Core Viewpoint - Bank of America has lowered its price target on Whirlpool (WHR) to $60 from $70 and maintains an Underperform rating following the company's Q3 performance and revised guidance [1] Financial Performance - Whirlpool reported Q3 adjusted EBIT of $180 million [1] - The company has cut its 2025 adjusted EBIT guidance to approximately $800 million from $900 million [1] - Free cash flow guidance has also been reduced to about $200 million from $400 million [1] Forecast Adjustments - Following the Q3 report, Bank of America has lowered its 2025 EBITDA forecast by 8% and its 2026 EBITDA forecast by 6% [1] - The adjustments reflect a weaker gross margin outlook for the company [1]

Whirlpool Corporation Confidential Third-Quarter 2025 Earnings Review Tuesday, October 28, 2025 Whirlpool Corporation Confidential Cautionary Statement This document contains forward-looking statements about Whirlpool Corporation and its consolidated subsidiaries ("Whirlpool") that speak only as of this date. Whirlpool disclaims any obligation to update these statements. Forward-looking statements in this document may include, but are not limited to, statements regarding future financial results, long-term ...

Core Insights - Whirlpool Corporation (WHR) reported third-quarter 2025 results with adjusted EPS of $2.09, a 39.1% decline from $3.43 in the previous year, but exceeding the Zacks Consensus Estimate of $1.41 [1][10] - Net sales reached $4.033 billion, a 1% increase year over year, surpassing the Zacks Consensus Estimate of $3.925 billion [3][10] Financial Performance - Gross profit for the quarter was $594 million, down 7.6% from $643 million year over year, with a gross margin of 14.7%, a decrease of 140 basis points [4] - Selling, general and administrative (SG&A) expenses rose 2.5% year over year to $405 million, representing 10% of net sales [5] - Ongoing EBIT was $180 million, a 22.7% decline from $233 million in the prior year, with an EBIT margin of 4.5%, down 140 basis points [5] Segment Performance - MDA North America segment net sales increased 2.8% year over year to $2.72 billion, but EBIT decreased 30.6% to $134 million [6] - MDA Latin America segment net sales fell 5.2% year over year to $802 million, with EBIT declining 22% to $45 million [7] - MDA Asia segment net sales decreased 7.3% year over year to $222 million, with EBIT down 37.9% to $4 million [8] - SDA Global segment net sales rose 10.5% year over year to $288 million, with EBIT increasing 28.8% to $47 million [9] Outlook - For 2025, Whirlpool projects net sales of $15.8 billion, down from $16.6 billion in the previous year, with an ongoing EBIT margin of 5% [12] - Expected ongoing EPS for 2025 is $7.00, a decrease from $12.21 in 2024, with anticipated cash from operating activities of nearly $600 million [13] Financial Health - As of the end of Q3 2025, Whirlpool had cash and cash equivalents of $934 million and long-term debt of $6.2 billion [11] - The company declared a dividend of 90 cents per share for Q4 2025 [11]

Financial Performance - Net sales for Q3 2025 were $4,033 million, a slight increase from $3,993 million in Q3 2024, while year-to-date sales decreased to $11,426 million from $12,471 million[17]. - Gross margin for Q3 2025 was $594 million, down from $643 million in Q3 2024, with year-to-date gross margin at $1,811 million compared to $1,910 million in the previous year[17]. - Net earnings available to Whirlpool for Q3 2025 were $73 million, a decrease from $109 million in Q3 2024, while year-to-date net earnings increased to $210 million from $69 million[17]. - The company reported a comprehensive income of $92 million for Q3 2025, compared to $25 million in Q3 2024[17]. - Total net sales for the three months ended September 30, 2025, were $4,033 million, a slight increase from $3,993 million in the same period of 2024, while total net sales for the nine months ended September 30, 2025, were $11,426 million, down from $12,471 million in 2024[51]. - The company reported a comprehensive income of $92 million for the three months ended September 30, 2025, with net earnings of $73 million[109]. - Consolidated net sales increased by 1.0% to $4,033 million for Q3 2025, but decreased by 8.4% to $11,426 million for the nine months ended September 30, 2025, primarily due to the deconsolidation of the European segment[143][145]. Assets and Liabilities - Total assets as of September 30, 2025, were $16,893 million, up from $16,301 million at the end of 2024[19]. - Long-term debt increased to $6,165 million as of September 30, 2025, compared to $4,758 million at the end of 2024[19]. - Cash and cash equivalents decreased to $934 million at the end of Q3 2025 from $1,275 million at the end of 2024[21]. - The company reported a total inventory of $2,593 million as of September 30, 2025, compared to $2,035 million as of December 31, 2024[55]. - The company’s property, plant, and equipment, net, amounted to $2,309 million as of September 30, 2025, compared to $2,275 million as of December 31, 2024[56]. - The company had total committed credit facilities of approximately $4.0 billion at September 30, 2025[203]. Cash Flow and Financing - Operating activities resulted in a cash outflow of $669 million for the nine months ended September 30, 2025, compared to an outflow of $271 million in the same period of 2024[21]. - Cash used in operating activities increased to $(669) million for the nine months ended September 30, 2025, compared to $(271) million in the same prior year period[198]. - Cash provided by financing activities increased to $503 million for the nine months ended September 30, 2025, compared to $222 million in the same prior year period[202]. - The company has a total borrowing capacity of $3.5 billion under the Amended Long-Term Credit Agreement, maturing on May 3, 2027[65]. - The company had $1.1 billion outstanding under the Amended Long-Term Facility and $300 million under the Term Loan Agreement as of September 30, 2025[68]. Expenses and Costs - Dividends declared for Q3 2025 were $0.90 per share, down from $1.75 per share in Q3 2024[17]. - The cost of products sold for Q3 2025 was $3.439 billion, compared to $3.350 billion in Q3 2024, reflecting an increase of about 2.6%[126]. - Selling, general and administrative expenses increased to 10.1% of net sales for Q3 2025, compared to 9.9% in Q3 2024, mainly due to higher marketing spend[174]. - Restructuring charges for the three months ended September 30, 2025, totaled $6 million, compared to $8 million for the same period in 2024[121]. - The company anticipates incurring approximately $50 million in restructuring charges for the full year 2025[177]. Tax and Regulatory Matters - Income tax expense for the three months ended September 30, 2025, was $33 million, compared to $45 million for the same period in 2024[122]. - The company’s effective worldwide tax rate for the nine months ended September 30, 2025, resulted in an income tax expense of $105 million, compared to a benefit of $(85) million for the same period in 2024[122]. - The final fine amount from the French Competition Authority is set at $75 million, with $46 million attributable to the company's France business[83]. Investments and Equity - The company has a 25% ownership stake in Beko Europe B.V., with a carrying amount of $21 million as of September 30, 2025, down from $74 million as of December 31, 2024[41]. - The fair value of the investment in Whirlpool China was $219 million as of September 30, 2025[41]. - The company holds a 25% equity interest in Beko following the disposal of its European major domestic appliance business[106]. Market Performance - MDA North America net sales increased by 2.8% for Q3 2025, while MDA Latin America and MDA Asia experienced declines of 5.2% and 7.3%, respectively[150][155][160]. - SDA Global net sales increased by 10.5% for Q3 2025, driven by favorable product price/mix, with an EBIT margin of 16.5%[166][168].

Core Insights - Whirlpool reported better-than-expected financial results, with revenue of $4.03 billion surpassing Wall Street's forecast of $3.93 billion and adjusted earnings per share at $2.09 compared to estimates of $1.40 [1] Financial Performance - Revenue for the quarter was $4.03 billion, exceeding expectations [1] - Adjusted earnings per share were $2.09, significantly higher than the anticipated $1.40 [1] - For the full year, Whirlpool reiterated net sales of approximately $15.8 billion, with adjusted earnings per share now expected to be around $7.00, up from a previous range of $6 to $8 [4] Product Performance - Major domestic appliances in North America saw a 2.8% increase, driven by a refresh of 30% of the product portfolio [2] - Small domestic appliances globally experienced a 10.5% growth, largely due to the KitchenAid business, which reported double-digit revenue growth [2] Market Outlook - The company anticipates that new products will gain traction in the fourth quarter and into the next year as they increase their presence in retail [3] - Whirlpool is positioned well to capture growth as consumers return to the housing market [3] Regional Performance - A decline of 7.2% in major domestic appliances was noted in Asia, attributed to cooler weather and currency volatility in Argentina, which also affected Latin America with a 5.2% decline [4] External Factors - Tariffs impacted margins by 250 basis points in the third quarter, despite over 80% of US sales being produced domestically [5] - The company is seeking clarity on trade issues, particularly in light of an upcoming summit between US and Chinese leaders [6] - The fourth quarter is expected to be highly promotional as Whirlpool competes with companies facing excess inventory ahead of tariffs [6]

Core Insights - Whirlpool reported $4.03 billion in revenue for Q3 2025, a 1% year-over-year increase, with an EPS of $2.09 compared to $3.43 a year ago, indicating a significant decline in earnings [1] - The revenue exceeded the Zacks Consensus Estimate of $3.92 billion by 2.76%, while the EPS surpassed the consensus estimate of $1.41 by 48.23% [1] Financial Performance Metrics - Net Sales in Latin America for Major Domestic Appliances were $802 million, below the average estimate of $817.5 million, reflecting a year-over-year decline of 5.2% [4] - Net Sales in North America for Major Domestic Appliances reached $2.72 billion, exceeding the average estimate of $2.61 billion, with a year-over-year increase of 2.8% [4] - Net Sales in Asia for Major Domestic Appliances were $222 million, falling short of the average estimate of $234.5 million, representing a year-over-year decrease of 7.1% [4] - Global Small Domestic Appliances reported net sales of $288 million, slightly below the average estimate of $289 million, but showing a year-over-year increase of 10.3% [4] Stock Performance - Whirlpool shares have returned -4.9% over the past month, contrasting with the Zacks S&P 500 composite's +2.5% change, indicating underperformance relative to the broader market [3] - The stock currently holds a Zacks Rank 4 (Sell), suggesting potential underperformance in the near term [3]

分组1 - Whirlpool reported quarterly earnings of $2.09 per share, exceeding the Zacks Consensus Estimate of $1.41 per share, but down from $3.43 per share a year ago, resulting in an earnings surprise of +48.23% [1] - The company posted revenues of $4.03 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 2.76% and showing a slight increase from $3.99 billion year-over-year [2] - Over the last four quarters, Whirlpool has surpassed consensus EPS estimates two times and topped consensus revenue estimates two times [2] 分组2 - The stock has underperformed the market, losing about 35.7% since the beginning of the year compared to the S&P 500's gain of 15.5% [3] - The current consensus EPS estimate for the coming quarter is $1.94 on revenues of $4.16 billion, and for the current fiscal year, it is $6.37 on revenues of $15.48 billion [7] - The Household Appliances industry, to which Whirlpool belongs, is currently in the bottom 10% of the Zacks Industry Rank, indicating potential challenges ahead [8]

Core Insights - The article highlights that margin compression and increasing capital expenditures (capex) indicate deeper financial strain for the company, despite experiencing modest revenue growth and gaining market share in North America [1] Revenue Growth - The company has reported modest revenue growth, which suggests some resilience in its operations [1] Market Share - There are notable gains in market share within the North American market, indicating competitive advantages or successful strategies in that region [1] Margin Compression - The article points out that margin compression is a significant concern, suggesting that costs are rising faster than revenues, which could impact profitability [1] Capital Expenditures - Rising capital expenditures signal that the company is investing heavily, which may be necessary for future growth but also indicates potential financial strain in the short term [1]

Core Viewpoint - The company anticipates continued momentum driven by a refreshed lineup of KitchenAid appliances, which has secured more retail space [1] Group 1 - The Chief Financial and Administrative Officer, Jim Peters, expressed optimism about ongoing momentum in the business [1]

Financial Performance - Third-quarter net sales increased by 1.0% year-over-year to $4,033 million, with net sales excluding currency also up by 1.0%[3] - GAAP net earnings available to Whirlpool decreased by 33.3% to $73 million, with GAAP earnings per diluted share at $1.29, down 35.5%[3][4] - Ongoing EBIT was $180 million, a decline of 22.7% year-over-year, resulting in an ongoing EBIT margin of 4.5%[3][4] - Net sales for the three months ended September 30, 2025, were $4,033 million, a slight increase from $3,993 million in the same period of 2024, while net sales for the nine months ended were $11,426 million, down from $12,471 million in 2024[15] - Operating profit for the three months ended September 30, 2025, was $206 million, down from $265 million in 2024, reflecting a decline of about 22.2%[15] - Net earnings available to Whirlpool for the three months ended September 30, 2025, were $73 million, compared to $109 million in 2024, representing a decrease of approximately 33.1%[15] - Basic net earnings per share available to Whirlpool for the three months ended September 30, 2025, were $1.30, down from $2.01 in 2024, a decline of about 35.4%[15] - For Q3 2025, net earnings available to Whirlpool were $73 million, with a net sales of $4,033 million, resulting in a net earnings margin of 1.8%[35] - Ongoing earnings per diluted share for Q3 2025 was $2.09, compared to $3.43 in Q3 2024[35][37] - For the full year 2024, net sales were $16,607 million, with a net earnings margin of (1.9)%[39] - The ongoing measure for full-year 2024 resulted in earnings of $887 million, with an ongoing EBIT margin of 5.3%[39] - The company anticipates full-year 2025 ongoing earnings of approximately $800 million, translating to an ongoing earnings per diluted share of around $7.00[43] Segment Performance - MDA North America segment net sales rose by 2.8% to $2,722 million, while EBIT fell by 30.6% to $134 million[5] - MDA Latin America segment net sales decreased by 5.2% to $802 million, with EBIT down 22.0% to $45 million[5] - MDA Asia segment net sales declined by 7.3% to $222 million, with EBIT down 37.9% to $4 million[5] - SDA Global segment net sales increased by 10.5% to $288 million, with EBIT rising by 28.8% to $47 million[5] Cash Flow and Capital Management - Free cash flow for the third quarter was $(907) million, a decrease of $321 million compared to the previous year[4] - Free cash flow for the nine months ended September 30, 2025, was negative at $(669) million, compared to $(271) million in 2024, indicating a worsening cash flow situation[18] - Cash provided by operating activities for 2025 is projected to be approximately $600 million, improving from $(271) million in 2024[52] - Capital expenditures for 2025 are estimated to be around $400 million, down from $315 million in 2024[52] - The company anticipates a free cash flow outlook of approximately $200 million for 2025[52] Debt and Assets - Total assets as of September 30, 2025, were $16,893 million, an increase from $16,301 million at the end of 2024, reflecting a growth of approximately 3.6%[17] - Long-term debt increased to $6,165 million as of September 30, 2025, compared to $4,758 million at the end of 2024, indicating a rise of about 29.5%[17] - Cash and cash equivalents at the end of the period were $934 million, down from $1,275 million at the beginning of the year, a decrease of approximately 26.8%[18] Guidance and Projections - Full-year 2025 guidance includes net sales of approximately $15.8 billion and GAAP earnings per diluted share of approximately $6.00[8][9] - The company plans to achieve approximately $200 million in structural cost take out in 2025[4][9] - The anticipated full-year GAAP tax rate for 2025 is approximately 8.8%, with an adjusted non-GAAP tax rate of about 8.0%[42][47] Restructuring and Other Costs - Restructuring expenses for Q3 2025 were $6 million, down from $8 million in Q3 2024[48] - Unique transaction-related costs for portfolio transformation in Q3 2025 totaled $4 million[48] - The company recorded a gain of $30 million from the release of a reserve related to an indemnity that is no longer considered probable[48]