A：The two sources of growth in Whirlpool's business were the KitchenAid domestic appliance business, which achieved double-digit revenue growth, and market share gains in the North American major appliance business due to new product launches.

A：Operating margins in North America are below expectations due to tariffs, which are one of the three catalysts for value creation and margin improvement. Tariffs ramped up during Q3, causing extensive pre-loading of inventories ahead of them, which impacted margins more than anticipated.

A：Tariffs have caused inventories to be preloaded in anticipation of higher costs, which has impacted margins and created a highly promotional environment. Despite the temporary impact, the fundamental perspective on tariffs remains the same, and the company believes it is close to a turning point with deceleration in imports and 17 consecutive weeks of declining container rates.

A：Whirlpool views its US manufacturing footprint as a competitive advantage because it is the domestic producer with more than 80% of its sales in the US, while its competitors are largely importers. Tariffs support the domestic producer and, combined with the company's investments, such as the recent $300 million in laundry facilities, demonstrate confidence in its North American business.

A：Price mix favorably impacted margins by 50 basis points, supported by the cumulative effect of new product launches and benefits from previously announced pricing actions. Cost takeout actions, which are in line with expectations, resulted in margin expansion of 100 basis points year over year due to manufacturing and supply chain efficiencies.

A：The MDA North America business achieved revenue growth both sequentially and year over year, driven by new product introductions and share gains. Despite continued pre-loading of Asian-produced products by competitors and a promotional environment, the company is seeing signs that import volumes are likely decelerating.

A：The new product lineup supports growth in MDA North America with products such as Whirlpool and KitchenAid French door refrigerators, true counter-depth sizes, a new dishwasher with innovative features, and a top load laundry with refreshed aesthetics and performance capabilities.

A：The MDA Latin America business experienced a net sales decline of 6% year over year, driven by volume decline and the challenging business environment in Argentina. The MDA Asia business saw a net sales decline of 4% year over year, also due to volume decline.

A：The SDA global business achieved double-digit net sales growth of 10% year over year, driven by new product launches. The segment continued to deliver a very strong EBIT margin of 16.5%, with favorable price mix and a strong direct to consumer business contributing to margin expansion.

A：The updated guidance for 2025 reflects the impact of near-record levels of preloaded Asian imports on financial results. The net sales guidance remains at $15.8 billion, with an expected full year ongoing EBIT margin of approximately 5%. The full year ongoing earnings per share is narrowed to approximately $7, supported by an improved adjusted effective tax rate. The free cash flow guidance is updated to approximately $200 million.

A：The EBIT margin in North America has been adjusted to reflect lower than expected price mix due to competitor preloading. The full year MDA North America margin is now expected to be 5% to 5.5%. In MDA Latin America, the EBIT margin is expected to be approximately 6%, up from prior guidance of 5%, primarily due to unfavorable currency impacts and continued macro volatility in Argentina. In MDA Asia and SDA global, EBIT margins are unchanged at approximately 5% and 15.5%, respectively.

A：The free cash flow guidance has been updated to reflect the impact of tariff costs, with a new expectation of approximately $200 million for the year. This includes updated cash earnings and other operating items consistent with full year EBIT guidance. Capital expenditures are expected to be approximately $400 million, and there is an expectation to build $100 million of working capital primarily driven by incremental tariff costs in inventory. The timing of tariff payments is negatively impacting working capital, and restructuring costs due to previously announced organizational actions remain unchanged at approximately $50 million.

A：The three fundamental components that drive growth for the North America MBA business are: 1) the strengthening of the product portfolio with over 30% of North American products transitioning to new products in 2025, 2) a strong U.S. based manufacturing footprint providing a competitive advantage on new tariff and trade policies, and 3) strong underlying fundamentals in the U.S. housing market, which is significantly undersupplied and has an aging housing stock with a median age of 40 years. Elevated mortgage rates are expected to create pent-up demand that will be unlocked once interest rates ease.

A：Recent successes include a 30% increase in flooring compared to the prior year and positive reactions from trade customers for the new products launched this year. The company has also announced a $300 million investment in laundry factories to add capacity and fuel the innovation pipeline. In addition, market share gains in North American major appliances are seen as just the beginning, and the company is encouraged by the success of new products. Housing market fundamentals are expected to improve with further mortgage rate reductions, supporting the company's position in the market.

A：The SDA business is performing well and is a bright spot, with new products and a successful DTC strategy driving sustained growth and margin expansion throughout 2025. Market share gains in North American major appliances are seen as an encouraging start, and the company is optimistic about the future performance of the SDA business, despite consumer volatility, due to its momentum and the discretionary nature of the small domestic appliance market, which is less driven by housing than major appliances.

A：The three factors contributing to the company's success are the new product launches and the products in the pipeline, the significant advertising investments to support these new products, and the continued strong performance of the DTC business which becomes more profitable with increased volume.

A：Tariffs impacted the SDA market by driving industry changes and behaviors due to the earlier effect of China tariffs compared to the rest of Asia. This has led to a market environment where tariffs have already made their way into the marketplace and are expected to affect future business.

A：While a precise figure for 2026 unit growth was not provided, the company has replaced about one-third of the SKUs in North America and nearly all of the products planned for 2025 have been launched. The company has gained more floors than usual with new products, suggesting an encouraging start for new product contributions to growth.

A：The company is optimistic about organic growth opportunities in North America, irrespective of market conditions, with a focus on the momentum gained from product launches and the reduction in flooring costs which will be beneficial in the future.

A：The company expects that the upfront flooring costs, particularly those related to product launches, will not immediately reflect in Q3 margins but believes there is a good tailwind coming from product launches.

A：The company anticipates that the gross tariffs paid this year will be in the ballpark of 300 to 350 million, and these costs are expected to be similar or higher next year. The net component of tariffs is expected to provide a relative competitive advantage, with volume growth and margin appreciation anticipated in North America.

A：The current promotional environment is more intense compared to pre-Covid norms, with rapid changes and volatility due to unforeseen events like tariffs and pre-relocation. The comparison to normalcy is complicated, but industry shipments will return to a more normal pattern as they reflect underlying costs and not just the elevated imports from the past. Normalization will be aided by a reduction in industry volumes and excess inventory by the end of Q4.

A：Tariffs are expected to cause unprecedented cost increases for many industry participants, with significant impacts to be felt in the future. The company acknowledges the fluid environment and is preparing for the effects of tariffs on costs and supply chain adjustments.

A：The company's long-term goal is to achieve a net debt to EBITDA ratio of two times. They have delayed a 700 million debt paydown and are considering how to manage revolver and financing needs as certain elements come due. However, specific details on additional debt paydown or refinancing were not provided in the transcript.

A：The company was able to refinance $100 million of the term loan at the beginning of the year, which sets them up well. The India transaction, however, has been delayed into 2026 from a closing perspective but they are still optimistic about the proceeds and using them to pay down debt.

A：The company is in a good position regarding capital allocation and debt, with no change in strategy or intention to continue paying down debt despite the timing delays in the India transaction.

A：The factors contributing to the free cash flow for the remainder of the year include a higher level of working capital due to new product launches and inventory built to position the company, typical receivables levels before year-end, and lower promotional payments as the year ends.

A：Free cash flow guidance has been reduced but still implies a meaningful ramp in the fourth quarter. The focus is on managing working capital, which is expected to provide a significant benefit in the back half of the year. The company plans to return to a more normalized level and an earnings-driven free cash flow profile next year. Regarding dividends, while the free cash flow matches the dividend level this year, it's expected to be higher next year with the absence of the one-time impact of tariffs.

A：The healthy step up in year-on-year growth in the fourth quarter is attributed to organic growth, with specific emphasis on the contribution from SDA and major North American product launches, which are providing full revenue benefits in Q4 due to their positive market reception.

A：Historically, the company has seen that the best year for product launches is often the following year. This is due to the phase-in and phase-out costs associated with new products and the ramp-up in production, which impacts margins. However, after a full year of product availability, sales are bolstered by brand and marketing investments and a year of in-store displays, leading to stronger sales. Additionally, the company anticipates a 'multiplier effect' from the KitchenAid product as the housing market recovers.

A：The decision to invest $300 million in new capacity was influenced by the success of the laundry business, specifically the top loader product, which is nearing capacity. Investments in manufacturing US-made products are viewed as particularly attractive due to the tariffs, which make the return on investment more attractive.

A：The projected tax rate normalization is expected to be in the 20% to 25% range, and it will be updated at year-end after evaluating the environment and recent changes.

A：The expected tax rate next year is likely to be more normalized, moving away from the big tax bill change of the past year, influenced by the absence of a similar tax bill change expected next year.

A：The exact cost advantage due to scale costs is not detailed, but it's mentioned that costs have been locked in for next year while peers have not, and this will affect next year's costs, especially in steel costs which are predictable due to long-term contracts.

A：Current steel contract terms have transitioned from one-year contracts to multi-year ones, providing a more predictable and stable steel cost base, with 96% of the steel purchased for U.S. products being U.S.-made.

A：The current steel cost is within the expected range and slightly below the market, while the expected steel cost for next year is also well within that range, although it's still significantly higher than China steel prices, approximately 2.5 times as much.

A：The company does not expect major negative or positive surprises on raw materials next year and anticipates a normalized raw materials environment, despite acknowledging the complexities and fluctuations in copper trends and other elements.

A：The significant change in cash flow is attributed to the evolving tariff environment, which has made the process more complex but the company now has a good understanding of it. The company has updated its numbers to reflect these new conditions and is managing the increased costs reflected in working capital.

A：New product introductions and higher inventory levels due to significant product variation have impacted cash flow and margins, but as the inventory is stocked with retailers, the company expects the additional inventory to normalize and contribute positively to sales and margins.

A：The outlook for tariffs is more stable with the 232 tariffs being in place since 2018 and considered stable. The company does not expect any major surprises, and while there is some uncertainty with the China negotiations, the company anticipates a more stable and predictable environment moving forward.

A：The company is focused on cost opportunities and margin recovery, with an expectation to deliver more than 10% EBIT margins. The margins are not where the company wants them to be, and while they anticipate improvements, they also recognize the need for the housing cycle to be robust to reach their long-term potential.

A：Retail sell-through data for the appliances is very close to overall market demand and is showing a year-to-date growth of about +1% with actual sell-through in low single digits. This is expected to continue through the third quarter with the fourth quarter showing an anticipated trend of positive retail sell-through.

A：Preloaded imports have not negatively impacted revenue growth, as volume growth was achieved through new product introductions and maintained promotional spending. The promotional environment has been higher than anticipated throughout the year, but the company expects a normalization as inventory overhang is reduced.

A：The plan for mitigating the impact of tariffs involves managing the promotional environment and waiting for the inventory overhang to diminish, which is expected to lead to a normalization of the promotional environment and a reduction in the intensity of promotions starting next year.