Core Viewpoint - The dividend yields of UPS (6.8%) and Whirlpool (9.1%) are attractive for passive income investors, but both companies face doubts regarding the sustainability of these dividends due to challenging market conditions [1][8]. Whirlpool Stock Analysis - Whirlpool's stock has seen a decline this year, attributed to high interest rates affecting the housing market and discretionary demand for appliances, with first-quarter organic sales rising only 2.2% year-over-year [3][4]. - Competitor behavior, particularly increased imports from Asian appliance producers ahead of tariffs, has disrupted the market, impacting Whirlpool's sales in the first and second quarters [4]. - Whirlpool's full-year guidance suggests a sales target of $15.8 billion and an EBIT margin of 6.8%, indicating an EBIT of $1.07 billion, with free cash flow projected between $500 million to $600 million, which should cover the $384 million in dividends paid last year [6]. - The company has significant long-term debt of $4.8 billion, with $1.85 billion maturing this year, raising concerns about the sustainability of its dividend if free cash flow deteriorates [7]. UPS Stock Analysis - UPS is facing challenges in maintaining its dividend due to a stretched payout ratio, with management aiming for a 50% payout of earnings while dealing with a reduction in Amazon delivery volume and a declining demand environment [8][9]. - The current dividend of $6.56 per share is nearly covered by the projected earnings of $7.11 in 2025, resulting in a payout ratio of 92% [9]. - UPS anticipates $5.7 billion in free cash flow for 2025, which is just sufficient to cover the $5.5 billion cash dividend, indicating potential strain on dividend sustainability [9][11]. - The company reported a higher-than-expected decline in average daily volume in February and March, with guidance for a 9% year-over-year decline in the second quarter [11]. Comparison of UPS and Whirlpool - Overall, UPS's dividend appears more sustainable than Whirlpool's, with UPS managing $19.5 billion in long-term debt against a projected $5.7 billion in free cash flow for 2025, while Whirlpool's $4.8 billion in long-term debt is significantly higher than its estimated free cash flow [12]. - There is a possibility that both companies may cut their dividends by the end of the year, which could disappoint investors seeking dividends [13].

Core Insights - Whirlpool Foundation and The Washing Machine Project received the gold award for Best Employee Engagement Initiative at the 2025 Engage for Good Halo Awards [1][2][6] - The initiative involved Whirlpool employees assembling manual washing machines and participating in "Washout" experiences to understand the challenges of handwashing clothes [3][4][5] Company Overview - Whirlpool Corporation is a leading home appliance manufacturer, reporting approximately $17 billion in annual sales in 2024, with nearly 90% of sales in the Americas [7] - The company employs around 44,000 individuals and operates 40 manufacturing and technology research centers [7] Initiative Details - The employee engagement program aimed to raise awareness about the global washing divide, where 60% of the world's population relies on handwashing due to lack of access to reliable electricity and water [4] - In 2024, over 300 Whirlpool employees assembled 375 manual washing machines for distribution to underserved communities in India, Mexico, Republic of Congo, and Ghana [5][6] Impact and Recognition - The program is designed to alleviate the burden of handwashing clothes, particularly impacting women and girls in underserved communities [4][6] - The Halo Awards recognize outstanding corporate and nonprofit partnerships, with Whirlpool's initiative being highlighted among other notable nominees [6]

Whirlpool Corporation (WHR) posted dismal first-quarter fiscal 2025 results, wherein both the top and bottom lines missed the Zacks Consensus Estimate and declined on a year-over-year basis.Amid an uncertain macro environment that pressured consumer confidence and demand across key markets, Whirlpool delivered a notable margin expansion, driven by strategic pricing actions and disciplined cost takeout initiatives. This performance reinforces the company’s commitment to sustainable growth and consistent valu ...

Scott Cartwright Good morning, and welcome to Whirlpool Corporation's first quarter 2025 earnings call. Today's call is being recorded. Joining me today are Marc Bitzer, our Chairman and Chief Executive Officer, and Jim Peters, our Chief Financial and Administrative Officer. Our remarks today track with the presentation available on the Investors section of our website at whirlpoolcorp.com. Before we begin, I want to remind you that as we conduct this call, we will be making forward-looking statements to as ...

Whirlpool (WHR) Q1 2025 Earnings Call April 24, 2025 02:59 PM ET Company Participants Scott Cartwright - Head of Investor RelationsMarc Bitzer - CEO & Chairman of The BoardJames Peters - Executive VP, Chief Financial & Administrative Officer and President of Whirlpool AsiaLaura Champine - Director of ResearchSam Darkatsh - Managing DirectorMichael Rehaut - Executive DirectorDavid Macgregor - PresidentMichael Dahl - Managing DirectorEric Bosshard - CEO Conference Call Participants Susan Maklari - Senior Equi ...

Financial Performance - Net sales for Q1 2025 were $3,621 million, a decrease of 19.4% compared to $4,490 million in Q1 2024[17] - Gross margin for Q1 2025 was $607 million, down from $642 million in Q1 2024, reflecting a decline of 5.5%[17] - Operating profit improved to $184 million in Q1 2025, compared to a loss of $116 million in Q1 2024[17] - Net earnings available to Whirlpool for Q1 2025 were $71 million, a significant recovery from a loss of $259 million in Q1 2024[17] - Basic net earnings per share for Q1 2025 were $1.29, compared to a loss of $4.72 per share in Q1 2024[17] - Total net sales for the three months ended March 31, 2025, were $3.621 billion, down from $4.490 billion for the same period in 2024, representing a decrease of approximately 19.4%[50] - The company reported a comprehensive loss of $112 million for the first quarter of 2025, which included currency translation adjustments and cash flow hedges[106] - The net earnings for the first quarter of 2025 were $71 million, a significant recovery from a net loss of $259 million in the same period of 2024[108] Assets and Liabilities - Total assets increased to $16,514 million as of March 31, 2025, up from $16,301 million at the end of 2024[19] - Total current liabilities rose to $7,534 million as of March 31, 2025, compared to $7,323 million at the end of 2024[19] - Cash and cash equivalents decreased to $1,024 million at the end of Q1 2025, down from $1,275 million at the end of 2024[21] - The outstanding amount for the term loan at March 31, 2025, is $1.5 billion, with a maturity date of October 31, 2025[59] - As of March 31, 2025, the total notes payable amounted to $619 million, a significant increase from $18 million at December 31, 2024, primarily due to the issuance of commercial paper[67] - The company has committed credit facilities totaling $3.5 billion and $1.5 billion in term loans, with additional facilities in Brazil and India providing borrowings of approximately $186 million and $173 million at March 31, 2025, and December 31, 2024, respectively[65][66] Cash Flow and Operating Activities - The company reported cash used in operating activities of $721 million for Q1 2025, an improvement from $873 million in Q1 2024[21] - The company expects to generate cash from operating activities of approximately $1 billion and capital expenditures of about $450 million for the full year 2025[200] Restructuring and Costs - Total restructuring charges for the first quarter of 2025 amounted to $10 million, compared to $23 million in the same period of 2024[114] - The company incurred $21 million in total costs related to workforce reduction plans, with $14 million attributed to employee termination costs[112] - The MDA North America segment reported restructuring charges of $6 million for the first quarter of 2025, up from $4 million in the same period of 2024[114] Investments and Equity - The carrying amount of the investment in Beko Europe decreased from $74 million as of December 31, 2024, to $59 million as of March 31, 2025, while the carrying amount for Whirlpool China increased from $191 million to $193 million in the same period[41] - The company holds a 25% equity interest in Beko following the disposal of its European major domestic appliance business[102] - As of March 31, 2025, Whirlpool's total stockholders' equity decreased to $2.829 billion from $2.933 billion at the end of 2024, reflecting a comprehensive loss of $34 million[105] Market Conditions and Risks - The company is facing a global shortage of certain components, such as semiconductors, and input cost inflation due to various geopolitical factors[205] - The recent trade policy and tariff actions by the U.S. government have increased the cost of certain raw materials and components, creating significant uncertainty for the business[204] - The company has filed petitions alleging violations of trade laws by competitors, resulting in extended antidumping duties on certain large residential washers from China and Mexico[202] Legal and Compliance - The company is currently involved in various legal actions, including class action lawsuits, but management believes these will not have a material adverse effect on financial statements[81] - The company has received tax assessments related to BEFIEX credits totaling approximately 2.4 billion Brazilian reais (approximately $420 million) as of March 31, 2025, which are being disputed[71] Dividends and Share Repurchase - The company declared dividends totaling $97 million in the first quarter of 2025, compared to $94 million in the same period of 2024[105] - The share repurchase program has approximately $2.5 billion remaining as of March 31, 2025, with no shares repurchased during the first quarter of 2025[109] Future Outlook - The company anticipates delivering over $200 million in cost take out and expanding margins in 2025 despite a challenging macro environment[135] - The company expects flat industry demand in North America and a growth of 0-3% in Latin America, with Asia expected to grow by 3-5%[200]

First-Quarter 2025 Earnings Review Thursday, April 24, 2025 Whirlpool Corporation Confidential Whirlpool Corporation Confidential Cautionary Statement This document contains forward-looking statements about Whirlpool Corporation and its consolidated subsidiaries ("Whirlpool") that speak only as of this date. Whirlpool disclaims any obligation to update these statements. Forward-looking statements in this document may include, but are not limited to, statements regarding future financial results, long-term v ...

Whirlpool shares have lost about 32.5% since the beginning of the year versus the S&P 500's decline of -10.1%. What's Next for Whirlpool? While Whirlpool has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter( ...

Whirlpool Expands Margins in First-Quarter; Full-Year Guidance Unchanged BENTON HARBOR, Mich., April 23, 2025 - Whirlpool Corporation (NYSE: WHR), today reported first-quarter financial results. "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 EXE ...

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 2 ...