WHR Slips 7% — Why Is Retail Expecting Whirlpool To Eliminate Dividend?

Home appliances manufacturer Whirlpool missed Wall Street’s revenue expectations in Q4 CY2025, with sales flat year on year at $4.10 billion. The company’s full-year revenue guidance of $15.45 billion at the midpoint came in 0.8% below analysts’ estimates. Its non-GAAP profit of $1.10 per share was 27.6% below analysts’ consensus estimates.

Whirlpool (WHR) Q4 CY2025 Highlights:

• Revenue: $4.10 billion vs analyst estimates of $4.26 billion (flat year on year, 3.7% miss)
• Adjusted EPS: $1.10 vs analyst expectations of $1.52 (27.6% miss)
• Adjusted EBITDA: $335 million vs analyst estimates of $269.3 million (8.2% margin, 24.4% beat)
• Adjusted EPS guidance for the upcoming financial year 2026 is $7 at the midpoint, missing analyst estimates by 2.9%
• Operating Margin: 5.9%, up from -3.3% in the same quarter last year
• Market Capitalization: $4.54 billion

StockStory’s Take

Whirlpool’s fourth-quarter results drew a negative market reaction as the company’s revenue came in below Wall Street expectations, with flat sales year over year. Management attributed the underperformance mainly to ongoing challenges in its North American business, including $300 million in tariff costs and a sluggish U.S. housing market, which saw existing home sales at a multi-decade low. CEO Marc Bitzer described 2025 as a “difficult year with unforeseen challenges,” noting that despite a record number of new product launches and share gains, intense promotional activity and delayed industry pricing adjustments pressured margins. Management expressed cautious optimism as industry pricing appeared to normalize late in the quarter.

Looking forward, Whirlpool’s guidance reflects management’s focus on cost reductions, margin improvement, and continued momentum in its international and small appliance businesses. The company’s 2026 outlook is shaped by expectations for a less promotional environment, ongoing cost takeout actions exceeding $150 million, and benefits from new products. Bitzer emphasized, “We have another strong pipeline of new products coming,” and highlighted that the company is not factoring in potential upside from a housing recovery, though it sees significant pent-up demand that could unlock if consumer sentiment improves. Management’s approach remains cautious, especially given ongoing macroeconomic uncertainty and the evolving tariff landscape.

Key Insights from Management’s Remarks

Management traced the quarter’s performance to tariff headwinds, persistent promotional intensity, and mixed demand trends, while highlighting progress in product launches and international segments.

• Tariff cost absorption: Whirlpool faced roughly $300 million in tariff costs in 2025, which pressured margins as the broader appliance industry delayed passing these costs to consumers through higher prices. Management believes competitors with greater tariff exposure may be forced to adjust pricing, which could benefit Whirlpool going forward.
• Promotional environment impact: The North American market saw unusually intense promotions, especially in Q4, hurting profitability. Whirlpool chose not to match the depth of competitor discounts during key periods, accepting lower share gains but prioritizing long-term margin health. Management noted a meaningful shift to a less promotional environment after Black Friday, signaling potential relief ahead.
• North America product launches: Over 30% of Whirlpool’s portfolio in North America transitioned to new models in 2025, leading to expanded floor space at major retailers and incremental market share gains. These product introductions drove inefficiencies and higher costs in the short term, but are expected to support future revenue growth and margin improvement as phase-in costs subside.
• Latin America and SDA performance: The Latin America business, anchored by the Brastemp and Consul brands, continued its leadership in key markets despite economic headwinds, while the small domestic appliance (SDA) segment, led by KitchenAid, delivered double-digit growth and margin expansion due to successful direct-to-consumer strategies and product innovation.
• Leadership changes: The company announced key leadership promotions, including a new CFO, as part of its plan to strengthen execution and operational discipline. These appointments, with decades of internal Whirlpool experience, are expected to support ongoing strategic initiatives and cost management priorities.

Drivers of Future Performance

Whirlpool’s 2026 outlook is shaped by expectations for a normalized promotional landscape, ongoing cost reductions, and new product momentum, while tariff and housing trends remain key variables.

• Cost reduction initiatives: Management plans to deliver over $150 million in new cost takeout actions, focusing on vertical integration, automation, and a renewed strategic sourcing initiative. These efforts are designed to offset remaining tariff headwinds and improve segment margins, particularly in North America.
• Product-driven growth: A record number of new launches—including expanded KitchenAid offerings and new Brastemp refrigerators—are expected to drive share gains and favorable price/mix effects. The company is emphasizing premium product segments and leveraging expanded floor space at key retail partners.
• Tariffs and housing recovery uncertainty: Whirlpool’s guidance assumes continued tariff pressure and flat industry demand, with no upside from a potential recovery in existing home sales. Management acknowledges significant pent-up discretionary demand tied to the housing market, which could materially benefit results if consumer sentiment and turnover improve faster than forecast.

Catalysts in Upcoming Quarters

In upcoming quarters, the StockStory team will monitor (1) the sustainability of a less promotional environment and its impact on North American margins, (2) the pace of cost reduction execution, including vertical integration and sourcing initiatives, and (3) further traction from new product launches across both core and small appliance segments. The evolution of housing market activity and tariff policy will also be critical signposts for future performance.

Whirlpool currently trades at $74.54, down from $80.90 just before the earnings. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it’s free).