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Whirlpool's Q2 Earnings Miss on Lower Volume and Cost Pressures
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Key Takeaways
Whirlpool's Q2 sales fell 6.8% to $3.52 billion, while its ongoing loss widened to 21 cents per share.
Lower volumes and tariff, raw-material and fuel costs cut ongoing EBIT 69.1% to $62 million.
Whirlpool cut 2026 ongoing EPS guidance to $2.50-$3.00 but expects over $150 million in cost savings.
Whirlpool Corporation (WHR - Free Report) reported a wider-than-expected ongoing loss and a sales miss for the second quarter of 2026, with both metrics deteriorating year over year. The company posted an ongoing loss of 21 cents per share for the second quarter of 2026, wider than the Zacks Consensus Estimate of a 20-cent loss. The result compared unfavorably with ongoing earnings of $1.34 per share a year ago.
Whirlpool Corporation Price, Consensus and EPS Surprise
Net sales declined 6.8% year over year to $3,517 million and missed the consensus mark of $3,602 million by 2.4%. Organic net sales fell 1.7% to $3,437 million, reflecting lower volumes and retailer inventory pressure, partly offset by pricing actions.
WHR's Profitability Faces Cost Pressure
Gross profit fell 27.5% year over year to $442 million. The gross margin contracted about 360 basis points to 12.6% as lower volumes and inflationary pressures weighed on profitability.
Selling, general and administrative (SG&A) expenses declined 6.5% to $371 million. Ongoing EBIT plunged 69.1% to $62 million, while the ongoing EBIT margin narrowed 350 basis points to 1.8%. Tariffs, raw-material inflation and fuel costs remained key headwinds. GAAP net earnings available to common shareholders rose 14.2% to $75 million, aided by a $139 million gain on business disposals.
WHR’s Region-Wise Performance Details
Net sales for the MDA North America segment declined 1.5% year over year to $2,408 million. Excluding currency effects, sales also fell 1.5% due to lower volumes stemming from an industry decline, partly offset by favorable price/mix. Segment EBIT dropped 55.4% to $64 million from $144 million, while the EBIT margin contracted 320 basis points to 2.7%. The margin decline reflected lower volumes and higher tariff, raw-material and fuel costs, partly offset by favorable price/mix. Sequentially, net sales rose 8% and the EBIT margin improved 240 basis points, aided by previously announced pricing actions.
Net sales from MDA Latin America increased 7.8% year over year to $868 million. Excluding currency impacts, however, sales declined 1.7% due to unfavorable price/mix in Brazil despite higher volumes. Segment EBIT fell 45.7% to $26 million from $48 million, and the EBIT margin contracted 300 basis points to 3%. The margin was pressured by unfavorable price/mix, partly offset by a favorable Brazil tax case-related gain. Whirlpool also announced price increases and structural cost actions aimed at restoring margins in Brazil.
Net sales in SDA Global edged up 0.5% year over year to $202 million. Excluding currency effects, sales decreased 1.2% as lower retailer inventories more than offset strong sell-out trends. Segment EBIT declined 30.8% to $24 million from $35 million, while the EBIT margin narrowed 540 basis points to 11.9%. The margin performance reflected planned marketing investments, partly supported by new product launches and direct-to-consumer expansion. Underlying demand remained positive, supported by strong sell-out and market-share gains globally.
Whirlpool’s Financial Health Snapshot
Whirlpool ended the second quarter with cash and cash equivalents of $1,239 million, long-term debt of $6.8 billion and total stockholders’ equity of $3.9 billion. The company completed a $2 billion asset-based lending facility and issued $2 billion of secured bonds, clearing debt maturities until 2028.
For the first six months of 2026, Whirlpool used $947 million in operating cash, compared with $702 million used a year earlier. Free cash outflow widened to $1,108 million from $856 million, while capital expenditures increased to $162 million from $154 million.
Whirlpool Updates 2026 Outlook
For 2026, Whirlpool now expects net sales of approximately $15 billion and an ongoing EBIT margin of about 4% on the largest price increases. Net sales reflect nearly 1.5% growth compared with 2025 on like-for-like net sales of about $14.7 billion. Structural cost-reduction initiatives are expected to generate more than $150 million in savings, equivalent to approximately 100 basis points of margin expansion.
The company lowered its GAAP earnings guidance to $2.25-$2.75 per share from $2.45-$2.95 and reduced ongoing earnings guidance to $2.50-$3.00 from $3.00-$3.50, reflecting a new interest-expense outlook. It expects a GAAP tax rate of about 20% and an adjusted tax rate of approximately 25%. Cash provided by operating activities is projected at roughly $700 million, while free cash flow is expected to exceed $300 million. Whirlpool also targets year-end net debt of less than $5 billion.
The Zacks Rank #3 (Hold) company's shares have declined 27.6% in the past three months compared with the industry’s 23.5% fall.
Image Source: Zacks Investment Research
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Duluth Holdings Inc. (DLTH - Free Report) sells casual wear, workwear, outdoor apparel, and accessories for men and women in the United States. It offers shirts, pants, shorts, underwear, outerwear, footwear, accessories and hard goods. At present, DLTH sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for current fiscal-year sales and earnings implies a decline of 6.9% and 36.5%, respectively, from the year-ago reported figures. DLTH delivered a trailing four-quarter earnings surprise of 107.5%, on average.
Revolve Group, Inc. (RVLV - Free Report) operates as an online fashion retailer for millennial and generation z consumers in the United States and internationally. It currently carries a Zacks Rank of 2 (Buy).
The Zacks Consensus Estimate for Revolve Group’s current fiscal-year sales implies growth of 10.6% from the year-ago figures. RVLV delivered a trailing four-quarter average earnings surprise of 52.1%.
Vince Holding Corp. (VNCE - Free Report) provides luxury apparel and accessories in the United States and internationally. It operates through Vince Wholesale and Vince Direct-to-Consumer segments. At present, VNCE carries a Zacks Rank of 2.
The Zacks Consensus Estimate for current fiscal-year sales and earnings implies growth of 8.5% and 34.1%, respectively. VNCE has delivered a trailing four-quarter earnings surprise of 635.7%, on average.
View the Zacks #1 Rank List
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Whirlpool's Q2 Earnings Miss on Lower Volume and Cost Pressures
Key Takeaways
Whirlpool Corporation (WHR - Free Report) reported a wider-than-expected ongoing loss and a sales miss for the second quarter of 2026, with both metrics deteriorating year over year. The company posted an ongoing loss of 21 cents per share for the second quarter of 2026, wider than the Zacks Consensus Estimate of a 20-cent loss. The result compared unfavorably with ongoing earnings of $1.34 per share a year ago.
Whirlpool Corporation Price, Consensus and EPS Surprise
Whirlpool Corporation price-consensus-eps-surprise-chart | Whirlpool Corporation Quote
Net sales declined 6.8% year over year to $3,517 million and missed the consensus mark of $3,602 million by 2.4%. Organic net sales fell 1.7% to $3,437 million, reflecting lower volumes and retailer inventory pressure, partly offset by pricing actions.
WHR's Profitability Faces Cost Pressure
Gross profit fell 27.5% year over year to $442 million. The gross margin contracted about 360 basis points to 12.6% as lower volumes and inflationary pressures weighed on profitability.
Selling, general and administrative (SG&A) expenses declined 6.5% to $371 million. Ongoing EBIT plunged 69.1% to $62 million, while the ongoing EBIT margin narrowed 350 basis points to 1.8%. Tariffs, raw-material inflation and fuel costs remained key headwinds. GAAP net earnings available to common shareholders rose 14.2% to $75 million, aided by a $139 million gain on business disposals.
WHR’s Region-Wise Performance Details
Net sales for the MDA North America segment declined 1.5% year over year to $2,408 million. Excluding currency effects, sales also fell 1.5% due to lower volumes stemming from an industry decline, partly offset by favorable price/mix. Segment EBIT dropped 55.4% to $64 million from $144 million, while the EBIT margin contracted 320 basis points to 2.7%. The margin decline reflected lower volumes and higher tariff, raw-material and fuel costs, partly offset by favorable price/mix. Sequentially, net sales rose 8% and the EBIT margin improved 240 basis points, aided by previously announced pricing actions.
Net sales from MDA Latin America increased 7.8% year over year to $868 million. Excluding currency impacts, however, sales declined 1.7% due to unfavorable price/mix in Brazil despite higher volumes. Segment EBIT fell 45.7% to $26 million from $48 million, and the EBIT margin contracted 300 basis points to 3%. The margin was pressured by unfavorable price/mix, partly offset by a favorable Brazil tax case-related gain. Whirlpool also announced price increases and structural cost actions aimed at restoring margins in Brazil.
Net sales in SDA Global edged up 0.5% year over year to $202 million. Excluding currency effects, sales decreased 1.2% as lower retailer inventories more than offset strong sell-out trends. Segment EBIT declined 30.8% to $24 million from $35 million, while the EBIT margin narrowed 540 basis points to 11.9%. The margin performance reflected planned marketing investments, partly supported by new product launches and direct-to-consumer expansion. Underlying demand remained positive, supported by strong sell-out and market-share gains globally.
Whirlpool’s Financial Health Snapshot
Whirlpool ended the second quarter with cash and cash equivalents of $1,239 million, long-term debt of $6.8 billion and total stockholders’ equity of $3.9 billion. The company completed a $2 billion asset-based lending facility and issued $2 billion of secured bonds, clearing debt maturities until 2028.
For the first six months of 2026, Whirlpool used $947 million in operating cash, compared with $702 million used a year earlier. Free cash outflow widened to $1,108 million from $856 million, while capital expenditures increased to $162 million from $154 million.
Whirlpool Updates 2026 Outlook
For 2026, Whirlpool now expects net sales of approximately $15 billion and an ongoing EBIT margin of about 4% on the largest price increases. Net sales reflect nearly 1.5% growth compared with 2025 on like-for-like net sales of about $14.7 billion. Structural cost-reduction initiatives are expected to generate more than $150 million in savings, equivalent to approximately 100 basis points of margin expansion.
The company lowered its GAAP earnings guidance to $2.25-$2.75 per share from $2.45-$2.95 and reduced ongoing earnings guidance to $2.50-$3.00 from $3.00-$3.50, reflecting a new interest-expense outlook. It expects a GAAP tax rate of about 20% and an adjusted tax rate of approximately 25%. Cash provided by operating activities is projected at roughly $700 million, while free cash flow is expected to exceed $300 million. Whirlpool also targets year-end net debt of less than $5 billion.
The Zacks Rank #3 (Hold) company's shares have declined 27.6% in the past three months compared with the industry’s 23.5% fall.
Image Source: Zacks Investment Research
Key Consumer Discretionary Picks
Duluth Holdings Inc. (DLTH - Free Report) sells casual wear, workwear, outdoor apparel, and accessories for men and women in the United States. It offers shirts, pants, shorts, underwear, outerwear, footwear, accessories and hard goods. At present, DLTH sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for current fiscal-year sales and earnings implies a decline of 6.9% and 36.5%, respectively, from the year-ago reported figures. DLTH delivered a trailing four-quarter earnings surprise of 107.5%, on average.
Revolve Group, Inc. (RVLV - Free Report) operates as an online fashion retailer for millennial and generation z consumers in the United States and internationally. It currently carries a Zacks Rank of 2 (Buy).
The Zacks Consensus Estimate for Revolve Group’s current fiscal-year sales implies growth of 10.6% from the year-ago figures. RVLV delivered a trailing four-quarter average earnings surprise of 52.1%.
Vince Holding Corp. (VNCE - Free Report) provides luxury apparel and accessories in the United States and internationally. It operates through Vince Wholesale and Vince Direct-to-Consumer segments. At present, VNCE carries a Zacks Rank of 2.
The Zacks Consensus Estimate for current fiscal-year sales and earnings implies growth of 8.5% and 34.1%, respectively. VNCE has delivered a trailing four-quarter earnings surprise of 635.7%, on average.