Core Insights - Whirlpool Corporation (WHR) reported disappointing fourth-quarter 2025 results, with both revenue and earnings per share (EPS) falling short of expectations and declining year-over-year [1][8] - The company’s adjusted EPS was $1.10, down 75.9% from $4.57 in the previous year, and missed the Zacks Consensus Estimate of $1.54 [1][8] Financial Performance - Net sales for the fourth quarter were $4.098 billion, missing the Zacks Consensus Estimate of $4.267 billion and reflecting a 0.9% year-over-year decline [4] - Gross profit decreased to $575 million, down 14.3% from $671 million in the prior year, with gross margin falling 220 basis points to 14% [4][8] - Selling, general and administrative (SG&A) expenses rose 1.7% year-over-year to $425 million, representing 10.4% of net sales, an increase of 30 basis points [5] - Ongoing EBIT was $135 million, a 45.6% decline from $248 million in the previous year, with EBIT margin contracting 270 basis points to 2.7% [5] Regional Performance - In the MDA North America segment, net sales fell 0.9% year-over-year to $2.57 billion, with EBIT decreasing 59% to $71 million [6] - MDA Latin America saw a 0.8% increase in net sales to $927 million, but EBIT declined 15.3% to $59 million due to a challenging macro environment [10] - SDA Global reported a 10.3% increase in net sales to $423 million, with EBIT rising 22.4% to $59 million, benefiting from new product launches [11] - MDA Asia experienced a significant decline, with net sales down 27.7% year-over-year to $172 million [12] Financial Health - As of the end of the fourth quarter, Whirlpool had cash and cash equivalents of $669 million, long-term debt of $5.6 billion, and total stockholders' equity of $2.7 billion [13] - The company declared a dividend of 90 cents per share for the fourth quarter of 2025 [13] 2026 Outlook - Whirlpool anticipates 2026 net sales between $15.3 billion and $15.6 billion, indicating approximately 5% growth compared to 2025 [14] - The company expects an ongoing EBIT margin of 5.5% to 5.8%, up from 4.7% in 2024, driven by pricing and cost reductions [14] - GAAP EPS for 2026 is projected at $6.25, with ongoing EPS expected to be $7 [15] - Cash from operating activities is expected to be around $850 million, with free cash flow projected between $400 million and $500 million [16]