10-Q · August 4, 2026
Whirlpool's Q2 revenue declined 6.8% year over year to $3.517 billion and gross margin compressed 360 basis points to 12.6%, reflecting weak North American demand, tariff costs and operating inefficiencies. GAAP EPS of…
Earnings analysis · 10-Q
WHR earnings analysis
Filed October 27, 2026 · Our reading of the company's report
The latest report
Whirlpool’s Q3 results showed sharply weaker profitability: revenue fell 8.8% year over year to $3.677 billion, gross margin declined 180 basis points to 12.9%, and diluted EPS was $(3.80) versus $1.29 a year earlier.…
Read full summary
Whirlpool’s Q3 results showed sharply weaker profitability: revenue fell 8.8% year over year to $3.677 billion, gross margin declined 180 basis points to 12.9%, and diluted EPS was $(3.80) versus $1.29 a year earlier. SDA Global remained resilient, but North America contracted and Latin America experienced substantial margin compression. Liquidity actions, including the $1.08 billion equity financing and new $2.0 billion ABL facility, provide support, but negative nine-month operating cash flow of $826 million, non-investment-grade ratings and tariff exposure remain significant concerns.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $-3.8
- Gross margin
- 12.9%
- Segment
- MDA North America: Q3 sales decreased 8.3% year over year; EBIT margin was 3.0% versus 4.9%.
- Segment
- MDA Latin America: Q3 sales increased 6.9% year over year; EBIT margin was 2.0% versus 5.7%.
- Segment
- SDA Global: Q3 sales decreased 0.7% year over year; EBIT margin increased to 18.6% from 16.5%.
What stood out
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Revenue down, margin remains pressured
Q3 net sales were $3.677 billion, down 8.8% from $4.033 billion a year earlier but up from $3.52 billion in Q2 2026. Gross margin declined to 12.9% from 14.7% year over year, although it improved from 12.6% in Q2.
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Large quarterly loss
Common-shareholder loss was $(249) million, or $(3.80) per diluted share, versus net income of $73 million and $1.29 per share in Q3 2025. The loss included a $124 million Whirlpool India impairment and $54 million of Casas Bahia-related charges.
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SDA delivered margin expansion
SDA Global was the strongest segment: Q3 sales declined only 0.7%, while EBIT margin expanded to 18.6% from 16.5%. Management attributed the EBIT improvement to price/mix and cost take-out, partly offset by tariffs and raw-material inflation.
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Regional performance diverged
MDA Latin America sales grew 6.9% on favorable currency and volume, but EBIT margin fell to 2.0% from 5.7% because of unfavorable price/mix. MDA North America sales declined 8.3% and EBIT margin fell to 3.0% from 4.9% amid soft demand, tariffs and cost inflation.
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Cash burn increased
Nine-month operating cash flow was negative $826 million versus negative $669 million a year earlier, while capital expenditures were $255 million versus $239 million. The implied nine-month cash flow after capital expenditures was negative $1.081 billion.
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Liquidity actions advanced
Liquidity was supported by approximately $1.1 billion of cash, $0 million drawn on the $2.0 billion ABL facility, and approximately $2.2 billion of committed credit facilities. The company also received approximately $1.08 billion from February common-stock and preferred-stock offerings and suspended its $0.90 quarterly common dividend.
What to watch
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Trade-customer insolvency exposure
Whirlpool recorded a $54 million charge tied to the Casas Bahia bankruptcy, including $46 million of trade-customer credit losses after $157 million of gross receivables impairment and $112 million of expected insurance recoveries. Management said the reorganization could have a near-term effect on results and customer volumes.
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Credit-rating deterioration
Whirlpool’s debt is non-investment grade; Fitch downgraded senior unsecured debt from BB+ to BB in Q1 2026 and from BB to BB- in Q2, while Moody’s downgraded it from Ba2 to Ba3. Further downgrades could increase borrowing costs and restrict liquidity and operating flexibility.
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Tariffs and cost inflation
The filing identifies significant tariff uncertainty, including a 25% tariff on the full import value of global home-appliance imports effective April 6, 2026, plus Section 301 tariffs imposed in July 2026. Management states it cannot guarantee that tariff costs will be fully offset and reported that tariffs and inflation reduced gross margin to 12.9% from 14.7%.
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ABL borrowing-base constraints
The $2.0 billion ABL facility is subject to a borrowing base tied to accounts receivable, inventory, intellectual property, machinery and equipment, credit-card receivables and cash, with a springing fixed-charge coverage covenant. A decline in collateral values could reduce borrowing capacity and financial flexibility.
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Preferred dividend and dilution risk
Preferred-stock dividends are expected to require approximately $50 million annually through the mandatory conversion date of February 15, 2029. Cash payments reduce liquidity, while stock payments or conversion can dilute common shareholders.
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Elevated restructuring charges
Whirlpool expects approximately $170 million of restructuring charges in full-year 2026, including charges already recorded through nine months. A significant portion is expected to be non-cash, but the charges add to earnings volatility.
Management's outlook
The filing reiterates current 2026 GAAP EPS outlook of $(4.95), approximately $700 million of operating cash flow, and approximately $400 million of capital expenditures. Industry-demand assumptions are approximately (5)% for MDA North America, 5%-7% growth for MDA Latin America, and approximately flat for SDA Global.
Earlier filings 4
10-Q · May 7, 2026
Whirlpool Corp reported disappointing Q1 2026 results with a revenue of $3.273 billion and a net loss of $(1.43) per share, missing analyst expectations. Notably, the company has lowered its full-year EPS guidance to…
10-K · February 11, 2026
Whirlpool’s 2025 Form 10-K frames the company as a narrower, higher-margin appliance leader following portfolio transformation (Europe sale/contribution and India ownership reduction). The company reports ~ $16.0…
10-Q · July 29, 2025
Whirlpool reported Q2 net sales of $3,773 million (down from $3,989 million in Q2 2024) and improved operating profit to $204 million from $130 million a year ago, but net earnings and EPS declined materially. Diluted…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.