Investors generally do not like what they are hearing tonight from Whirlpool Corporation, as the appliance giant releases its Q2 2025 Operating Results, ahead of a conference call Tuesday morning with Wall Street analysts. There was an immediate 12 % decline in the WHR stock price after the 4 pm release of the numbers.
Sales fell short of estimates, as did Earnings Per Share—two key indicators investors took at each quarter as publicly owned companies report their performance.
CEO Marc Bitzer acknowledged the turbulence but focused on the future:
“As expected, the second quarter continued to be impacted by competitors stockpiling Asian imports into the U.S. Despite this, 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. We are confident in our long-term strategy and believe that evolving tariff policies will ultimately support domestic manufacturers.”
MARC BITZER, CHAIRMAN AND CHIEF EXECUTIVE OFFICER
Here is an analysis of Whirlpool’s report, prepared with the assistance of AI, to scan dozens of sources reviewing the WHR numbers:
⚠️ Headlines & Market Response
- 📉 Adjusted EPS: $1.34 per share — down ~44% from $2.39 in Q2 2024; well below consensus of ~$1.68–1.82.
- GAAP EPS: $1.17 vs. $3.96 a year ago — a steep 70% drop.
- 📊 Net Sales: $3.77 billion, down 5.4% year‑over‑year and under expectations of ~$3.85–3.92 B.
- 🏭 EBIT Margin: Ongoing EBIT margin held at 5.3%, matching the prior year.
- 🚧 Free Cash Flow: Negative $856 million, worse than last year’s $(713) M, due to seasonal inventory buildup.
- 📉 Stock Reaction: Shares dropped 10–12% after hours on the disappointing results and soft guidance.
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📌 Consolidated Financial Summary
| Metric | Q2 2025 Actual | Q2 2024 | YoY Change |
| Net Sales | $3.77 B | $3.99 B | −5.4% |
| GAAP EPS | $1.17 | $3.96 | −70% |
| Adjusted (Ongoing) EPS | $1.34 | $2.39 | −44% |
| Ongoing EBIT Margin | 5.3% | 5.3% | 0 pts |
| GAAP Margin | 1.7% | 5.5% | −3.8 pts |
| Free Cash Flow | $(856) M | $(713) M | Worse by $143 M |
Segments:
- North America: Sales fell ~4.7% to $2.446 B; EBIT margin down to 5.9%.
- Latin America: Sales off 10%, margin ticked up slightly.
- Asia: Sales down ~6%, margin improved.
- Small Domestic Appliances (SDA): +7.5% growth, strong margin improvement to 17.3%.
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Key Drivers:
- Competitors stockpiled Asian imports ahead of tariffs—Whirlpool did not, and lost short‑term market share.
- Cost cuts yielded $50 M in savings; debt refinancing also contributed to financial discipline.
- Currency effects and restructuring for Europe (specifically Beko Europe affiliate) hurt margins.
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CFO Jim Peters kept his focus on the short term in released comments:
“In this uncertain environment, we are focused on what we can control: executing cost reduction,
proactively managing debt maturities, and strengthening our balance sheet to ensure financial
resilience.”
JIM PETERS, CHIEF FINANCIAL AND ADMINISTRATIVE OFFICER
🧭 Forward Guidance—Outlook for 2025
- Full-year net sales: ~$15.8 B (flat vs 2024).
- GAAP EPS: $5.00–$7.00.
- Ongoing EPS: $6.00–$8.00 (analysts had expected ~$9).
- Operating Cash Flow: ~$850 M; Free Cash Flow: ~$400 M.
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🏘️ What It Means for Southwest Michigan Residents
- While results fell short, Whirlpool remains committed to U.S. manufacturing—a core advantage given tariffs.
- However, negative free cash flow and sluggish demand could limit additional local investment or expansions this year.
👨🏭 Other observations by analysts
- Earnings and revenue both missed expectations—especially EPS plunging to $1.34 ongoing and $1.17 GAAP. That’s a painful year-over-year drop.
- Margin control efforts (cost reduction, refinancing) helped—but short-term headwinds like competitor import stockpiling and currency effects weigh heavily.
- The company projects positive free cash flow by year-end, but the cash burn in Q2 ($856M) highlights tight liquidity discipline.
- Management messaging: they’re focused on what they can control—costs, debt, balance sheet strength. That likely means leaner operations and controlled spending.
- Solid positioning as a domestic brand and pipeline of new product launches in North America are potential bright spots for 2025.
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✅ Bottom Line
- Q2 was a tough quarter: clear earnings and sales misses, negative cash flow, and a weak guidance range for disappointed investors.
- Whirlpool leans on its U.S. manufacturing edge, strong cost controls, and tariff environment inward posture as defensive strategy.
- Local implications are mixed: short-term financial softness may delay local expansions or incentives, but Whirlpool’s long-term presence in SW Michigan seems intact.
- For employees, expect conservative near-term operations—with a potential rebound if North American housing demand and new product momentum materialize later in the year.
Bitzer and Peters sit down with Wall Street analysts for their quarterly conference call at 8 AM Tuesday. MoodyOnTheMarket.com will be monitoring their responses to questions and posting the highlights later in the morning.
