Whirlpool Corporation’s two top financial minds will face Wall Street analysts Thursday morning for their Quarterly Conference Call, summarizing and interpreting the numbers from Q1, 2025, just concluded.
Chairman Marc Bitzer and CFO Jim Peters appear to have fairly positive views on the company’s prospects for the remainder of 2025, despite a bumpy road recently in terms of the WHR stock price, down dramatically from the beginning of 2025. WHR closed Monday at $77.75, after peaking in January at more than $135 a share.
In a statement after Wednesday’s Wall Street close, Bitzer said that margins improved because Whirlpool took necessary pricing and cost control actions in the challenging economy.
“Despite the uncertain macro environment which impacted consumer confidence in the first quarter, we delivered 160 basis points of margin expansion,” said Marc Bitzer. “This is testimony of our strong brands and products as well as our agile and disciplined operational execution.”
MARC BITZER, CHAIRMAN AND CHIEF EXECUTIVE OFFICER
Peters emphasized that Whirlpool focused on what they could control versus outside factors:
“We continue to stay focused on what is within our control in this dynamic environment and successfully implemented previously announced pricing actions while delivering cost take out in-line with our full year guidance.”
JIM PETERS, CHIEF FINANCIAL AND ADMINISTRATIVE OFFICER
Here are the summary talking points Bitzer and Peters will take into their Thursday morning Conference Call:
–Expanded margins year-over-year driven by previously announced pricing actions and cost take out
–Q1 net sales decline of (19.4)% due to the Europe divestiture; –organic net sales(1) growth of 2.2% driven by very strong SDA Global and MDA Asia businesses
–Q1 GAAP net earnings margin of 2.0% (up 780 basis points vs. (5.8)% in Q1 2024);
–GAAP earnings per diluted share of $1.28
–Q1 ongoing (non-GAAP) EBIT margin(2) of 5.9% (up 160 basis points vs. 4.3% in Q1 2024); ongoing earnings per diluted share(3) of $1.70
–2025 outlook is unchanged with full-year GAAP earnings per diluted share of approximately $8.75, and ongoing earnings per diluted share(3) of approximately $10.00; cash provided by operating activities of approximately $1 billion and free cash flow(4) of approximately $500 to $600 million
–Declared $1.75 dividend per share in both Q1 and Q2
Bitzer and Peters are not significantly changing their outlook estimates for the full year of 2025, despite the recent economic turbulence surrounding tariffs, recession talk, etc.:
FULL YEAR 2025 GUIDANCE/OUTLOOK
–Expect full-year net sales of approximately $15.8 billion; approximately 3% growth on a like-for-like(6) basis
–Expect to deliver more than $200 million of structural cost take out actions
–Expect full-year GAAP earnings per diluted share of approximately $8.75 and full-year ongoing earnings per diluted share(3) of approximately $10.00
–Cash provided by operating activities of approximately $1 billion and free cash flow(4) of $500 to $600 million
–Mitigating actions underway to offset incremental impact of tariff changes
While tariffs may increase Whirlpool’s materials costs, they also may provide some ‘cover’ from foreign appliance competitors:
U.S. TARIFF LANDSCAPE
–Since 2020, Asian producers have exploited ‘loopholes’ in 232 and 301 tariffs resulting in significant cost disadvantage for U.S.-made products
–Q4 2024 and Q1 2025 had amplified negative temporary impacts on our results: Asian producers ‘loaded’ U.S. industry in anticipation of tariffs, Q4 2024 and Feb year-to-date with >30% higher imports from Asian countries
–The threat of retaliatory tariffs, started to impact our business in Canada (and Europe)
–Expect new tariff policies to level the playing field, better supporting American manufacturing
MoodyOnTheMarket.com will monitor the Thursday morning Q1 Conference Call and post an update.
