Whirlpool Reports 19.4% Decline in Q1 2025 Net Sales, Net Profit Turns Positive

Whirlpool Corporation reported a significant decline in financial performance for the first quarter of 2025, with net sales of $3.621 billion, down 19.4% from $4.490 billion in the same period of 2024. The decrease was primarily attributed to the divestiture of its European major domestic appliances business, which was completed in April 2024. Excluding the impact of foreign currency fluctuations, net sales decreased by 16.1%. The company recorded a net profit of $71 million, or $1.28 per diluted share, compared to a net loss of $259 million, or $(4.72) per diluted share, in the prior year, which included a non-cash charge related to the European business divestiture.

The gross margin for the quarter improved to 16.8%, up from 14.3% in the previous year, driven by cost reduction initiatives and favorable product pricing. However, the company faced challenges from currency impacts, particularly in Latin America, and a higher effective tax rate compared to the same period last year. Operating profit was reported at $184 million, a turnaround from an operating loss of $116 million in the first quarter of 2024. The company also incurred restructuring costs of $10 million during the quarter, down from $23 million in the same period last year.

In terms of operational developments, Whirlpool's Major Domestic Appliances (MDA) North America segment saw a slight decline in net sales of 0.3%, while MDA Latin America experienced an 11.9% decrease, primarily due to unfavorable currency impacts. Conversely, MDA Asia reported a 12.3% increase in net sales, driven by higher volumes and favorable pricing. The Small Domestic Appliances (SDA) Global segment also saw a 7.9% increase in net sales, reflecting strong product pricing and volume growth.

Whirlpool's cash flow from operating activities improved to a negative $721 million, compared to a negative $873 million in the prior year. The company maintained cash and cash equivalents of approximately $1.024 billion as of March 31, 2025. Looking ahead, Whirlpool anticipates generating approximately $1 billion in cash from operating activities for the full year and expects capital expenditures to be around $450 million. The company projects earnings per diluted share for 2025 to be approximately $8.75, with expectations of flat demand in MDA North America and modest growth in MDA Latin America and Asia.