Whirlpool (US:WHR)2026-01-28 21:20Financial Performance - Fourth-quarter 2025 net sales were $4,098 million, a decrease of 0.9% compared to $4,136 million in Q4 2024; full-year net sales were $15,524 million, down 6.5% from $16,607 million in 2024[2] - GAAP net earnings for Q4 2025 were $108 million, a significant recovery from a loss of $393 million in Q4 2024; full-year GAAP net earnings were $318 million compared to a loss of $323 million in 2024[2] - Ongoing EBIT for Q4 2025 was $135 million, down 45.6% from $248 million in Q4 2024; full-year ongoing EBIT was $729 million, a decrease of 17.8% from $887 million in 2024[2] - Operating profit for the twelve months ended December 31, 2025, was $838 million, significantly higher than $143 million in 2024[14] - For Q4 2025, Whirlpool reported net earnings of $108 million, resulting in a net earnings margin of 2.7%[33] - Ongoing EBIT for Q4 2025 was $234 million, with an ongoing EBIT margin of 3.3%[33] - For the full year 2025, net earnings available to Whirlpool were $318 million, with a net earnings margin of 2.2%[39] - Full-year ongoing EBIT was $729 million, translating to an ongoing EBIT margin of 4.7%[39] Earnings Projections - The company expects 2026 GAAP earnings per diluted share to be approximately $6.25 and ongoing earnings per diluted share to be around $7.00[3] - The anticipated full-year GAAP tax rate for 2026 is approximately 25.0%[44] - For 2026, Whirlpool expects reported EBIT to be around $825 million and ongoing EBIT to be approximately $875 million[45] - The projected earnings per diluted share for 2026 is approximately $6.25, with an ongoing measure of $7.00[45] - The full-year adjusted tax (non-GAAP) rate for 2026 is expected to be approximately 25.0%[44] Cash Flow and Debt Management - Cash provided by operating activities is projected to be approximately $850 million in 2026, with free cash flow expected to be between $400 million and $500 million[3] - The company plans to reduce debt by approximately $400 million in 2026, focusing on working capital efficiency[3] - Free cash flow for the twelve months ended December 31, 2025, was $467 million, down from $835 million in 2024[17] - Free cash flow for the twelve months ended December 31, 2025, was $78 million, down from $385 million in 2024[60] - The company expects free cash flow for 2026 to be in the range of $400 million to $500 million[60] Segment Performance - MDA North America segment net sales for Q4 2025 were $2,573 million, a decline of 0.9% year-over-year, with EBIT down 59.0% to $71 million[4] - MDA Latin America segment net sales increased by 0.8% year-over-year to $927 million, but EBIT decreased by 15.3% to $59 million[4] - SDA Global segment net sales grew by 10.3% year-over-year to $423 million, with EBIT increasing to $59 million, reflecting strong growth in the direct-to-consumer business[4] Cost Management - The company executed a $200 million structural cost takeout in 2025 to mitigate the impact of tariffs and improve operational efficiency[3] - The company incurred restructuring costs of $58 million in Q2 2024, primarily related to employee termination[49] - In Q4 2025, the company reversed $15 million of restructuring provisions related to its European equity method investee[54] Asset and Liability Changes - Total current assets decreased to $4,924 million in 2025 from $5,239 million in 2024, a decline of 6%[16] - Long-term debt increased to $5,583 million in 2025 from $4,758 million in 2024, an increase of 17.4%[16] - Cash and cash equivalents at the end of 2025 were $669 million, down from $1,275 million at the end of 2024, a decrease of 47.5%[17] Miscellaneous - Organic net sales for 2025 were approximately $15.7 billion, a decrease of 0.3% compared to 2024[69] - A goodwill impairment charge of $381 million was recorded in Q4 2024 for the Maytag trademark[49] - The company recorded a gain of $251 million from selling an 11% stake in its India business in Q4 2025[49] - Dividends declared for the twelve months ended December 31, 2025, were $5.30 per share, compared to $7.00 per share in 2024, a reduction of 24.3%[14] - Basic net earnings per share for Q4 2025 were $1.92, recovering from a loss of $7.10 in Q4 2024[14] - The GAAP tax rate for 2025 was calculated at 27.5%, with an adjusted ongoing earnings per share tax rate of 3.5%[54]