WHIRLPOOL CORP /DE/ — Call Transcript 2026

Roxanne Warner, Executive Vice President and Chief Financial Officer, as well as Scott Cartwright, Head of Investor Relations and Treasury. Roxanne, I think your prepared remarks are maybe 20 minutes or so, I think. Yeah. In- I checked, I checked. It's about 20. Perfect. Which should leave us about five, 10 minutes for Q&A in this room, and then there will be a following breakout session in Amarante 2 immediately following. With that, Roxanne, welcome back. Thank you. Thanks. Thanks a lot, Sam. Hey, everyone. Good morning. Hi, everyone. Good morning. Good morning. Morning. Thanks for taking the time to step in with us today and to hear about Whirlpool. I am very excited to share with you a little bit about our wonderful story. With that, let's get started. Well, I don't have to. You guys know all of the warnings and everything. In terms of today's agenda, we will go through a little bit of overview about Whirlpool, for those of you that may not be familiar with the company. Then we will talk a little bit about why we're well-positioned to win. You're gonna hear that as a consistent theme throughout this message. Thirdly, capital allocation priorities. Some of you may have either heard or participated in our very recent successful equity offering. I will touch on it as part of the overall capital allocation priority. With that, let's get started. Overall, Whirlpool is a global company, roughly $16 billion of revenue. Approximately 66% of our business is our North American business unit, we have our Latin America business unit, followed by our KitchenAid SDA Global. We underwent a portfolio transformation, started about five years ago, I think what's really great about what you're seeing on this chart is we're now made up of three number one business units. We're number one in terms of share position in North America, number one in Latin America with $3.3 billion of revenue, SDA, while you see the picture more so over Europe from a global perspective, we are number one in terms of the mixer, the brand in the world. This leadership is founded on four key areas. One, starting from our premier brand and product portfolio, anything from our mass, when you think about Whirlpool. Bless you. When you think about Whirlpool and Maytag to premium, when you think about KitchenAid and JennAir, we are across the spectrum. You will not find another appliance company that is covering the spectrum from mass-to-premium, to premium in the way that we do. Secondly, we're gonna touch on the proven track record of innovation, and really we're coming on the back of the Kitchen and Bath Show, where we won 23 awards, one of which was the Best of the Best in Show. We're really, really proud of continuing to have that legacy of innovation. Then thirdly, you would hear me talk about our strong cost position, that really starts from our strong manufacturing position that we have across the world, I will touch on that in a few. Why is Whirlpool well-positioned? We say well-positioned, but frankly, I'm a little bit biased, I would say uniquely positioned to win. One, starting in North America, we have three catalysts of growth. In 2025, you may have heard that we changed over 30% of our product portfolio, not only did we change 30% of our product portfolio, we had over 30% of flooring gains tied to those product portfolio. That's really critical for us because with those flooring gains, starting in 2025, we saw share gains. That is absolutely critical as we get prepared for what you will hear us talking about in terms of the housing recovery, but frankly, starting now in terms of driving discretionary mix is important for us. The next piece I will touch on is really our manufacturing footprint, I will stop on this one for a while because the manufacturing footprint is so critical in terms of us winning in this tariff environment. Why do we believe that we would win? One, 80% of what we sell in America, we make in America. That's absolutely critical. Not only 80% of what we sell in America, we make in America, but we also use 96% of U.S. steel. This is very important when you think about the tariff environment, which is one that is focused on protecting U.S. business. With us having this manufacturing footprint, we really believe that we are absolutely positioned to win. The next piece I would touch on, and for those of you that may have been here last year, yes, I covered the housing recovery, and we are waiting. What are some of the key drivers that we talk about as it relates to the housing recovery is, one, existing home sales. I probably don't have to tell you guys, yes, in 2023, we had a 30-year unit low, and it continues to persist, and we're really waiting, but while we're waiting, we're making sure that we are positioned to win when it does rebound. As you hear us talking about investing in products, this is absolutely critical because the drop in existing home sales obviously is also impacting discretionary demand. It's really important for us to have the products that's ready so that when that discretionary demand comes, we're here, we're ready, we have the right products, and then it will drive mix. The second one that's even more alarming is what you see with new housing. We believe that new housing is undersupplied and has been for decades. What is the key thing for us? Again, you're gonna hear this theme about us making sure that we're prepared for the recovery, is that we're making sure that we have the leadership within the builder business. We do have the number one share in the builder business, approximately 60%. When that housing rebounds from a new housing standpoint, we are ready. Our catalysts for growth do not only stop at you know being the net winner for tariffs and ensuring the housing recovery. It is critical for us as a company to control what is in our control. So as a result of that, we have a path to margin improvement, and you would see us really focus on these first two. The first one being cost takeout. We have decades of demonstration of positive cost takeout. It is something in our company that's really ingrained in this focus of continuous improvement. At the same time, we are aware, and if you look at 2021 and 2022, yes, there was significant inflationary costs that came in, and we still haven't taken out enough of that. So that provides a key opportunity for us, and that's why you hear us talking about vertical integration, automation, always on cost improvement. If you heard in the January earnings call, we also touched on strategic sourcing initiatives, design to value. There is a heavy focus right now within the company on driving this cost out. The second piece is around organic growth. The organic growth really is it's really driven by that brand portfolio that I touched on and the strong product portfolio, given the fact that in 2025, as I said, we turned over 30% of the product portfolio. So with the strong brand, strong product, there is an expectation of share gains, and if you heard in the Q1 and the earnings call in January, we talked about having about half a point of share gains driven by these new products. Then of course, when you think about our mid-cycle target, which we've put out of EBIT margin of approximately 9%, it's critical that the U.S. demand fundamentals from a housing perspective comes back. Okay, so those are the three key areas that we're really focused on: cost takeout and organic growth. We're doing it now. Then when you shift gears from North America, then you go into Latin America, which is also a very exciting part of our business. What is really great about Latin America is we believe that there is a low appliance penetration, which is for us a fundamental of a great growth opportunity, and a growth opportunity that would be driven by very strong brands. So in Brazil, we have the number one and the number three brand with Brastemp and Consul. With brands Brastemp, frankly, it has it's a brand that has gone and surpassed appliances. You would hear in Brazil a comment such as, and I'm going to totally butcher it, but it's like Não é, assim, uma Brastemp, which means it's good, but it's no Brastemp, right? And that is used well beyond appliances. So to have a brand that has surpassed appliances, it tells you about the quality and the penetration of that brand in Brazil. The other piece for us very exciting in Latin America is that Whirlpool is number one in Mexico. So again, when you talk about preferred brands and our opportunity for growth in Latin America, it's up to us. Then you know, frankly, with the SDA global business, I could have just put a picture of the stand mixer and just stayed silent on this one because I think we all know about the iconic presence of the KitchenAid stand mixer. It's one this is a crème de la crème of our business. It's one that has double-digit growth and double-digit margins. So from a finance perspective, I'm a little bit, you know, in love with this one, and we want to make sure we bring all the other business segments to a similar level. But for us, it's not about stopping at the stand mixer. We're really focused on taking the legacy that we have in the stand mixer and having adjacent category growth. So we've been launching, we had the espresso machine, which has been successful. We've had blenders that we've launched at the end of last year. So we're really excited about the growth potential and the long-term value creation of the overall KitchenAid SDA business. It's currently a $1.1 billion business, and we have aspirations to go even further. So with that, bless you. You're welcome. So with that, we go to capital allocation priorities, and given the equity offering last week, I would tell you that I've been a little bit excited to really take a step back and message this to you guys today. We were fortunate that we had Raymond James at the same time. So let's dive into it. In terms of our capital allocation priorities, they haven't necessarily changed. I mean, it's the same thing that we have been messaging probably for about a year now, Scott. The main priority that we have as number one, always on, invest in the business, and this is approximately $400 million of CapEx. The other thing is, yes, you heard me talk about all of these product launches that we did in 2025. Great, we have another 100 that we'll be launching in 2026 that we're also excited about. Then the other piece is debt pay down. So in the Q4 earnings call, you probably heard us talk about paying down about $400 million of debt. For us, when we looked at the balance sheet, we knew that that would not be enough. It is important for us as we go into the next phase of our organization, a phase of growth, that we have a balance sheet that is a little bit more deleveraged. That is absolutely critical, and you're going to hear me talk about that in a few. So not only would we pay down $400 million in debt in 2026, but we've decided that we will be paying down more than $900 million in 2026 on the back of the successful equity offering that we did last week. Our long-term net debt leverage target remains 2x, and when I say long-term, I mean like in a very few years, because as I said, the priority is to accelerate the deleveraging. Then in terms of funding dividend, we have a goal of continuing to fund a healthy and sustainable dividend, and one that we will review quarterly with the board. With that said, let's take a step back and let me just go through why. Why equity offering? Why did we do it? I wouldn't go through again the high level points about what is exciting and compelling about Whirlpool right now. We fundamentally believe that we have the right strategy that would create value moving forward. At the same time, about a year ago, we took a step back with the board, looked at the balance sheet, and we acknowledged that the balance sheet that we had did not provide the financial flexibility that we need to lean into the recovery and or protect us in terms of downside risk, particularly given the uncertainty that's happening even right now. What we did is we created a very integrated plan that had a number of levers, and you've seen us execute some of them. One, we've already divested some of the India business. We went from 51% to 40% as part of this strategy. The second piece was maybe what we call right sizing the dividend, which you saw us do last year. We cut the dividend by approximately 50%, and then this step that we executed last week was about providing an equity offering that had a balance between MCP and common, which would give us proceeds that we would use to accelerate the debt pay down. Ending the year of last year with a net debt leverage of 5.5 and using the fact that we would have paid down $400 million of debt, you still would have ended with a net debt leverage that started with 5. As we think about accelerating deleveraging, for us, it's critical at the end of 2026 that we get to that number that starts with a 4 and gets us not only at the high 4s, but trending towards the middle 4 in terms of our net debt leverage. We did execute the equity offering. The equity offering allowed us to raise approximately $1.1 billion in capital. Some of the stuff that we have not shared, we'll share today. The book was 5x oversubscribed. We spoke to over 110 investors. Of the calls that we had with investors, we had 90% convert into the book. During the discussions, actually it was really exciting to hear from investors about their belief in the recovery and their belief in the strategy in terms of us getting the balance sheet in a stronger, more fortified way as we go into the recovery. In terms of use of proceeds, we would use 85%-90% to pay down debt, and then we will use 10%-15% to invest in vertical integration and automation. This is the cost takeout and getting ready to expand the margins that I talked about within our control, and frankly, with the vertical integration, some of it we already have the projects lined up, and so we're ready to go. Overall, the transaction itself reduces our net debt leverage from 5.5 to a number around 4.7. The other thing that the overall proceeds would do is our debt level in total is roughly $6.5 billion. This puts us in a position to end with a number that's closer to $5.5 billion. As a company, we have operated within that $4.5 billion, $5 billion debt level in the past. We know that this transaction, we now have the dry powder, the financial flexibility for us to go into the next phase of Whirlpool. With the equity offering completed and all of the key drivers that I touched on in terms of our growth, we look at our long-term shareholder value creation thesis, and we believe that it is extremely strong. One, we have been over the last five years, as I touched on, refocusing this portfolio. We are a smaller company, but a company made up of number one business units. A strength in North America, strength in Latin America, and strength in SEA. In terms of best brands and products, again, we feel very confident with our portfolio of brands that I just touched on, as well as the product portfolio that has been winning best in show and frankly winning the floor. In terms of being the domestic producer, as I touched on in the U.S., 80% of what we sell here, we produce here. The same actually goes for small domestic appliances. 75% of what we sell here, we make here. In Latin America, we are the largest domestic producer. Lastly, the U.S. housing market recovery, needless to say, 'cause we've been saying it, when it comes, we're absolutely ready. With that, thank you guys for taking the time to meet with us today, and I'll open it up for questions. One question from Christoph. Yes. Question on the leverage. I mean, you mentioned that your target is to reach 2x debt leverage in the long term, but can you detail on the usage of future free cash flow, I mean, for deleveraging? I think everyone heard the question, although the last piece I didn't capture. maybe we can say... Use of free cash flow to support the deleveraging. Absolutely. Moving forward, one, we're gonna get the net debt leverage to that mid-4.5, right, as we think about 2026. We think about 2027 and 2028, we have guided to a mid-cycle EBIT margin of approximately 9%. We have also guided to free cash flow of approximately 7%, it is our expectation that with that mid-cycle performance, it will give us the free cash flow that would also help us to further pay down debt so that we move from that mid-4x net debt leverage to the 2x that we're expecting. Questions for Roxanne? This morning, yeah, I think you mentioned that you are updating your guidance for the year. Mm-hmm It was a range of around $7 a share. Now, after the equity offering, it's $6 a share. Presumably, Scott and Roxanne, that implies that you're reiterating your, all your other, expectations, for the year. Talk about what you're currently seeing in the marketplace, from a volume standpoint and perhaps more importantly from a pricing standpoint and mix. If in case everyone has not seen it, yes, we did put out an Form 8-K today in preparation for Raymond James that highlights what our guidance for EPS was, and then the changes post-equity offering. First, it was important that we had the transparency for the investors to see, you know, what it is from a share perspective as well as the impact from interest expense. Given that we just provided our guidance at the end of January, as of this time, we don't have any further changes beyond the post-equity offering, that's why we wanted to make sure that we put that out. In terms of what we're seeing in the marketplace, from a volume perspective, I will acknowledge that the winter storm that came in January, maybe two of them, from a volume perspective I believe even the trade customers would say it did impact sell-out quite significantly. What for us was exciting is that while we saw a significant downturn during that time, because of course we had folks were not going out to the stores, our new products had strong POS sell-out during that time. That was good to see. I mean, overall, we still have guided for the industry to be overall flat. We're still expecting that. We're still expecting from a volume perspective to get our gains through the new products. I think from a pricing perspective, which for us is even more critical right now, as we did touch on in the earnings call, we were expecting to see I would say pricing improve as we go into Presidents' Day. That is something that we did see. When you look year over year, we did see, and I think some of the analysts also wrote it up, that there was improved pricing going in to Presidents' Day. For us, that was good. As it relates to mix, as I touched on, still strong in terms of the new products, as evident by the fact that the POS, the sell-through for those new products remained strong even during the winter storm. Question here, yes. [audio distortion] The question was what level of existing home sales do we view as normal. For our mid-cycle targets, we're aiming for 5 million -5.5 million units is what our target assumes. Other questions? In the back of the room in the corner. Yes. Thank you. Can you elaborate, I think I heard you say 30% share gains on new products? Can you just help us understand what the math behind that number is? Yeah. That is a point of clarification because when we say share gains and market share flooring, the comment is specifically referring to flooring. On the floor, when you look across our overall portfolio, we were able to gain approximately 30% more of flooring across our customers. It from a market share perspective resulted in market share gains in 2025, and we're expecting about half a point of share gain from it in 2026. [audio distortion] Correct. Correct. Question here, yes. Can you talk about the timing of the of the equity offering? Why now? Why not wait for sort of a better market to develop before you actually issue the equity for the first time? Yeah, no. Good question. For us, as I touched on, this was part of a one-year plan that we had in the making, and we knew that in 2026 we wanted to go. There were two things that we, just from an overall process standpoint, were waiting on. One, the filing of the Form 10-K, and two, the overall Board approval. Just given the number of uncertainty that we have right now, I think for us it was just critical for us to go sooner rather than later, especially given what we've just seen from a geopolitical standpoint as well. We wanna go into our next phase of this recovery with a stronger balance sheet and with extremely stronger financial flexibility, for us accelerating the deleveraging was key, we executed it as soon as we could at the start of 2026. Other questions? Roxanne, with the replacement of IEEPA with Section 122, I mean, ignoring the timeframe and the, Yeah the transition and what have you, just focusing on rates, what does this do to your costs expected on an annualized basis? Same question, your importer competitors. Yeah does this improve or pressure their costs as well? Good question, Sam. That is actually something that we continue to analyze. I would tell you, I had a meeting on Friday around the impact of the change, and we have about three different scenarios based on the comments that have been made. You know, base case, you have a situation where with the Section 122, there is the 10% of global tariff. Is it 10% or is it 15%? Which has been another question that has come up. The other piece is, okay, but there was also a comment related to the fact that countries, the country-specific negotiated tariffs would not go away, which is another scenario. In those scenarios, what we would say is our position remains very similar in the sense of what is... What we would pay is a relatively still less than what our competitors or competition would pay. We believe that with Section 122, there may be some favorable impact. You also have to wait for the inventory to draw down for the ones that we had the IEEPA on. There would be a phasing and a time related to that. I wouldn't, at this point in time, say it's significantly material. It's something that we will continue to monitor because we're expecting maybe some other changes. Whether it goes to the 15%, whether we have anything from an update as it relates to Section 232 has also been mentioned. It continues to be a moving platform, one with uncertainty, but one where, given our overall manufacturing footprint, we continue to be relatively in a stronger position versus our competition. It was notable. I'm sorry. Go ahead, please. Thanks. As you get to this mid-cycle 5.5 million housing units, what would be your earnings? We have guided to that being approximately 9% of EBIT, with North America therefore being roughly 10%. You can see that, if needed, in the Q4 earnings call material. We also provide some free cash flow guidance around that as well. That is literally the page that I shared with the margin improvement, with the three boxes where it requires cost improvement, organic growth, and housing fundamentals. Those are the key drivers for that mid-cycle target of approximately 9% EBIT. What does that translate into EPS? Did we guide? I mean, we can... Yeah, we didn't... We didn't specify. We did not specifically give any EPS guidance on it. To Roxanne's point. You can laugh. the two buckets on the left are what we call controllable, and then the last bucket is really where you get a point to two points of margin expansion based on the macro cycle that we would be in. Remember, you have two types of favorable mix with the housing recovery. You have product mix, and then you also have, within the category, you see consumers mix up into more premium brands and built-in products. The industry was marked last year by a lot of preloading. Does the transition period of IEEPA to 122 allow importers to again preload, or is that ship sailed? Sorry for the word choice, go ahead. Based on our understanding of how it would work, which is basically the IEEPA would roll off at the same time that the Section 122 comes into effect, which was supposed to be last week Tuesday. Right. Based on that, we expect that transition period to prevent the preloading from coming in. What caused the preloading last time was the fact that we had the announcement in roughly April, and then we had no wait, right, in terms of the effective date, which therefore provided a final sale warning every month for our competition to therefore bring in additional products. From April to October, they had the opportunity to therefore do the preloading. We believe that this transition period, which one ends and the other one begins, hopefully prevents that from happening again. Timing is perfect. We'll continue this in Amarante 2 with the breakout. Thank you, Roxanne. Thank you, Scott. All right. Thanks, everyone. Thanks for taking the time.

Speaker 2: Roxanne Warner, Executive Vice President and Chief Financial Officer, as well as Scott Cartwright, Head of Investor Relations and Treasury. Roxanne, I think your prepared remarks are maybe 20 minutes or so, I think. Roxanne Warner, Executive Vice President and Chief Financial Officer, as well as Scott Cartwright, Head of Investor Relations and Treasury. roxanne warner executive vice president and chief financial officer as well as scott cartwright head of investor relations and treasury Roxanne, I think your prepared remarks are maybe 20 minutes or so, I think. roxanne i think your prepared remarks are maybe 20 minutes or so i think

Speaker 1: Yeah. Yeah. yeah

Speaker 2: In- In- in-

Speaker 1: I checked, I checked. It's about 20. I checked, I checked. i checked i checked It's about 20. it's about 20

Speaker 2: Perfect. Which should leave us about five, 10 minutes for Q&A in this room, and then there will be a following breakout session in Amarante 2 immediately following. With that, Roxanne, welcome back. Perfect. perfect Which should leave us about five, 10 minutes for Q&A in this room, and then there will be a following breakout session in Amarante 2 immediately following. which should leave us about five 10 minutes for q&a in this room and then there will be a following breakout session in amarante 2 immediately following With that, Roxanne, welcome back. with that roxanne welcome back

Speaker 1: Thank you. Thanks. Thanks a lot, Sam. Hey, everyone. Good morning. Hi, everyone. Good morning. Thank you. thank you Thanks. thanks Thanks a lot, Sam. thanks a lot sam Hey, everyone. hey everyone Good morning. good morning Hi, everyone. hi everyone Good morning. good morning Good morning. Good morning. good morning Morning. Thanks for taking the time to step in with us today and to hear about Whirlpool. I am very excited to share with you a little bit about our wonderful story. With that, let's get started. Well, I don't have to. You guys know all of the warnings and everything. In terms of today's agenda, we will go through a little bit of overview about Whirlpool, for those of you that may not be familiar with the company. Then we will talk a little bit about why we're well-positioned to win. You're gonna hear that as a consistent theme throughout this message. Thirdly, capital allocation priorities. Some of you may have either heard or participated in our very recent successful equity offering. I will touch on it as part of the overall capital allocation priority. Morning. morning Thanks for taking the time to step in with us today and to hear about Whirlpool. thanks for taking the time to step in with us today and to hear about whirlpool I am very excited to share with you a little bit about our wonderful story. i am very excited to share with you a little bit about our wonderful story With that, let's get started. with that let's get started Well, I don't have to. well i don't have to You guys know all of the warnings and everything. you guys know all of the warnings and everything In terms of today's agenda, we will go through a little bit of overview about Whirlpool, for those of you that may not be familiar with the company. in terms of today's agenda we will go through a little bit of overview about whirlpool for those of you that may not be familiar with the company Then we will talk a little bit about why we're well-positioned to win. then we will talk a little bit about why we're well-positioned to win You're gonna hear that as a consistent theme throughout this message. you're gonna hear that as a consistent theme throughout this message Thirdly, capital allocation priorities. thirdly capital allocation priorities Some of you may have either heard or participated in our very recent successful equity offering. some of you may have either heard or participated in our very recent successful equity offering I will touch on it as part of the overall capital allocation priority. i will touch on it as part of the overall capital allocation priority With that, let's get started. Overall, Whirlpool is a global company, roughly $16 billion of revenue. Approximately 66% of our business is our North American business unit, we have our Latin America business unit, followed by our KitchenAid SDA Global. We underwent a portfolio transformation, started about five years ago, I think what's really great about what you're seeing on this chart is we're now made up of three number one business units. We're number one in terms of share position in North America, number one in Latin America with $3.3 billion of revenue, SDA, while you see the picture more so over Europe from a global perspective, we are number one in terms of the mixer, the brand in the world. This leadership is founded on four key areas. With that, let's get started. with that let's get started Overall, Whirlpool is a global company, roughly $16 billion of revenue. overall whirlpool is a global company roughly $16 billion of revenue Approximately 66% of our business is our North American business unit, we have our Latin America business unit, followed by our KitchenAid SDA Global. approximately 66% of our business is our north american business unit we have our latin america business unit followed by our kitchenaid sda global We underwent a portfolio transformation, started about five years ago, I think what's really great about what you're seeing on this chart is we're now made up of three number one business units. we underwent a portfolio transformation started about five years ago i think what's really great about what you're seeing on this chart is we're now made up of three number one business units We're number one in terms of share position in North America, number one in Latin America with $3.3 billion of revenue, SDA, while you see the picture more so over Europe from a global perspective, we are number one in terms of the mixer, the brand in the world. we're number one in terms of share position in north america number one in latin america with $3.3 billion of revenue sda while you see the picture more so over europe from a global perspective we are number one in terms of the mixer the brand in the world This leadership is founded on four key areas. this leadership is founded on four key areas One, starting from our premier brand and product portfolio, anything from our mass, when you think about Whirlpool. Bless you. When you think about Whirlpool and Maytag to premium, when you think about KitchenAid and JennAir, we are across the spectrum. You will not find another appliance company that is covering the spectrum from mass-to-premium, to premium in the way that we do. Secondly, we're gonna touch on the proven track record of innovation, and really we're coming on the back of the Kitchen and Bath Show, where we won 23 awards, one of which was the Best of the Best in Show. We're really, really proud of continuing to have that legacy of innovation. One, starting from our premier brand and product portfolio, anything from our mass, when you think about Whirlpool. one starting from our premier brand and product portfolio anything from our mass when you think about whirlpool Bless you. bless you When you think about Whirlpool and Maytag to premium, when you think about KitchenAid and JennAir, we are across the spectrum. when you think about whirlpool and maytag to premium when you think about kitchenaid and jennair we are across the spectrum You will not find another appliance company that is covering the spectrum from mass- to- premium, to premium in the way that we do. you will not find another appliance company that is covering the spectrum from mass- to- premium to premium in the way that we do Secondly, we're gonna touch on the proven track record of innovation, and really we're coming on the back of the Kitchen and Bath Show, where we won 23 awards, one of which was the Best of the Best in Show. secondly we're gonna touch on the proven track record of innovation and really we're coming on the back of the kitchen and bath show where we won 23 awards one of which was the best of the best in show We're really, really proud of continuing to have that legacy of innovation. we're really really proud of continuing to have that legacy of innovation Then thirdly, you would hear me talk about our strong cost position, that really starts from our strong manufacturing position that we have across the world, I will touch on that in a few. Why is Whirlpool well-positioned? We say well-positioned, but frankly, I'm a little bit biased, I would say uniquely positioned to win. One, starting in North America, we have three catalysts of growth. In 2025, you may have heard that we changed over 30% of our product portfolio, not only did we change 30% of our product portfolio, we had over 30% of flooring gains tied to those product portfolio. That's really critical for us because with those flooring gains, starting in 2025, we saw share gains. Then thirdly, you would hear me talk about our strong cost position, that really starts from our strong manufacturing position that we have across the world, I will touch on that in a few. then thirdly you would hear me talk about our strong cost position that really starts from our strong manufacturing position that we have across the world i will touch on that in a few Why is Whirlpool well-positioned? why is whirlpool well-positioned We say well-positioned, but frankly, I'm a little bit biased, I would say uniquely positioned to win. we say well-positioned but frankly i'm a little bit biased i would say uniquely positioned to win One, starting in North America, we have three catalysts of growth. one starting in north america we have three catalysts of growth In 2025, you may have heard that we changed over 30% of our product portfolio, not only did we change 30% of our product portfolio, we had over 30% of flooring gains tied to those product portfolio. in 2025 you may have heard that we changed over 30% of our product portfolio not only did we change 30% of our product portfolio we had over 30% of flooring gains tied to those product portfolio That's really critical for us because with those flooring gains, starting in 2025, we saw share gains. that's really critical for us because with those flooring gains starting in 2025 we saw share gains That is absolutely critical as we get prepared for what you will hear us talking about in terms of the housing recovery, but frankly, starting now in terms of driving discretionary mix is important for us. The next piece I will touch on is really our manufacturing footprint, I will stop on this one for a while because the manufacturing footprint is so critical in terms of us winning in this tariff environment. Why do we believe that we would win? One, 80% of what we sell in America, we make in America. That's absolutely critical. Not only 80% of what we sell in America, we make in America, but we also use 96% of U.S. steel. This is very important when you think about the tariff environment, which is one that is focused on protecting U.S. business. That is absolutely critical as we get prepared for what you will hear us talking about in terms of the housing recovery, but frankly, starting now in terms of driving discretionary mix is important for us. that is absolutely critical as we get prepared for what you will hear us talking about in terms of the housing recovery but frankly starting now in terms of driving discretionary mix is important for us The next piece I will touch on is really our manufacturing footprint, I will stop on this one for a while because the manufacturing footprint is so critical in terms of us winning in this tariff environment. the next piece i will touch on is really our manufacturing footprint i will stop on this one for a while because the manufacturing footprint is so critical in terms of us winning in this tariff environment Why do we believe that we would win? why do we believe that we would win One, 80% of what we sell in America, we make in America. one 80% of what we sell in america we make in america That's absolutely critical. that's absolutely critical Not only 80% of what we sell in America, we make in America, but we also use 96% of U.S. steel. not only 80% of what we sell in america we make in america but we also use 96% of u.s steel This is very important when you think about the tariff environment, which is one that is focused on protecting U.S. business. this is very important when you think about the tariff environment which is one that is focused on protecting u.s business With us having this manufacturing footprint, we really believe that we are absolutely positioned to win. The next piece I would touch on, and for those of you that may have been here last year, yes, I covered the housing recovery, and we are waiting. What are some of the key drivers that we talk about as it relates to the housing recovery is, one, existing home sales. I probably don't have to tell you guys, yes, in 2023, we had a 30-year unit low, and it continues to persist, and we're really waiting, but while we're waiting, we're making sure that we are positioned to win when it does rebound. As you hear us talking about investing in products, this is absolutely critical because the drop in existing home sales obviously is also impacting discretionary demand. With us having this manufacturing footprint, we really believe that we are absolutely positioned to win. with us having this manufacturing footprint we really believe that we are absolutely positioned to win The next piece I would touch on, and for those of you that may have been here last year, yes, I covered the housing recovery, and we are waiting. the next piece i would touch on and for those of you that may have been here last year yes i covered the housing recovery and we are waiting What are some of the key drivers that we talk about as it relates to the housing recovery is, one, existing home sales. what are some of the key drivers that we talk about as it relates to the housing recovery is one existing home sales I probably don't have to tell you guys, yes, in 2023, we had a 30-year unit low, and it continues to persist, and we're really waiting, but while we're waiting, we're making sure that we are positioned to win when it does rebound. i probably don't have to tell you guys yes in 2023 we had a 30-year unit low and it continues to persist and we're really waiting but while we're waiting we're making sure that we are positioned to win when it does rebound As you hear us talking about investing in products, this is absolutely critical because the drop in existing home sales obviously is also impacting discretionary demand. as you hear us talking about investing in products this is absolutely critical because the drop in existing home sales obviously is also impacting discretionary demand It's really important for us to have the products that's ready so that when that discretionary demand comes, we're here, we're ready, we have the right products, and then it will drive mix. The second one that's even more alarming is what you see with new housing. We believe that new housing is undersupplied and has been for decades. What is the key thing for us? Again, you're gonna hear this theme about us making sure that we're prepared for the recovery, is that we're making sure that we have the leadership within the builder business. We do have the number one share in the builder business, approximately 60%. It's really important for us to have the products that's ready so that when that discretionary demand comes, we're here, we're ready, we have the right products, and then it will drive mix. it's really important for us to have the products that's ready so that when that discretionary demand comes we're here we're ready we have the right products and then it will drive mix The second one that's even more alarming is what you see with new housing. the second one that's even more alarming is what you see with new housing We believe that new housing is undersupplied and has been for decades. we believe that new housing is undersupplied and has been for decades What is the key thing for us? what is the key thing for us Again, you're gonna hear this theme about us making sure that we're prepared for the recovery, is that we're making sure that we have the leadership within the builder business. again you're gonna hear this theme about us making sure that we're prepared for the recovery is that we're making sure that we have the leadership within the builder business We do have the number one share in the builder business, approximately 60%. we do have the number one share in the builder business approximately 60% When that housing rebounds from a new housing standpoint, we are ready. Our catalysts for growth do not only stop at you know being the net winner for tariffs and ensuring the housing recovery. When that housing rebounds from a new housing standpoint, we are ready. when that housing rebounds from a new housing standpoint we are ready Our catalysts for growth do not only stop at you know being the net winner for tariffs and ensuring the housing recovery. our catalysts for growth do not only stop at you know being the net winner for tariffs and ensuring the housing recovery It is critical for us as a company to control what is in our control. So as a result of that, we have a path to margin improvement, and you would see us really focus on these first two. The first one being cost takeout. We have decades of demonstration of positive cost takeout. It is something in our company that's really ingrained in this focus of continuous improvement. At the same time, we are aware, and if you look at 2021 and 2022, yes, there was significant inflationary costs that came in, and we still haven't taken out enough of that. So that provides a key opportunity for us, and that's why you hear us talking about vertical integration, automation, always on cost improvement. It is critical for us as a company to control what is in our control. it is critical for us as a company to control what is in our control So as a result of that, we have a path to margin improvement, and you would see us really focus on these first two. so as a result of that we have a path to margin improvement and you would see us really focus on these first two The first one being cost takeout. the first one being cost takeout We have decades of demonstration of positive cost takeout. we have decades of demonstration of positive cost takeout It is something in our company that's really ingrained in this focus of continuous improvement. it is something in our company that's really ingrained in this focus of continuous improvement At the same time, we are aware, and if you look at 2021 and 2022, yes, there was significant inflationary costs that came in, and we still haven't taken out enough of that. at the same time we are aware and if you look at 2021 and 2022 yes there was significant inflationary costs that came in and we still haven't taken out enough of that So that provides a key opportunity for us, and that's why you hear us talking about vertical integration, automation, always on cost improvement. so that provides a key opportunity for us and that's why you hear us talking about vertical integration automation always on cost improvement If you heard in the January earnings call, we also touched on strategic sourcing initiatives, design to value. There is a heavy focus right now within the company on driving this cost out. The second piece is around organic growth. The organic growth really is it's really driven by that brand portfolio that I touched on and the strong product portfolio, given the fact that in 2025, as I said, we turned over 30% of the product portfolio. So with the strong brand, strong product, there is an expectation of share gains, and if you heard in the Q1 and the earnings call in January, we talked about having about half a point of share gains driven by these new products. Then of course, when you think about our mid-cycle target, which we've put out of EBIT margin of approximately 9%, it's critical that the U.S. demand fundamentals from a housing perspective comes back. If you heard in the January earnings call, we also touched on strategic sourcing initiatives, design to value. if you heard in the january earnings call we also touched on strategic sourcing initiatives design to value There is a heavy focus right now within the company on driving this cost out. there is a heavy focus right now within the company on driving this cost out The second piece is around organic growth. the second piece is around organic growth The organic growth really is it's really driven by that brand portfolio that I touched on and the strong product portfolio, given the fact that in 2025, as I said, we turned over 30% of the product portfolio. the organic growth really is it's really driven by that brand portfolio that i touched on and the strong product portfolio given the fact that in 2025 as i said we turned over 30% of the product portfolio So with the strong brand, strong product, there is an expectation of share gains, and if you heard in the Q1 and the earnings call in January, we talked about having about half a point of share gains driven by these new products. so with the strong brand strong product there is an expectation of share gains and if you heard in the q1 and the earnings call in january we talked about having about half a point of share gains driven by these new products Then of course, when you think about our mid-cycle target, which we've put out of EBIT margin of approximately 9%, it's critical that the U.S. demand fundamentals from a housing perspective comes back. then of course when you think about our mid-cycle target which we've put out of ebit margin of approximately 9% it's critical that the u.s demand fundamentals from a housing perspective comes back Okay, so those are the three key areas that we're really focused on: cost takeout and organic growth. We're doing it now. Then when you shift gears from North America, then you go into Latin America, which is also a very exciting part of our business. What is really great about Latin America is we believe that there is a low appliance penetration, which is for us a fundamental of a great growth opportunity, and a growth opportunity that would be driven by very strong brands. So in Brazil, we have the number one and the number three brand with Brastemp and Consul. With brands Brastemp, frankly, it has it's a brand that has gone and surpassed appliances. Okay, so those are the three key areas that we're really focused on: cost takeout and organic growth. okay so those are the three key areas that we're really focused on cost takeout and organic growth We're doing it now. we're doing it now Then when you shift gears from North America, then you go into Latin America, which is also a very exciting part of our business. then when you shift gears from north america then you go into latin america which is also a very exciting part of our business What is really great about Latin America is we believe that there is a low appliance penetration, which is for us a fundamental of a great growth opportunity, and a growth opportunity that would be driven by very strong brands. what is really great about latin america is we believe that there is a low appliance penetration which is for us a fundamental of a great growth opportunity and a growth opportunity that would be driven by very strong brands So in Brazil, we have the number one and the number three brand with Brastemp and Consul. so in brazil we have the number one and the number three brand with brastemp and consul With brands Brastemp, frankly, it has it's a brand that has gone and surpassed appliances. with brands brastemp frankly it has it's a brand that has gone and surpassed appliances You would hear in Brazil a comment such as, and I'm going to totally butcher it, but it's like Não é, assim, uma Brastemp, which means it's good, but it's no Brastemp, right? And that is used well beyond appliances. So to have a brand that has surpassed appliances, it tells you about the quality and the penetration of that brand in Brazil. The other piece for us very exciting in Latin America is that Whirlpool is number one in Mexico. So again, when you talk about preferred brands and our opportunity for growth in Latin America, it's up to us. You would hear in Brazil a comment such as, and I'm going to totally butcher it, but it's like Não é, assim, uma Brastemp, which means it's good, but it's no Brastemp, right? you would hear in brazil a comment such as and i'm going to totally butcher it but it's like não é assim uma brastemp which means it's good but it's no brastemp right And that is used well beyond appliances. and that is used well beyond appliances So to have a brand that has surpassed appliances, it tells you about the quality and the penetration of that brand in Brazil. so to have a brand that has surpassed appliances it tells you about the quality and the penetration of that brand in brazil The other piece for us very exciting in Latin America is that Whirlpool is number one in Mexico. the other piece for us very exciting in latin america is that whirlpool is number one in mexico So again, when you talk about preferred brands and our opportunity for growth in Latin America, it's up to us. so again when you talk about preferred brands and our opportunity for growth in latin america it's up to us Then you know, frankly, with the SDA global business, I could have just put a picture of the stand mixer and just stayed silent on this one because I think we all know about the iconic presence of the KitchenAid stand mixer. It's one this is a crème de la crème of our business. It's one that has double-digit growth and double-digit margins. So from a finance perspective, I'm a little bit, you know, in love with this one, and we want to make sure we bring all the other business segments to a similar level. But for us, it's not about stopping at the stand mixer. We're really focused on taking the legacy that we have in the stand mixer and having adjacent category growth. Then you know, frankly, with the SDA global business, I could have just put a picture of the stand mixer and just stayed silent on this one because I think we all know about the iconic presence of the KitchenAid stand mixer. then you know frankly with the sda global business i could have just put a picture of the stand mixer and just stayed silent on this one because i think we all know about the iconic presence of the kitchenaid stand mixer It's one this is a crème de la crème of our business. it's one this is a crème de la crème of our business It's one that has double-digit growth and double-digit margins. it's one that has double-digit growth and double-digit margins So from a finance perspective, I'm a little bit, you know, in love with this one, and we want to make sure we bring all the other business segments to a similar level. so from a finance perspective i'm a little bit you know in love with this one and we want to make sure we bring all the other business segments to a similar level But for us, it's not about stopping at the stand mixer. but for us it's not about stopping at the stand mixer We're really focused on taking the legacy that we have in the stand mixer and having adjacent category growth. we're really focused on taking the legacy that we have in the stand mixer and having adjacent category growth So we've been launching, we had the espresso machine, which has been successful. We've had blenders that we've launched at the end of last year. So we're really excited about the growth potential and the long-term value creation of the overall KitchenAid SDA business. It's currently a $1.1 billion business, and we have aspirations to go even further. So with that, bless you. You're welcome. So with that, we go to capital allocation priorities, and given the equity offering last week, I would tell you that I've been a little bit excited to really take a step back and message this to you guys today. We were fortunate that we had Raymond James at the same time. So let's dive into it. In terms of our capital allocation priorities, they haven't necessarily changed. So we've been launching, we had the espresso machine, which has been successful. so we've been launching we had the espresso machine which has been successful We've had blenders that we've launched at the end of last year. we've had blenders that we've launched at the end of last year So we're really excited about the growth potential and the long-term value creation of the overall KitchenAid SDA business. so we're really excited about the growth potential and the long-term value creation of the overall kitchenaid sda business It's currently a $1.1 billion business, and we have aspirations to go even further. it's currently a $1.1 billion business and we have aspirations to go even further So with that, bless you. so with that bless you You're welcome. you're welcome So with that, we go to capital allocation priorities, and given the equity offering last week, I would tell you that I've been a little bit excited to really take a step back and message this to you guys today. so with that we go to capital allocation priorities and given the equity offering last week i would tell you that i've been a little bit excited to really take a step back and message this to you guys today We were fortunate that we had Raymond James at the same time. we were fortunate that we had raymond james at the same time So let's dive into it. so let's dive into it In terms of our capital allocation priorities, they haven't necessarily changed. in terms of our capital allocation priorities they haven't necessarily changed I mean, it's the same thing that we have been messaging probably for about a year now, Scott. The main priority that we have as number one, always on, invest in the business, and this is approximately $400 million of CapEx. The other thing is, yes, you heard me talk about all of these product launches that we did in 2025. Great, we have another 100 that we'll be launching in 2026 that we're also excited about. Then the other piece is debt pay down. So in the Q4 earnings call, you probably heard us talk about paying down about $400 million of debt. I mean, it's the same thing that we have been messaging probably for about a year now, Scott. i mean it's the same thing that we have been messaging probably for about a year now scott The main priority that we have as number one, always on, invest in the business, and this is approximately $400 million of CapEx. the main priority that we have as number one always on invest in the business and this is approximately $400 million of capex The other thing is, yes, you heard me talk about all of these product launches that we did in 2025. the other thing is yes you heard me talk about all of these product launches that we did in 2025 Great, we have another 100 that we'll be launching in 2026 that we're also excited about. great we have another 100 that we'll be launching in 2026 that we're also excited about Then the other piece is debt pay down. then the other piece is debt pay down So in the Q4 earnings call, you probably heard us talk about paying down about $400 million of debt. so in the q4 earnings call you probably heard us talk about paying down about $400 million of debt For us, when we looked at the balance sheet, we knew that that would not be enough. It is important for us as we go into the next phase of our organization, a phase of growth, that we have a balance sheet that is a little bit more deleveraged. That is absolutely critical, and you're going to hear me talk about that in a few. So not only would we pay down $400 million in debt in 2026, but we've decided that we will be paying down more than $900 million in 2026 on the back of the successful equity offering that we did last week. For us, when we looked at the balance sheet, we knew that that would not be enough. for us when we looked at the balance sheet we knew that that would not be enough It is important for us as we go into the next phase of our organization, a phase of growth, that we have a balance sheet that is a little bit more deleveraged. it is important for us as we go into the next phase of our organization a phase of growth that we have a balance sheet that is a little bit more deleveraged That is absolutely critical, and you're going to hear me talk about that in a few. that is absolutely critical and you're going to hear me talk about that in a few So not only would we pay down $400 million in debt in 2026, but we've decided that we will be paying down more than $900 million in 2026 on the back of the successful equity offering that we did last week. so not only would we pay down $400 million in debt in 2026 but we've decided that we will be paying down more than $900 million in 2026 on the back of the successful equity offering that we did last week Our long-term net debt leverage target remains 2x, and when I say long-term, I mean like in a very few years, because as I said, the priority is to accelerate the deleveraging. Then in terms of funding dividend, we have a goal of continuing to fund a healthy and sustainable dividend, and one that we will review quarterly with the board. Our long-term net debt leverage target remains 2 x, and when I say long- term, I mean like in a very few years, because as I said, the priority is to accelerate the deleveraging. our long-term net debt leverage target remains 2 x and when i say long- term i mean like in a very few years because as i said the priority is to accelerate the deleveraging Then in terms of funding dividend, we have a goal of continuing to fund a healthy and sustainable dividend, and one that we will review quarterly with the board. then in terms of funding dividend we have a goal of continuing to fund a healthy and sustainable dividend and one that we will review quarterly with the board With that said, let's take a step back and let me just go through why. Why equity offering? Why did we do it? I wouldn't go through again the high level points about what is exciting and compelling about Whirlpool right now. We fundamentally believe that we have the right strategy that would create value moving forward. At the same time, about a year ago, we took a step back with the board, looked at the balance sheet, and we acknowledged that the balance sheet that we had did not provide the financial flexibility that we need to lean into the recovery and or protect us in terms of downside risk, particularly given the uncertainty that's happening even right now. What we did is we created a very integrated plan that had a number of levers, and you've seen us execute some of them. With that said, let's take a step back and let me just go through why. with that said let's take a step back and let me just go through why Why equity offering? why equity offering Why did we do it? why did we do it I wouldn't go through again the high level points about what is exciting and compelling about Whirlpool right now. i wouldn't go through again the high level points about what is exciting and compelling about whirlpool right now We fundamentally believe that we have the right strategy that would create value moving forward. we fundamentally believe that we have the right strategy that would create value moving forward At the same time, about a year ago, we took a step back with the board, looked at the balance sheet, and we acknowledged that the balance sheet that we had did not provide the financial flexibility that we need to lean into the recovery and or protect us in terms of downside risk, particularly given the uncertainty that's happening even right now. at the same time about a year ago we took a step back with the board looked at the balance sheet and we acknowledged that the balance sheet that we had did not provide the financial flexibility that we need to lean into the recovery and or protect us in terms of downside risk particularly given the uncertainty that's happening even right now What we did is we created a very integrated plan that had a number of levers, and you've seen us execute some of them. what we did is we created a very integrated plan that had a number of levers and you've seen us execute some of them One, we've already divested some of the India business. We went from 51% to 40% as part of this strategy. The second piece was maybe what we call right sizing the dividend, which you saw us do last year. We cut the dividend by approximately 50%, and then this step that we executed last week was about providing an equity offering that had a balance between MCP and common, which would give us proceeds that we would use to accelerate the debt pay down. Ending the year of last year with a net debt leverage of 5.5 and using the fact that we would have paid down $400 million of debt, you still would have ended with a net debt leverage that started with 5. One, we've already divested some of the India business. one we've already divested some of the india business We went from 51% to 40% as part of this strategy. we went from 51% to 40% as part of this strategy The second piece was maybe what we call right sizing the dividend, which you saw us do last year. the second piece was maybe what we call right sizing the dividend which you saw us do last year We cut the dividend by approximately 50%, and then this step that we executed last week was about providing an equity offering that had a balance between MCP and common, which would give us proceeds that we would use to accelerate the debt pay down. we cut the dividend by approximately 50% and then this step that we executed last week was about providing an equity offering that had a balance between mcp and common which would give us proceeds that we would use to accelerate the debt pay down Ending the year of last year with a net debt leverage of 5.5 and using the fact that we would have paid down $400 million of debt, you still would have ended with a net debt leverage that started with 5. ending the year of last year with a net debt leverage of 5.5 and using the fact that we would have paid down $400 million of debt you still would have ended with a net debt leverage that started with 5 As we think about accelerating deleveraging, for us, it's critical at the end of 2026 that we get to that number that starts with a 4 and gets us not only at the high 4s, but trending towards the middle 4 in terms of our net debt leverage. We did execute the equity offering. The equity offering allowed us to raise approximately $1.1 billion in capital. Some of the stuff that we have not shared, we'll share today. The book was 5x oversubscribed. We spoke to over 110 investors. Of the calls that we had with investors, we had 90% convert into the book. As we think about accelerating deleveraging, for us, it's critical at the end of 2026 that we get to that number that starts with a 4 and gets us not only at the high 4s, but trending towards the middle 4 in terms of our net debt leverage. as we think about accelerating deleveraging for us it's critical at the end of 2026 that we get to that number that starts with a 4 and gets us not only at the high 4s but trending towards the middle 4 in terms of our net debt leverage We did execute the equity offering. we did execute the equity offering The equity offering allowed us to raise approximately $1.1 billion in capital. the equity offering allowed us to raise approximately $1.1 billion in capital Some of the stuff that we have not shared, we'll share today. some of the stuff that we have not shared we'll share today The book was 5 x oversubscribed. the book was 5 x oversubscribed We spoke to over 110 investors. we spoke to over 110 investors Of the calls that we had with investors, we had 90% convert into the book. of the calls that we had with investors we had 90% convert into the book During the discussions, actually it was really exciting to hear from investors about their belief in the recovery and their belief in the strategy in terms of us getting the balance sheet in a stronger, more fortified way as we go into the recovery. In terms of use of proceeds, we would use 85%-90% to pay down debt, and then we will use 10%-15% to invest in vertical integration and automation. This is the cost takeout and getting ready to expand the margins that I talked about within our control, and frankly, with the vertical integration, some of it we already have the projects lined up, and so we're ready to go. Overall, the transaction itself reduces our net debt leverage from 5.5 to a number around 4.7. During the discussions, actually it was really exciting to hear from investors about their belief in the recovery and their belief in the strategy in terms of us getting the balance sheet in a stronger, more fortified way as we go into the recovery. during the discussions actually it was really exciting to hear from investors about their belief in the recovery and their belief in the strategy in terms of us getting the balance sheet in a stronger more fortified way as we go into the recovery In terms of use of proceeds, we would use 85%-90% to pay down debt, and then we will use 10%-15% to invest in vertical integration and automation. in terms of use of proceeds we would use 85%-90% to pay down debt and then we will use 10%-15% to invest in vertical integration and automation This is the cost takeout and getting ready to expand the margins that I talked about within our control, and frankly, with the vertical integration, some of it we already have the projects lined up, and so we're ready to go. this is the cost takeout and getting ready to expand the margins that i talked about within our control and frankly with the vertical integration some of it we already have the projects lined up and so we're ready to go Overall, the transaction itself reduces our net debt leverage from 5.5 to a number around 4.7. overall the transaction itself reduces our net debt leverage from 5.5 to a number around 4.7 The other thing that the overall proceeds would do is our debt level in total is roughly $6.5 billion. This puts us in a position to end with a number that's closer to $5.5 billion. As a company, we have operated within that $4.5 billion, $5 billion debt level in the past. We know that this transaction, we now have the dry powder, the financial flexibility for us to go into the next phase of Whirlpool. With the equity offering completed and all of the key drivers that I touched on in terms of our growth, we look at our long-term shareholder value creation thesis, and we believe that it is extremely strong. One, we have been over the last five years, as I touched on, refocusing this portfolio. The other thing that the overall proceeds would do is our debt level in total is roughly $6.5 billion. the other thing that the overall proceeds would do is our debt level in total is roughly $6.5 billion This puts us in a position to end with a number that's closer to $5.5 billion. this puts us in a position to end with a number that's closer to $5.5 billion As a company, we have operated within that $4.5 billion, $5 billion debt level in the past. as a company we have operated within that $4.5 billion $5 billion debt level in the past We know that this transaction, we now have the dry powder, the financial flexibility for us to go into the next phase of Whirlpool. we know that this transaction we now have the dry powder the financial flexibility for us to go into the next phase of whirlpool With the equity offering completed and all of the key drivers that I touched on in terms of our growth, we look at our long-term shareholder value creation thesis, and we believe that it is extremely strong. with the equity offering completed and all of the key drivers that i touched on in terms of our growth we look at our long-term shareholder value creation thesis and we believe that it is extremely strong One, we have been over the last five years, as I touched on, refocusing this portfolio. one we have been over the last five years as i touched on refocusing this portfolio We are a smaller company, but a company made up of number one business units. A strength in North America, strength in Latin America, and strength in SEA. In terms of best brands and products, again, we feel very confident with our portfolio of brands that I just touched on, as well as the product portfolio that has been winning best in show and frankly winning the floor. In terms of being the domestic producer, as I touched on in the U.S., 80% of what we sell here, we produce here. The same actually goes for small domestic appliances. 75% of what we sell here, we make here. In Latin America, we are the largest domestic producer. Lastly, the U.S. housing market recovery, needless to say, 'cause we've been saying it, when it comes, we're absolutely ready. We are a smaller company, but a company made up of number one business units. we are a smaller company but a company made up of number one business units A strength in North America, strength in Latin America, and strength in SEA. a strength in north america strength in latin america and strength in sea In terms of best brands and products, again, we feel very confident with our portfolio of brands that I just touched on, as well as the product portfolio that has been winning best in show and frankly winning the floor. in terms of best brands and products again we feel very confident with our portfolio of brands that i just touched on as well as the product portfolio that has been winning best in show and frankly winning the floor In terms of being the domestic producer, as I touched on in the U.S., 80% of what we sell here, we produce here. in terms of being the domestic producer as i touched on in the u.s 80% of what we sell here we produce here The same actually goes for small domestic appliances. 75% of what we sell here, we make here. the same actually goes for small domestic appliances 75% of what we sell here we make here In Latin America, we are the largest domestic producer. in latin america we are the largest domestic producer Lastly, the U.S. housing market recovery, needless to say, 'cause we've been saying it, when it comes, we're absolutely ready. lastly the u.s housing market recovery needless to say 'cause we've been saying it when it comes we're absolutely ready With that, thank you guys for taking the time to meet with us today, and I'll open it up for questions. One question from Christoph. With that, thank you guys for taking the time to meet with us today, and I'll open it up for questions. with that thank you guys for taking the time to meet with us today and i'll open it up for questions One question from Christoph. one question from christoph

Speaker 4: Yes. Question on the leverage. I mean, you mentioned that your target is to reach 2x debt leverage in the long term, but can you detail on the usage of future free cash flow, I mean, for deleveraging? Yes. yes Question on the leverage. question on the leverage I mean, you mentioned that your target is to reach 2 x debt leverage in the long term, but can you detail on the usage of future free cash flow, I mean, for deleveraging? i mean you mentioned that your target is to reach 2 x debt leverage in the long term but can you detail on the usage of future free cash flow i mean for deleveraging

Speaker 1: I think everyone heard the question, although the last piece I didn't capture. maybe we can say... I think everyone heard the question, although the last piece I didn't capture. maybe we can say... i think everyone heard the question although the last piece i didn't capture maybe we can say

Speaker 4: Use of free cash flow to support the deleveraging. Use of free cash flow to support the deleveraging. use of free cash flow to support the deleveraging

Speaker 1: Absolutely. Moving forward, one, we're gonna get the net debt leverage to that mid-4.5, right, as we think about 2026. We think about 2027 and 2028, we have guided to a mid-cycle EBIT margin of approximately 9%. We have also guided to free cash flow of approximately 7%, it is our expectation that with that mid-cycle performance, it will give us the free cash flow that would also help us to further pay down debt so that we move from that mid-4x net debt leverage to the 2x that we're expecting. Absolutely. absolutely Moving forward, one, we're gonna get the net debt leverage to that mid-4.5, right, as we think about 2026. moving forward one we're gonna get the net debt leverage to that mid-4.5 right as we think about 2026 We think about 2027 and 2028, we have guided to a mid-cycle EBIT margin of approximately 9%. we think about 2027 and 2028 we have guided to a mid-cycle ebit margin of approximately 9% We have also guided to free cash flow of approximately 7%, it is our expectation that with that mid-cycle performance, it will give us the free cash flow that would also help us to further pay down debt so that we move from that mid-4 x net debt leverage to the 2 x that we're expecting. we have also guided to free cash flow of approximately 7% it is our expectation that with that mid-cycle performance it will give us the free cash flow that would also help us to further pay down debt so that we move from that mid-4 x net debt leverage to the 2 x that we're expecting

Speaker 2: Questions for Roxanne? This morning, yeah, I think you mentioned that you are updating your guidance for the year. Questions for Roxanne? questions for roxanne This morning, yeah, I think you mentioned that you are updating your guidance for the year. this morning yeah i think you mentioned that you are updating your guidance for the year

Speaker 1: Mm-hmm Mm-hmm mm-hmm

Speaker 2: It was a range of around $7 a share. Now, after the equity offering, it's $6 a share. Presumably, Scott and Roxanne, that implies that you're reiterating your, all your other, expectations, for the year. Talk about what you're currently seeing in the marketplace, from a volume standpoint and perhaps more importantly from a pricing standpoint and mix. I t was a range of around $7 a share. i t was a range of around $7 a share Now, after the equity offering, it's $6 a share. now after the equity offering it's $6 a share Presumably, Scott and Roxanne, that implies that you're reiterating your, all your other, expectations, for the year. presumably scott and roxanne that implies that you're reiterating your all your other expectations for the year Talk about what you're currently seeing in the marketplace, from a volume standpoint and perhaps more importantly from a pricing standpoint and mix. talk about what you're currently seeing in the marketplace from a volume standpoint and perhaps more importantly from a pricing standpoint and mix

Speaker 1: If in case everyone has not seen it, yes, we did put out an Form 8-K today in preparation for Raymond James that highlights what our guidance for EPS was, and then the changes post-equity offering. First, it was important that we had the transparency for the investors to see, you know, what it is from a share perspective as well as the impact from interest expense. Given that we just provided our guidance at the end of January, as of this time, we don't have any further changes beyond the post-equity offering, that's why we wanted to make sure that we put that out. If in case everyone has not seen it, yes, we did put out an Form 8-K today in preparation for Raymond James that highlights what our guidance for EPS was, and then the changes post-equity offering. if in case everyone has not seen it yes we did put out an form 8-k today in preparation for raymond james that highlights what our guidance for eps was and then the changes post-equity offering First, it was important that we had the transparency for the investors to see, you know, what it is from a share perspective as well as the impact from interest expense. first it was important that we had the transparency for the investors to see you know what it is from a share perspective as well as the impact from interest expense Given that we just provided our guidance at the end of January, as of this time, we don't have any further changes beyond the post-equity offering, that's why we wanted to make sure that we put that out. given that we just provided our guidance at the end of january as of this time we don't have any further changes beyond the post-equity offering that's why we wanted to make sure that we put that out In terms of what we're seeing in the marketplace, from a volume perspective, I will acknowledge that the winter storm that came in January, maybe two of them, from a volume perspective I believe even the trade customers would say it did impact sell-out quite significantly. What for us was exciting is that while we saw a significant downturn during that time, because of course we had folks were not going out to the stores, our new products had strong POS sell-out during that time. That was good to see. I mean, overall, we still have guided for the industry to be overall flat. We're still expecting that. We're still expecting from a volume perspective to get our gains through the new products. In terms of what we're seeing in the marketplace, from a volume perspective, I will acknowledge that the winter storm that came in January, maybe two of them, from a volume perspective I believe even the trade customers would say it did impact sell-out quite significantly. in terms of what we're seeing in the marketplace from a volume perspective i will acknowledge that the winter storm that came in january maybe two of them from a volume perspective i believe even the trade customers would say it did impact sell-out quite significantly What for us was exciting is that while we saw a significant downturn during that time, because of course we had folks were not going out to the stores, our new products had strong POS sell-out during that time. what for us was exciting is that while we saw a significant downturn during that time because of course we had folks were not going out to the stores our new products had strong pos sell-out during that time That was good to see. that was good to see I mean, overall, we still have guided for the industry to be overall flat. i mean overall we still have guided for the industry to be overall flat We're still expecting that. we're still expecting that We're still expecting from a volume perspective to get our gains through the new products. we're still expecting from a volume perspective to get our gains through the new products I think from a pricing perspective, which for us is even more critical right now, as we did touch on in the earnings call, we were expecting to see I would say pricing improve as we go into Presidents' Day. That is something that we did see. When you look year over year, we did see, and I think some of the analysts also wrote it up, that there was improved pricing going in to Presidents' Day. For us, that was good. As it relates to mix, as I touched on, still strong in terms of the new products, as evident by the fact that the POS, the sell-through for those new products remained strong even during the winter storm. I think from a pricing perspective, which for us is even more critical right now, as we did touch on in the earnings call, we were expecting to see I would say pricing improve as we go into Presidents' Day. i think from a pricing perspective which for us is even more critical right now as we did touch on in the earnings call we were expecting to see i would say pricing improve as we go into presidents' day That is something that we did see. that is something that we did see When you look year over year, we did see, and I think some of the analysts also wrote it up, that there was improved pricing going in to Presidents' Day. when you look year over year we did see and i think some of the analysts also wrote it up that there was improved pricing going in to presidents' day For us, that was good. for us that was good As it relates to mix, as I touched on, still strong in terms of the new products, as evident by the fact that the POS, the sell-through for those new products remained strong even during the winter storm. as it relates to mix as i touched on still strong in terms of the new products as evident by the fact that the pos the sell-through for those new products remained strong even during the winter storm

Speaker 2: Question here, yes. Question here, yes. question here yes

Speaker 5: [audio distortion] [audio distortion] [audio distortion]

Speaker 1: The question was what level of existing home sales do we view as normal. For our mid-cycle targets, we're aiming for 5 million -5.5 million units is what our target assumes. The question was what level of existing home sales do we view as normal. the question was what level of existing home sales do we view as normal For our mid-cycle targets, we're aiming for 5 million -5.5 million units is what our target assumes. for our mid-cycle targets we're aiming for 5 million -5.5 million units is what our target assumes

Speaker 2: Other questions? In the back of the room in the corner. Yes. Other questions? other questions In the back of the room in the corner. in the back of the room in the corner Yes. yes

Speaker 6: Thank you. Can you elaborate, I think I heard you say 30% share gains on new products? Can you just help us understand what the math behind that number is? Thank you. thank you Can you elaborate, I think I heard you say 30% share gains on new products? can you elaborate i think i heard you say 30% share gains on new products Can you just help us understand what the math behind that number is? can you just help us understand what the math behind that number is

Speaker 1: Yeah. That is a point of clarification because when we say share gains and market share flooring, the comment is specifically referring to flooring. On the floor, when you look across our overall portfolio, we were able to gain approximately 30% more of flooring across our customers. It from a market share perspective resulted in market share gains in 2025, and we're expecting about half a point of share gain from it in 2026. Yeah. yeah That is a point of clarification because when we say share gains and market share flooring, the comment is specifically referring to flooring. that is a point of clarification because when we say share gains and market share flooring the comment is specifically referring to flooring On the floor, when you look across our overall portfolio, we were able to gain approximately 30% more of flooring across our customers. on the floor when you look across our overall portfolio we were able to gain approximately 30% more of flooring across our customers It from a market share perspective resulted in market share gains in 2025, and we're expecting about half a point of share gain from it in 2026. it from a market share perspective resulted in market share gains in 2025 and we're expecting about half a point of share gain from it in 2026

Speaker 6: [audio distortion] [audio distortion] [audio distortion]

Speaker 1: Correct. Correct. Correct. correct Correct. correct

Speaker 2: Question here, yes. Question here, yes. question here yes

Speaker 7: Can you talk about the timing of the of the equity offering? Why now? Why not wait for sort of a better market to develop before you actually issue the equity for the first time? Can you talk about the timing of the of the equity offering? can you talk about the timing of the of the equity offering Why now? why now Why not wait for sort of a better market to develop before you actually issue the equity for the first time? why not wait for sort of a better market to develop before you actually issue the equity for the first time

Speaker 1: Yeah, no. Good question. For us, as I touched on, this was part of a one-year plan that we had in the making, and we knew that in 2026 we wanted to go. There were two things that we, just from an overall process standpoint, were waiting on. One, the filing of the Form 10-K, and two, the overall Board approval. Just given the number of uncertainty that we have right now, I think for us it was just critical for us to go sooner rather than later, especially given what we've just seen from a geopolitical standpoint as well. Yeah, no. yeah no Good question. good question For us, as I touched on, this was part of a one-year plan that we had in the making, and we knew that in 2026 we wanted to go. for us as i touched on this was part of a one-year plan that we had in the making and we knew that in 2026 we wanted to go There were two things that we, just from an overall process standpoint, were waiting on. there were two things that we just from an overall process standpoint were waiting on One, the filing of the Form 10-K, and two, the overall Board approval. one the filing of the form 10-k and two the overall board approval Just given the number of uncertainty that we have right now, I think for us it was just critical for us to go sooner rather than later, especially given what we've just seen from a geopolitical standpoint as well. just given the number of uncertainty that we have right now i think for us it was just critical for us to go sooner rather than later especially given what we've just seen from a geopolitical standpoint as well We wanna go into our next phase of this recovery with a stronger balance sheet and with extremely stronger financial flexibility, for us accelerating the deleveraging was key, we executed it as soon as we could at the start of 2026. We wanna go into our next phase of this recovery with a stronger balance sheet and with extremely stronger financial flexibility, for us accelerating the deleveraging was key, we executed it as soon as we could at the start of 2026. we wanna go into our next phase of this recovery with a stronger balance sheet and with extremely stronger financial flexibility for us accelerating the deleveraging was key we executed it as soon as we could at the start of 2026

Speaker 2: Other questions? Roxanne, with the replacement of IEEPA with Section 122, I mean, ignoring the timeframe and the, Other questions? other questions Roxanne, with the replacement of IEEPA with Section 122, I mean, ignoring the timeframe and the, roxanne with the replacement of ieepa with section 122 i mean ignoring the timeframe and the

Speaker 1: Yeah Yeah yeah

Speaker 2: the transition and what have you, just focusing on rates, what does this do to your costs expected on an annualized basis? Same question, your importer competitors. the transition and what have you, just focusing on rates, what does this do to your costs expected on an annualized basis? the transition and what have you just focusing on rates what does this do to your costs expected on an annualized basis Same question, your importer competitors. same question your importer competitors

Speaker 1: Yeah Yeah yeah

Speaker 2: does this improve or pressure their costs as well? does this improve or pressure their costs as well? does this improve or pressure their costs as well

Speaker 1: Good question, Sam. That is actually something that we continue to analyze. I would tell you, I had a meeting on Friday around the impact of the change, and we have about three different scenarios based on the comments that have been made. You know, base case, you have a situation where with the Section 122, there is the 10% of global tariff. Is it 10% or is it 15%? Which has been another question that has come up. The other piece is, okay, but there was also a comment related to the fact that countries, the country-specific negotiated tariffs would not go away, which is another scenario. In those scenarios, what we would say is our position remains very similar in the sense of what is... Good question, Sam. good question sam That is actually something that we continue to analyze. that is actually something that we continue to analyze I would tell you, I had a meeting on Friday around the impact of the change, and we have about three different scenarios based on the comments that have been made. i would tell you i had a meeting on friday around the impact of the change and we have about three different scenarios based on the comments that have been made You know, base case, you have a situation where with the Section 122, there is the 10% of global tariff. you know base case you have a situation where with the section 122 there is the 10% of global tariff Is it 10% or is it 15%? is it 10% or is it 15% Which has been another question that has come up. which has been another question that has come up The other piece is, okay, but there was also a comment related to the fact that countries, the country-specific negotiated tariffs would not go away, which is another scenario. the other piece is okay but there was also a comment related to the fact that countries the country-specific negotiated tariffs would not go away which is another scenario In those scenarios, what we would say is our position remains very similar in the sense of what is... in those scenarios what we would say is our position remains very similar in the sense of what is What we would pay is a relatively still less than what our competitors or competition would pay. We believe that with Section 122, there may be some favorable impact. You also have to wait for the inventory to draw down for the ones that we had the IEEPA on. There would be a phasing and a time related to that. I wouldn't, at this point in time, say it's significantly material. It's something that we will continue to monitor because we're expecting maybe some other changes. Whether it goes to the 15%, whether we have anything from an update as it relates to Section 232 has also been mentioned. What we would pay is a relatively still less than what our competitors or competition would pay. what we would pay is a relatively still less than what our competitors or competition would pay We believe that with Section 122, there may be some favorable impact. we believe that with section 122 there may be some favorable impact You also have to wait for the inventory to draw down for the ones that we had the IEEPA on. you also have to wait for the inventory to draw down for the ones that we had the ieepa on There would be a phasing and a time related to that. there would be a phasing and a time related to that I wouldn't, at this point in time, say it's significantly material. i wouldn't at this point in time say it's significantly material It's something that we will continue to monitor because we're expecting maybe some other changes. it's something that we will continue to monitor because we're expecting maybe some other changes Whether it goes to the 15%, whether we have anything from an update as it relates to Section 232 has also been mentioned. whether it goes to the 15% whether we have anything from an update as it relates to section 232 has also been mentioned It continues to be a moving platform, one with uncertainty, but one where, given our overall manufacturing footprint, we continue to be relatively in a stronger position versus our competition. It continues to be a moving platform, one with uncertainty, but one where, given our overall manufacturing footprint, we continue to be relatively in a stronger position versus our competition. it continues to be a moving platform one with uncertainty but one where given our overall manufacturing footprint we continue to be relatively in a stronger position versus our competition

Speaker 2: It was notable. I'm sorry. Go ahead, please. It was notable. it was notable I'm sorry. i'm sorry Go ahead, please. go ahead please

Speaker 5: Thanks. As you get to this mid-cycle 5.5 million housing units, what would be your earnings? Thanks. thanks As you get to this mid-cycle 5.5 million housing units, what would be your earnings? as you get to this mid-cycle 5.5 million housing units what would be your earnings

Speaker 1: We have guided to that being approximately 9% of EBIT, with North America therefore being roughly 10%. You can see that, if needed, in the Q4 earnings call material. We also provide some free cash flow guidance around that as well. That is literally the page that I shared with the margin improvement, with the three boxes where it requires cost improvement, organic growth, and housing fundamentals. Those are the key drivers for that mid-cycle target of approximately 9% EBIT. We have guided to that being approximately 9% of EBIT, with North America therefore being roughly 10%. we have guided to that being approximately 9% of ebit with north america therefore being roughly 10% You can see that, if needed, in the Q4 earnings call material. you can see that if needed in the q4 earnings call material We also provide some free cash flow guidance around that as well. we also provide some free cash flow guidance around that as well That is literally the page that I shared with the margin improvement, with the three boxes where it requires cost improvement, organic growth, and housing fundamentals. that is literally the page that i shared with the margin improvement with the three boxes where it requires cost improvement organic growth and housing fundamentals Those are the key drivers for that mid-cycle target of approximately 9% EBIT. those are the key drivers for that mid-cycle target of approximately 9% ebit

Speaker 5: What does that translate into EPS? What does that translate into EPS? what does that translate into eps

Speaker 1: Did we guide? Did we guide? did we guide

Speaker 5: I mean, we can... Yeah, we didn't... I mean, we can... i mean we can Yeah, we didn't... yeah we didn't

Speaker 1: We didn't specify. We didn't specify. we didn't specify

Speaker 3: We did not specifically give any EPS guidance on it. To Roxanne's point. We did not specifically give any EPS guidance on it. we did not specifically give any eps guidance on it To Roxanne's point. to roxanne's point

Speaker 1: You can laugh. You can laugh. you can laugh

Speaker 3: the two buckets on the left are what we call controllable, and then the last bucket is really where you get a point to two points of margin expansion based on the macro cycle that we would be in. Remember, you have two types of favorable mix with the housing recovery. You have product mix, and then you also have, within the category, you see consumers mix up into more premium brands and built-in products. the two buckets on the left are what we call controllable, and then the last bucket is really where you get a point to two points of margin expansion based on the macro cycle that we would be in. the two buckets on the left are what we call controllable and then the last bucket is really where you get a point to two points of margin expansion based on the macro cycle that we would be in Remember, you have two types of favorable mix with the housing recovery. remember you have two types of favorable mix with the housing recovery You have product mix, and then you also have, within the category, you see consumers mix up into more premium brands and built-in products. you have product mix and then you also have within the category you see consumers mix up into more premium brands and built-in products

Speaker 2: The industry was marked last year by a lot of preloading. Does the transition period of IEEPA to 122 allow importers to again preload, or is that ship sailed? Sorry for the word choice, go ahead. The industry was marked last year by a lot of preloading. the industry was marked last year by a lot of preloading Does the transition period of IEEPA to 122 allow importers to again preload, or is that ship sailed? does the transition period of ieepa to 122 allow importers to again preload or is that ship sailed Sorry for the word choice, go ahead. sorry for the word choice go ahead

Speaker 1: Based on our understanding of how it would work, which is basically the IEEPA would roll off at the same time that the Section 122 comes into effect, which was supposed to be last week Tuesday. Based on our understanding of how it would work, which is basically the IEEPA would roll off at the same time that the Section 122 comes into effect, which was supposed to be last week Tuesday. based on our understanding of how it would work which is basically the ieepa would roll off at the same time that the section 122 comes into effect which was supposed to be last week tuesday

Speaker 2: Right. Right. right

Speaker 1: Based on that, we expect that transition period to prevent the preloading from coming in. What caused the preloading last time was the fact that we had the announcement in roughly April, and then we had no wait, right, in terms of the effective date, which therefore provided a final sale warning every month for our competition to therefore bring in additional products. From April to October, they had the opportunity to therefore do the preloading. We believe that this transition period, which one ends and the other one begins, hopefully prevents that from happening again. Based on that, we expect that transition period to prevent the preloading from coming in. based on that we expect that transition period to prevent the preloading from coming in What caused the preloading last time was the fact that we had the announcement in roughly April, and then we had no wait, right, in terms of the effective date, which therefore provided a final sale warning every month for our competition to therefore bring in additional products. what caused the preloading last time was the fact that we had the announcement in roughly april and then we had no wait right in terms of the effective date which therefore provided a final sale warning every month for our competition to therefore bring in additional products From April to October, they had the opportunity to therefore do the preloading. from april to october they had the opportunity to therefore do the preloading We believe that this transition period, which one ends and the other one begins, hopefully prevents that from happening again. we believe that this transition period which one ends and the other one begins hopefully prevents that from happening again

Speaker 2: Timing is perfect. We'll continue this in Amarante 2 with the breakout. Thank you, Roxanne. Thank you, Scott. Timing is perfect. timing is perfect We'll continue this in Amarante 2 with the breakout. we'll continue this in amarante 2 with the breakout Thank you, Roxanne. thank you roxanne Thank you, Scott. thank you scott

Speaker 1: All right. Thanks, everyone. Thanks for taking the time. All right. all right Thanks, everyone. thanks everyone Thanks for taking the time. thanks for taking the time