#United States #financial results #Q1 2025 #Benton Harbor #Whirlpool Corporation

Whirlpool Reports Strong Margins and Full-Year Guidance

Whirlpool Corporation has released its financial results for the first quarter of 2025, showing significant year-over-year margin expansions despite a notable drop in net sales. The company achieved a net earnings margin of 2.0%, an improvement from a negative 5.8% in the same quarter last year. However, net sales fell 19.4% to approximately $3.62 billion, primarily due to the divestiture of its European business. On the positive side, organic sales recorded a modest growth of 2.2%, driven by strong performance in the Small Domestic Appliances (SDA) and Major Domestic Appliances (MDA) segments in Asia.

Key Financial Highlights

• - Net Sales: $3.62 billion compared to $4.49 billion in Q1 2024.
• - GAAP Net Earnings: $71 million as opposed to a loss of $259 million last year. This translates to earnings per diluted share of $1.28, a significant shift from a deficit of $4.72.
• - Margins: The ongoing EBIT margin stood at 5.9%, up by 160 basis points. The company's resilient brands and strategic pricing actions have played a crucial role in enhancing profitability.

During a briefing, Chairman and CEO Marc Bitzer highlighted the company's flexibility and operational execution as key factors that contributed to the margin increase, saying, "Despite the uncertain macro environment that impacted consumer confidence in the first quarter, we achieved 160 basis points of margin expansion. This reflects the strength of our brands and our disciplined approach to operations."

Segment Performance

• - MDA North America: Sales stagnated, down 0.3%, but EBIT rose 10.9% driven by effective pricing strategies.
• - MDA Latin America: Experienced a decline in sales by 11.9%, with a notable drop in EBIT by 24.8% due to reduced operating tax benefits.
• - MDA Asia: Saw healthy growth with a 12.3% increase in net sales, further boosted by a significant 71.5% rise in EBIT reflecting market share gains.
• - SDA Global: Net sales increased by 7.9%, benefiting from successful new product launches and a strong direct-to-consumer sales channel.

CEO Bitzer emphasized the organization's focus on what is manageable amidst a fluctuating marketplace, reiterating, "Our successful implementation of previously announced pricing strategies has aligned well with our full-year guidance."

Looking Ahead

Whirlpool maintains its full-year 2025 guidance with expectations of approximately $15.8 billion in net sales and ongoing earnings per diluted share projected at about $10.00. The company anticipates cash provided by operating activities to reach around $1 billion, along with free cash flow estimates between $500 to $600 million.

In an environment increasingly impacted by global supply chain dynamics and tariff implications, Whirlpool is actively taking measures to navigate new tariff modifications and hopes for fairer competition to benefit U.S.-based manufacturing.

Conclusion

Despite facing challenges including a major shift in its European business landscape and fluctuations in consumer behavior, Whirlpool is confident in its strategic initiatives to drive growth and efficiency. As the company sets its sights on the rest of 2025, maintaining brand strength and operational discipline will be pivotal in achieving its targets. With a proactive stance on managing operational costs and adjustments to market dynamics, Whirlpool is poised to respond to the evolving marketplace effectively.