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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
Estimates vs Actuals (S&P Global)
Values retrieved from S&P Global.
Segment Performance
Cash Flow KPIs (YTD progression)
Guidance Changes
Earnings Call Themes & Trends
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.