WHIRLPOOL CORP /DE/ Q4 FY2024 earnings call

• In 2024, achieved $300M cost reductions, $100M structural cost savings, sequential EBIT margin expansion of 170 basis points over three quarters, returned $400M to shareholders, paid down $500M debt, and had $385M free cash flow.
• 2025 outlook: expects slow recovery in US housing market, $200M cost actions, reduced promotional pricing in US, strong product launch pipeline driving growth in MDA North America, SDA Global, and international businesses.
• Jim Peters reviewed segment results, 2025 guidance including like-for-like net sales expected ~$15.8B, ongoing EBIT margin ~6.8%, free cash flow $500M-$600M, and ongoing earnings per share ~$10.

MDA North America

• Fourth quarter net sales declined 1% due to negative price/mix; full year EBIT margin approximately 6.5%.

MDA Latin America

• Fourth quarter net sales grew 7% year-over-year excluding currency, with EBIT margin of 7.6% (expanded 240 basis points year-over-year); full year EBIT margin 7%.

MDA Asia

• Fourth quarter net sales grew 9% year-over-year excluding currency, with EBIT margin of 1.2% (expanded 170 basis points year-over-year); full year EBIT margin 3.9%.

SDA Global

• Fourth quarter net sales grew 6%, with EBIT margin of 12.5%; full year EBIT margin 14.3%.

• 2025 like-for-like net sales expected to grow ~3% to ~$15.8B, driven by strong product launch pipeline.
• Ongoing EBIT margin expected to expand 100 basis points to ~6.8%.
• Free cash flow expected to be $500M-$600M, with 3.5% cash conversion of net sales.
• Ongoing earnings per share expected ~$10, including adjusted effective tax rate of 20%-25%.

• Potential impact of tariffs on product costs and margins, with no inclusion in guidance due to uncertainty.
• Uncertainty in US housing market recovery affecting discretionary demand.
• Retail inventory destocking in MDA North America as a one-time impact on fourth quarter results.

Q: Susan Maklari asked about retail destocking being Whirlpool-specific and industry volumes relative to AHAM and geopolitical trade actions.

A: Marc Bitzer stated retail destocking is a one-time supply chain efficiency issue, AHAM numbers had distortion, and expected temporary increase in Asia imports prior to potential policy changes.

Q: Michael Rehaut asked about new product launches impact on financials and inventory reduction impact on 4Q North American sales.

A: Marc Bitzer said new product launches are spread throughout the year, with premium brands like KitchenAid and JennAir driving mix and margin; inventory reduction in 4Q North America was meaningful but one-time.

Q: David MacGregor asked about production rates recovery and price/mix offset.

A: Marc Bitzer and Jim Peters said production volumes adjusted to match sales, with no significant volume leverage in 4Q; price/mix offset by new product transitions and timing of launches.

Q: Sam Darkatsh asked about North American margin progression and sell-through in 4Q.

A: Marc Bitzer said North America margin guidance is 7.5% with balanced seasonality; sell-through in 4Q was strong post US Presidential election.

Q: Rafe Jadrosich asked about price/mix in 2025 guidance and fourth quarter North America margin.

A: Marc Bitzer said price/mix in 2025 includes carryover from 2024 and new product launches, with larger portion from recent promotional changes; fourth quarter North America margin had no material additional headwinds beyond inventory shift.

Q: Mike Dahl asked about tariffs and India transaction cash proceeds.

A: Jim Peters explained tariff impact not factored in guidance, and India transaction cash proceeds will help pay down debt, with net impact considering deconsolidation of India.

Q: Eric Bosshard asked about North American margin progress and pricing.

A: Jim Peters said North American margin progress is due to cost actions and pricing, with potential amplification as discretionary segment recovers; pricing includes carryover and new product transitions, with benefits building throughout the year.