On January 29, 2025, Whirlpool Corp (WHR, Financial) released its 8-K filing detailing its fourth-quarter and full-year 2024 financial results. Whirlpool Corp, a leading manufacturer and marketer of home appliances, operates through segments including Domestic Appliances (MDA) North America, MDA Europe, MDA Latin America, MDA Asia, and Small Domestic Appliances (SDA). The company's brand portfolio includes Whirlpool, KitchenAid, Maytag, Consul, and Brastemp.
Performance Overview
Whirlpool Corp reported a significant decline in net sales for the fourth quarter, down 18.7% to $4,136 million, primarily due to the divestiture of its Europe segment. However, organic net sales saw a modest growth of 1.9%, driven by strong performance in small domestic appliances and international markets. The company faced a GAAP net earnings loss margin of 9.5%, translating to a loss per diluted share of $7.10, largely impacted by a non-cash impairment of the Maytag brand.
Financial Achievements and Challenges
Despite the challenges, Whirlpool Corp achieved an ongoing (non-GAAP) EBIT margin of 6.0% and ongoing earnings per diluted share of $4.57, surpassing the analyst estimate of $1.06. This was supported by a favorable adjusted tax rate of -54%. The company successfully executed a $300 million cost reduction initiative in 2024, aligning with its strategic goals.
Key Financial Metrics
Whirlpool Corp's financial statements reveal a decrease in cash provided by operating activities to $835 million from $915 million in the previous year. Free cash flow improved slightly to $385 million. The balance sheet shows a reduction in total assets to $16,301 million from $17,312 million, with a notable decrease in cash and cash equivalents.
| Metric | Q4 2024 | Q4 2023 | Change |
|---|---|---|---|
| Net Sales ($M) | 4,136 | 5,088 | (18.7)% |
| GAAP Net Earnings (Loss) ($M) | (393) | 491 | nm |
| Ongoing EBIT ($M) | 248 | 266 | (6.8)% |
| GAAP EPS | (7.10) | 8.90 | nm |
| Ongoing EPS | 4.57 | 3.85 | 18.7% |
Segment Performance
The MDA North America segment experienced a slight decline in net sales by 1.4%, while MDA Latin America saw a 4.0% decrease. However, MDA Asia and SDA Global segments reported growth in net sales by 7.6% and 5.7%, respectively. The Latin America segment notably improved its EBIT by 40.0%, driven by cost reduction actions and fixed cost leverage.
Analysis and Outlook
Whirlpool Corp's performance highlights the impact of strategic divestitures and cost management efforts. The company's ability to achieve ongoing earnings growth despite a challenging environment underscores its operational resilience. Looking ahead, Whirlpool Corp plans to reduce its ownership stake in Whirlpool of India Ltd. and pay down approximately $700 million of debt in 2025, aiming to strengthen its balance sheet and maximize shareholder value.
In 2024, we continued to make progress in our operations and delivered on our cost take out commitment of $300 million while achieving the closure of the Europe transaction, supporting our ongoing portfolio transformation," said Marc Bitzer, Chairman and CEO.
We are proud of the actions we took to strengthen our balance sheet, paying down $500 million in debt and driving significant working capital efficiency," said Jim Peters, Chief Financial and Administrative Officer.
Whirlpool Corp's strategic initiatives and financial discipline position it well for future growth, particularly as it anticipates a recovery in the U.S. housing market. Investors and stakeholders will be keenly watching how these strategies unfold in the coming year.
Explore the complete 8-K earnings release (here) from Whirlpool Corp for further details.
