If you’re wondering about Whirlpool’s latest earnings results, demand situation, and what’s next for its stock price—here’s the short version: Whirlpool (ticker WHR) delivered a weak fourth quarter for 2025 with both revenue and EPS missing expectations, while demand remains soft amid housing headwinds; however, new product launches, cost-saving actions, and a renewed financial roadmap are boosting optimism for 2026, with guidance calling for modest profit growth, margin recovery, and stronger cash flow. This article unpacks those layers in a clear, human-ish voice.
Q4 2025 Earnings: Soft Performance, But Not All Doom
Whirlpool posted Q4 adjusted EPS of just $1.10, down nearly 76% from $4.57 a year earlier, falling short of the $1.54 estimate. Revenue came in at around $4.10 billion, missing analysts’ expectations.
Gross profit and margins also slipped. Gross profit dropped to about $575 million, with a gross margin down 220 basis points to just 14%. Ongoing EBIT plunged ~46% to $135 million, and margin pressure hit hard across segments.
North America’s appliances division was especially weak—sales fell almost 1% and EBIT margin collapsed to just 2.8%. Latin America and Asia showed mixed results. Meanwhile, small domestic appliances (SDA) stood out—revenue grew double digits, and margins improved thanks to direct-to-consumer growth.
Turning the Corner: 2026 Guidance & Strategic Moves
Despite Q4’s hardships, Whirlpool issued measured optimism for 2026. Sales are projected in the $15.3–$15.6 billion range—roughly flat year-over-year—while ongoing EPS should climb to around $7.00, up from $6.23 in 2025. GAAP EPS is expected at $6.25.
Margins are set to rebound. Ongoing EBIT margin is guided to 5.5–5.8%, up from 4.7%, driven by structural cost actions over $150 million, plus favorable price/mix. Free cash flow looks healthier too—eyeing $400–$500 million, compared to a low of $78 million last year. The plan includes paying down about $400 million in debt through cost efficiency and asset moves.
Demand & Innovation: Fighting Headwinds with Refreshes
A key reason hockey sticks aren’t flipping to growth just yet is the sluggish U.S. housing market—higher mortgage rates and delayed renovations are keeping appliance demand subdued.
Whirlpool’s answer? A serious product refresh. In 2025, over 30% of its major appliance lineup was refreshed—versus less than 10% in a “normal” year—and that helped growing shelf presence and retail traction. SDA got a boost too: double-digit growth, strong margins, and a growing direct-to-consumer channel are helping offset pressure on big appliances.
Capital investment isn’t slacking: Whirlpool is spending $300 million to expand its U.S. laundry manufacturing footprint—betting on eventual housing recovery and reshoring trends.
“With a challenging 2025 behind us, our confidence for 2026 is based on our recent successful product launches, reduced promotional intensity and a gradual recovery of the housing market,” said CEO Marc Bitzer.
Market Reaction & Price Outlook: Cautiously Bullish?
After mixed Q4 results, stocks dipped—for example, they slid nearly 3% post-market, and overall dropped double digits in recent months. But the outlook isn’t all doom. As of early February 2026, shares were up about 8.2% after management outlined its 2026 roadmap, including innovation and margin recovery.
Even so, risks linger—elevated leverage, ongoing promotional pressure, and housing weakness could still drag on full recovery. Some analysis shows current fair value estimates range from around $87 to $150 per share, reflecting investor debate.
Summary Takeaways
Whirlpool’s Q4 2025 earnings came in soft, under pressure from lower demand and tighter margins. But the company is charting a thoughtful recovery plan—product innovation, cost savings, margin focus, and improved cash flow. The 2026 outlook offers modest optimism, even amid ongoing uncertainty in housing and consumer demand.
FAQs
Q: Why did Whirlpool miss Q4 earnings expectations?
A: Performance lagged due to declining revenue, squeezed margins, and underwhelming demand across major appliances—especially in North America. SDA was a bright spot but wasn’t enough to offset broader weakness.
Q: What’s driving the margin recovery expected in 2026?
A: Margin improvements lean on cost-saving initiatives over $150 million, improved price/mix from product refreshes, and operational efficiencies—without relying on major top-line growth.
Q: How significant is the small appliance business for Whirlpool?
A: SDA boasts double-digit growth and higher margins thanks to new product innovation and growing direct-to-consumer sales. It’s becoming Whirlpool’s most resilient and profitable division amid housing headwinds.
Q: What are the main risks to Whirlpool’s turnaround plan?
A: Key threats include continued housing weakness, tariff-related costs and promotional pressure, high leverage limiting flexibility, and uncertainty around consumer spending trends.
Q: Should investors be bullish on WHR in 2026?
A: Cautious optimism makes sense. Guidance points to improving profitability and cash flow, but execution and macro tailwinds will be critical. Valuation remains debated, so investors need to weigh execution risk carefully.
Whirlpool is steering through choppy waters, balancing patience with proactive improvements. Watch closely how new products sell, cost savings hit, and demand evolves.