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Our
Financial
Position

I am pleased with our team’s execution of our operational priorities in 2024, delivering pricing actions and approximately $300 million of cost take out. We strengthened our balance sheet through reducing our debt levels by $500 million and delivered structural inventory efficiency through disciplined working capital management. Our free cash flow(a) of $385 million alongside approximately $500 million of cash generated from the sale of our 24% stake in our India business and Brastemp water filtration business supported our shareholder-friendly capital allocation priorities.

Financial Summary

We delivered $12.21 ongoing EPS(a) despite a very challenging macroeconomic environment. In the U.S., existing home sales continue to be at multi-decade lows, negatively impacting discretionary demand and our product mix. Strong execution of cost and pricing actions partially offset these challenges as we delivered revenue of $16.6 billion and ongoing EBIT margin(a) of 5.3%.

Clear Capital Allocation Priorities Are Unchanged

  • Fund organic growth: In 2024, we invested nearly $1 billion in capital expenditures and research and development, launching 100+ new products globally. We continue to deliver meaningful product innovation to improve life at home for our consumers and drive margin expansion.
  • Strengthen Balance Sheet: Our debt levels are temporarily elevated from borrowings related to the InSinkErator acquisition. We repaid $500 million of our acquisition-related term loan in 2024 and expect to continue progress toward our net debt leverage target of ~2x in 2025.
  • Demonstrated commitment to shareholder returns: We paid approximately $400 million in dividends and executed $50 million of share buybacks in 2024.

In closing, while we have faced a challenging macroeconomic environment in the U.S., we are confident in the actions we have taken to strengthen our business. The completion of our European transaction in April 2024 marked a significant milestone in our portfolio transformation toward a higher-margin and higher-growth business. Through strategic actions focused on delivering innovative products, driving margin expansion and returning value to shareholders, we are well-positioned to benefit from an eventual housing market recovery in the U.S.

James Peters Executive Vice President, Chief Financial and Administrative Officer and President, Whirlpool Asia