Whirlpool (WHR) Q3 2024 earnings summary

Executive summary

• Q3 2024 net sales declined 18.9% year-over-year to $3.99B, mainly due to the Europe business divestiture, while organic net sales were nearly flat, down 0.7% year-over-year.

• Ongoing (non-GAAP) EPS for Q3 was $3.43, supported by pricing actions, cost reductions, and a favorable adjusted tax rate.

• Sequential global EBIT margin expansion in Q3, with North America delivering 100 basis points of sequential margin growth despite a challenging U.S. macro environment.

• Portfolio transformation included the deconsolidation of the European business and the sale of a minority stake in Whirlpool India, generating over $462 million in proceeds.

• Free cash flow for Q3 was ~$130M, with full-year guidance reaffirmed at ~$500M.

Financial highlights

• Q3 2024 net sales: $3.99B (down 18.9% year-over-year); organic net sales nearly flat, down 0.7%.

• Ongoing EBIT margin for Q3 was 5.8%, up sequentially but down from 6.5% in Q3 2023.

• Q3 ongoing EPS: $3.43.

• Free cash flow for nine months: $(586)M, improved from $(660)M year-over-year.

• Dividend paid in Q3 was $1.75 per share; 2024 dividend payments expected to total ~$400M.

Outlook and guidance

• Reaffirmed 2024 full-year guidance: net sales ~$16.9B, ongoing EBIT margin ~6.0%, ongoing EPS ~$12.00, and free cash flow ~$500M.

• Full-year GAAP EPS guidance revised to ~$0.50 due to updated tax rate and non-cash losses from the Europe transaction.

• Adjusted effective tax rate for 2024 expected at -18% to 22%, normalizing to 20%-25% in 2025.

• North America Q4 EBIT margin guided at 8%-9%, reflecting continued margin expansion.

• 2026 goals include $17.2B annual organic net sales, 9.0% ongoing EBIT margin, and ~7.0% FCF as % of net sales.