Whirlpool Q3 Earnings Beat, MDA North America Unit Sales Up 2.8%

Whirlpool Corporation WHR posted third-quarter 2025 results, wherein the bottom and top lines surpassed the Zacks Consensus Estimate and the latter increased year over year. The appliance maker reported third-quarter adjusted EPS of $2.09 per share, showcasing a decline of 39.1% from $3.43 per share reported in the year-ago period. However, the metric beat the Zacks Consensus Estimate of $1.41 per share.  

Shares of this Zacks Rank #4 (Sell) company have lost 12.9% in the past three months compared with the industry’s 12.8% drop.

Whirlpool’s Quarterly Performance: Key Metrics and Insights

Net sales of $4.033 billion inched up 1% year over year, as new products have been gaining traction in North America alongside managing the near-term unfavorable tariff impacts. The metric excluding currency came in at $4.031 billion. Sales beat Zacks' Consensus Estimate of $3.925 billion.

Whirlpool Corporation Price, Consensus and EPS Surprise

Whirlpool Corporation price-consensus-eps-surprise-chart | Whirlpool Corporation Quote

While Major Domestic Appliance (MDA) segments in Latin America and Asia reported declines, the Small Domestic Appliances (SDA) and MDA North America segments delivered growth.

Quarterly gross profit was $594 million, down 7.6% from $643 million reported in the year-ago quarter. The gross margin fell 140 basis points (bps) year over year to 14.7%.

Selling, general and administrative (SG&A) expenses increased 2.5% year over year to $405 million. As a percentage of net sales, SG&A expenses expanded 10 bps year over year to 10%.

The ongoing EBIT of $180 million fell 22.7% from $233 million in the year-ago quarter. The ongoing EBIT margin of 4.5% fell 140 bps year over year.

WHR’s Region-Wise Performance Details

Net sales for the MDA North America segment edged up 2.8% year over year to $2.72 billion. Excluding currency effects, the segment’s net sales rose 2.9% year over year on robust share gains. The segment’s EBIT decreased 30.6% year over year to $134 million and the EBIT margin contracted 240 bps to 4.9%, affected by foreign competitors' inventory pre-loading. The Zacks Consensus Estimate for net sales of the MDA North America segment was pegged at $2.61 billion.

Net sales from MDA Latin America declined 5.2% year over year to $802 million. Excluding currency, the segment’s sales dropped 6.3% year over year on weak volumes. The segment’s EBIT of $45 million declined 22% year over year. The EBIT margin contracted 120 bps year over year to 5.7%, attributable to a tough macro environment in Argentina and negative price/mix. The Zacks Consensus Estimate for net sales of the MDA Latin America segment was pegged at $818 million.

Net sales in MDA Asia fell 7.3% year over year to $222 million. Excluding the currency impacts, sales fell 4% on lower volumes. The segment’s EBIT of $4 million decreased 37.9% year over year. Segmental EBIT margin of 1.8% fell 110 bps on volume decreases, partly offset by cost take-out actions. The Zacks Consensus Estimate for net sales of the MDA Asia segment was pegged at $235 million.

Net sales in SDA Global increased 10.5% year over year to $288 million. Excluding the currency impacts, sales jumped 9.5% due to growth from new product launches. The segment’s EBIT of $47 million reflected a 28.8% increase from $37 million reported in the year-ago quarter. Segmental EBIT margin of 16.5% expanded 230 bps from 14.2% in the prior-year quarter due to favorable price/mix and direct-to-consumer growth. The Zacks Consensus Estimate for net sales of the SDA Global segment was pegged at $289 million.

Whirlpool’s Financial Health Snapshot

Whirlpool ended the third quarter with cash and cash equivalents of $934 million, long-term debt of $6.2 billion and total stockholders’ equity of $2.6 billion. The company declared a dividend of 90 cents per share for the fourth quarter of 2025.

In the first nine months of 2025, Whirlpool used cash of $669 million from operating activities. It reported a negative free cash flow of $907 million. WHR incurred capital expenditure of $239 million in the same period.

WHR’s 2025 Outlook

For 2025, Whirlpool continues to anticipate net sales of $15.8 billion, down from $16.6 billion reported in the year-ago period. On a like-for-like basis, the metric remains flat. The company anticipates an ongoing EBIT margin of 5%, down from 5.3% reported in 2024. Price/mix is likely to favorably impact the EBIT margin owing to product launches. Management expects the GAAP tax rate of 8.8% and adjusted tax rate of 8% for 2025. 

Whirlpool expects its GAAP EPS for 2025 to be $6.00 against a loss of $5.87 per share. Ongoing EPS is expected to be $7.00, down from $12.21 per share reported in 2024. It forecasts approximately $200 million of structural cost take-out.

Cash provided by operating activities is expected to be nearly $600 million, with an estimated free cash flow $200 million.

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This article originally published on Zacks Investment Research (zacks.com).

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