M
ME NEWS
24 Apr 2025, 07:15
Whirlpool Expands Margins in Q1 2025, Maintains Full-Year Outlook Despite Revenue Drop from Divestitures
Whirlpool Corporation reported a significant year-over-year improvement in profitability for the first quarter of 2025, as strategic pricing actions and cost reductions lifted margins even amid a nearly 20% decline in reported net sales caused by its Europe business divestiture.
First-quarter GAAP net earnings reached $71 million ($1.28 per diluted share), a stark recovery from a net loss of $259 million in Q1 2024. The company’s ongoing (non-GAAP) EBIT margin rose to 5.9%, up from 4.3% a year earlier, while ongoing earnings per share came in at $1.70. The quarterly GAAP net earnings margin expanded to 2.0% from a negative 5.8% in the prior year, reflecting stronger operational efficiency and the absence of major write-downs seen in 2024.
Despite a 19.4% decline in reported net sales to $3.62 billion, organic net sales—which exclude foreign currency and divestiture impacts—grew 2.2% year-over-year. This growth was driven by strong performance in the Small Domestic Appliances (SDA) Global segment and Major Domestic Appliances (MDA) Asia, which reported year-over-year sales growth of 7.9% and 12.3%, respectively.
Chairman and CEO Marc Bitzer highlighted the company’s resilience: “This is testimony of our strong brands and products as well as our agile and disciplined operational execution.” CFO Jim Peters emphasized that the company remains focused on cost controls and successfully executed its announced pricing strategies.
Free cash flow also improved to negative $793 million from negative $988 million in the prior year, while cash used in operating activities narrowed to $721 million from $873 million. Whirlpool reaffirmed its full-year 2025 guidance, projecting approximately $1 billion in operating cash flow and $500–$600 million in free cash flow. The company also maintained its expected GAAP earnings of approximately $8.75 per share and ongoing EPS of $10.00.
Segment-wise, MDA North America remained nearly flat in sales but posted EBIT growth of nearly 11%. MDA Asia and SDA Global showed strong operating leverage with EBIT increases of 71.5% and 9.5%, respectively. MDA Latin America faced an 11.9% decline in sales and a 24.8% drop in EBIT, partially due to favorable tax benefits in the prior year skewing comparisons.
Looking ahead, Whirlpool expects full-year net sales of approximately $15.8 billion, up 3% on a like-for-like basis, and ongoing EBIT margin expansion to around 6.8%. The company reaffirmed its commitment to delivering over $200 million in structural cost savings while managing risks tied to global tariff dynamics and ongoing portfolio transformation, including the pending divestiture of Whirlpool of India.
Despite macroeconomic uncertainties, Whirlpool’s strong brand positioning, pricing discipline, and operational agility position the company to meet its financial goals for 2025.
Whirlpool Corporation reported a significant year-over-year improvement in profitability for the first quarter of 2025, as strategic pricing actions and cost reductions lifted margins even amid a nearly 20% decline in reported net sales caused by its Europe business divestiture.
First-quarter GAAP net earnings reached $71 million ($1.28 per diluted share), a stark recovery from a net loss of $259 million in Q1 2024. The company’s ongoing (non-GAAP) EBIT margin rose to 5.9%, up from 4.3% a year earlier, while ongoing earnings per share came in at $1.70. The quarterly GAAP net earnings margin expanded to 2.0% from a negative 5.8% in the prior year, reflecting stronger operational efficiency and the absence of major write-downs seen in 2024.
Despite a 19.4% decline in reported net sales to $3.62 billion, organic net sales—which exclude foreign currency and divestiture impacts—grew 2.2% year-over-year. This growth was driven by strong performance in the Small Domestic Appliances (SDA) Global segment and Major Domestic Appliances (MDA) Asia, which reported year-over-year sales growth of 7.9% and 12.3%, respectively.
Chairman and CEO Marc Bitzer highlighted the company’s resilience: “This is testimony of our strong brands and products as well as our agile and disciplined operational execution.” CFO Jim Peters emphasized that the company remains focused on cost controls and successfully executed its announced pricing strategies.
Free cash flow also improved to negative $793 million from negative $988 million in the prior year, while cash used in operating activities narrowed to $721 million from $873 million. Whirlpool reaffirmed its full-year 2025 guidance, projecting approximately $1 billion in operating cash flow and $500–$600 million in free cash flow. The company also maintained its expected GAAP earnings of approximately $8.75 per share and ongoing EPS of $10.00.
Segment-wise, MDA North America remained nearly flat in sales but posted EBIT growth of nearly 11%. MDA Asia and SDA Global showed strong operating leverage with EBIT increases of 71.5% and 9.5%, respectively. MDA Latin America faced an 11.9% decline in sales and a 24.8% drop in EBIT, partially due to favorable tax benefits in the prior year skewing comparisons.
Looking ahead, Whirlpool expects full-year net sales of approximately $15.8 billion, up 3% on a like-for-like basis, and ongoing EBIT margin expansion to around 6.8%. The company reaffirmed its commitment to delivering over $200 million in structural cost savings while managing risks tied to global tariff dynamics and ongoing portfolio transformation, including the pending divestiture of Whirlpool of India.
Despite macroeconomic uncertainties, Whirlpool’s strong brand positioning, pricing discipline, and operational agility position the company to meet its financial goals for 2025.
