$WHR earnings report

Whirlpool reported a weaker year-over-year third quarter, with net sales of $3,677 versus $4,033 and organic net sales of $3,643 versus $3,852. GAAP net earnings (loss) available to Whirlpool common shareholders was $(249), compared with $73, and GAAP earnings (loss) per diluted share was $(3.80), compared with $1.29. The GAAP net earnings (loss) margin was (6.8)% versus 1.8%. Ongoing EBIT declined to $97 from $180 and the ongoing EBIT margin declined to 2.6% from 4.5%.

Segment trends were uneven. MDA North America net sales declined (8.3)% to $2,495, with soft industry demand identified as the principal driver excluding currency. Its EBIT declined to $74 from $134, although the company said sequential EBIT margin expanded on pricing and structural cost take-out. MDA Latin America net sales increased 6.9% to $858 and increased 2.5% excluding currency due to volume, but EBIT fell to $18 from $45 as mix shifted following Grupo Casas Bahia's bankruptcy reorganization. SDA Global sales were nearly flat at $286, while EBIT increased to $53 from $47 and margin increased to 18.6% from 16.5%.

The gap between GAAP and ongoing results reflects significant items reported in the quarter. Whirlpool recorded a $124 million non-cash impairment charge tied to its equity method investment in Whirlpool India and a $54 million trade-customer bankruptcy reorganization charge in Latin America. Restructuring costs were $35 compared with $6 in the prior-year quarter. Corporate Other was $(273) million in Q3 2026, compared with $(28) million in Q3 2025.

Cash conversion remains the key balance-sheet issue through the first nine months. Cash provided by (used in) operating activities was $(826), versus $(669), and free cash flow was $(1,081), versus $(907). Cash and cash equivalents increased to $1,103 from $669 at December 31, 2025, while long-term debt increased to $6,838 from $5,583. Financing cash flow included $1,972 of net proceeds from borrowings of long-term debt, $(1,264) of net repayments of long-term debt, $524 of common stock issuance and $557 of mandatory convertible preferred stock issuance.

The full-year guide calls for net sales of approximately $14.5 billion, ongoing EBIT margin of 2.0 - 2.2%, GAAP earnings (loss) per diluted share of $(4.95), and ongoing earnings (loss) per diluted share of $(1.30). Management maintained targets for approximately $700 million of cash provided by operating activities and approximately $300 million of free cash flow. The company also improved its year-end net debt expectation to below $4.5 billion from under $5 billion, while relying on announced Q4 price increases in North America and Latin America and continued structural cost actions to support the outlook.

Whirlpool reported Q2 net sales of $3,517 million, down (6.8)% from $3,773 million, while organic net sales of $3,437 million declined (1.7)%. GAAP net earnings available to Whirlpool common shareholders increased to $75 million from $65 million, lifting GAAP net earnings margin to 2.1% from 1.7%. GAAP earnings per diluted share were $1.15, compared with $1.17 in 2025.

The non-GAAP profitability picture was materially weaker year over year. Ongoing EBIT was $62 million versus $200 million, and ongoing EBIT margin was 1.8% versus 5.3%. Ongoing earnings per diluted share were $(0.21), compared with $1.34. Management nonetheless characterized Q2 performance as in line with expectations and cited sequential margin expansion from pricing execution, cost take-out progress and product innovation.

North America remained the largest segment, with net sales of $2,408 million. The segment reported 8% sequential net sales growth and 240 bps of sequential EBIT-margin improvement, but year-over-year sales, EBIT and margin declined as lower industry volume, tariffs, raw material inflation and fuel costs weighed on results. Latin America and SDA Global also recorded lower EBIT and EBIT margins year over year. Latin America faced negative price mix in Brazil despite volume growth, while SDA Global faced lower retailer inventory despite strong sell-out and global share gains.

Cash flow remained a key pressure point in the quarter, with $(947) million of cash used in operating activities and $(1,108) million of free cash flow. Whirlpool completed its transition to a $2 billion asset based lending facility and issued $2 billion in secured bonds, which the company said cleared debt maturities until 2028. The company maintained its full-year operational outlook, including approximately $15.0 billion of net sales and approximately 4.0% ongoing EBIT margin, but revised EPS to reflect the new interest expense outlook. It continues to target approximately $700 million of operating cash flow, over $300 million of free cash flow and net debt below $5.0 billion at year end.