• Revenue Growth: 2% organic growth in Q4 2024.
• Ongoing Earnings Per Share: $4.57 in Q4 2024.
• Dividend: Maintained at $1.75 per share.
• Free Cash Flow: $385 million in 2024.
• Cost Reduction Initiatives: Approximately $300 million in 2024.
• Debt Reduction: $500 million paid down in 2024.
• Cash Returned to Shareholders: Approximately $400 million in dividends.
• Global EBIT Margin Expansion: 80 basis points year-over-year in Q4 2024.
• MDA North America EBIT Margin: 6.7% in Q4 2024.
• MDA Latin America EBIT Margin: 7.6% in Q4 2024.
• MDA Asia EBIT Margin: 1.2% in Q4 2024.
• SDA Global EBIT Margin: 12.5% in Q4 2024.
• 2025 Revenue Guidance: Expected growth of approximately 3% to $15.8 billion.
• 2025 Ongoing EBIT Margin Guidance: Expected expansion to approximately 6.8%.
• 2025 Free Cash Flow Guidance: Expected between $500 million to $600 million.
• 2025 Debt Reduction Target: $700 million.

• Warning! GuruFocus has detected 9 Warning Signs with WHR.

Release Date: January 30, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Whirlpool Corp (NYSE:WHR) achieved significant cost reductions of approximately $300 million, contributing to improved operational performance.
• The company successfully completed the Europe transaction, unlocking substantial value creation opportunities.
• Whirlpool Corp (NYSE:WHR) returned approximately $400 million of cash to shareholders through dividends and paid down $500 million of debt, reinforcing its commitment to reducing debt levels.
• The company achieved a sequential increase in ongoing EBIT margin by 170 basis points, marking three consecutive quarters of margin expansion.
• Whirlpool Corp (NYSE:WHR) delivered strong net sales growth in its MDA Latin America and MDA Asia businesses, driven by pricing actions and industry growth.

Negative Points

• Whirlpool Corp (NYSE:WHR) acknowledged that its financial performance in 2024 did not meet expectations, with challenges in the macro environment, particularly in the US.
• The company experienced a negative impact on price and mix, which unfavorably affected margins by 100 basis points due to retailer destocking in North America.
• Net sales in the MDA North America business declined by 1% in the fourth quarter, driven by negative price mix and structural retailer destocking.
• The company anticipates a slow and gradual improvement in the US housing market in 2025, with no significant catalysts for existing home sales.
• Currency fluctuations, particularly the weakening of the Brazilian real relative to the US dollar, negatively impacted margins by 25 basis points year over year.

Q & A Highlights

Q: Marc, can you discuss the significant destocking at one of the retailers and its impact on Whirlpool's volumes? Was this specific to Whirlpool, and how does it relate to industry volumes and potential geopolitical trade actions? A: The retail destocking was a reflection of supply chain efficiency post-COVID, leading to a one-time inventory reduction. This impacted our Q4 results but is now behind us. Regarding AHAM numbers, there were distortions, but our market share remained stable to slightly down. We anticipate some increase in imports from Asia due to potential policy changes, but final data is not yet available. Marc Bitzer, CEO

Q: Can you elaborate on the promotional price increase and its potential impact on pricing and mix, especially with new product launches? A: The promotional price increase reflects the current market environment, driven by replacement demand rather than discretionary demand. We reduced promotional depth last year and found traction, which we expect to continue. With a significant number of new product launches in 2025, particularly in North America, we anticipate a positive impact on mix and pricing. Marc Bitzer, CEO

Q: How will the new product launches impact financials throughout the year, particularly in terms of revenues, price mix, and margins? A: We expect a positive pricing impact of one point, driven by promotional adjustments and new product mix. The launches are spread throughout the year, with significant introductions in refrigeration and premium brands like KitchenAid and JennAir. These are expected to drive mix improvements and margin benefits. Marc Bitzer, CEO

Q: Can you quantify the impact of the inventory reduction on Q4 North American sales and discuss potential tariff exposures? A: The inventory reduction was sizable, impacting Q4 sales significantly, but it's a one-time event. Regarding tariffs, we haven't included potential impacts in our guidance due to uncertainty. However, over 80% of our US sales are produced domestically, which positions us differently from competitors. Marc Bitzer, CEO

Q: The small appliances business underperformed in sales and margins. How are marketing investments being targeted to ensure product strength and support? A: The SDA market is moving sideways, but we achieved solid single-digit growth in Q4. Significant marketing investments were made in new product launches, such as coffee makers and KitchenAid Go. These investments are crucial for entering new categories and building market awareness. Marc Bitzer, CEO

For the complete transcript of the earnings call, please refer to the full earnings call transcript.