Whirlpool Corporation

being recorded. Joining me today are Mark Bitzer, our chairman and chief executive officer, and Jim Peters, our chief financial and administrative officer. Our remarks today track with a presentation available on the investor 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 the non-GAAP measures outlined in further detail at the beginning of our earnings presentation. We believe these measures are important indicators of our operations as they exclude items that may not be indicative of results from our 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. As expected, we navigated the challenging second quarter and continue to operate in an increasingly complex external environment. The macroeconomic uncertainty marked by elevated interest rates and evolving trade policies negatively impacted consumer sentiment. In particular, weakness of consumer sentiment not only suppressed demand but also impacted itself as we continue to see consumers choosing into lower end profits. Furthermore, with the recent delays in tariff implementation, Asian competitors are not yet experiencing the full cost of tariffs and have continued to increase their imports ahead of the tariffs. In fact, we estimate that during the first half of this year, the amount of Asian appliance imports will approach the highest level on record. Needless to say, this preloading has created significant short-term disruption, adding to the promotional intensity throughout the second quarter. We are well-positioned to win over time and are confident these effects are temporary in nature. However, it has become clear that they will extend well into the third quarter, putting pressure on short-term margin expansion. Despite these macro challenges, we still delivered sequential net sales growth across all segments in the second quarter and very strong results in our SDA global business driven by our exciting new products. Given the prolonged loading impact by competitors and the lack of consumer confidence in marketplace, we are updating our folio guidance. As we expect the full impact of tariffs to kick in later this year and these temporary negative effects to subside, we are confident that we will see meaningful improvement in the MDA North American business heading into next year. Our perspective has not changed, but Wopul will be a net beneficiary from these new tariff policies. We are structurally positioned to win in this environment and believe we are operating from a position of strength driven by a strong domestic footprint. Irrespective of the external challenges, we will stay focused on what we control. We successfully implemented pricing actions, we structurally drove costs out of our business, and we strengthened our balance sheet with our recent debt refinancing. Putting it all together, our investment case remains as strong as ever and we see a credible pathway for improvement in our results. One, we are excited about the extensive portfolio of new products we're introducing this year, the largest number in a decade. Two, we are a clear beneficiary of structural shifts in trade policy. And three, our leadership position with U.S. home builders and our deep relationship with national account position as to benefit from eventual recovery in the U.S. housing market. Wopul is well positioned to deliver sustained long-term value and we have every confidence we will do so. Turning to slide six, I will provide an overview of our second quarter results. Negative consumer sentiment that impacted global industry demand in the second quarter led to a 3% decline in net sales excluding currency. Despite the challenging demand environment, we continue to see strong growth in our SDA global business. Global e-bit margins held steady year over year at .3% despite significant currency headwinds primarily from a weakening Brazilian real. Our free cash flow was unfavorable versus prior year by approximately $140 million driven by the seasonal inventory build. Ultimately, we delivered ongoing earnings per share of $1.34 which was negatively impacted by approximately $0.35 from a non-cash loss associated with our minority interest in Beko Europe BV. Turning to slide seven, I will provide an overview of our second quarter ongoing e-bit margin drivers. Price mix favorably impacted margin by 25 basis points. This was slightly below our expectations as the preloading of Asian imports sustained an intense promotional environment. Additionally, weakened consumer confidence pushed mix down further in an environment that was already largely replacement driven. As expected, our cost takeout actions delivered margin expansion of 100 basis points year over year led by our continued manufacturing and supply chain efficiencies and organizational simplification actions. As expected, raw materials were essentially flat. In the second quarter, we began to experience the increased cost associated with tariffs at approximately 50 basis points. While overall marketing and technology was flat versus prior year, we have continued to invest in our new products. In the second quarter, the Brazilian real and Mexican peso depreciated compared to prior year resulting in an unfavorable margin impact of 50 basis points. We also experienced approximately $90 million of unfavorable non-cash impact from our minority stake in Beko BV. Ultimately, we maintained flat margins year over year despite the challenging global macro environment. And now I will turn it over to Jim to review the second quarter segment results.

Thanks, Mark. Good morning, everyone. Turning to slide eight, I'll review the second quarter results for our MDA North America business. Net sales were down 5% year over year as we continue to experience a challenging macro environment in the U.S. Consumer sentiment remains weak as a result of the economic uncertainty and evolving tariff policies. As Mark stated, the significant preloading of Asian imports from foreign competitors due to the delay in tariff implementation caused the promotional intensity to persist. In the first half, we saw Asian imports up over 20% while the industry was down despite being propped up by the inventory loading. All this is effectively delaying the impact of tariffs on appliances being imported by our foreign competitors well into the second half of this year. Despite these challenges, MDA North America delivered an EBIT margin of approximately 6% with strong cost takeout offset by lower volume and unfavorable mix. While we continue to experience a choppy macro environment, we are confident in our growth potential for North America. Turning to slide nine, I'll review the results for our MDA Latin America business. In the second quarter, MDA Latin America experienced a net sales decline of 1% year over year, excluding currency, with implemented pricing actions offset by double digit negative Mexico. The segment delivered a solid EBIT margin of 6% with favorable price mix and cost actions driving approximately 20 basis points of expansion year over year. Turning to slide 10, I'll review the results for our MDA Asia business. In the second quarter, MDA Asia saw a net sales decline of 4% year over year, excluding currency, driven by industry decline, partially offset by continued strong share gains. The segment delivered over 7% EBIT margin in the quarter, with 90 basis points of year over year margin expansion from continued cost takeout. Our Asia business continues to operate well, overcoming the geopolitical tensions in the second quarter and delivering substantial margin expansion and share gains. Turning to slide 11, I'll review the results of our SDA global business. The segment delivered another strong quarter with net sales growth of 8% year over year, driven by direct to consumer sales growth, despite a declining industry in North America. We continue to see growth and margin expansion from our recent product launches in high growth categories, including our semi and fully automatic espresso machines. The SDA global business is well positioned to continue to deliver significant growth in the second half of the year, which typically accounts for two-thirds of annual demand. Now I will turn the call over to Mark to provide an overview of North America's growth catalysts.