Whirlpool (WHR) Q2 2024 earnings summary

Executive summary

• Achieved sequential global margin expansion of 100 basis points in Q2, with North America also expanding margins due to promotional pricing actions and improved sell-through trends.

• Strong double-digit net sales growth and margin expansion in SDA Global, MDA Latin America, and MDA Asia, supported by new product launches and direct-to-consumer growth.

• Completed organizational simplification, progressing toward $300M–$400M in full-year cost takeout.

• Net sales declined 16.8% to $3.99B in Q2, primarily due to the Europe business divestiture.

• Ongoing (non-GAAP) EPS for Q2 was $2.39; ongoing EBIT margin reached 5.3%, down from 7.3% prior year.

Financial highlights

• Q2 2024 net sales were $3.99B, down 16.8% year-over-year, with organic net sales up 1.2% excluding Europe divestiture.

• Q2 ongoing EBIT margin was 5.3%, up 100bps sequentially but down from 7.3% prior year.

• Q2 GAAP net earnings were $219M, or $3.96 per share, up 155.5% year-over-year.

• Free cash flow for Q2 was $(713)M, compared to $(587)M in Q2 2023.

• Paid $1.75 per share in dividends in Q2; expects ~$400M in dividends for 2024.

Outlook and guidance

• Full-year 2024 net sales guidance reaffirmed at ~$16.9B.

• Ongoing EPS revised to ~$12.00; GAAP EPS expected at ~$3.00, impacted by Europe transaction charges.

• Ongoing EBIT margin guidance lowered to ~6% for 2024, with Q4 exit margin expected at ~7.5%.

• Free cash flow guidance for 2024 at ~$500M.

• Anticipates ~$400M in dividends and ~$50M in share buybacks in 2024.