Whirlpool Navigates a 'Difficult Year,' Eyes Margin Recovery in 2026
BENTON HARBOR, Mich. – Whirlpool Corporation (NYSE:WHR) concluded a challenging 2025 fiscal year, with its leadership pointing to external pressures that squeezed profitability. During the company's fourth-quarter earnings call, executives detailed a path to recovery for 2026, emphasizing cost actions and a stabilizing promotional landscape.
Chairman and CEO Marc Bitzer described 2025 as a "difficult year with unforeseen challenges," primarily in the critical North American market. He identified two major headwinds: the ongoing impact of global tariffs and persistent weakness in the housing sector, which dampens demand for new appliances. Compounding these issues was what Bitzer termed an "unusually promotional" environment in the U.S., where heavy discounting became the norm to move inventory.
Despite these pressures, the appliance giant held global organic revenues essentially flat year-over-year. "We were pleased with our market share gains in North America during the second half," Bitzer noted, though operating margins dipped slightly below 5% due to the aggressive discounting, especially in the final quarter.
CFO Roxanne Warner provided the financial specifics: a full-year ongoing EBIT margin of 4.7% and earnings per share of $6.23. Free cash flow came in at $78 million, a figure she said was weighed down by tariff payment timing and inventory built to support new product rollouts. Warner also highlighted capital moves, including reducing Whirlpool's stake in its Indian business from 51% to 40%, with proceeds used to pay down debt.
A glimmer of optimism emerged from discussions about industry pricing. Management observed a "meaningful change" in promotional behavior starting in mid-December, with a shorter and less deep discount cycle compared to previous years. "Prices immediately recovered after Black Friday," Bitzer stated, contrasting with past years where promotions bled into January. This normalization is a cornerstone of Whirlpool's improved outlook for 2026.
Juan Carlos Puente, Executive President for MDA North America, underscored Whirlpool's domestic manufacturing as a strategic shield against tariffs, noting the company uses approximately 96% American steel in its U.S. factories. He also pointed to innovation, highlighting that over 30% of the product portfolio was refreshed in 2025, with new entries like the Whirlpool Laundry Tower gaining valuable retail shelf space.
Looking Ahead: A Reset for 2026
Guided by a reset baseline post-India transaction, Whirlpool forecasts approximately 5% revenue growth on a like-for-like basis in 2026. More significantly, management expects ongoing EBIT margin expansion of 80–110 basis points, bringing it to a range of 5.5%–5.8%. Free cash flow is projected to surge to $400–$500 million, driven by better earnings and leaner inventory.
The company set full-year ongoing EPS guidance at approximately $7. Warner noted this includes a higher adjusted tax rate of about 25%, which alone reduces the 2026 EPS figure by roughly $2 compared to the 2025 rate.
Key drivers for the margin improvement include the benefits from pricing actions, cost productivity programs, and the lapping of one-time costs from 2025. The outlook assumes a flat global appliance market, with U.S. demand steady but still reliant on replacement cycles rather than a housing-led boom.
On capital allocation, Whirlpool plans to invest about $400 million in capital expenditures, target at least $400 million in debt reduction, and continue funding its dividend.
Market Voices
"The guidance for margin expansion is credible if the pricing discipline holds," said Michael Rigby, a portfolio manager at Horizon Capital. "The 2025 results were messy, but the company is controlling what it can—costs and product mix. The debt paydown plan is a prudent signal."
"A 5% margin is barely acceptable for a company of this scale, even in a tough year," countered Sarah Chen, an independent analyst known for her blunt commentary. "This 'reset' feels like managed decline. Promising $7 EPS after a major asset sale and blaming taxes for a $2 hit is financial storytelling. They're hoping the housing market bails them out."
"The focus on domestic manufacturing and new products like the Laundry Tower is the right long-term play," noted David Fischer, a retail sector consultant. "In a tariff environment, their U.S. footprint is a real differentiator with both retailers and consumers."
Whirlpool Corporation is a leading global manufacturer of home appliances, marketing products under iconic brands including Whirlpool, Maytag, KitchenAid, and JennAir.