Whirlpool Corporation

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 the non-GAAP measures outlined in further detail at the beginning of our earnings presentation. We believe that these measures are important indicators of 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 the reconciliation of non-GAAP items to the most directly comparable GAAP measures. At this time, all participants are in listen-only mode. Following our prepared remarks, the call will be open for analyst questions. As a reminder, we ask that participants ask no more than two questions. With that, I'll turn the call over to Mark.

Thanks, Scott, and good morning, everyone. During the first quarter, we delivered a solid performance and we're pleased with our progress to date. With a 2% organic growth and almost 6% EBIT margins, our business is largely on track, despite a macro environment that became more challenging. We're also reiterating our annual guidance and just reconfirmed our dividend in line with past payouts. The tariffs represent in the short term a manageable headwind largely in the form of higher component costs and the market preloading by Asian competitors. Asian Appliance produces significantly increased imports into the U.S. ahead of the tariffs in the first quarter and fourth quarter, essentially loading the U.S. industry. This market disruption will likely continue into Q2 as competitors attempt to sell through their inventory. However, once the already announced tariffs fully kick in, This will turn into a significant tailwind for Whirlpool as a domestic producer. No matter how you look at it, Whirlpool with its 10 large US factories is a net winner of a new tariff policy. With our strong domestic footprint, we produce 80% of our domestic sales in the US. No competitors even close to that level of domestic production. As we will explain to you later, The newly announced tariffs are critical in closing pre-existing loophole that gave our Asian competitors an unfair advantage over U.S. domestic production. The tariffs will finally help create a level playing field for Whirlpool. Irrespective of macro environment, we remain focused on the things we control. We successfully implemented pricing actions and structurally drove costs out of our business. Even more important, we are excited about the initial market response to the huge wave of new products we're introducing this year, all of which is expected to expand ongoing EBIT margins in the second half of 2025. Turning to slide six, I will provide an overview of our first quarter results. We achieved 2% organic net sales growth, which, as a reminder, excludes the impact of currency and the Europe transaction. driven by strong momentum in our SDA Global and MDA Asia businesses. Global EBIT margins expanded 160 basis points year-over-year, driven by previously announced pricing actions in MDA North America and MDA Latin America, along with continued cost takeout. We also experienced approximately 17 million unfavorable impact from our minority stake in Beko Europe EV, which was offset by an interest rate swap benefit of approximately $30 million. We delivered approximately $200 million free cash flow improvement versus prior year, driven by the Europe transaction as expected. Ultimately, we delivered ongoing earnings per share of $1.70 and maintained our dividend of $1.75 for both Q1 and Q2. As mentioned before, we expect similar market dynamics in the second quarter as we experienced in the first quarter with Asian competitors preloading ahead of tariffs and working through elevated inventories. Our inventories within the trade, on the other hand, are at healthy levels and we're fully focused on executing the already announced price increases. With a full effect of tariffs coming into place in July, we expect a more stable competitive landscape in the second half. An environment in which we can leverage our U.S. domestic production to its fullest extent. This will put us on track to accomplish our full year ongoing margin guidance. Turning to slide seven, I will provide an overview of our first quarter ongoing EBIT margin drivers. Price mix favorably impacted margin by 50 basis points driven by our successful pricing actions in MDA North America and MDA Latin America. Our cost takeout actions delivered 100 basis points year over year, led by our continued manufacturing and supply chain efficiencies and our organizational simplification actions. Raw materials were essentially flat, as expected. Marketing and technology had an unfavorable 25 basis point impact as we continued to invest in our products and brands. In the first quarter, the Brazilian real depreciated approximately 20% compared to prior year, resulting in an unfavorable margin impact of 50 basis points. The European transaction positively impacted the first quarter by 75 basis points. We are pleased to have expanded margins year-over-year by 160 basis points, despite the challenging market dynamics which I explained earlier. And now I will turn it over to Jim to review the first quarter segment results.

Thanks, Mark. Good morning, everyone. Turning to slide eight, I'll review the first quarter results for our MDA North America business. Net sales were flat year over year as we experienced a continued challenging macro environment in the U.S. Consumer confidence declined sharply throughout the first quarter as a result of economic uncertainty from anticipated tariffs. In addition, consistent with the fourth quarter, we saw inventory loading of Asian imports by foreign competitors into the U.S. industry ahead of tariffs. Despite these challenges, MDA North America delivered an EBIT margin of 6.2% driven by pricing actions and cost takeout. As a reminder, we expect to turn over more than 30% of our product portfolio in MDA North America this year, our largest transition in over a decade. We have already seen a very positive trade response to the new product innovations we are launching in 2025. I will share more about these exciting new product launches shortly. We are confident that our actions position us well to achieve continued margin expansion as our industry environment stabilizes following the finalization of new trade policies. Turning to slide nine, I'll review the results for our MDA Latin America business. In the first quarter, MDA Latin America had net sales growth of 2% year-over-year, excluding currency driven by successfully implemented pricing actions. The segment delivered a solid EBIT margin of 6.6% in the quarter. Excluding an operational tax benefit of approximately 200 basis points in the prior year, EBIT margin expanded approximately 80 basis points year-over-year driven by favorable price mix. Turning to slide 10, I'll review the strong results for our MDA Asia business. In the first quarter, MDA Asia realized net sales growth of 16% year-over-year, excluding currency, driven by strong volumes from share gains and industry growth. The segment delivered a 7% EBIT margin in the quarter, with 240 basis points year-over-year of margin expansion from cost takeout and fixed cost leverage. Overall, we are very pleased with the first quarter results delivered by the MDA Asia team. Turning to slide 11, I'll review the results of our SDA global business. The segment achieved significant net sales growth of 10% year over year, excluding currency with strong direct to consumer sales in the quarter. We continue to see momentum from our recent product launches in high growth potential categories, such as our semi and fully automatic espresso machines. Overall, the segment delivered a very strong EBIT margin of 18.5% in the quarter, driven by favorable price mix. As a reminder, the first quarter accounts for less than 20% of their annual revenues, and EBIT margin can be heavily impacted by the timing of marketing spent. We expect the first half EBIT margin to be in line with full year guidance. Now I'll turn the call over to Mark to provide an overview of the tariff landscape and our mitigating actions.