Whirlpool (NYSE:WHR) executives used the company’s fourth quarter 2025 earnings call to outline how tariffs, housing-market weakness, and an unusually promotional U.S. environment shaped results in 2025, while emphasizing a plan for margin and cash flow improvement in 2026 supported by pricing normalization, new products, and additional cost actions.
Leadership changes and a difficult 2025 backdrop
Chairman and CEO Marc Bitzer opened the call by highlighting leadership promotions, including Roxanne Warner as chief financial officer, Juan Carlos Puente as executive president of MDA North America and global strategic sourcing, and Ludovic Beaufils with an expanded role covering KitchenAid Small Appliances and MDA Latin America.
- Tariffs: Whirlpool absorbed roughly $300 million of tariffs in 2025, largely on components and some finished products. Bitzer said the industry did not immediately move on pricing, which he attributed in part to inventory preloading ahead of tariffs and uncertainty around the tariff framework.
- Housing: Management reiterated that existing home sales are a key demand driver for appliances, especially for higher-margin discretionary demand. Bitzer said existing home sales hit a 30-year low, citing the mortgage lock-in effect and lower consumer confidence.
Despite these pressures, Bitzer said global organic revenues were essentially flat year over year, and Whirlpool was “pleased” with MDA North America market share gains in the second half of 2025. He added that operating margins were slightly below 5%, primarily due to intense promotions in North America in the third quarter and “in particular” the fourth quarter.
2025 financial results and segment performance
Warner said Whirlpool delivered a full-year ongoing EBIT margin of 4.7% and full-year ongoing EPS of $6.23. Free cash flow totaled $78 million, which she said was unfavorably impacted by the timing of tariff payments and higher inventory needed to support new product launches.
Warner also discussed capital actions taken during the year. In November, Whirlpool completed its previously announced India share sale, reducing its stake from 51% to 40%. She said proceeds were used to pay down debt, and management will continue evaluating options to reduce debt through 2026. Whirlpool also returned approximately $300 million to shareholders through dividends in 2025, according to Warner.
Segment highlights included:
- MDA North America: Full-year net sales (excluding currency) were largely flat. Whirlpool cited continued share gains in the fourth quarter, driven by new products. The segment posted 2.8% EBIT margin in the fourth quarter and approximately 5% EBIT margin for the full year, with margins pressured by promotions and lack of tariff-related price adjustments.
- MDA Latin America: Full-year net sales (excluding currency) declined about 2% due to volume, with economic instability in Argentina and aggressive promotions in Brazil weighing on results in the fourth quarter. Warner said results were offset by a favorable operational tax benefit tied to a default legal ruling, leading to 6.2% full-year EBIT margin.
- MDA Asia: Excluding the India transaction and currency, net sales rose about 1% and full-year EBIT margin was around 5%, up 120 basis points. Warner said the India transaction was worth roughly 40 basis points of margin accretion, with the balance due to cost takeout. She noted Whirlpool will no longer report Asia as a standalone segment due to India’s deconsolidation.
- SDA Global: The small domestic appliances business delivered approximately 10% net sales growth in the fourth quarter and about 9% for the full year, driven by new products and direct-to-consumer strength. Full-year EBIT margin was 16%, up 170 basis points, with fourth quarter margin expansion attributed to favorable price mix.
North America: pricing, promotions, and product-driven share gains
Management repeatedly pointed to a shift in industry pricing behavior late in the year. Bitzer said Whirlpool observed “meaningful change” in industry pricing and promotions after mid-December, continuing into the MLK holiday and leading up to Presidents’ Day. Warner added that December showed a shortening of the post-Black Friday promotional period, while January showed reduced promotional depth versus prior years. Whirlpool implemented promotional pricing changes that went into effect in early January.
In the Q&A, Bitzer described a “two parts” dynamic in the fourth quarter: Whirlpool performed better outside promotional windows but faced an intense promotional period during Black Friday. He said the company chose to “hold our ground” during the promotional period, which limited share gains during those weeks but avoided what he described as a “very costly investment.” He also said prices “immediately recovered” after Black Friday—unlike prior years when promotions often extended into January—suggesting preloaded inventory was being worked through.
Puente said Whirlpool’s domestic manufacturing footprint is a competitive advantage in a tariff environment, noting the company produces more appliances in the U.S. than peers and uses approximately 96% American steel in U.S. factories. He also highlighted that Whirlpool transitioned more than 30% of its product portfolio to new products in 2025, gaining incremental floor space at key retailers and driving share gains. One product highlighted was the new Whirlpool Laundry Tower, featuring a FreshFlow vent system and an “industry-first” UV Clean technology.
2026 outlook: margin expansion, higher cash flow, and debt reduction
Bitzer and Warner guided to improved results in 2026, reflecting what they described as a reset baseline after the India transaction. On a like-for-like basis, management expects approximately 5% revenue growth in 2026 and 80–110 basis points of ongoing EBIT margin expansion to roughly 5.5%–5.8%. Whirlpool expects $400 million–$500 million of free cash flow, or about 3% of net sales, driven by improved earnings and inventory optimization.
The company guided to full-year ongoing EPS of approximately $7. Warner noted this includes an adjusted effective tax rate of about 25%, higher than 2025, which management said reduces 2026 EPS by roughly $2.
Key drivers supporting the margin outlook included:
- Price/mix: Management expects a 175 basis-point positive impact from new products and previously announced pricing actions in a less promotional environment.
- Cost actions: Whirlpool expects more than $150 million of cost takeout, translating to about 100 basis points of net cost benefit.
- Tariffs: A roughly 125 basis-point negative impact from tariffs announced in 2025, concentrated in the first half of 2026, based on currently announced tariffs only.
- Investment: About 50 basis points of margin pressure from increased marketing and technology investments, as Whirlpool plans to launch approximately 100 new products in 2026.
By segment, Whirlpool guided to approximately 6% EBIT margin in MDA North America, approximately 7% in MDA Latin America, and approximately 15.5% in SDA Global. The company expects the global major domestic appliance industry to be approximately flat, with U.S. demand similar to 2025 and still led by replacement demand. Management reiterated that guidance does not assume discretionary demand upside from a faster existing home sales recovery, though executives said that could represent potential upside if consumer sentiment and mortgage rates improve.
On capital allocation, Warner said Whirlpool plans about $400 million in capital expenditures, expects to pay down at least $400 million of debt in 2026, and will continue to fund its dividend, which is approved quarterly by the board. In response to questions about funding, management said it would continue evaluating options, including potential smaller asset sales and its portfolio of minority stakes, while indicating it is currently comfortable with its post-transaction position in India.
About Whirlpool (NYSE:WHR)
Whirlpool Corporation is a leading global manufacturer and marketer of home appliances, with a product portfolio that spans major categories such as laundry, refrigeration, cooking, dishwashing and small electrics. Headquartered in Benton Harbor, Michigan, the company designs, produces and distributes its appliances through a network of wholly owned manufacturing facilities, joint ventures and third-party partners. Whirlpool serves both retail and professional markets, offering products under its flagship Whirlpool brand as well as several well-known names including Maytag, KitchenAid, JennAir, Amana, Brastemp and Consul.
In its laundry segment, Whirlpool provides top- and front-load washing machines, dryers and combination units designed to balance energy efficiency, capacity and convenience.
