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The call presents a mixed picture: near-term performance (Q1) and cash flow were materially weak with steep industry declines, negative EPS, large inventory and production-related one-time costs, and a paused dividend — signaling meaningful short-term challenges. Offsetting these negatives, management has implemented decisive pricing (promotional >10% plus ~4% list increase), accelerated cost-takeout (> $150M target), strengthened the balance sheet via a $1.1B equity raise and >$900M debt paydown, and highlighted durable strengths (SDA Global outperformance, product innovation wins and U.S. manufacturing advantages under updated Section 232 tariffs). While the plan and portfolio contain concrete, credible levers to restore margins, the immediate financial trajectory and Q1 metrics are unfavorable, making the near-term outlook cautious despite constructive strategic actions.
Whirlpool updated 2026 guidance calling for like‑for‑like revenue growth of about 1.5% and full‑year ongoing EBIT margin of ~4% (about a 70‑bp contraction versus prior year), ongoing EPS of $3.00–$3.50 (which embeds roughly $1 of EPS dilution from the recent ~$1.1B equity offering and another ~$1 from an adjusted effective tax rate of ~25%), and free cash flow of >$300M (~2% of net sales) supported by ~ $150M of working‑capital improvement; they expect global industry demand down ~3% and North America down ~5%, plan >$150M of net cost takeout (and reiterated a $115M design‑to‑value program), anticipate price/mix headwinds that should improve through the year (~150 bp effect assumed), raw‑material pressure of ~75 bp and tariff headwinds of ~175 bp, capex of ~ $400M, >$900M of debt paydown this year, a temporary pause of the quarterly dividend starting Q2, and continued actions to strengthen liquidity (revolver amendment to ~$2.25B and transition to an asset‑based facility).
SDA Global delivered ~10% net sales growth year-over-year (ex-currency) and expanded EBIT margin ~250 basis points to 21%, marking the sixth consecutive quarter of year-over-year revenue growth and strong margin expansion driven by direct-to-consumer growth, cost takeout execution and favorable marketing timing.
Whirlpool announced the largest price increase in over a decade: a promotional price increase >10% implemented April 17 and an additional ~4% list/lease price increase effective July 9, expected to start driving price/mix improvements in Q2 and ramp through the year.
Company expects to deliver more than $150 million of net cost takeout in 2026 driven by design-to-value, vertical integration, automation and sourcing initiatives, plus targeted corporate fixed-cost actions; earlier cost initiatives cited $115 million headroom and structural actions have carryover into 2027.
Whirlpool executed an equity offering raising approximately $1.1 billion, used to pay down >$900 million of debt and to accelerate vertical integration investments; company is actively working to reduce long-term debt below $5 billion and expects to close an asset-based lending revolver in Q2.
Management reiterated full-year free cash flow guidance of more than $300 million (~2% of net sales) driven by structural inventory optimization and working capital improvement initiatives (targeting ~$150 million improvement in working capital).
Announced $60 million investment in a Perrysburg, Ohio facility (11th U.S. factory) expected to deliver ~$30 million in annualized EBIT; Armada (Iowa) modernization expected to generate ~$70 million annualized EBIT benefit; shifting production to Brazil (Rio Claro) expected to add ~$20 million annualized EBIT.
New product launches performed well (Whirlpool UV laundry tower rapidly capturing ~5 points share in weeks); KitchenAid suite and new intelligent wall oven earned awards (Best of Show) and KitchenAid secured 23 awards at Cadis, supporting premium positioning and share gains in select categories.
Good morning, and welcome to Whirlpool Corporation's First Quarter 2026 Earnings Call. Today's call is being recorded. Joining me today are Marc Bitzer, our Chairman and Chief Executive Officer; Roxanne Warner, our Chief Financial Officer; Juan Carlos Puente, our Executive President of North America and Global Strategic Sourcing; and Ludovic Beaufils, our Executive President of KitchenAid Small Appliances and Latin America. Our remarks track with a 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 assist you in better understanding Whirlpool Corporation's future expectations. Our actual results could differ materially from these statements due to many factors discussed in our latest 10-K, 10-Q and other periodic reports. We also want to remind you that today's presentation includes non-GAAP measures outlined in further detail at the beginning of our earnings presentation. We believe these measures are important indicators in our operations as they exclude items that may not be indicative of our results from ongoing business operations.
We also think the adjusted measures will provide you with a better baseline for analyzing trends in our ongoing business operations. Listeners are directed to the supplemental information package posted on the Investor Relations section of our website for reconciliations of non-GAAP items to the most directly comparable GAAP measures. [Operator Instructions] With that, I'll turn the call over ...