Core Insights - Whirlpool Corporation (WHR) reported second-quarter fiscal 2025 results, with net sales of $3.77 billion, a decline of 5.4% year over year, and adjusted EPS of $1.34, down from $2.39 in the previous year, missing the Zacks Consensus Estimate of $1.54 [1][4][8] Financial Performance - The company experienced a significant drop in share price, falling 14.7% in pre-market trading due to disappointing financial results and a cautious outlook [2] - Whirlpool announced a reduced annual dividend payout of $3.60 per share, down from previous levels [2] - Quarterly gross profit was $610 million, a decrease of 2.6% from $626 million in the year-ago quarter, while gross margin expanded by 50 basis points to 16.2% [6] Segment Performance - Major Domestic Appliances (MDA) in North America saw net sales decline by 4.7% to $2.45 billion, with EBIT decreasing 11.7% to $144 million [10] - MDA Latin America reported a 10% decline in net sales to $806 million, with EBIT of $48 million, down 7.7% year over year [11] - MDA Asia experienced a 5.9% decline in net sales to $320 million, but EBIT increased by 11.2% to $23 million [12] - Small Domestic Appliances (SDA) Global segment grew by 7.5% in net sales to $201 million, with EBIT reflecting a 32.9% increase to $35 million [13] Financial Health - As of the end of the first quarter, Whirlpool had cash and cash equivalents of $1.07 billion and long-term debt of $6.2 billion [14] - The company reported negative free cash flow of $856 million for the second quarter of 2025, with capital expenditure of $154 million [14] 2025 Outlook - Whirlpool anticipates net sales of $15.8 billion for 2025, down from $16.6 billion in the previous year, with ongoing EBIT margin expected to rise to 5.7% [15] - The company projects GAAP EPS for 2025 to be between $5.00 and $7.00, with ongoing EPS expected to be between $6.00 and $8.00, down from $12.21 in 2024 [16]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 WHIRLPOOL CORPORATION (Exact name of registrant as specified in its charter) For the quarterly period ended June 30, 2025 OR ________________________________________________________ FORM 10-Q ________________________________________________________ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission fil ...

Core Viewpoint - Whirlpool (WHR.US) shares fell over 10% to $88 following the release of its second-quarter earnings, which showed a decline in sales and earnings that missed analyst expectations [1] Financial Performance - Sales decreased by 5.4% year-over-year to $3.77 billion, falling short of the analyst forecast of $3.85 billion [1] - Adjusted earnings per share were $1.34, also below the expected $1.68 [1] - Sales in North America and Asia declined by 4.7% and 5.9% year-over-year, respectively [1] Future Guidance - The company maintained its full-year sales guidance at $15.8 billion [1] - Adjusted earnings per share guidance was lowered to a range of $6 to $8, below the analyst expectation of $8.96 [1] Dividend Changes - Whirlpool plans to reduce its quarterly dividend from $1.75 per share to $0.90 per share [1]

Market Overview - US stock index futures are all up, with Dow futures rising by 0.13%, S&P 500 futures by 0.30%, and Nasdaq futures by 0.47% [1] - European indices also show positive movement, with Germany's DAX up 1.17%, UK's FTSE 100 up 0.55%, France's CAC40 up 1.10%, and the Euro Stoxx 50 up 1.02% [2][3] - WTI crude oil increased by 0.07% to $66.76 per barrel, while Brent crude oil rose by 0.13% to $69.41 per barrel [3][4] Federal Reserve Insights - The Federal Reserve is not yet prepared to lower interest rates, with officials divided on the timing and evidence needed for such a decision [5] - The upcoming cryptocurrency policy report from the White House is anticipated to be a catalyst for the crypto market, alongside the Fed's interest rate decision [5] Company News - Oppenheimer raised its year-end target for the S&P 500 to 7100 points, citing easing trade tensions and strong corporate earnings, indicating an 11% upside from the latest closing price [6] - Novo Nordisk lowered its 2025 sales growth and profit expectations, projecting sales growth of 8%-14% compared to a previous forecast of 13%-21% [7] - UnitedHealth's second-quarter earnings guidance fell short of expectations, forecasting adjusted EPS of at least $16, significantly below the analyst consensus of $20.40 [8] - UPS refrained from providing earnings guidance due to market volatility, reporting Q2 revenue of $21.2 billion, a 2.8% year-over-year decline [8][9] - Stellantis restored its earnings guidance but warned of a €1.2 billion (approximately $1.4 billion) tariff impact in the second half of the year [9] - Nomura Holdings reported a 52% year-over-year increase in Q1 net profit, driven by strong trading and investment banking performance [10] - Barclays announced a 23% increase in first-half profits and a $1.3 billion stock buyback plan, benefiting from market trading activity [11] - Whirlpool's Q2 sales fell 5.4% to $3.77 billion, below market expectations, and it lowered its full-year EPS guidance [12] - Philips slightly raised its adjusted operating margin forecast for the year, indicating that the impact of trade tensions was less severe than previously feared [13] Economic Data and Events - Upcoming economic data includes the US wholesale inventory month-on-month change and the Conference Board Consumer Confidence Index [14][15] - Earnings reports are expected from Visa, Booking, Starbucks, UBS, Rio Tinto, UMC, New Oriental, and HSBC [17]

Financial Data and Key Metrics Changes - The company experienced a 3% decline in net sales, excluding currency effects, due to negative consumer sentiment impacting global industry demand [10] - Ongoing earnings per share were reported at $1.34, negatively impacted by approximately $0.35 from a noncash loss associated with a minority interest in Becker Europe BV [11] - Free cash flow was unfavorable compared to the prior year by approximately $140 million, driven by seasonal inventory build [11] Business Line Data and Key Metrics Changes - MDA North America saw a 5% decline in net sales year over year, with EBIT margin approximately 6% [15][16] - MDA Latin America experienced a 1% decline in net sales year over year, with EBIT margin at 6% [17] - MDA Asia reported a 4% decline in net sales year over year, but achieved over 7% EBIT margin with 90 basis points of margin expansion [19] - SDA global business delivered 8% net sales growth year over year, driven by direct-to-consumer sales growth [20] Market Data and Key Metrics Changes - Asian appliance imports were estimated to approach the highest level on record during the first half of the year, contributing to promotional intensity [6] - The overall industry is expected to be flat to down 3% globally, with MDA North America and Latin America also expected to be flat to down 3% and 5% respectively [45][46] Company Strategy and Development Direction - The company is focused on new product introductions, with over 30% of North American products transitioning to new products in 2025, marking the largest product portfolio refresh in over a decade [21] - The company aims to leverage its strong U.S.-based manufacturing footprint to benefit from new tariff and trade policies [22][24] - The company is committed to investing in innovative products and reducing debt levels while maintaining a healthy dividend [49][50] Management's Comments on Operating Environment and Future Outlook - Management noted that macroeconomic uncertainty, elevated interest rates, and evolving trade policies have negatively impacted consumer sentiment [5] - The company expects meaningful improvement in the North American business as the full impact of tariffs kicks in later this year [7] - Management remains confident in the long-term fundamentals of the housing market and believes the company is well-positioned to benefit from eventual recovery [25][34] Other Important Information - The company updated its full-year guidance, expecting approximately flat net sales of $15.8 billion in 2025, reflecting strong new product pipeline offset by worsening global consumer sentiment [41] - The company plans to adjust the annual dividend rate to $3.60 per share starting in the third quarter to create capacity for future investments and debt repayment [51][96] Q&A Session Summary Question: Estimate of pull forward tariff-free imported product currently on the ground - Management indicated that it is difficult to provide an exact estimate but noted a significant imbalance between declared sell-in and actual sell-out, with a potential 60 to 90 days of inventory from excess Asian imports [59][61] Question: Promotional calendar and second half outlook - Management stated that they significantly reduced promotional efforts in Q2 and do not expect a completely different behavior in the second half, anticipating a more muted promotional environment [62][64] Question: North America major margins and guidance - Management confirmed that the adjustment in guidance reflects continued delays for tariffs, with no change in the fundamental investment story [76][78] Question: Performance of SDA business and back half outlook - Management expressed satisfaction with SDA performance, driven by new product momentum and direct-to-consumer growth, while noting that the segment is back half loaded [88][90] Question: Update on India sale - Management expects proceeds from the India sale to be in the $550 million to $600 million range, with closure anticipated by the end of the year [110][112] Question: Confidence in pricing actions to offset tariffs - Management confirmed that necessary pricing actions have been implemented to offset tariffs, although the impact was masked by a loss in product mix [114]

Financial Data and Key Metrics Changes - The company experienced a 3% decline in net sales, excluding currency effects, due to negative consumer sentiment impacting global industry demand [8][9] - Ongoing earnings per share were reported at $1.34, negatively impacted by approximately $0.35 from a noncash loss associated with a minority interest in Becker Europe BV [9][11] - Free cash flow was unfavorable compared to the prior year by approximately $140 million, driven by seasonal inventory build [9] Business Line Data and Key Metrics Changes - MDA North America saw a 5% decline in net sales year over year, with EBIT margins around 6% [13][14] - MDA Latin America experienced a 1% decline in net sales year over year, with EBIT margins at 6% [15] - MDA Asia reported a 4% decline in net sales year over year, but achieved over 7% EBIT margin with 90 basis points of year-over-year margin expansion [16] - SDA global business delivered 8% net sales growth year over year, driven by direct-to-consumer sales growth [17] Market Data and Key Metrics Changes - The company noted a significant increase in Asian appliance imports, with estimates suggesting they would approach the highest level on record during the first half of the year [5][6] - The overall market is expected to be flat to down 3%, with MDA North America and Latin America facing similar challenges [47][49] Company Strategy and Development Direction - The company is focused on new product introductions, with over 30% of North American products transitioning to new products in 2025, marking the largest product portfolio refresh in over a decade [19][20] - The company aims to leverage its strong U.S.-based manufacturing footprint to benefit from new tariff and trade policies [20][21] - The company is committed to investing in innovative products and reducing debt levels while maintaining a healthy dividend [52][53] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging macroeconomic environment marked by elevated interest rates and evolving trade policies, which have negatively impacted consumer sentiment [4][6] - The company expects the full impact of tariffs to kick in later this year, with confidence in a meaningful improvement in the MDA North American business heading into next year [6][7] - Management remains optimistic about long-term growth potential, particularly in the U.S. housing market, despite not assuming a recovery in 2025 [23][24] Other Important Information - The company is updating its full-year guidance to reflect ongoing macroeconomic uncertainties and the timing of tariff impacts [43][44] - The company plans to reduce its annual dividend rate to $3.60 per share starting in the third quarter to create capacity for future investments and debt repayment [53][54] Q&A Session Summary Question: Estimate of pull forward tariff-free imported product currently on the ground - Management indicated it is difficult to provide an exact estimate but noted a significant imbalance between declared sell-in and actual sell-out, with a potential 60 to 90 days of inventory from excess Asian imports [61][63] Question: Promotional calendar and second half outlook - Management stated they significantly reduced promotional efforts in Q2 and expect a more muted promotional environment in the second half, with a focus on maintaining margins [65][66] Question: Sellout in North America MDA in Q2 and Q3 - Management described the sellout as flat to slightly down, with expectations of improvement as the excess inventory is sold through [104][105] Question: Update on the India sale - Management anticipates proceeds in the range of $550 million to $600 million and expects to close the transaction by the end of the year [109][111] Question: Confidence in pricing actions to offset tariffs - Management confirmed that necessary pricing actions have been largely implemented to offset tariffs, although the mix has been negatively impacted [113][114]

Financial Performance - Net sales were $38 billion, a decrease of 54% year-over-year, or 32% excluding currency effects[16] - Ongoing EBIT margin was 53%, unchanged year-over-year, impacted by unfavorable currency[16, 18] - Free cash flow was negative $856 million, representing -227% of net sales, impacted by seasonal inventory build[16, 18] Segment Results - North America (MDA NAR): Net sales decreased by 5%, and EBIT margin decreased by 03 percentage points[23] - Latin America (MDA LAR): Net sales decreased by 1%, but EBIT margin increased by 02 percentage points[27, 29] - Asia (MDA Asia): Net sales decreased by 4% excluding currency, but EBIT margin increased by 09 percentage points[31, 34] - Global Small Domestic Appliances (SDA Global): Net sales increased by 8%, and EBIT margin increased by 34 percentage points[36, 38] 2025 Guidance - Net sales are projected to be approximately $158 billion, flat year-over-year[88] - Ongoing EBIT margin is expected to be around 57%, flat year-over-year[88] - Free cash flow is estimated at approximately $400 million, representing about 25% of net sales[88] Strategic Initiatives - Whirlpool is focusing on new product introductions, particularly in North America, with over 30% of the product portfolio transitioning in 2025[42] - The company expects to pay down approximately $700 million of debt in 2025[98, 102] - Capital expenditures are planned at around $450 million for innovation, digital transformation, and cost optimization[97, 98]

Core Insights - Whirlpool reported Q2 2025 results with ongoing earnings per share (non-GAAP) of $1.34, missing the consensus estimate of $1.68, and revenue of $3,773 million, below the expected $3,846.88 million [1][2] - Both ongoing earnings per share and revenue showed declines compared to Q2 2024, with ongoing earnings per share down 43.9% and revenue down 5.4% year over year [1][2] - Management attributed the quarter's performance to competition from Asian imports and weak consumer demand, while maintaining its full-year outlook [1] Financial Performance - Ongoing earnings per share (non-GAAP) fell from $2.39 in Q2 2024 to $1.34 in Q2 2025, a decrease of 43.9% [2][5] - GAAP net earnings dropped by 70.5% year-over-year, with operating cash flow (GAAP) and free cash flow (non-GAAP) both negative, at ($856 million) for the first half of 2025 compared to ($713 million) in the prior year [2][5][6] - The ongoing EBIT margin remained stable at 5.3%, but net earnings were significantly impacted by a $19 million loss from a Beko Europe equity investment [6] Business Strategy - The company focuses on reshaping its business portfolio, accelerating product innovation, and optimizing costs, including divesting low-margin operations and launching over 100 new products in 2024 [4][7] - The company has exited its European major appliance operations and continues to prioritize portfolio simplification despite legacy costs affecting results [7] - New product launches, such as the KitchenAid induction cooktop and JennAir built-in wall oven, have supported direct-to-consumer sales growth, particularly in small appliances [7] Market Performance - North American major appliance sales declined by 4.7%, with EBIT down 11.7% year-over-year, while Latin America saw a 10.0% sales decline [6] - In Asia, sales fell by 5.9% year-over-year, but profits increased by 11.2% year-over-year, indicating a mixed performance across regions [6] Capital Structure and Outlook - The company refinanced $1.2 billion in term debt at an interest rate of approximately 6.3%, with net debt remaining elevated and cash reserves at $1.07 billion [8] - Management reaffirmed FY2025 guidance for ongoing earnings per share between $6.00 and $8.00, ongoing EBIT margin of approximately 5.7%, and free cash flow guidance set at $400 million for the full year [10] - The company plans to monitor cash flow, debt repayment, and inventory normalization as the year progresses [11]

Core Viewpoint - Whirlpool reported quarterly earnings of $1.34 per share, missing the Zacks Consensus Estimate of $1.54 per share, and down from $2.39 per share a year ago, indicating a significant earnings surprise of -12.99% [1][2] Financial Performance - The company posted revenues of $3.77 billion for the quarter ended June 2025, slightly surpassing the Zacks Consensus Estimate by 0.06%, but down from $3.99 billion year-over-year [2] - Over the last four quarters, Whirlpool has surpassed consensus EPS estimates two times and topped revenue estimates just once [2] Stock Performance - Whirlpool shares have declined approximately 12.9% since the beginning of the year, contrasting with the S&P 500's gain of 8.6% [3] - The current Zacks Rank for Whirlpool is 3 (Hold), indicating expected performance in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $2.41 on revenues of $3.94 billion, and for the current fiscal year, it is $8.41 on revenues of $15.52 billion [7] - The trend of estimate revisions for Whirlpool was mixed ahead of the earnings release, which could change following the recent report [6] Industry Context - The Household Appliances industry, to which Whirlpool belongs, is currently ranked in the top 39% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

Financial Performance - Whirlpool's adjusted earnings per share (EPS) were $1.34, missing estimates of $1.74 [1] - Revenues reached $3.77 billion, falling short of the estimated $3.88 billion [1] - The company projects full-year revenue of $15.8 billion, exceeding estimates of $15.66 billion [1] - Full-year adjusted EPS is guided to $6 to $8, significantly below the $9.13 estimate [1] Market Dynamics & Tariffs - North American revenue amounted to $2.4 billion, slightly surpassing estimates [1] - Excluding currency effects, North American net sales decreased by 4.6% [1] - Competitors' stockpiling of Asian imports into the US impacted the second quarter [1] - Whirlpool believes evolving tariff policies will ultimately support domestic manufacturers [1] Stock Performance - Shares are down nearly 11% [1]