Housing: Management reiterated that existing home sales are a key demand driver for appliances, especially for higher-margin discretionary demand. Bitzer said existing home sales hit a 30-year low , citing the mortgage lock-in effect and lower consumer confidence.Tariffs: Whirlpool absorbed roughly $300 million of tariffs in 2025, largely on components and some finished products. Bitzer said the industry did not immediately move on pricing, which he attributed in part to inventory preloading ahead of tariff ...

Financial Data and Key Metrics Changes - First quarter revenue grew by 8.2% year over year in constant currency to $5.1 billion, driven by the Belcan acquisition and organic growth in Health Sciences and Financial Services [6][25] - Adjusted Operating Margin improved by 40 basis points year over year to 15.5%, on track to achieve full year guidance of 20 to 40 basis points of expansion [8][33] - Adjusted EPS grew 10% year over year, marking the sixth consecutive quarter of year over year growth [8][25] Business Line Data and Key Metrics Changes - Health Sciences revenue increased over 11% year over year in constant currency, with broad-based growth across payer, provider, and life sciences [7][28] - Financial Services segment grew 6.5% year over year in constant currency, with healthy discretionary spending as clients invested in cloud and data modernization [7][28] - Products and Resources segment growth was driven by Welch, but faced weak demand due to discretionary spending pressures [29] Market Data and Key Metrics Changes - North America revenue grew 10% year over year in constant currency, driven by Belcan and large deals [30] - Europe revenue increased by 3% year over year in constant currency, supported by life sciences and financial services clients [31] - The Rest of the World saw a 7% year over year increase in constant currency, driven by large deals in Communications, Media, and Technology [32] Company Strategy and Development Direction - The company is investing heavily in AI-powered software-led engineering, integrating expertise in embedded software and IoT with capabilities from recent acquisitions [10][19] - Strategic imperatives include amplifying talent, scaling innovation, and accelerating growth, with a focus on AI and embedded engineering [16][19] - The company aims to build resilience and durability by developing leadership and talent, strengthening operational discipline, and rebooting innovation [9][10] Management's Comments on Operating Environment and Future Outlook - The macro environment changed sharply in early April, leading to elevated uncertainty, but the company sees opportunities related to productivity and efficiency [9][26] - Management remains optimistic about capturing demand in Financial Services and believes the current environment presents opportunities for cost optimization [27] - The company expects revenue growth of 5% to 6.5% year over year in constant currency for the second quarter of 2025 [35][36] Other Important Information - The company had four large deals in the first quarter, including a mega deal valued at over $500 million [8][26] - Free cash flow for the first quarter was $393 million, with plans to redeploy proceeds from the sale of an office complex in India [35] - The company plans to return approximately $1.7 billion to shareholders in 2025, including $1.1 billion in share repurchases and $600 million in dividends [39] Q&A Session Summary Question: Insights on bookings and pipeline shifts - Management noted that productivity gains from leveraging AI are leading to new deals and opportunities for consolidation, particularly in financial services [43][44] Question: Impact of April slowdown on decision-making - Management indicated that the slowdown is primarily seen in the Products and Resources segment, while Financial Services remains strong [56][57] Question: Comfort level regarding backlog coverage - Management expressed confidence in the backlog coverage, with a book-to-bill ratio of 1.3x and healthy demand in applications, AI, and cybersecurity [76] Question: Gross margin trends and expectations - Management highlighted that cost discipline will drive operating margin outcomes, with utilization and productivity improvements being key factors [78] Question: Sustainability of current growth and market position - Management emphasized the need for consistency in performance and expressed confidence in sustaining growth through a broad-based portfolio and strong market position [85][86]

Financial Data and Key Metrics Changes - Net sales for Q4 2024 were $1.4 billion, up 1% on a constant currency basis, while full-year sales were $5.4 billion, down 1% at constant currency [36] - Adjusted EBITDA for Q4 was $271 million, down 1% year-over-year, with a full-year adjusted EBITDA of $1.11 billion, relatively flat compared to the prior year [36][39] - Adjusted EPS for Q4 was $0.75, down 15% year-over-year, while full-year adjusted EPS was $3.14, down 1% primarily due to higher tax expenses [37][38] Business Line Data and Key Metrics Changes - Food sales for Q4 were $923 million, up 5% on an organic basis, driven by volume growth in all regions [40] - Protective business net sales for Q4 were $450 million, down 7% from the prior year, with adjusted EBITDA of $67 million, down 26% [42] - Food adjusted EBITDA for Q4 was $208 million, up 7% with a margin of 22.5%, while protective adjusted EBITDA margin was significantly lower due to volume declines [41][42] Market Data and Key Metrics Changes - The Americas region saw a constant dollar growth of 1%, driven by food strength, while EMEA and APAC also reported similar growth rates [43] - The protective segment is expected to face challenges in the first half of 2025, with a projected full-year decline of approximately 2% [48] Company Strategy and Development Direction - The company aims to further unlock potential in each business segment, targeting mid-single-digit earnings growth and high cash flow conversion over the long term [14][15] - A focus on deleveraging the balance sheet to three times is planned, with a return to balanced capital allocation including disciplined M&A and shareholder returns [15] - The company is shifting its culture to become high-performing and accountable, with an emphasis on customer focus and operational excellence [16][17] Management's Comments on Operating Environment and Future Outlook - Management acknowledged increased volatility in the macro environment due to global trade uncertainties, input costs, and foreign exchange movements [17][33] - The food business is expected to continue its growth trajectory, while the protective segment is anticipated to stabilize and inflect in volumes in the second half of 2025 [29][30] - Management expressed confidence in the company's ability to navigate challenges and drive returns for stakeholders [33][54] Other Important Information - The company plans to close two plants by the end of the year to optimize its footprint [31] - Free cash flow for the year totaled $454 million, with a net leverage ratio of 3.6 times, down from a peak of 4.1 times [44][45] - Full-year 2025 free cash flow is expected to be approximately $400 million, reflecting strong cash generation despite higher restructuring payments [51] Q&A Session Summary Question: Are there parts of the protective business that will significantly drag on volumes? - Management indicated that the industrial portfolio is expected to continue underperforming, with some bright spots in shrink films and fulfillment [58][60] Question: Can you discuss the potential impacts of tariffs? - Management noted that most of the business is domestic production, minimizing potential tariff impacts, but adjustments in the supply chain may be necessary [65][66] Question: What are the initial priorities for the new CEO? - The focus will be on accelerating customer focus, stabilizing the protective business, and enhancing cost takeout initiatives [71][75] Question: What is the outlook for the protective segment in 2024? - The protective segment is expected to face challenges in the first half, with a potential inflection in volumes in the second half [80][84] Question: How is the company addressing pricing pressures? - Management acknowledged slight inflation in resin prices and competitive pressures, but they expect to take modest price increases [87][102] Question: What is the expected growth for automation revenue? - Automation remains a critical part of the business, with expectations for growth driven by new placements and innovations in equipment [111][112]