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…
Earnings analysis · 10-Q
WHR earnings analysis
Filed August 4, 2026 · Our reading of the company's report
The latest report
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…
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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.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $1.15
- 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 stood out
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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.
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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%.
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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.
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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.
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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.
What to watch
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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.
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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%.
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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.
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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.
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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.
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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.
Management's outlook
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.
Earlier filings 4
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 itself. Analysis can contain errors; check the source document for full context.