Whirlpool Stock Dips on Q4 Earnings Miss and Cautious Outlook

Whirlpool Corporation WHR posted dismissal fourth-quarter 2025 results, wherein both top and bottom lines not only missed the Zacks Consensus Estimate but also declined on a year-over-year basis. The appliance maker reported fourth-quarter adjusted EPS of $1.10 per share, representing a decline of 75.9% from $4.57 reported in the year-ago period. Also, the metric missed the Zacks Consensus Estimate of $1.54 per share.  

Whirlpool Corporation Price, Consensus and EPS Surprise

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

Shares of this Zacks Rank #3 (Hold) company declined 3.1% after the post-market trading session. The decline in share price can be attributed to weaker-than-expected fourth-quarter revenues and raised concerns about ongoing demand softness, promotional pressures and a cautious near-term outlook. Shares of this company have lost 12.9% in the past three months compared with the industry’s 12.8% decline.

WHR Stock's Price Performance

Whirlpool’s Quarterly Performance: Key Metrics and Insights

Net sales of $4.098 billion missed the Zacks Consensus Estimate of $4.267 billion and declined 0.9% year over year. Excluding the unfavorable impacts of foreign exchange, organic net sales were $4.05 billion, down 0.9% year over year.

Quarterly gross profit was $575 million, down 14.3% from $671 million reported in the year-ago quarter. The gross margin fell 220 basis points (bps) year over year to 14%.

Selling, general and administrative (SG&A) expenses increased 1.7% year over year to $425 million. As a percentage of net sales, SG&A expenses expanded 30 bps year over year to 10.4%. The ongoing EBIT of $135 million fell 45.6% from $248 million in the year-ago quarter. The ongoing EBIT margin of 2.7% fell 270 bps year over year.

WHR’s Region-Wise Performance Details

Net sales for the MDA North America segment fell 0.9% year over year to $2.57 billion. Excluding currency effects, the segment’s net sales declined 0.9% year over year on volume decline and price/mix, primarily in Canada. The segment’s EBIT decreased 59% year over year to $71 million, and the EBIT margin contracted 390 bps to 2.8%, reflecting a highly promotional pricing environment, continued cost pressures, and the delayed pass-through of tariff-related impact. The Zacks Consensus Estimate for net sales of the MDA North America segment was pegged at $2.72 billion.

Net sales from MDA Latin America rose 0.8% year over year to $927 million. Excluding currency, the segment’s sales dropped 4.6% year over year on weak volumes. The segment’s EBIT of $59 million declined 15.3% year over year. The EBIT margin contracted 120 bps year over year to 6.4%, attributable to a tough macro environment in Argentina and intensified competitive pressures in Brazil, somewhat offset by a tax reserve release in Brazil. The Zacks Consensus Estimate for net sales of the MDA Latin America segment was pegged at $946 million.

Net sales in SDA Global increased 10.3% year over year to $423 million. Excluding the currency impacts, sales jumped 8% due to growth from new product launches. The segment’s EBIT of $59 million reflected a 22.4% increase from $48 million reported in the year-ago quarter. Segmental EBIT margin of 13.8% expanded 130 bps from 12.5% 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 $423 million.

Net sales in MDA Asia declined 27.7% year over year to $172 million. Excluding the currency impacts, sales fell 2.4% to $179 million.

Whirlpool’s Financial Health Snapshot

Whirlpool ended the fourth quarter with cash and cash equivalents of $669 million, long-term debt of $5.6 billion and total stockholders’ equity of $2.7 billion. The company declared a dividend of 90 cents per share for the fourth quarter of 2025.

For fiscal 2025, Whirlpool provided cash of $467 million from operating activities and reported a free cash flow of $78 million. WHR incurred capital expenditure of $389 million in the same period.

WHR’s 2026 Outlook

Whirlpool provided its sales guidance for 2026, anticipating net sales in the range of $15.3-$15.6 billion, reflecting approximately 5% growth on a like-for-like basis compared with 2025. The company anticipates an ongoing EBIT margin of 5.5-5.8%, indicating a rise from 4.7% reported in 2024. Price and mix are anticipated to be key margin drivers, supported by continued new product innovation and the carryover momentum from 2025 launches. Management also expects structural cost-reduction initiatives to generate more than $150 million in savings, translating into roughly 100 basis points of EBIT margin expansion.

Whirlpool expects its GAAP EPS for 2026 to be $6.25 compared with $5.66 reported in 2025. Ongoing EPS is expected to be $7, up from $6.23 per share reported in 2025. Management expects both the GAAP tax and the adjusted tax rate of 25%.

Cash provided by operating activities is expected to total roughly $850 million, with free cash flow in the $400-$500 million range. In addition, management plans to reduce debt by approximately $400 million as part of its disciplined capital allocation strategy aimed at strengthening the balance sheet and enhancing shareholder value.

Key Consumer Discretionary Picks

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The Zacks Consensus Estimate for GIII’s current financial-year EPS is expected to rise 6.3% from the corresponding year-ago reported figure. GIII Apparel delivered a trailing four-quarter earnings surprise of 64.5%, on average.

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

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