Whirlpool Corp.’s latest results show the appliance maker contending with softer sales, margin pressure, and weaker cash generation year over year, even as it returned to overall profitability and set expectations for improvement in 2026.
“With a challenging 2025 behind us, our confidence for 2026 is based on our recent successful product
launches, reduced promotional intensity and a gradual recovery of the housing market,” CEO Marc Bitzer said in the company’s earnings statement.
For the full year 2025, the Benton Harbor–based company reported net sales of $15.52 billion, down 6.5% from $16.61 billion in 2024. Organic net sales were nearly flat, slipping 0.3%, indicating underlying demand remained subdued across key markets.
“This quarter, Whirlpool missed Wall Street’s estimates and reported a rather uninspiring 0.9% year-on-year revenue decline, generating $4.10 billion of revenue,” the analysis from Yahoo! Finance observed.
According to the company’s earnings report, profitability improved on a GAAP basis, with Whirlpool posting a full-year net earnings margin of 2.2% and earnings per diluted share of $5.66, compared with a net loss the prior year. However, on an ongoing, or non-GAAP, basis, performance weakened. Ongoing EBIT fell to $729 million from $887 million in 2024, and ongoing EBIT margin narrowed to 4.7% from 5.3%. Ongoing earnings per diluted share dropped to $6.23 from $12.21, a nearly 50% decline.
Fourth-quarter results reflected similar pressures. Net sales edged down 0.9% to $4.10 billion. Ongoing EBIT for the quarter fell 45.6% year over year to $135 million, with margin declining to 3.3% from 6.0%. Ongoing earnings per diluted share dropped to $1.10 from $4.57.
The company’s earnings missed analyst expectations including those surveyed by Zacks Investment Research and FactSet. Analysts from each expected better fourth quarter earnings per share of $1.54 and 1.65, respectively.
The company cited a challenging macroeconomic environment, including the effects of tariffs and a promotional environment that has not yet fully adjusted to higher costs. Whirlpool said it executed $200 million in structural cost reductions during 2025 to help offset those pressures, but margins, particularly in its largest segment, remained under strain.
The equity analyst team at Simply Wall Street recently noted the company’s lackluster performance and credit rating downgrade to BB by S&P brings the company under a “brighter spotlight” and likely to suffer additional volatility.
“The key questions now are how Whirlpool addresses leverage, margins and tariff exposure, and how that may influence future credit decisions. The BB rating and the public focus on its debt profile mean that any balance sheet moves, refinancing steps or shifts in operating performance are likely to draw sharper market reactions,” the analyst wrote.
Regional Performance
In major domestic appliances in North America, fourth-quarter sales declined 0.9% to $2.57 billion. Segment EBIT margin fell sharply to 2.8% from 6.7% a year earlier, as volume declines and price and mix pressures, especially in Canada, weighed on results.
In Latin America, net sales rose 0.8% to $927 million in the quarter, but the company said excluding currency, sales declined due to lower volumes. EBIT margin slipped to 6.4% from 7.6%, affected by macroeconomic conditions in Argentina and intense competition in Brazil, partially offset by a tax reserve release.
Small domestic appliances globally was a relative bright spot, with sales up 10.3% to $423 million and EBIT margin improving to 13.8%, driven by price and mix and growth in direct-to-consumer channels.
Cash flow also deteriorated. Cash provided by operating activities fell to $467 million in 2025 from $835 million in 2024, while free cash flow dropped to $78 million from $385 million. The company said working capital demands tied to a record level of product refreshes and operational shifts related to tariffs contributed to the decline.
During the year, Whirlpool reduced its ownership stake in Whirlpool of India to about 40% and used the proceeds to reduce debt, part of a broader focus on strengthening its balance sheet.
The Company’s Outlook
Looking ahead, Whirlpool is projecting improved performance in 2026, including higher margins, stronger cash flow and about $400 million in debt reduction. The company’s outlook calls for GAAP earnings per diluted share of about $6.25 and ongoing earnings per diluted share of about $7.00, along with free cash flow of $400 million to $500 million, as it works to recover from the cost, demand and competitive pressures that weighed on results in 2025.
Whirlpool Corporation stock closed Wednesday afternoon at $80.90, down 2.60 per share and significantly below its 52-week high of 133.45 per share.
