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WHIRLPOOL CORP /DE/ (WHR)·Q3 2025 Earnings Summary

Executive Summary

  • Q3 2025 delivered modest organic growth: net sales $4.033B (+1.0% YoY), ongoing EBIT margin 4.5%, and ongoing EPS $2.09; GAAP EPS was $1.29 and GAAP net margin 1.8% .
  • Results beat Wall Street on EPS and revenue but missed on EBITDA: EPS $2.09 vs $1.39*; revenue $4.03B vs $3.93B*; EBITDA $259M* vs $284M* (ongoing EPS and revenue beats, EBITDA miss). Values retrieved from S&P Global.
  • Guidance narrowed/lowered: FY net sales ~$15.8B unchanged, ongoing EBIT margin cut to ~5.0% (from 5.7%), ongoing EPS trimmed to ~$7.00 (from $6–8), GAAP EPS ~$6.00, operating cash ~$600M (from ~$850M), free cash flow ~$200M (from ~$400M), GAAP tax rate ~8.8% and adjusted ~8% .
  • Management attributes margin pressure to tariff ramp and foreign competitor inventory pre-loading; expects tariffs and housing cycle to become tailwinds over time, supported by $300M U.S. laundry capacity investment and NA share gains .
  • Capital return: declared Q4 dividend of $0.90 per share .

What Went Well and What Went Wrong

What Went Well

  • New products and share gains drove NA growth (+2.8% YoY; KitchenAid suite, French door refrigerators, top-load laundry) and strong SDA Global (+10.5% YoY) with robust D2C momentum .
  • Cost actions delivered 100 bps margin uplift YoY ($50M savings); management remains on track for ~$200M cost takeout in 2025 .
  • CEO on structural positioning: “Tariffs by definition support the domestic producer… we do believe we are close to a turning point,” highlighting >80% U.S. local production and flooring gains from record product launch year .

What Went Wrong

  • Ongoing EBIT margin compressed to 4.5% (−130 bps YoY) and NA EBIT margin fell to 4.9% (−240 bps YoY) due to tariff costs and elevated promotions from competitor pre-loading .
  • Free cash flow YTD deteriorated (−$907M vs −$586M prior year), with operating cash −$669M, reflecting tariff payment timing and inventory build for launches and tariffs .
  • Equity method loss from Beko Europe B.V. was a non-cash −$14M (−$0.24 EPS), further pressuring GAAP EPS .

Financial Results

Consolidated KPIs vs prior year and prior quarter

MetricQ3 2024Q2 2025Q3 2025
Net Sales ($USD Millions)$3,993 $3,773 $4,033
GAAP EPS ($USD)$2.00 $1.17 $1.29
Ongoing EPS ($USD)$3.43 $1.34 $2.09
GAAP Net Earnings Margin %2.7% 1.7% 1.8%
Ongoing EBIT Margin %5.8% 5.3% 4.5%
Operating Profit ($USD Millions)265 204 206
Gross Margin ($USD Millions)643 610 594

Estimates vs Actuals (S&P Global)

MetricQ3 2025 ConsensusQ3 2025 Actual
Revenue ($USD Billions)$3.93*$4.03*
Primary EPS ($USD)$1.39*$2.09*
EBITDA ($USD Millions)$284*$259*

Values retrieved from S&P Global.

Segment Performance

SegmentMetricQ3 2024Q2 2025Q3 2025
MDA North AmericaNet Sales ($USD Millions)$2,647 $2,446 $2,722
EBIT Margin %7.3% 5.9% 4.9%
MDA Latin AmericaNet Sales ($USD Millions)$846 $806 $802
EBIT Margin %6.9% 6.0% 5.7%
MDA AsiaNet Sales ($USD Millions)$239 $320 $222
EBIT Margin %2.9% 7.1% 1.8%
SDA GlobalNet Sales ($USD Millions)$261 $201 $288
EBIT Margin %14.2% 17.3% 16.5%

Cash Flow KPIs (YTD progression)

KPI ($USD Millions)Q1 2025 YTDQ2 2025 YTDQ3 2025 YTD
Cash from Operations−$721 −$702 −$669
Free Cash Flow−$793 −$856 −$907
Capital Expenditures−$72 −$154 −$239

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Net Sales ($B)FY 2025~$15.8 ~$15.8 Maintained
Ongoing EBIT Margin (%)FY 2025~5.7% ~5.0% Lowered
GAAP EPS ($)FY 2025$5.00–$7.00 ~$6.00 Narrowed
Ongoing EPS ($)FY 2025$6.00–$8.00 ~$7.00 Narrowed
Cash from Operations ($M)FY 2025~$850 ~$600 Lowered
Free Cash Flow ($M)FY 2025~$400 ~$200 Lowered
GAAP Tax Rate (%)FY 202520–25% ~8.8% Lowered
Adjusted Tax Rate (%)FY 202520–25% ~8.0% Lowered
Segment EBIT Margin – MDA NAFY 2025n/a~5–5.5% Set
Segment EBIT Margin – MDA LatAmFY 2025n/a~6% Set
Segment EBIT Margin – MDA AsiaFY 2025n/a~5% Maintained vs prior commentary
Segment EBIT Margin – SDA GlobalFY 2025n/a~15.5% Maintained
DividendQ4 2025Recommended $0.90 quarterly Declared $0.90 per share Confirmed

Earnings Call Themes & Trends

TopicPrevious Mentions (Q1 & Q2)Current Period (Q3)Trend
Tariffs & competitor pre-loadingQ1: industry “loading” ahead of tariffs; mitigations underway . Q2: elevated promotions amid pre-loading; NA pressure .Reciprocal tariffs effective Oct 5; Q3 tariff costs ~250 bps margin impact; signs of import deceleration; container rates down; WHR’s domestic footprint advantaged .Headwind in 2025, turning favorable in 2026 .
New product launches & flooringQ1: margin expansion aided by pricing and cost takeout; solid SDA/MDA Asia; new products . Q2: robust pipeline, sequential growth .KitchenAid suite (first full redesign in a decade), dishwashers, top-load laundry; ~30% SKU transitions; +30% flooring vs prior .Accelerating product-driven growth .
SDA Global & D2CQ1: strong SDA+D2C . Q2: D2C momentum and price/mix .Strong D2C, favorable price/mix; >2.5B media impressions from Tangerine Twinkle launch .Sustained strength .
U.S. housing cycleQ2: favorable housing demand fundamentals .Undersupply of 3–4M homes; median age ~40 years; builder contracts renewed; housing recovery a multi-year tailwind .Long-term tailwind .
India transactionQ1: like-for-like excludes 2H India; plan to reduce ownership .Brand/tech licensing in place; share sale targeted by Dec 2025; closing in 2026; proceeds to reduce debt .Progressing; timing shifted to 2026 .
Capital allocation & debtQ2: refinanced $1.2B term loan .Debt paydown (~$700M) delayed into 2026 due to tariff impacts; focus remains on 2x net debt leverage .Near-term delay; medium-term deleveraging .
Tax policyQ2 guide 20–25% tax rate .“One Big Beautiful Bill Act” drives adjusted tax ~8% for FY; ~$1 EPS benefit in Q3 .Lower tax boosts EPS .

Management Commentary

  • CEO framing: “Tariffs by definition support the domestic producer… The question is not if, but when. And we do believe we are close to a turning point,” underscoring 80%+ U.S. production and NA share gains .
  • Product strategy: “We have had a very strong lineup of product launches this year… transitioning over 30% of [NA] products,” highlighting KitchenAid suite, dishwashers, and top-load laundry innovation .
  • CFO on margin walk: price/mix +50 bps, cost takeout +100 bps, tariffs −250 bps, currency −25 bps; ongoing EPS $2.09 aided by updated adjusted tax rate 8% ($1 favorability) .
  • Capital & FCF: Updated FY FCF to ~$200M reflecting tariff cash costs and working capital build; capex now ~$400M, restructuring ~$50M .
  • Strategic investment: Announced $300M investment in U.S. laundry facilities (Clyde, Marion) to add capacity and drive innovation; supports 400–600 new jobs .

Q&A Highlights

  • Share gains driven primarily by new products; WHR “held the line” on promotions despite pressure; KitchenAid majors near all-time record share .
  • SDA momentum: less housing-sensitive; strong pipeline and D2C scaling improve profitability; earlier China tariffs already reshaped SDA industry behavior .
  • Flooring costs from launches will be largely absorbed by end of Q4, setting cleaner 2026 run-rate .
  • Free cash flow ramp in Q4 from >$600M working capital swing; tariff payment terms (30 days) created 2025 timing headwind; expectation of more normalized, earnings-driven FCF in 2026 .
  • Tax rate: longer-term normalized 20–25%, but FY25 adjusted ~8% after the new bill; future years likely more normalized .
  • Sell-through: low single-digit industry growth YTD; inventory preloaded at pre-tariff costs expected to flush by late Q4; 2026 industry behavior should reflect true cost base .

Estimates Context

  • Q3 actuals vs S&P Global consensus: EPS $2.09 vs $1.39*; revenue $4.03B vs $3.93B*; EBITDA $259M* vs $284M*. Values retrieved from S&P Global.
  • Implications: Expect upward revisions to revenue/EPS for Q4 if promotional intensity moderates and new product sell-out persists; EBITDA models likely to adjust for tariff timing and working capital drag through year-end .

Key Takeaways for Investors

  • New products and NA share gains are durable drivers; KitchenAid suite and refrigeration/laundry launches provide multi-quarter visibility, with flooring costs waning after Q4 .
  • Tariff dynamics remain the key swing factor: still a headwind through 2025, but positioning as largest U.S. producer offers mid-term margin upside as imports normalize under full tariffs .
  • Guidance reset lowers near-term expectations (margin, EPS, FCF); watch for sequential stabilization as promotional intensity fades and adjusted tax rate props up FY EPS .
  • SDA Global continues to outperform with D2C leverage and price/mix—counter-cyclical exposure vs housing-dependent majors .
  • Balance sheet actions delayed (debt paydown to 2026), but India transaction progress and capex prioritization support deleveraging over medium term .
  • Trading lens: near-term catalysts include holiday sell-through on new products, signs of import deceleration, and any tariff policy clarity; medium-term thesis hinges on margin normalization in NA and housing recovery .
  • Capital return maintained: Q4 dividend $0.90 affirmed; monitor FCF trajectory vs dividend sustainability as tariff cash timing normalizes in 2026 .
Notes: 
- All company-reported figures, margins, and segment data cited from Whirlpool’s Q3 2025 8-K press release and earnings materials **[106640_0000106640-25-000136_exhibit991pressrelease0930.htm:0]**–**[106640_0000106640-25-000136_whr-20251027.htm:2]** **[106640_20251027DE07532:0]**–**[106640_20251027DE07532:14]**. 
- Dividend and U.S. laundry investment press releases cited **[106640_20251020DE02104:0]** **[106640_20251015DE98218:0]**. 
- Estimates and actuals in the Estimates vs Actuals table marked with * and are Values retrieved from S&P Global.