Strong SDA (Small Domestic Appliances) Performance
SDA Global delivered ~10% net sales growth in Q4 and ~9% on a full-year basis, expanded full-year EBIT margin to 16% (up ~170 bps year-over-year), with Q4 EBIT margin expansion of ~130 bps. Direct-to-consumer sales exceed ~20% and continue to grow.
New Product Launches Driving Share and Mix
Company transitioned >30% of its North America product portfolio to new products in 2025, new launches delivered incremental flooring (~30% like-for-like) and measurable sell-through, and ~100 new products are planned for 2026; price/mix benefit modeled at ~175 bps.
2026 Growth and Margin Guidance
Management guided to ~5% like-for-like revenue growth for 2026 and ongoing EBIT margin expansion of ~80–110 bps (to ~5.5–5.8%). Segment-level guidance includes MDA North America ~6% EBIT margin, MDA Latin America ~7%, SDA Global ~15.5%.
Planned Cost Actions and Supply Improvements
Delivered $200M of cost takeout in 2025 and identified >$150M of additional cost actions for 2026 (targeting ~100 bps net cost benefit), including vertical integration, automation, footprint optimization and a strategic sourcing initiative.
Capital Allocation and Deleveraging Focus
Announced intent to pay down at least $400M of debt in 2026, plan to return capital to shareholders (approximately $300M dividend paid in 2025) and target free cash flow of $400–500M for 2026 (≈3% of net sales).
India Stake Transaction and Balance Sheet Management
Executed a transaction reducing majority India stake from 51% to 40%, generating proceeds used to pay down debt and providing margin accretion (~40 bps) to Asia results; company is evaluating additional options to further reduce leverage.
Regional Strength in Latin America and Asia
MDA Latin America delivered a full-year EBIT margin of ~6.2% and is positioned for growth in a market with low appliance penetration (industry CAGR ~4–5%); MDA Asia ex-India/currency grew ~1% with ~120 bps margin expansion year-over-year.
Concrete 2026 Financial Targets
2026 outlook includes: ongoing EPS ~ $7 (inc. higher adjusted tax rate ~25%), free cash flow $400–500M, cash earnings ~$800M, capex ~ $400M, inventory optimization target ~$100M and restructuring cash outlays ~ $50M.