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.

• 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 actions, progressing toward $300M–$400M cost takeout for 2024.

• Challenging U.S. macro environment, especially in housing, continues to impact discretionary demand and price mix.

• Replacement demand remains strong, positioning the company for a future housing market rebound.

Financial highlights

• Q2 2024 net sales were $3.99B, down 16.8% year-over-year, reflecting the Europe business divestiture; organic net sales up 1.2% excluding EMEA.

• Ongoing EBIT margin for Q2 was 5.3%, down from 7.3% prior year; ongoing EPS was $2.39.

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

• Generated $275M in cash from working capital and inventory management in Q2.

• Free cash flow for the first half was $(713)M, impacted by Europe transaction outflows.

Outlook and guidance

• Reaffirmed full-year 2024 net sales guidance of ~$16.9B.

• Full-year ongoing EBIT margin guidance revised to ~6.0%, with Q4 exit margin expected at 7.5%.

• Full-year ongoing EPS revised to ~$12.00; GAAP EPS expected at ~$3.00 due to Europe transaction charges.

• Free cash flow guidance for 2024 at ~$500M, with cash from operations expected at ~$1.05B.

• Anticipates paying ~$400M in dividends in 2024.