Whirlpool (US:WHR) Yahoo Finance·2026-03-02 21:46Core Viewpoint - Billionaire hedge fund manager David Tepper has criticized Whirlpool Corporation for "destroying shareholder value" and is demanding significant changes in its strategy and capital allocation [1] Group 1: Shareholder Actions - Tepper's Appaloosa Management has publicly confronted Whirlpool's board, highlighting dissatisfaction with the company's leadership and recent recapitalization efforts [1] - In the third quarter of the previous year, Appaloosa sold 8 million shares of Intel Corp and used part of the proceeds to acquire 5.2 million shares of Whirlpool, indicating a strategic shift in investment focus [2] Group 2: Financial Performance - Whirlpool's stock is currently down 10.87% year-to-date and 36.83% over the past 52 weeks, reflecting a negative trend across all timeframes [4] - The company has a market capitalization of $3.87 billion and offers a forward annual dividend of $3.60 per share, yielding 4.33% [3] - Recent financial results showed adjusted EPS of $1.10, missing the $1.54 estimate by 28.57%, and revenue of $4.10 billion, which was below the expected $4.26 billion, marking a 3.7% miss [8] Group 3: Cost Pressures and Profitability - Whirlpool faced significant cost pressures in 2025, absorbing approximately $300 million in tariff costs, as pricing in the appliance category lagged behind rising input costs [9] - Despite the revenue shortfall, Whirlpool reported adjusted EBITDA of $335 million, exceeding the expected $269.3 million, resulting in an 8.2% margin and a 24.4% beat on that metric [10] - The operating margin improved to 5.9%, a significant increase from -3.3% in the same quarter of the previous year, indicating better operational efficiency [10] Group 4: Valuation Metrics - Whirlpool's valuation metrics show a price-to-sales ratio of 0.29x and a forward earnings multiple of 10.55x, both significantly lower than sector medians of 0.95x and 16.11x, indicating a clear discount compared to peers [7]