Whirlpool 2025 Q2 Earnings Misses Targets as Net Income Drops 66.7%

Whirlpool (WHR) reported its fiscal 2025 Q2 earnings on Jul 28th, 2025. Whirlpool's Q2 results missed market expectations, with net sales declining 5.4% year-over-year to $3.77 billion. The company’s GAAP earnings per diluted share also fell sharply by 70.5% to $1.17. Despite these challenges, Whirlpool's guidance remained steady, projecting full-year GAAP earnings per share between $5.00 and $7.00, and ongoing earnings per share from $6.00 to $8.00. The outlook suggests resilience amid competitive pressures.

Revenue
Whirlpool experienced a 5.4% decline in total revenue for Q2 2025, amounting to $3.77 billion compared to $3.99 billion in Q2 2024.

Earnings/Net Income
Whirlpool's EPS fell 70.5% to $1.17 in 2025 Q2 from $3.96 in 2024 Q2, and net income dropped to $75 million from $225 million in 2024 Q2. The EPS demonstrated poor performance.

Post-Earnings Price Action Review
The strategy of purchasing Whirlpool shares after a quarter-over-quarter revenue increase on the earnings release date and holding for 30 days has historically performed poorly. Over the past three years, this approach yielded a negative return of -31.75%, substantially lagging the benchmark return of 88.74%. The strategy's compounded annual growth rate was -7.39%, reflecting significant losses and a declining portfolio value. Despite no additional downside risk, as indicated by a maximum drawdown of 0.00%, the investment remained stagnant at its lowest point. This further underscores the strategy's underperformance.

CEO Commentary
"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," stated Marc Bitzer, Chairman and Chief Executive Officer. He emphasized the focus on executing cost reductions and managing debt to ensure financial resilience amid negative consumer sentiment affecting global demand.

Guidance
Whirlpool Corporation expects full-year GAAP earnings per diluted share to be approximately $5.00 to $7.00 and ongoing earnings per diluted share of $6.00 to $8.00. The company anticipates cash provided by operating activities of around $850 million and free cash flow of approximately $400 million. Additionally, it plans to implement about $200 million in structural cost reduction actions, aiming for net sales of approximately $15.8 billion on a like-for-like basis, indicating a stable outlook despite current market challenges.

Additional News
Whirlpool has announced a strategic restructuring of its balance sheet by divesting its European operations and a stake in Whirlpool of India, expecting to generate $550–600 million in proceeds to pay down $700 million in debt. This move aims to free up capital for innovation and withstand the sluggish housing market recovery. Additionally, Whirlpool has cut its dividend and revised earnings guidance, maintaining its dividend at $0.90 per share amid cash flow constraints. The company is focused on strengthening its U.S. manufacturing base, with 80% of its top U.S. sales coming from domestically produced appliances.