WHR earnings analysis
What we found in WHR's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Whirlpool's Q2 revenue declined 6.8% year over year to $3.517 billion and gross margin compressed 360 basis points to 12.6%, reflecting weak North American demand, tariff costs and operating inefficiencies. GAAP EPS of $1.15 improved sharply sequentially but was 1.7% below the prior-year $1.17 and benefited from a $139 million Beko/Russia-related gain; operating margin declined to 4.6% from 5.4%. Liquidity improved through approximately $1.08 billion of equity and preferred-stock proceeds and a new $2.0 billion ABL, but six-month operating cash burn widened to $947 million and the capital structure remains below investment grade.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- GAAP EPS rebounded sequentially
- Q2 GAAP diluted EPS was $1.15, improving from a $1.43 loss in Q1 2026. Net earnings available to common shareholders rose to $75 million from $65 million a year earlier, aided by a $139 million gain on the Beko stake sale and Russia-agreement termination.
- Revenue improved sequentially
- Second-quarter sales of $3.517 billion increased 7.6% sequentially from $3.273 billion in Q1 2026. MDA North America pricing/product mix partly offset weak volume, while Latin America reported 7.8% sales growth and SDA Global grew 0.5%.
- Equity funding strengthened liquidity
- Whirlpool received approximately $1.08 billion of net proceeds from February common-stock and mandatory-convertible-preferred offerings, and ended June with approximately $1.2 billion of cash and cash equivalents.
- Refinancing addressed near-term maturities
- The company replaced its prior revolver with a $2.0 billion ABL facility, with $0 million outstanding at June 30, 2026. It also used secured-notes proceeds to repay the prior unsecured revolver and most senior notes, with the remaining $212 million satisfied on July 1.
- Management targets positive full-year cash flow
- Management expects approximately $700 million of 2026 operating cash flow against approximately $400 million of capex, implying more than $300 million of free cash flow, and is targeting over $150 million of cost takeout.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Sales and gross margin contracted sharply
- Q2 net sales fell 6.8% year over year to $3.517 billion, while gross margin fell 360 basis points to 12.6% from 16.2%. Management attributed the deterioration to lower North American demand, lower-volume operating inefficiencies, tariff costs, inflation and unfavorable Latin America price/mix.
- All segment EBIT margins declined
- Operating profitability weakened despite the $139 million disposal gain: calculated Q2 operating margin was 4.6%, down from 5.4% a year ago, while North America EBIT margin fell to 2.7% from 5.9%, Latin America to 3.0% from 6.0%, and SDA to 11.9% from 17.3%.
- Cash burn remains dependent on financing
- Six-month operating cash flow was negative $947 million, worsening from negative $702 million a year earlier; $162 million of capex produced a calculated six-month free-cash-flow outflow of approximately $1.109 billion. The cash balance increased by $570 million only because financing activities supplied $1.610 billion.
- Below-investment-grade ratings pressure flexibility
- Credit risk intensified: Fitch downgraded senior unsecured debt to BB- from BB in Q2 and Moody's to Ba3 from Ba2. The new $2.0 billion ABL facility has a collateral-based borrowing base and a springing fixed-charge-coverage covenant, potentially constraining liquidity if collateral values decline.
- Tariffs raise costs and competitive uncertainty
- Trade-policy exposure remains material. Global home-appliance imports became subject to a 25% Section 232 tariff on full import value effective April 6, 2026, versus the prior 50% tariff on steel-content value; management says tariffs have raised component costs and enabled competitor inventory pre-loading.
- Preferred dividends add liquidity and dilution risk
- Preferred-stock dividends are expected to require approximately $50 million annually through February 15, 2029 if paid in cash, while payment in common shares would dilute holders. The board also suspended the prior $0.90-per-share quarterly common dividend to preserve balance-sheet capacity.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $1.15
- Gross margin
- 12.6%
- Operating margin
- 4.6%
- Segment
- MDA North America: Q2 net sales decreased 1.5% year over year; EBIT margin was 2.7% versus 5.9%.
- Segment
- MDA Latin America: Q2 net sales increased 7.8% year over year (decreased 1.7% excluding currency); EBIT margin was 3.0% versus 6.0%.
- Segment
- SDA Global: Q2 net sales increased 0.5% year over year (decreased 1.2% excluding currency); EBIT margin was 11.9% versus 17.3%.
What they said about what is next.
The filing's current 2026 GAAP EPS outlook is $2.25-$2.75. Whirlpool expects approximately $700 million of operating cash flow and approximately $400 million of capex, implying more than $300 million of free cash flow. Demand outlook is approximately negative 5% for MDA North America, 0%-3% growth for MDA Latin America, and approximately flat for SDA Global; restructuring charges are expected to total approximately $175 million.
The filing reads worse than the one before it.
What came before.
- 10-Q · May 7, 2026
- Whirlpool Corp reported disappointing Q1 2026 results with a revenue of $3.273 billion and a net loss of $(1.43) per share, missing analyst expectations. Notably, the company has lowered its full-year EPS guidance to…
- 10-K · February 11, 2026
- Whirlpool’s 2025 Form 10-K frames the company as a narrower, higher-margin appliance leader following portfolio transformation (Europe sale/contribution and India ownership reduction). The company reports ~ $16.0…
- 10-Q · July 29, 2025
- Whirlpool reported Q2 net sales of $3,773 million (down from $3,989 million in Q2 2024) and improved operating profit to $204 million from $130 million a year ago, but net earnings and EPS declined materially. Diluted…
- 10-Q · October 24, 2024
- Whirlpool reported Q3 net sales of $3,993 million, down $933 million (−18.9%) versus Q3 2023, while diluted EPS rose to $2.00 from $1.53. Gross margin dollars fell to $643 million (16.11% of sales) but operating profit…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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