Executive Summary

Q4 2024 showed mixed results: net sales rose sequentially to $4.14B from $3.99B but declined 18.7% YoY on Europe divestiture; organic net sales grew 1.9% YoY, led by Small Domestic Appliances (SDA) and international businesses . Ongoing EBIT margin expanded to 6.0% (+80 bps YoY; +20 bps QoQ), while GAAP EPS swung to a loss of $(7.10) on a $381M non‑cash Maytag trademark impairment .
Management issued initial 2025 guidance: ~$15.8B net sales (~3% like‑for‑like growth), ~6.8% ongoing EBIT margin, ~$10.00 ongoing EPS, ~$1.0B operating cash flow, and $500–$600M free cash flow, with a normalized 20–25% GAAP/non‑GAAP tax rate; WHR also plans ~$700M debt paydown and intends to reduce Whirlpool of India stake to ~20% (expected $550–$600M net cash) .
What drove Q4: negative price/mix tied to a sizable retail destock in North America offset otherwise positive actions (pricing, cost takeout); strong sell‑through, international growth, and SDA momentum supported organic growth; marketing investments pressured SDA margin .
Potential stock reaction catalysts: disciplined promo/pricing and >100 new launches (incl. premium KitchenAid/JennAir) to improve mix, plus deleveraging ($700M paydown) and India monetization; macro/tariff path remains an uncertainty not included in guidance .

What Went Well and What Went Wrong

What Went Well
- Structural execution: ~$(300)M net cost takeout delivered in 2024; WHR targets >$200M more in 2025, underpinning 100–150 bps margin expansion outlook .
- International and SDA resilience: Organic net sales +1.9% YoY in Q4, with MDA Latin America (+7.3% ex‑FX), MDA Asia (+8.8% ex‑FX), and SDA (+6.4% ex‑FX) leading; LatAm Q4 EBIT margin rose 240 bps YoY to 7.6% .
- Product and mix setup: Over 100 new products in 2025 and >30% transition in North America; premium KitchenAid refresh (1st in a decade) and JennAir induction downdraft expected to drive mix/pricing benefits over the year .
What Went Wrong
- North America price/mix: A “sizable” one‑time retail destock and Black Friday sell‑out incentives drove unfavorable Q4 price/mix and below‑plan MDA NA EBIT margin (6.7%) .
- GAAP optics: $381M non‑cash Maytag trademark impairment and a negative GAAP tax rate drove Q4 GAAP EPS to $(7.10) and GAAP net margin to (9.5)%; ongoing results better align with operations .
- SDA margin trade‑off: Marketing investments for new SDA launches pressured Q4 SDA EBIT margin to 12.5% (down 130 bps YoY), a deliberate spend to seed category growth .

Financial Results

Metric	Q4 2023	Q3 2024	Q4 2024
Net Sales ($USD Millions)	$5,088	$3,993	$4,136
Organic Net Sales ($USD Millions)	$4,254	$4,069	$4,174
GAAP Diluted EPS ($)	$8.90	$2.00	$(7.10)
Ongoing EPS ($)	$3.85	$3.43	$4.57
GAAP Net Earnings Margin (%)	9.7%	2.7%	(9.5)%
Ongoing EBIT Margin (%)	5.2%	5.8%	6.0%

Segment performance (Q4 2024 vs Q4 2023):

Segment	Metric	Q4 2023	Q4 2024
MDA North America	Net Sales ($M)	$2,632	$2,595
	EBIT ($M)	$213	$173
	EBIT Margin (%)	8.1%	6.7%
MDA Latin America	Net Sales ($M)	$958	$920
	EBIT ($M)	$50	$70
	EBIT Margin (%)	5.2%	7.6%
MDA Asia	Net Sales ($M)	$221	$238
	EBIT ($M)	$(1)	$3
	EBIT Margin (%)	(0.5)%	1.2%
SDA Global	Net Sales ($M)	$363	$384
	EBIT ($M)	$50	$48
	EBIT Margin (%)	13.8%	12.5%

KPIs and cash/returns:

KPI	FY 2023	FY 2024	Notes
Cash from Ops ($M)	$915	$835	Includes Europe transaction impacts in 2024
Free Cash Flow ($M)	$366	$385	2025 outlook: $500–$600M
Debt Paydown ($M)	—	$500	Management commentary; balance sheet focus
Dividends ($/share)	$7.00	$7.00	Board declared $1.75 for Mar 15, 2025

Why results moved:

GAAP loss driven by Maytag trademark impairment ($381M) and an unusual tax rate; ongoing EPS benefited from adjusted (non‑GAAP) tax rate (Q4 adjusted rate of (53.8)%) .
North America price/mix deteriorated on a sizable retailer destock and strong sell‑through tied to election‑period incentives; cost actions and pricing elsewhere (LatAm) supported margins .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Net Sales	FY 2025	—	~$15.8B	New
Ongoing EBIT Margin	FY 2025	—	~6.8%	New
GAAP EPS	FY 2025	—	~$8.75	New
Ongoing EPS	FY 2025	—	~$10.00	New
GAAP & Adj. Tax Rate	FY 2025	—	20–25%	New
Cash from Ops	FY 2025	—	~$1.0B	New
Free Cash Flow	FY 2025	—	$500–$600M	New
Debt Paydown	FY 2025	—	~$700M	New
India Stake Sale (net cash)	FY 2025	—	$550–$600M expected	New
MDA North America EBIT Margin	FY 2025	—	~7.5%	New
MDA Latin America EBIT Margin	FY 2025	—	~7.5%	New
MDA Asia EBIT Margin	FY 2025	—	~6% (ex‑India 2H)	New
SDA Global EBIT Margin	FY 2025	—	~15%	New
Dividend	Q1 2025	—	$1.75/share payable Mar 15, 2025	New

Notes: 2025 outlook based on like‑for‑like 2024 baseline (ex‑Q1 Europe, ex‑2H India) .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q2 & Q3 2024)	Current Period (Q4 2024)	Trend
Pricing and Promotions	Sequential margin expansion from MDA NA promotional pricing actions; ongoing margin progress guided for 2024 .	Further reduction in promo depth announced; price/mix +75 bps in 2025 guidance; Q4 impacted by retailer destock and sell‑out incentives .	Improving, but destock created Q4 noise.
Cost Takeout	On track for $300–$400M 2024; reaffirmed $300M and margin focus .	~$300M delivered in 2024; >$200M targeted in 2025 (125 bps margin benefit) .	Continuing positive driver.
Product/Mix	Q2/Q3 highlighted new launches and SDA momentum .	>100 launches in 2025; >30% NA transition; KitchenAid full redesign; JennAir induction downdraft; mix benefit accrues through 2025 with transition costs .	Accelerating.
North America Retail/Inventory	Sequential improvement in Q3 NA margin; pricing actions effective .	Sizable one‑time retail destock pressured Q4 price/mix and NA margin; sell‑through strong post‑election .	One‑time headwind in Q4; reset for 2025.
Housing/Macro	Positioned for eventual U.S. housing recovery .	2025 assumes flat industry; no discretionary rebound or tariff impacts embedded .	Cautious/stable.
Currency	Noted FX in segment lines .	BRL weakness −50 bps expected to margin in 2025 .	Mild headwind.
Tariffs/Trade Policy	—	No tariff scenario included; >80% U.S. production supports relative positioning .	Watch item.
SDA Category	Q2/Q3 double‑digit growth; strength in DTC .	Continued growth; margin impacted by marketing investments to seed new categories .	Growth with deliberate margin investment.
Portfolio/Capital Allocation	Europe transaction closing noted .	India stake reduction plan; ~$700M 2025 debt paydown; IG rating focus .	Balance sheet de‑risking.

Management Commentary

“In 2024, we continued to make progress... delivered on our cost take out commitment of $300 million... In 2025, we expect to deliver more than $200 million of cost take out and position our business for the eventual U.S. housing recovery.” — Marc Bitzer, CEO .
“We are proud of the actions we took to strengthen our balance sheet, paying down $500 million in debt... In 2025... anticipated India transaction will maximize shareholder value and further strengthen our balance sheet.” — Jim Peters, CFO .
“In the U.S., we have just recently announced a further reduction in the depth of our promotional pricing program... expected to help drive favorable price and mix in 2025.” — Marc Bitzer .
“We do not anticipate a sudden improvement... we expect only a slow and gradual improvement in 2025... we will stay very disciplined in our cost controls.” — Marc Bitzer .

Q&A Highlights

Retail destock and price/mix: Q4 North America margin was below expectations due to a sizable retailer destock and sell‑out incentives; management called it one‑time and now “behind us,” with strong December sell‑through .
Pricing trajectory: Further reductions in promotional depth and 2025 price/mix uplift (~75 bps) expected; mix benefit builds through the year with KitchenAid (Q3 launch timing) and JennAir; transition costs offset some benefits intra‑year .
Production/inventory: WHR adjusted Q4 production to avoid inventory build; enters 2025 with low inventories and plans to keep production matched to sales .
Tariffs sensitivity: No tariffs included in guidance; >80% of U.S. sales are U.S.‑produced, implying relative insulation vs import‑heavy peers; management will revise if policy changes materialize .
India monetization and leverage: Expected $550–$600M net cash; gross debt paydown ~$700M in 2025; deconsolidation removes ~$300M India cash from reported net cash, which had limited parent‑level availability .

Estimates Context

S&P Global consensus estimates for Q4 2024 and comparative periods were unavailable at time of analysis due to data access limits; therefore, we do not present beat/miss vs consensus and will update when available. Values would be retrieved from S&P Global (Capital IQ) when accessible.

Key Takeaways for Investors

Reset complete; execution focus: Portfolio actions (Europe closed; India planned) plus structural cost takeout (> $200M in 2025) underpin ~100–150 bps margin expansion despite flat industry assumptions .
Mix/pricing catalysts: Over 100 product launches (premium emphasis) and reduced promotional depth should lift price/mix through 2025; transition costs keep near‑term benefits modest but build over the year .
Balance sheet de‑risking: ~$700M debt paydown planned and India proceeds ($550–$600M) point to deleveraging; investment‑grade rating remains a priority .
North America watch‑items: Retail destock appears one‑time; monitor promo discipline, KitchenAid/JennAir adoption, and any discretionary recovery for upside vs the cautious base case .
Macro/policy optionality: No housing rebound, raw material deflation, or tariffs are embedded in guidance; any positive developments could be incremental, while tariffs would require reassessment .
Cash generation: FY25 free cash flow outlook of $500–$600M with ~$1.0B CFOA supports dividend and debt reduction; Board declared $1.75 dividend for March 2025 .

Appendix: Additional Data and Reconciliations

Q4 2024 Ongoing EPS of $4.57 reflects adjustments including $381M Maytag impairment, M&A impacts, equity method investee restructuring, and a favorable adjusted tax rate (non‑GAAP); ongoing EBIT margin 6.0% .
FY 2024 free cash flow was $385M; 2025 FCF outlook $500–$600M; operating cash flow outlook ~$1.0B .

Sources: Whirlpool Q4 2024 press release and 8‑K (Jan 29, 2025) ; Q4 2024 earnings call (Jan 30, 2025) ; Q3 2024 press release (Oct 23, 2024) ; Q2 2024 press release (Jul 24, 2024) ; Dividend press release (Feb 18, 2025) .

WHIRLPOOL CORP /DE/ (WHR)·Q4 2024 Earnings Summary