The domestic appliance maker continues to face near-term headwinds.Whirlpool (WHR 0.63%) shares declined by 15.6% in September, according to data provided by S&P Global Market Intelligence. The decline comes down to a combination of investors "selling on the news" of a rate cut and a relatively disappointing bond market reaction to the Federal Reserve rate cut in mid-September. Still, there's a bull case to be made for buying the stock in a dip. Here's the lowdown.Whirlpool's difficult 2025Two big external ...

Core Viewpoint - Whirlpool is positioned to benefit from new tariff policies, but faces significant near-term challenges due to weak demand and increased competition from Asian producers [1][10][9] Near-term Headwinds - Overall demand for Whirlpool's products is weak, with major domestic appliance sales in North America declining by 0.1% year over year in the first quarter [5] - Economic uncertainty from trade policies and high interest rates is negatively impacting the housing market, which is a key driver for appliance sales [4][6] - Imports from Asian producers increased by 30% in early 2024, leading to a challenging competitive environment for Whirlpool [8][9] Long-term Tailwinds - Approximately 80% of Whirlpool's U.S. sales are produced domestically, compared to only 25% for the rest of the industry, providing a competitive edge against tariffs [10] - Management anticipates that the Trump administration will close a loophole allowing Asian producers to avoid tariffs on Chinese steel, which could improve Whirlpool's pricing competitiveness [11][12] Financial Outlook - Whirlpool is expected to generate $500 million to $600 million in free cash flow this year, which will assist in debt repayment and refinancing [14] - The company has $4.8 billion in long-term debt and $1.85 billion in debt maturing this year, raising concerns about its balance sheet [13] - A potential reduction in the annual dividend payout of $380 million could refocus investor attention on long-term growth opportunities [14][15]