Whirlpool (WHR) Q4 2023 earnings summary

Executive summary

• Q4 net sales rose 3.4% YoY to $5.088B; ongoing EBIT margin expanded 170 bps to 5.2%, and ongoing diluted EPS was $3.85.

• FY net sales declined 1.4% to $19.455B; ongoing diluted EPS was $16.16, with ~$800M of cost takeout.

• Europe portfolio transaction was expected to close by April 2024; guidance includes three months of expected MDA Europe results.

Financial highlights

• Q4 ongoing EBIT was $266M versus $171M YoY; ongoing diluted EPS was $3.85 versus $3.89, supported by a tax benefit.

• Q4 GAAP net earnings were $491M, or $8.90 per diluted share, versus a $1.605B loss in Q4 2022, which included the Europe transaction.

• FY GAAP net earnings were $481M versus a $1.519B loss in 2022; ongoing diluted EPS was $16.16 versus $19.64.

• FY cash from operations was $915M and free cash flow was $366M, versus $1.390B and $820M in 2022.

Outlook and guidance

• FY2024 net sales forecast at $16.9B, flat like-for-like and down ~13% versus FY2023 reported sales; ongoing EBIT margin guidance is 6.8%.

• FY2024 GAAP and ongoing diluted EPS guidance is $8.50–$10.50 and $13–$15, respectively; expected cost actions are $300M–$400M.

• Cash from operations guidance is $1.15B–$1.25B and free cash flow guidance is $550M–$650M, including $200M–$300M of MDA Europe cash usage.

• Guidance includes three months of MDA Europe results, estimated at $700M net sales and 1.5% EBIT margin; transaction close was expected by April 2024.

• Expected 2024 GAAP and adjusted tax rates are 24% and 0%, respectively.