platt, Incorporated, Flow UK Holdco, Limited, Flow Intermediate II, LLC and Flow France Holdings SAS dated August 29, 2025.
2.2****						Share Purchase Agreement by and between Leggett & Platt, Incorporated, Flow Intermediate II, LLC and Flow UK Holdco, Limited dated April 2, 2025, filed April 2, 2025 as Exhibit 2.1 to the Company's Form 8-K, is incorporated herein by reference.
2.3****						First Amendment to Share Purchase Agreement by and between Leggett & Platt, Incorporated, Flow UK Holdco, Limited, Flow Intermediate II, LLC and Flow France Holdings SAS dated August 29, 2025, filed October 31, 2025 as Exhibit 2.2 to the Company's Form 10-Q, is incorporated herein by reference.
3.1						Restated Articles of Incorporation of the Company as of May 13, 1987, with Amendments dated May 12, 1993 and May 20, 1999; filed November 7, 2024 as Exhibit 3.1.1 to the Company's Form 10-Q, is incorporated herein by reference.
3.2						Bylaws of the Company, as amended through November 5, 2024, filed November 7, 2024 as Exhibit 3.2.2 to the Company's Form 10-Q, is incorporated herein by reference.
10.1						~~Amendment~~Summary ~~Agreement,~~Sheet ~~dated as~~ of ~~July~~Executive ~~24,~~Cash ~~2025 relating to the Fifth Amended and Restated Credit Agreement among the Company~~Compensation, ~~JPMorgan Chase Bank, N.A., as administrative agent, and the Lenders party thereto,~~ filed ~~July~~February 2524, ~~2025~~2026 as Exhibit 10.1 to the Company’'s Form 8-K, is incorporated herein by reference.
31.1*						Certification of Karl G. Glassman, pursuant to Rule 13a-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, dated October 31, 2025
10.2						2026 Award Formula under the Company's Key Officers Incentive Plan, filed February 24, 2026 as Exhibit 10.2 to the Company's Form 8-K, is incorporated herein by reference.
31.2*						Certification of Benjamin M. Burns, pursuant to Rule 13a-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, dated October 31, 2025
10.3						2026 Form of Performance Stock Unit Award Agreement pursuant to the Company's Flexible Stock Plan, filed February 24, 2026 as Exhibit 10.4 to the Company's Form 8-K, is incorporated herein by reference.
32.1**						Certification of Karl G. Glassman pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, dated October 31, 2025
31.1*						Certification of Karl G. Glassman, pursuant to Rule 13a-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, dated May 7, 2026
32.2**						Certification of Benjamin M. Burns, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, dated October 31, 2025
31.2*						Certification of Benjamin M. Burns, pursuant to Rule 13a-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, dated May 7, 2026
32.1**						Certification of Karl G. Glassman pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, dated May 7, 2026
32.2**						Certification of Benjamin M. Burns, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, dated May 7, 2026
101.INS***						Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
101.SCH,**						Inline XBRL Taxonomy Extension Schema
101.CAL,**						Inline XBRL Taxonomy Extension Calculation Linkbase
101.DEF,**						Inline XBRL Taxonomy Extension Definition Linkbase
101.LAB,**						Inline XBRL Taxonomy Extension Label Linkbase
101.PRE,**						Inline XBRL Taxonomy Extension Presentation Linkbase
104						Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

6151

*			Denotes filed herewith.
**			Denotes furnished herewith.
***			Filed as Exhibit 101 to this report are the following formatted in inline XBRL (eXtensible Business Reporting Language): (i) Consolidated Condensed Balance Sheets at ~~September~~March 3031, ~~2025~~2026 and December 31, ~~2024~~2025; (ii) Consolidated Condensed Statements of Operations for the ~~nine~~three months ended ~~September~~March 3031, ~~2025~~2026 and ~~September~~March 3031, ~~2024~~2025; (iii) Consolidated Condensed Statements of Comprehensive Income (Loss) for the ~~nine~~three months ended ~~September~~March 3031, ~~2025~~2026 and ~~September~~March 3031, ~~2024~~2025; (iv) Consolidated Condensed Statements of Cash Flows for the ~~nine~~three months ended ~~September~~March 3031, ~~2025~~2026 and ~~September~~March 3031, ~~2024~~2025; (v) Consolidated Condensed Statements of Changes in Equity for the ~~nine~~three months ended ~~September~~March 3031, ~~2025~~2026 and ~~September~~March 3031, ~~2024~~2025; and (vi) Notes to Consolidated Condensed Financial Statements.
****			Pursuant to Item 601(a)(5) of Regulation S-K, schedules (and similar attachments) to the Agreement and Plan of Merger or Share Purchase Agreement, as applicable, have been omitted because they do not contain information material to an investment or voting decision and such information is not otherwise disclosed in ~~this~~the exhibit. Leggett & Platt agrees to furnish, supplementally, a copy of any omitted schedule to the SEC or its staff upon request. The assertions embodied in the representations and warranties made in the Agreement and Plan of Merger or Share Purchase Agreement, as applicable, are solely for the benefit of the parties ~~to the Share Purchase Agreement~~thereto, and are qualified by information in confidential disclosure schedules exchanged in connection with signing the Agreement and Plan of Merger or Share Purchase Agreement, as applicable. While Leggett & Platt does not believe the schedules contain information required to be publicly disclosed, the schedules contain information that modifies, qualifies, and creates exceptions to the representations and warranties in the Agreement and Plan of Merger or Share Purchase Agreement, as applicable. You are not a third-party beneficiary to the Agreement and Plan of Merger or Share Purchase Agreement, as applicable, and should not rely on the representations and warranties as characterizations of the actual state of facts, since (i) they are modified in part by the disclosure schedules, (ii) they may have changed since the date of the Agreement and Plan of Merger or Share Purchase Agreement, as applicable, (iii) they may represent ~~only the parties’~~ risk allocation in ~~this~~the particular transaction, and (iv) they may be qualified by materiality standards that differ from what may be viewed as material for securities law purposes. The Agreement and Plan of Merger and Share Purchase Agreement ~~has~~have been included to provide you with information regarding ~~its~~their respective terms. ItThey isare not intended to provide any other factual information about Leggett or& ~~its Aerospace Products Group~~Platt. Information about Leggett & Platt can be found in this quarterly report on Form 10-Q, and in other public filings it makes with the SEC.

6252

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	LEGGETT & PLATT, INCORPORATED
DATE: October 31, 2025	By:	/s/ KARL G. GLASSMAN
DATE: May 7, 2026	By:	/s/ KARL G. GLASSMAN
		Karl G. GlassmanPresident and Chief Executive Officer
DATE: October 31, 2025	By:	/s/ BENJAMIN M. BURNS
DATE: May 7, 2026	By:	/s/ BENJAMIN M. BURNS
		Benjamin M. BurnsExecutive Vice President and Chief Financial Officer

6353

Filing Compare · LEGGETT & PLATT INC