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WHIRLPOOL CORP /DE/ (WHR)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 2025 results were pressured by weak consumer sentiment, intense promotions, and competitors’ “pre-loading” Asian imports; GAAP EPS was $1.17 and ongoing EPS was $1.34, with ongoing EBIT margin flat YoY at 5.3% .
  • Revenue, EPS, and EBITDA all missed Wall Street consensus: revenue $3.77B vs $3.88B*, ongoing EPS $1.34 vs $1.74*, EBITDA $281M vs $312M*; management cited a non-cash $19M loss from Beko Europe equity affiliates (~$0.35 EPS) as an added drag .
  • Full-year 2025 guidance was cut: GAAP EPS to $5.00–$7.00 (from ~$8.75), ongoing EPS to $6.00–$8.00 (from ~$10.00), and FCF to ~$400M (from $500–$600M); ongoing EBIT margin now ~5.7% (from ~6.8%) .
  • Dividend reduced to $0.90 per quarter ($3.60 annualized) to create balance sheet capacity for U.S. investment and debt paydown; board declared $0.90 payable Sep 15, 2025 .
  • Near-term stock catalysts: guidance reset and dividend cut vs medium-term tailwinds from tariff implementation, largest product refresh in a decade (KitchenAid suite shipping late September), and U.S. housing recovery narrative .

What Went Well and What Went Wrong

What Went Well

  • Strong SDA Global performance: net sales +7.5% YoY to $201M; EBIT +32.9% to $35M; margin +340 bps to 17.3% on D2C strength and new products .
  • Cost takeout execution: ~100 bps margin benefit and ~$50M in Q2, tracking ~$200M for FY25; management reiterated focus on structural cost reduction .
  • Debt refinancing and liquidity: refinanced $1.2B of term loans at ~6.3% weighted average; expect ~$700M debt paydown and access to $3.5B revolver .

Quote: “We successfully implemented pricing actions, structurally drove cost out of our business and strengthened our balance sheet with our recent debt refinancing.” — Marc Bitzer, CEO .

What Went Wrong

  • Demand/mix headwinds: consumers traded down; promotional intensity persisted amid import “pre-loading,” pressuring North America volumes and margins (NA EBIT margin 5.9%, down 40 bps YoY) .
  • Currency and non-cash impacts: ~50 bps tariff cost, ~50 bps FX headwinds (BRL, MXN), and ~$90M unfavorable non-cash Beko equity impact; overall ongoing margin flat YoY at 5.3% despite actions .
  • Free cash flow weaker: H1 operating cash flow $(702)M and FCF $(856)M, more negative YoY due to seasonal inventory build and accrual movements; full-year FCF cut to ~$400M .

Financial Results

MetricQ4 2024Q1 2025Q2 2025
Net Sales ($USD Millions)$4,136 $3,621 $3,773
GAAP EPS ($)$(7.10) $1.28 $1.17
Ongoing EPS ($)$4.57 $1.70 $1.34
GAAP Net Earnings Margin (%)(9.5)% 2.0% 1.7%
Ongoing EBIT Margin (%)6.0% 5.9% 5.3%

Q2 YoY reference:

MetricQ2 2024
Net Sales ($USD Millions)$3,989
GAAP EPS ($)$3.96
Ongoing EPS ($)$2.39
GAAP Net Earnings Margin (%)5.5%
Ongoing EBIT Margin (%)5.3%

Q2 vs Wall Street consensus (S&P Global):

MetricConsensusActualSurprise
Revenue ($USD Millions)$3,882.6*$3,773 Miss ($109.6M)*
Primary EPS ($)$1.74*$1.34 Miss ($0.40)*
EBITDA ($USD Millions)$312.1*$281 [GetEstimates: Q2 2025 actual shown]Miss ($31.1M)*

Values retrieved from S&P Global.*

Segment breakdown (Q2 2025 vs Q2 2024):

SegmentNet Sales Q2 2024 ($M)Net Sales Q2 2025 ($M)YoY ChangeEBIT Q2 2024 ($M)EBIT Q2 2025 ($M)YoY Change
MDA North America$2,567 $2,446 (4.7)% $163 $144 (11.7)%
MDA Latin America$895 $806 (10.0)% $52 $48 (7.7)%
MDA Asia$340 $320 (5.9)% $21 $23 11.2%
SDA Global$187 $201 7.5% $26 $35 32.9%

Selected KPIs (H1 basis where disclosed):

KPIH1 2024H1 2025
Cash from Operations ($USD Millions)$(485) $(702)
Free Cash Flow ($USD Millions)$(713) $(856)
Cash & Equivalents ($USD Millions)$1,179 $1,068
Inventories ($USD Millions, end period)$2,035 (FY24) $2,600 (Q2’25)

Guidance Changes

MetricPeriodPrevious Guidance (Q1)Current Guidance (Q2)Change
Net Sales ($B)FY 2025~$15.8 ~$15.8 Maintained
Ongoing EBIT Margin (%)FY 2025~6.8% ~5.7% Lowered
GAAP EPS ($)FY 2025~$8.75 $5.00–$7.00 Lowered
Ongoing EPS ($)FY 2025~$10.00 $6.00–$8.00 Lowered
Cash from Operations ($M)FY 2025~$1,000 ~$850 Lowered
Free Cash Flow ($M)FY 2025$500–$600 ~$400 Lowered
Structural Cost Takeout ($M)FY 2025>$200 ~$200 Maintained
GAAP/Adjusted Tax Rate (%)FY 202520–25% 20–25% Maintained
DividendFY 2025$1.75/quarter (Q1–Q2 declared) Recommend $0.90/quarter ($3.60 annualized); $0.90 declared Aug 18 Lowered

Segment margin guidance (updated on call):

SegmentPrior ViewCurrent ViewChange
MDA North America EBIT MarginStep-up in H2 implied 6.0%–6.5% FY25 Lowered cadence
MDA Latin America EBIT Margin~7%+ (prior momentum) ~7% FY25 Maintained/tempered
MDA Asia EBIT MarginUp with share gains ~5% FY25 (incl. India) Lowered
SDA Global EBIT MarginDouble-digit on D2C ~15.5% FY25 Raised

Earnings Call Themes & Trends

TopicPrevious Mentions (Q-2: Q4’24; Q-1: Q1’25)Current Period (Q2’25)Trend
Tariffs & import “pre-loading”Highlighted tariff policy as FY25 tailwind; noted >30% Asian imports pre-loading in Q4/Q1 Delays extended promotional pressure; estimate 60–90 days excess inventory; tariffs ~50 bps cost in Q2 Headwind extends into Q3 before normalizing
Cost takeout~$300M achieved in 2024; >$200M targeted for 2025 ~100 bps margin benefit in Q2; tracking ~$200M for FY25 Consistent execution
SDA product momentumD2C and new products driving growth Strong H1; espresso/portable appliances; margins resilient despite tariffs Positive momentum continuing
North America mix/priceQ4: inventory actions hurt mix; Q1: pricing actions aided margins Consumers trading down; Whirlpool reduced promo depth/duration; pricing actions implemented Mix pressure; disciplined pricing
Housing recovery2025 guide assumed no recovery; mid-long term favorable Builder share ~60%; positioned to benefit from eventual recovery Long-term tailwind reiterated
Capital allocation2025 plan: debt paydown ~$700M; India sale proceeds $550–$600M Dividend cut to $3.60; refinanced $1.2B at 6.3%; India close targeted around year-end Balance sheet strengthening

Management Commentary

  • “We are well positioned in North America with a robust pipeline of new products, the industry's leading U.S. manufacturing footprint, and favorable housing demand fundamentals.” — Marc Bitzer, CEO .
  • “Global EBIT margins held steady year over year at 5.3% despite significant currency headwinds… Ultimately, we delivered ongoing earnings per share of $1.34 which was negatively impacted by approximately $0.35 from a noncash loss associated with our minority interest in Beko Europe BV.” — Marc Bitzer, CEO .
  • “We are updating our full year guidance… we are confident that we will see meaningful improvement in the MDA North American business heading into next year.” — Marc Bitzer, CEO .
  • “We proactively refinanced $1,200,000,000 of debt… weighted average rate of 6.3%. We still expect to pay down approximately $700,000,000 of debt this year.” — Jim Peters, CFO .
  • “We are recommending to adjust the annual dividend rate to $3.60 per share… critical to ensure we create the capacity on our balance sheet for future investments in the U.S. and continued focus on debt repayment.” — Jim Peters, CFO .

Q&A Highlights

  • Import “pre-loading” duration and visibility: Management estimates 60–90 days of excess inventory from Asian imports; expects gradual normalization as tariffs take effect .
  • Promotional strategy: Whirlpool reduced promo depth/duration in Q2 due to limited lift in replacement-driven demand; expects continued disciplined approach vs competitors .
  • North America margin cadence: Guidance adjusted to reflect prolonged tariff uncertainty and pre-loading; Q3 pressure persists with wide outcome range for Q4 depending on market behavior .
  • Dividend rationale: Decision aimed at balance sheet capacity and U.S. investment; aligns with pre-COVID levels given current earnings trajectory .
  • India sale: Proceeds still expected at $550–$600M; process ongoing; clarity expected before year-end (closure likely slips into 2026) .

Estimates Context

  • Q2 2025 vs consensus: Revenue $3,773M vs $3,882.6M*, ongoing/primary EPS $1.34 vs $1.74*, EBITDA $281M vs $312.1M* — all misses that reflect weaker demand/mix and non-cash equity loss .
  • Near-term consensus trajectory: Q3 2025 revenue ~$3,925M*, EPS ~$1.39*, EBITDA ~$283.6M*; Q4 2025 revenue ~$4,275M*, EPS ~$1.58*, EBITDA ~$269.2M* (setup for potential stabilization if tariffs normalize and product refresh gains traction). Values retrieved from S&P Global.*
MetricQ3 2025 Consensus*Q4 2025 Consensus*
Revenue ($USD Millions)3,925.5*4,274.9*
Primary EPS ($)1.391*1.578*
EBITDA ($USD Millions)283.6*269.2*

Values retrieved from S&P Global.*

Sample size: Q2 2025 EPS and revenue consensus each based on 7 estimates.*

Key Takeaways for Investors

  • Guidance reset and dividend cut are near-term negatives; expect estimate downgrades and cautious sentiment until tariff normalization and inventory “pre-loading” clears through Q3 .
  • Medium-term thesis intact: Whirlpool’s 80% U.S. manufacturing footprint positions it as a net winner from tariff policies; product pipeline (KitchenAid suite shipping late September) and builder share (~60%) support mix improvement into 2026 .
  • Watch North America promotions and price discipline: management is prioritizing margin over share in uneconomic promotions; pricing actions already implemented to offset tariffs .
  • SDA Global is a bright spot: sustained D2C growth and innovation delivering margin expansion; provides diversification amid MDA headwinds .
  • Balance sheet actions reduce risk: $1.2B refinancing at 6.3% and targeted ~$700M debt paydown create flexibility; India transaction remains a potential cash infusion ($550–$600M) .
  • Monitor FX and non-cash equity impacts: BRL/MXN weakness and Beko equity losses reduced margins; improvements here could provide upside leverage .
  • Tactical trading: Near-term weakness likely on reduced FY25 guide and dividend cut; potential inflection late Q4–Q1 as tariffs bite and new products floor, with SDA strength as a support to overall margin narrative .