Whirlpool 2025 Q2 Earnings Misses Targets with Net Income Down 66.7%

Whirlpool (WHR) reported its fiscal 2025 Q2 earnings on Jul 29th, 2025. The company's earnings fell short of market expectations, with net sales declining by 5.4% to $3.77 billion. Earnings per share (EPS) also missed the mark, dropping 70.5% to $1.17 compared to the previous year's $3.96. Whirlpool's guidance for ongoing earnings per share was adjusted to $6 to $8, reflecting a cautious outlook amid challenging market conditions.

Revenue

Whirlpool's revenue for Q2 2025 totaled $3.77 billion, marking a 5.4% decrease from the previous year. The major product category net sales amounted to $3.39 billion. Within this, the laundry segment contributed $1.07 billion, refrigeration added $1.23 billion, cooking appliances generated $820 million, and dishwashing accounted for $271 million. Spare parts and warranties brought in $136 million, while other segments contributed $246 million, showcasing a diverse revenue stream despite overall declines.

Earnings/Net Income

Whirlpool experienced a significant decline in EPS, dropping 70.5% to $1.17 from $3.96 in the previous year. Net income also fell sharply by 66.7% to $75 million, down from $225 million in 2024 Q2, indicating poor performance.

Price Action

The stock price of Whirlpool edged down 0.88% during the latest trading day and tumbled 12.18% throughout the most recent full trading week, marking a month-to-date decline of 11.20%.

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 resulted in poor performance. Over the past three years, this method yielded a negative return of -31.75%, significantly underperforming the benchmark return of 88.74%. The strategy's compound annual growth rate was -7.39%, reflecting substantial 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

Marc Robert Bitzer, Chairman, President & CEO, emphasized that Whirlpool navigated a challenging second quarter marked by macroeconomic uncertainties, including elevated interest rates and evolving trade policies, which negatively impacted consumer sentiment and demand. He noted, "Despite these macro challenges, we still delivered sequential net sales growth across all segments," highlighting the strength of their SDA Global business and new product introductions. Bitzer expressed confidence in their long-term positioning, stating, "We are structurally positioned to win in this environment," and underscored their focus on cost control, pricing actions, and a strong domestic manufacturing footprint to drive future growth.

Guidance

Whirlpool expects approximately flat net sales of $15.8 billion for 2025, with ongoing EBIT margin guidance remaining at 5.7%. The company anticipates free cash flow of about $400 million and ongoing earnings per share in the range of $6 to $8. The updated guidance reflects the impact of macroeconomic uncertainties and the expectation of delayed tariff effects, with industry trends anticipated to be flat to down 3% across geographic segments.

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.