WHR

A month has gone by since the last earnings report for Whirlpool (WHR). Shares have lost about 15% in that time frame, underperforming the S&P 500. Will the recent negative trend continue leading up to its next earnings release, or is Whirlpool due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts. Whirlpool 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.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. 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. 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 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. For the first-half of 2026, free cash flow was a negative $1,108 million from $856 million. Capital expenditures for the period increased to $162 million from $154 million. 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. It turns out, fresh estimates flatlined during the past month. At this time, Whirlpool has a poor Growth Score of F, a score with the same score on the momentum front. However, the stock has a grade of B on the value side, putting it in the second quintile for this investment strategy. Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in. Whirlpool has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Whirlpool Corporation (WHR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Whirlpool’s second quarter results received a positive market reaction, despite missing Wall Street’s revenue and non-GAAP earnings expectations. Management attributed the quarter’s performance to sequential margin improvement, driven by successful pricing actions across North America and new product launches. CEO Marc Bitzer highlighted that promotional price increases and a broader product refresh, including the launch of over 100 new products, helped stabilize operations and offset headwinds from persistent cost inflation and softer industry demand. Is now the time to buy WHR? Find out in our full research report (it’s free). Revenue: $3.52 billion vs analyst estimates of $3.56 billion (6.8% year-on-year decline, 1.2% miss) Adjusted EPS: -$0.21 vs analyst estimates of $0.05 (significant miss) The company reconfirmed its revenue guidance for the full year of $15 billion at the midpoint Management lowered its full-year Adjusted EPS guidance to $2.75 at the midpoint, a 15.4% decrease Operating Margin: 4.6%, in line with the same quarter last year Market Capitalization: $2.82 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. David S. MacGregor (Longbow Research) asked about confidence in maintaining the 4% list price increases and the industry’s pricing discipline. CEO Marc Bitzer cited successful execution of recent price actions and additional builder pricing as drivers of confidence for the second half. Sam Darkatsh (Raymond James) inquired about market share expectations in the back half of the year. Bitzer stated the company anticipates flat to slightly up market share, supported by new product launches and selective promotions. Michael Dahl (RBC Capital Markets) questioned the cadence of margin improvement in North America. Bitzer outlined that step-ups in margin are expected to continue each quarter, not just in the year-end period, due to pricing and cost actions. Susan Maklari (Goldman Sachs) asked about the balance between product innovation investment and capital allocation. Bitzer emphasized that innovation spending remains a top priority, with no plans to cut back despite operating challenges. Shaun Calnan (Bank of America) queried whether higher prices were causing consumers to trade down to lower-priced products. Bitzer acknowledged some mix-down but said new premium products are offsetting the impact, maintaining overall mix and profitability. In the coming quarters, the StockStory team will be monitoring (1) the realization of planned cost savings from manufacturing footprint changes and logistics consolidation, (2) the impact of sequential pricing actions on margins and market share, and (3) the performance and uptake of recently launched and upcoming products across key categories. Execution on product innovation and further evidence of operational discipline will be critical markers for Whirlpool’s progress. Whirlpool currently trades at $43.37, up from $39.21 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it’s free for active Edge members). ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies. Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.

Image source: The Motley Fool. Tuesday, Aug. 4, 2026 at 8:00 a.m. ET Investor Relations - Scott Cartwright Chairman and Chief Executive Officer - Marc Bitzer Chief Financial Officer - Roxanne Warner Executive President of North America and Global Strategic Sourcing - Juan Carlos Puente Executive President of KitchenAid Small Appliances and Latin America - Ludovic Beaufils Scott Cartwright: Good morning, and welcome to Whirlpool Corporation's Second Quarter 2026 Earnings Call. Today's call is being recorded. Joining me today are Marc Bitzer, our Chairman and Chief Executive Officer; Roxanne Warner, our Chief Financial Officer; Juan Carlos Puente, our Executive President of North America and Global Strategic Sourcing; and Ludovic Beaufils, our Executive President of KitchenAid Small Appliances and Latin America. Our remarks today track with a presentation available on our Investors section of our website at whirlpoolcorp.com. Before we begin, I want to remind you that as we conduct this call, we will be making forward-looking statements to assist you in better understanding Whirlpool Corporation's future expectations. Our actual results could differ materially from these statements due to many factors discussed in our latest 10-K, 10-Q, and other periodic reports. We also want to remind you that today's presentation includes the non-GAAP measures outlined in further detail at the beginning of our earnings presentation. We believe that these measures are important indicators of our operations as they exclude items that may not be indicative of results from our ongoing business operations. We also think the adjusted measures will provide you with a better baseline for analyzing trends in our ongoing business operations. Listeners are directed to the supplemental information package posted on the Investor Relations section of our website for the reconciliation of non-GAAP items to the most directly comparable GAAP measures. [Operator Instructions] With that, I'll turn the call over to Marc. Marc Bitzer: Thanks, Scott, and good morning, everyone. During today's call, you will hear 3 key messages. First, our Q2 performance was in line with our expectations despite the persistent macroeconomic challenges impacting our industry and the broader economy. Second, we delivered sequential margin improvement in Q2, and we expect margins to continue improving throughout the remainder of 2026. North America, in particular, delivered strong operational progress relative to the first quarter, supported by our second quarter promotion pricing increase and a strong lineup of new products. While we recognize that there is more work to do, this is a clear step towards stabilizing our business. And third, we continue to take decisive actions to better position our business in the near term and capture the upside when consumer sentiment and the housing market rebounds. We are reaffirming our full year operational outlook and adjusting EPS to reflect the updated interest expense expectation following our recent refinancing activities. Turning to Slide 7. We will further discuss some of the decisive actions taken to better position our business. We have accelerated the cadence of our new product launches and we are performing exceptionally well. In 2025, we transitioned over 30% of our MDA portfolio in North America into new products. That is 3x more than we would typically transition in a year and the largest portfolio refresh in the last 10 years. In 2026, we had an impressive performance at the Kitchen & Bath Show, winning 23 awards and are on track to launch more than 100 new products. Our trade customers and consumers have reacted very positively to these new launches. Juan Carlos and Ludovic will provide more details on how some of these recent launches in MDA North America and SDA Global are performing. In our last call, we discussed our announced price increases to mitigate years of cost inflation and some residual impact of tariffs. I'm very pleased to report that our execution of these increases has been strong. The initial benefit is already showing up in our sequential margin improvement, and we anticipate further incremental margin gains moving forward. We also announced new pricing actions in Latin America effective in August, which, in combination with some of our strategic launches, in particular in refrigeration, are expected to restore margin in what has been a highly competitive environment. We continue to accelerate our structural cost takeout actions to help offset macroeconomic headwinds and to drive meaningful carryover benefits in the years ahead. Recently, we announced footprint changes that are expected to deliver meaningful cost savings starting in Q4 of 2026 across key manufacturing facilities in Amana, Iowa, Rio Claro, Brazil, and more recently, Ramos, Mexico. We're also optimizing our logistics network, reducing the number of local distribution centers by 25% while maintaining a strong footprint that places 97% of our customers within 100 miles of an LDC. This allows us to maintain high reliability, on-time delivery, and maintain lead times. As we optimize our global footprint, we're also investing in growth, including our new manufacturing plant in Perrysburg, Ohio. Together, these actions accelerate our path to vertical integration, automation, and supply chain modernization, reinforcing our competitive advantage as the leading domestic appliance producer. Finally, we have completed a series of strategic actions to strengthen our balance sheet and expand our financial flexibility, giving us the resilience required to navigate the volatile macroeconomic environment while continuing to fund our organic growth. A look at our balance sheet before and after these transactions shows a dramatic improvement in our near-term liquidity and capital position. Our strategic recapitalization strengthened our balance sheet. Our recent bond issuance successfully cleared our 2026 and 2027 debt maturity, giving us a clear operational runway. We completed a secured asset-based lending credit facility that provides us with the needed liquidity and financial flexibility to operate in the current volatile environment. Lastly, we completed the sale of our interest in Beko Europe B.V., primarily for cash consideration, further enhancing our cash position. Importantly, our core capital allocation priorities are unchanged. Turning to Slide 8. Let me cover our second quarter results. We delivered net sales of $3.5 billion, which was impacted by softer industry demand in North America and promotional intensity in Latin America. However, we saw a sequential margin improvement of 50 basis points to 1.8%, resulting in ongoing earnings per share of negative $0.21. As mentioned earlier, in line with our capital allocation priorities, we successfully sold our minority stake in Beko Europe B.V. for approximately $128 million, generating roughly $84 million of net cash consideration. Our free cash flow was a consumption of approximately $1.1 billion, which was largely driven by lower earnings in conjunction with seasonal working capital. Turning to Slide 9. I will walk through our sequential ongoing EBIT margin drivers. We delivered margin improvement of approximately 50 basis points quarter-on-quarter. Our previously announced pricing actions in North America favorably impacted margin, fully offsetting unfavorable price/mix in Latin America and resulting in 225 basis points of improvement. Net cost was a tailwind of 100 basis points as we compared to the higher costs associated with our inventory reduction actions in the first quarter. Raw material inflation unfavorably impacted margin by 50 basis points, primarily driven by elevated steel and base metal costs. Net tariff impact was an unfavorable 200 basis points, driven by implementation of Section 232 and realizing credit benefits of the IEEPA decision in Q1. Marketing and technology as well as currency, each represented a headwind of 25 basis points, partially offset by favorable transaction impacts of approximately 25 basis points. And now I will turn the call over to Juan Carlos to review our MDA North America results. Juan Puente: Thanks, Marc. Turning to Slide 11. I will provide an overview of our MDA North America segment. In the second quarter, net sales were $2.4 billion, up 8% sequentially from the first quarter. We saw sequential EBIT margin improvement of 240 basis points, driven by the strong execution of our previously announced promotional price increase and the progression of our structural cost takeout initiatives, partially offset by higher raw material, fuel, and tariff costs. As expected, U.S. industry demand was down 3.4% year-over-year. Turning to Slide 12. I want to remind you of the significant pricing actions we announced last quarter. We executed a promotional price increase of more than 10% relative to the first quarter prices, effective in late April. This was the most impactful action and started to positively impact our P&L in May, with incremental benefits ramping up through the remaining of the year. We also announced a list price increase of approximately 4%, effective in July, which we expect will benefit the third quarter results. We can see positive impact of these price increases on our sequential margin improvement, as well as in the retail sellout price data. Turning to Slide 13. Let's review our sellout price data. This chart represents the aggregate view of thousands of price data points collected weekly based on publicly available data. The yellow line shows that our prices are progressing as expected. The blue line shows that the competitor average pricing has also meaningfully moved upward since the beginning of 2026. We are seeing resilient demand despite the price increases. In the current softer housing market, appliance demand is largely replacement-driven and relatively price inelastic, at least until consumers reach the point of sale and compare options. More importantly, we are able to hold our market share, showcasing the success of our robust product innovation. Turning to Slide 14. I will review our newest kitchen suite, coming to market in Q3. In line with our strategy of driving premium mix, we are incredibly proud of the new KitchenAid Porcelain White suite. The elevated neutral color tone can be paired with our interchangeable handles and knobs, allowing consumers to personalize their kitchen suite. This premium product is a great addition to our portfolio and one that fits squarely within our strategy to drive premium mix. On Slide 15, we can see how some of our recent product launches are driving notable growth. Our Maytag Top Load Washer gained approximately 1 point of laundry share, a result largely influenced by our new pet hair removal impeller. The new KitchenAid suite has been exceptionally well received and has driven an impressive 20% year-over-year brand share growth. Lastly, our industry-first Whirlpool UV Laundry Tower has rapidly captured approximately 10 points of share in this category. Turning to Slide 16. Improving profitability is not just a pricing story. That's why we continue to focus on our structural cost takeout. We remain on track to deliver $150 million in cost takeout in 2026. Of the $150 million target, we expect approximately $60 million in savings from our automation initiatives, $15 million from strategic sourcing, and $20 million from our targeted fixed cost actions in our corporate center. On strategic sourcing, we are deepening our relationships with critical suppliers in creating a win-win opportunity that drives mutual operational growth and margin enhancements. The acceleration of our footprint, strategic sourcing, and corporate center cost reduction actions are expected to help mitigate the headwinds associated with higher fuel costs, volume deleverage, and inflation. This illustrates how we are laser-focused on delivering against what we can control. Turning to Slide 17. We're maximizing benefits from our manufacturing and supply chain footprint to strengthen our structural competitive advantage. In our last earnings call, we discussed key manufacturing footprint changes that we announced in Q1. First, a multiyear modernization efforts on Amana, Iowa, that will refocus our manufacturing on bottom mount refrigeration and optimize our parts production and subassemblies, generating an expecting annualized EBIT benefit of approximately $70 million. Second, our $60 million investment in our new state-of-the-art production facility in Perrysburg, Ohio, focused on accelerating vertical integration, which we expect to generate annualized EBIT benefits of approximately $30 million. And lastly, in the second quarter, we announced our plan to shift our Mexico refrigeration production from the Supsa plant to our Ramos manufacturing facility in our existing supply chain. All of these moves drive significant structural cost benefits, with EBIT benefits starting in Q4 of this year and significant carryover benefits in 2027 and 2028. Additionally, the consolidation of our U.S. distribution centers, where we are reducing our local distribution centers from 126 down to 94, alongside the consolidation of our regional distribution and return centers, is expected to unlock another $60 million in annualized EBIT benefits while maintaining reliability and delivery speed. Combined with the structural advantage of the updated Section 232 tariff framework, we are highly confident in the long-term profitability of our North America business. And now I'll turn the call over to Ludo to review MDA Latin America and SDA Global results. Ludovic Beaufils: Thanks, Juan Carlos. Turning to Slide 18, I'll review the results for our MDA Latin America business. Excluding currency, net sales decreased 2% due to negative price/mix, partially offset by higher volume in Brazil's highly intense promotional environment. This negative price/mix resulted in an EBIT margin of 3%, despite a tax case-related net gain. Turning to Slide 19. Let me highlight the main actions that are underway to restore our margins in Latin America. First, we have announced new pricing actions in Brazil, fully effective in August, resulting in an overall increase of approximately 5%. Second, we're driving premium mix through product innovation in our direct-to-consumer channel. In particular, we have completed the relaunch of Brastemp's laundry, top-mount refrigeration, and bottom-mount refrigeration lineups, and we're about to launch our new French door refrigeration line. We are also deploying the Whirlpool and KitchenAid products Juan Carlos referenced earlier into the relevant countries in Latin America. Lastly, we are executing a comprehensive operational review to aggressively reduce both variable and fixed costs across the region. Turning to Slide 20. Our SDA Global business continues to deliver solid results. We achieved an EBIT margin of approximately 12% in the second quarter, in line with expectations, while successfully funding our planned marketing investments. Underlying demand is positive with double-digit sell-through growth and share gains globally, driven by product launches and continued expansion of our direct-to-consumer channel. However, we did experience a temporary but sizable trade inventory burn in Q2, which impacted our top line results. Overall, our performance in the first half of 2026 was in line with expectations, achieving growth and double-digit margins while reinvesting some of those gains to fuel future organic growth. On Slide 21, I will review 3 of our latest innovations that are instrumental to our growth trajectory in the second half of 2026. The Artisan Plus stand mixer with its new bowl light and precision speed controls has been an absolute hit so far, driving approximately 1 point of share growth in the U.S. Our new line of compact, fully automatic espresso machines is expanding our presence in a fast-growing industry category that has expanded over 25% in the U.S. through May 2026. It started to hit the shelves in Q2 and has already shown strong sell-through performance. And our Pure Power Blender has delivered standout growth internationally, securing an impressive 10 points of incremental share in Canada as an example. To summarize, we've had a strong margin-accretive first half performance. We have continued to invest in growth and are seeing great success with our most recent product launches. On top of that, we have more launches coming in time for the holiday season. All of this gives us confidence in our ability to continue to capture double-digit growth globally at the highly accretive margin we've been guiding towards. Now I will turn the call over to Roxanne to review our balance sheet and capital allocation priorities. Roxanne Warner: Thanks, Ludo. Turning to Slide 23. Let me review the decisive actions taken recently to lock in our liquidity and clear our debt runway, creating balance sheet flexibility. We executed our $1.1 billion equity offering and made the prudent decision to suspend the common dividend to maximize our cash preservation, improving near-term liquidity. We finalized a $2 billion asset-based lending facility to provide financial flexibility. And finally, we issued $2 billion in secured bonds, which removes near-term refinancing risk by addressing our 2026 and 2027 debt maturities. Combined, these actions significantly improved our financial flexibility, cleared our debt maturity runway, and have positioned our business to better participate in growth opportunities. As you can see on Slide 24, these actions have successfully secured over $3 billion in liquidity and cleared our debt maturity ladder until 2028. This gives us the financial runway necessary to execute our operational plans and improve profitability while still navigating an uncertain macroeconomic environment. And while this recent bond issuance increased our gross debt, our net debt in Q2 stayed largely flat at $5.8 billion. We maintain our commitment to deleveraging, and we expect to exit 2026 with a net debt below $5 billion. Turning to Slide 25. Let me outline an update to our capital allocation priorities. Investing in organic growth through product innovation is critical to our business and will continue to be one of our top priorities. We will continue to invest in product innovation, digital transformation, and cost efficiency projects with approximately $400 million of CapEx expected this year. To support our balance sheet strength, we strategically raised gross debt through new bond issuances. We have successfully completed the divestment of our interest in Beko Europe, and we will continue evaluating all options to further strengthen our balance sheet. Turning to Slide 26. We are updating our earnings per share guidance range as a result of the revised interest expense associated with our recent bond issuance. Our operational outlook is unchanged. On a like-for-like basis, we expect revenue growth of approximately 1.5% in 2026. We expect full year ongoing EBIT margin of approximately 4%, supported by continued momentum with our new product launches, pricing actions, and structural cost takeout. Free cash flow is expected to deliver $300 million or approximately 2% of net sales, driven by significant structural inventory optimization. We are updating our full year interest expense outlook from $300 million to $350 million as a direct result of our recent debt refinancing activities. Guidance drivers and segment details can be found in the appendix of this presentation. Now I'll turn the call back over to Marc for closing remarks. Marc Bitzer: Thanks, Roxanne. Turning to Slide 27. Let me summarize what gives us confidence that our business is on the right track to deliver long-term shareholder value. Looking to the second half of 2026, we expect to see continued margin expansion as we move towards 2027. The margin expansion will be driven by sustained momentum from our new product launches, the compounding benefits from the pricing actions we have already taken, and the structural cost reduction initiatives that are fully underway. We are taking decisive actions to create shareholder value now and in the future. Our aggressive investments in our U.S. domestic footprint continue to strengthen our competitive advantage. And as we look further ahead, our portfolio of iconic brands and our leading established position in builder channel ensure we are well positioned to catalyze the tailwinds of the eventual U.S. housing recovery. Now we will end our formal remarks and open it up for questions. Operator: [Operator Instructions] Your first question comes from the line of David MacGregor from Longbow Research. David S. MacGregor: Just on pricing, can you just talk about what you're seeing in July that gives you confidence in the 4% list price increases? And also, I guess with regard to the PMAPs, how confident you are that the industry will maintain PMAP discipline through year-end promotions? Marc Bitzer: David, first of all, I mean, obviously, as we pointed out in the earlier remarks, we feel very good about how the pricing and the pricing actions which we communicated late April turned out during Q2. You saw a significant price increase on the promotional side. You also saw the effect of us reducing the promotional window, particularly around July 4. So that all worked out very well. It is important to note, even on Q2, the fact that Q2 only had about 2/3 of a pricing impact, because, by definition, the pricing largely kicked in early May. So that is already carryover benefit. On the list price increase which we announced, and we have -- we announced a long time ago, and we're executing. And so far, we don't see a big issue. So we feel actually very confident about the journey which we're on the price increase. The other element also for Q3, which we talked about earlier, we also have the effect of builder price increases kicking in Q3. That is something which we announced earlier. So put that all together, the carryover from a price increase in Q2, additional list price increase, and the builder pricing, that gives us the confidence that our pricing actions are really having good traction, and we feel good about Q3. David S. MacGregor: Good. Second question is just on net costs. And on the net cost guidance of 100 basis points year-over-year, this presumably would include the $150 million of cost takeouts, which implies that ex cost takeouts, the guidance is flat for the full year, if I'm reading that correctly. Can you just talk about that line and bridge for us the first half to the flat full year number? Marc Bitzer: Yes, David, and I would particularly point also to Page 9 of our presentation. You saw sequentially, we had in our pure net cost, i.e., our factory productivity, logistics productivity, we had about 100 basis points improvement Q2 versus Q1. Keep also in mind, Q1, we took a lot of inventory out. So that's a little bit the element kind of offsetting here in Q2. Also going forward, we feel very good about the net cost actions which are in our control, i.e., engineering or redesign of certain products. So these actions are on track. But what is right now already was in Q2 a headwind is the raw material side is becoming more challenging. I mean we have -- on the steel side, we're on the very high end of the contracts, which we have. We have base metal increases. And as you all would have expected from oil price changes, there is some pressure on resins. So that's the offsetting element, which right now on a full year base would point out a little bit challenge. The other element, and Juan Carlos referred to this earlier, we took fairly sizable and significant actions in the first and second quarter around our factory footprint, particularly related to Amana, Iowa, our Supsa factory in Mexico, and also our Argentina factory. These are fairly significant moves. The important thing, however, to note is the vast majority of the benefits are more like a '27 effect because it takes some time until you get the full benefit of this one. But there is also a portion in -- which will help us in 2026. Operator: Your next question comes from the line of Sam Darkatsh from Raymond James. Sam Darkatsh: A couple of questions here. The first, you obviously have a lot of pricing going through, largely matched by the industry. You also have difficult market share comparisons in the back half. What -- included within your guidance, what are you contemplating for a market share performance in the back half on a year-on-year basis? Marc Bitzer: Yes, Sam. So first of all, year-to-date, our market share, in particular in North America, is largely flat. We feel actually pretty good about -- obviously, we had significant price increase and we didn't lose market share. So that's a good element. In the back half, I mean, first of all, we have the effect of all these new product launches, which help us. So we have a good product mix, good product lineup that will help us. But at the same time, we will continue our strategy on promotions. We will invest in promotions when it creates value for us and the retailer. And that may be a little bit the offsetting element. And you saw that also in even July 4. We didn't go all aggressive. I'll put it differently, we want to have structurally healthy organic market share, and maybe kind of give away a little bit of ground on some aggressive promotions. So that is our basic strategy. But even on a full year base, we expect a flat to maybe slightly up market share. Sam Darkatsh: And then my follow-up question, and actually, I have a clarification question from David's prior question. Hopefully, this doesn't count. If you could characterize what you're seeing in July. But my actual question in the second half, you're guiding for effectively $1.6 billion in cash flows from operations. How much of that are you expecting in the third quarter versus your normal heavy fourth quarter cash flow generation? Marc Bitzer: Yes, Sam, let's come to as the next question 1B. So as you know, we don't typically give quarterly guidance on the cash flow. But I think there's one big element, and that's a little bit different from every years. We took a lot of effort to get our working capital in balance in the first half, i.e., we didn't produce as much as we typically would produce in Q1 and Q2. So we enter the second half with actually pretty good inventory levels, even to a point where we could actually slightly increase inventory. So we feel very good about where we are from working capital, and we don't have to take that strong action, which we typically do in Q3 to Q4 to correct it. So we're in pretty balanced level here. And then on top of that, yes, we have the earning and the earnings expectation of the second half kicking in on this one. And that's why we feel confident about the $300 million plus free cash flow for a full year. Operator: Your next question comes from the line of Mike Dahl from RBC Capital Markets. Michael Dahl: Just on the -- another question on kind of the cadence. Obviously, in North America, the guide still requires you to do kind of a 6% in the back half after doing the 1.5% in the first half on an EBIT margin basis. So could you clarify kind of cadence of -- is it going to be in your internal expectations? Is that an immediate step-up from 2Q to 3Q to around those levels? Or should we think about the guide implying kind of a ramp and an exit rate north of that the way you contemplate it? Marc Bitzer: Yes. Michael, it's Marc. So first of all, I mean, I also want to point out between Q1 and Q2, North America had more than 2 points of margin improvement. So that was a very sizable step. And that is, as I mentioned before, with only 2/3 of a price increase kicking in, and there's more coming. So obviously, with the price increase being successful in marketplace, I think these significant step-ups, as we've seen in between Q1 and Q2, we also expect going forward. So it's not all back-end loaded to Q4. But it is absolutely critical in Q3 that with additional pricing actions and the carryover momentum in pricing, that we have a similar step-up in Q3 as we had in between Q1 and Q2. Michael Dahl: Okay. That's helpful, Marc. And then secondly, can you talk a little bit more about this, the inventory dynamic in SDA, what you think drove it, whether there was something that happened in kind of the cadence of sell-through trends that led to a different decision on inventory replenishment, where inventory levels sit versus your view of what would be normal. And I think I heard you guys say you still expect that business positioned for double-digit growth. So just again, kind of square that with what played out between the sell-through dynamics and the inventory effectively destocking in 2Q? Marc Bitzer: Yes, Mike, overall, I think we're not at all nervous about the underlying growth of KitchenAid SDA. As Ludo pointed out earlier, even in the second quarter, the underlying sell-through in retail was double digits. There was an inventory reduction, or you can also put it differently. There was a very sizable order which came late in the quarter, so we couldn't recognize it fully. July is looking already very healthy, and we feel very good about the July run rate. So we're absolutely on track with KitchenAid SDA with the underlying sales growth, and we feel very confident also about the full year guidance on revenues. But let me also -- Ludo, maybe you want to add a little bit from a KitchenAid perspective. Ludovic Beaufils: Yes. Just a little extra color. We had growth internationally in terms of sell-through that was in the very high teens, and that was also true in the U.S. So globally, we're looking at very high double digits, high teens, like I said, across the entire globe based on, in particular, our new product introductions, which have been received extremely well so far. So that momentum building early in Q2 really bodes well for Q3 and the rest of the year. And as Marc said, this one-off situation in terms of inventory burn is going to correct itself in Q3. We're very bullish about what that's going to lead to. Operator: Your next question comes from the line of Susan Maklari from Goldman Sachs. Susan Maklari: My first question is around the new products and how you're thinking about innovation. As you see the success of the recent launches coming through, and it seems like it's allowing you to not only maintain your share, but perhaps grow it, you're moving in line with the industry. How do you think about what that means in terms of future investments in innovation? And how are you balancing that relative to other needs for capital allocation? Marc Bitzer: Yes. Susan, I mean, first of all, I just want to echo again what you already highlighted and what we said also in the script. We feel really good about all the products which we've launched in '25, but also in '26. So this was not just a onetime shot in '25. '25 was just an extraordinary amount of new product introductions. I know we repeatedly pointed out the KitchenAid suite, which is hugely successful, but you've all seen like the laundry tower, the UV on the laundry, we have some really, really good products where I feel very good about it. And that obviously helps us offsetting other challenges which you may have on the promotion environment. So we feel very good about the product introductions, and we will certainly not slow down. The important thing, I think we highlighted this already in the last earnings call, despite the obvious challenges, we have not cut back our capital investments on products, period. We kept that. As a company, we're convinced our innovations are good. We will continue to feed the pipeline, and we have not cut back anything on capital investments on the product, and we have no intention to do so. Susan Maklari: Okay. All right. That's very encouraging. And then as you think about the cost takeout initiatives that you've announced and the way that they're sort of positioned across the footprint. Can you talk a bit more about the opportunities to realize further efficiencies, how technology plays into that? And how we should think about ultimately where your sort of operational efficiencies can go over time? Marc Bitzer: Yes, Susan, let me maybe just try to simplify also what we put on certain slides. There's always ongoing cost takeout initiatives, either on the product redesign, which have a fairly quick turnaround. But also in the factories, we have put in a lot of investments about automization. We put in investments to drive more vertical integration. That's particularly related to the plastics and what we do with the Perrysburg facility. But then on top of that, and that is -- I think these were the big announcements in Q1 and Q2, fairly sizable factory footprint decisions. That impacts Amana, where we basically reduce the overall volume and refocus the factory entirely on bottom mount refrigeration. The second one was particularly related to the Argentina factory, which is a too expensive factory for us in that environment, and we basically consolidate that with our Brazil operations. And the third element is what we announced in Mexico, where we have today essentially 2 refrigeration factories, and we consolidate in one kind of big factory. Obviously, we -- it's typical for these footprint moves. They don't immediately give you a return 1 quarter later because they -- typically we phase in and phase out. May take anywhere between 6 to 12 months, but we have initiated them, and that would structurally drive a much better cost position. But the major benefit of this one is actually in 2027. It's just the lead time it takes until you fully capture these benefits. But these footprint moves are very significant and will help us sustain our best cost position in North America and South America. Ludovic Beaufils: If I can add, Marc, maybe you mentioned the role of tech. We're also investing significantly in IT infrastructure, whether it is behind our direct-to-consumer platforms, which we are globalizing across the business units in the various regions, which drives efficiencies in the way that we go to market as well as the enablement of AI for the transformation of our overall approach across the business. Juan Puente: Just adding one more comment. This is Juan Carlos. Just -- so I will combine the 2 questions. So product innovation and capital allocation that we're doing, it's going to be to drive consumer meaningful innovation that can drive the top line and margin expansion. At the same time, they will do automation and vertical integration to be able to drive the right cost to be able to sustain this. So they're basically to drive top line and cost. Operator: Your next question comes from the line of Eric Bosshard from Cleveland Research. Eric Bosshard: Two things. First of all, just a quick follow-up. On SDA, sell-through in the U.S. in 2Q was 10% and global was up 15% to 20%. I guess I heard that right. Is that -- things like epic market share growth? Am I -- did I hear that right? Ludovic Beaufils: No, Eric, what I mentioned, this is Ludo, is we were up high teens across the globe, and this was true of the U.S. as well. The U.S. was 16% POS growth. Eric Bosshard: That's notably above the market. Ludovic Beaufils: Exactly. It does point to market share gains. We saw those in terms of stand mixers and the mixing segment, as well as in some of the new product areas, meaning espresso, which is a very dynamic industry in which we are gaining share. Blenders as well, we've been gaining share in. Eric Bosshard: Okay. And then secondly, Marc, I appreciate you had kind of 2/3 of the promo price increase in the June quarter. And so you'll have all of that in the third quarter. In addition, to the list price increase that's coming, in addition, to the builder price increase that's coming. And then you mentioned some incremental promotions that can be a little bit of an offset. I'm just curious, as we're now into -- excuse me, into 3Q, like how is this playing out? And obviously, trying to get to the net impact of it. But how the consumers are responding to this pretty material incremental increase in price? Marc Bitzer: Yes, Eric. So first of all, you're absolutely correct. These are the big 3 elements of our pricing. Again, the promo increase from Q2, the list pricing 4% in July, and the buildup. These are the big building blocks. What I refer to in promotion is just a basic promotion policy, which we already executed in Q2. We will participate when we think it drives a significant lift and a return on investment for us and the retailer. That is not a change policy, and we've demonstrated that in July 4. We only went 2 weeks on the promotion period as opposed to 3 weeks. And I think that basic policy is unchanged for Q3. Above and beyond this one, is obviously, we're not making any future pricing announcements. That would first be public and then we can talk about it. But if we stick to the promotional discipline, these 3 pricing elements, that's what gives us a lot of confidence for pricing in Q3 and Q4. Operator: Your next question comes from the line of Shaun Calnan from Bank of America. Shaun Calnan: So the price realization you're seeing is encouraging. But could you talk about what you're seeing from a mix standpoint? Are you starting to see trade down? And then are the new product launches enough to offset those mix headwinds at this point? Marc Bitzer: Yes. So I think, first of all, I think it's important to remind ourselves, we're still operating in North American environment, which is largely a replacement or distress market. That is just the simple reality. That is -- if you largely operate in replacement market, the overall volume or what some people refer to price elasticity is very limited. If a washer or a refrigerator breaks down, people buy it. What you do see, however, but this is nothing new. We experienced that in Q1 and Q2, that sometimes consumers stay on the price -- same price points, i.e., they kind of -- they don't want to spend more than $499 for a washer, and they stay to that price point, which is a slight mix down. The offsetting element, which is more in our control are the new products, which give you a mix up. So I think with the new products, we can certainly offset the negative impact, which sometimes come when you have overall price increases on the replacement mix. Shaun Calnan: Okay. Great. And then I just had one on refunds. Are you seeing competitors hold on to IEEPA refunds? Or do you expect them to return those to their customers? And then just if there -- is there any impact from the changing 232 dynamics that would impact that decision? Marc Bitzer: Yes. I mean, obviously, I cannot speak for our competitors. I can only refer to what was publicly announced. And those competitors who gave more detailed statements on Q2, they largely recognized these benefits in Q2. That's what we've seen. So I would say, if at all, that would have been visible in Q2, so it's largely behind us. As you relate to the new tariffs, I don't -- particularly the 301 tariffs, I don't expect a major change in the tariff environment around us. I'll put it differently, the tariff expenses or costs which we had in Q2, we expect similar levels in Q3 and Q4, plus/minus. Operator: Your next question comes from the line of Edward Magi from BNP Paribas. Edward Magi: So the first one, you held MDA LatAm margins steady for the guide. And my math would suggest that you might need to post second half margins potentially as high as 8% plus. So it would be helpful to hear about how you're viewing the sequential uplift from Q2 to Q3, and then for Q3 to Q4 as well, given the promotional environment you're seeing there. Marc Bitzer: Yes. And again, we typically don't give Q3 or Q4 specific margin guidance. But I think you -- particularly 2 big elements you have in the back half. First of all, as a very important reminder, our KitchenAid SDA business is a very seasonal business. So there's a lot coming Q3 and Q4. So by definition, and that has not changed. We're basically having a step-up overall between Q1 and Q2 versus the second half in KitchenAid SDA profitability. The other element is North America. As I pointed out earlier, between Q1 and Q2, we had a very sizable step-up on the margin on the backlog pricing. And we see and we do expect similar improvement in Q3 and Q4 in North America based on pricing and the additional cost actions. Ludovic Beaufils: If I may add, I think the question is also directed at Lars. So we're taking pricing pretty significantly in Brazil right now, which is really where we are turning the tide from a margin standpoint. The rest of the continent has actually been performing really well. So in Brazil, specifically, we're taking pricing, and we're doing that on the back of really strong brands and really strong new product introductions that happened earlier this year that are continuing to roll through Q3 and the earlier part of Q4. So a little bit similar to the conversation for North America, you'll see pricing take hold progressively as we move through the quarter. It's already effective from a direct-to-consumer standpoint, but it was announced to be effective August 1 from a retail perspective. So it's going to take a little bit of time to kind of seep through the quarter in Q3 and then expand fully into Q4. And then on the cost side, also a bit of a progression sequentially from Q2 to Q3 to Q4 as we take fixed cost and variable cost out of the overall P&L. Marc Bitzer: Thanks, Ludovic. And sorry Ed for misunderstanding your question. I thought you referred to the overall company as opposed to Latin America. I apologize. Edward Magi: No worries. Color on both segments is helpful either way. So I appreciate that. And then just as a brief follow-up, I'm curious if you could quantify the amount from the Brazilian tax tailwind in the quarter. I'm not sure if I had missed that on the call or anywhere else. Roxanne Warner: This is Roxanne. In terms of the Brazil tax, we did get a meaningful benefit as it relates to tax, which we have mentioned both in the presentation as well as on the script. I would say the net impact is roughly $14 million. We had some puts and takes, but overall, net would be around $14 million, 1-4. Operator: Your next question comes from the line of Jeffrey Stevenson from Loop Capital. Jeffrey Stevenson: It's been several months since the changes in the Section 232 valuation. And I wondered if the steady improvement in competitor pricing and a challenging residential backdrop through July gives you confidence that the industry has become more rational from a pricing and promotional standpoint moving forward? Marc Bitzer: Yes, Jeffrey, it's Marc. So first of all, you're correct, but 232 is now kind of -- the final change of 232 is now a couple of months in the market. So as such, we've seen stabilization. It's a very important thing, however, to note also what we did on pricing is not just tariff related. It's also related to inflation, which we have been facing over the last 2 or 3 years. So it's a compound effect on tariff and the base inflation costs. I think what we're seeing right now is people pass on the real costs of the products to the market. And that's what we are doing. We have a real cost, and we pass it on to the market. If you call that rational environment, yes, that's what it is. And I would also expect, keep also in mind that the cost for tariff for us are lower on a relative base than for our competitors. So put it differently, our competitors will feel the impact of tariffs significantly more than we do. But I can only speculate about their pricing and that's their job to do. But I would say overall as an industry in the long term, people are expected to reflect cost in the product pricing. Jeffrey Stevenson: Understood. And then can you discuss the decision to consolidate regional distribution centers and return centers and what factors were considered in the 25% reduction that'll be closed or consolidated? And then on top of that, how we should think about the timing of the expected $60 million in annualized EBIT benefit? Marc Bitzer: Yes, Jeffrey. I mean, first of all, and this maybe more for a broader audience. Essentially, as a company, you have 3 type of distribution centers. You have a factory distribution center. You have this big regional distribution center. And then you have a local distribution centers. I would say, by definition, we probably have the tightest net of local distribution center of anybody in the industry. And what you do when you make these local distribution decisions, you basically -- on one hand, you want to be close to the customer in a physical distance, but you also got to recognize the more distribution centers you have, you basically spread your inventory pretty thin, which doesn't help on availability. So we're kind of dialing back in terms of still being very close physical to the customer, as you have before, 97% of our customers are within 100 miles. But with a reduction of a distribution center, it actually will help us our availability and at the same time, obviously, it will help the operating costs from local distribution centers. So actually, that's what I call it a rebalancing. We still have a super, super well covered local distribution centers, but I think the outcome will be lower cost and better availability. I think that was the last question, which we had on the call. So first of all, I want to thank you all for participating in today's call. Again, as a reminder, and hopefully, you heard that today, we actually feel pretty good about where we are for Q2. We had more incremental margin improvement between Q1 and Q2. Our pricing work, in particular in North America, sticks. We announced additional pricing also in Latin America. We talked a lot about new products, and we feel very good about the new products. But we all recognize we still have a step up in front of us for Q3 and Q4. But hopefully you heard today, we feel kind of encouraged by what we see in Q2, and we will continue on the path of incremental margin improvement. So thank you all for joining us, and have a wonderful day. Operator: Ladies and gentlemen, that concludes today's conference call. You may now disconnect. 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This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Whirlpool (WHR) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Interested in Whirlpool Corporation? Here are five stocks we like better. Whirlpool reaffirmed its full-year operational outlook after second-quarter results met expectations, including approximately 1.5% like-for-like revenue growth, a 4% ongoing EBIT margin and $300 million in free cash flow. However, it lowered its EPS outlook to reflect higher interest expense following refinancing. North American margins improved significantly, supported by pricing actions, new products and cost reductions. Whirlpool expects another substantial margin improvement in the third quarter as July price increases and builder pricing take full effect. Whirlpool strengthened liquidity through an equity offering, new lending facilities, secured bonds and asset sales, securing more than $3 billion of liquidity and extending debt maturities through 2028. The company is also targeting $150 million in 2026 cost reductions and expects year-end net debt below $5 billion. MarketBeat Week in Review – 07/27- 07/31 Whirlpool (NYSE:WHR) said its second-quarter performance was in line with expectations as the appliance maker navigated softer industry demand, elevated input costs and promotional pressure in Latin America. The company reaffirmed its full-year operational outlook, while updating its earnings-per-share outlook to reflect higher interest expense following recent refinancing activity. Chairman and Chief Executive Officer Marc Bitzer said the company delivered sequential margin improvement during the quarter and expects that progress to continue through the rest of 2026. He pointed to pricing actions, product launches, structural cost reductions and balance-sheet initiatives as key elements of Whirlpool’s plan to improve profitability and position itself for an eventual recovery in consumer sentiment and housing. → No Hangover: Revisiting Microsoft One Week After Earnings Whirlpool’s Report May Show How Frozen the Housing Market Really Is Second-quarter net sales totaled $3.5 billion. Ongoing EBIT margin improved 50 basis points sequentially to 1.8%, while ongoing earnings per share were negative $0.21. Free cash flow was a use of roughly $1.1 billion, which Bitzer attributed largely to lower earnings and seasonal working-capital needs. Whirlpool’s North American major domestic appliance business recorded $2.4 billion in second-quarter sales, up 8% sequentially. Segment EBIT margin improved by 240 basis points from the first quarter, supported by a promotional price increase, cost-reduction efforts and new products, partly offset by higher raw-material, fuel and tariff costs. → MarketBeat Week in Review – 08/03 - 08/07 3 Sectors That Look Most Vulnerable Ahead of May 15 Juan Carlos Puente, executive president of North America and Global Strategic Sourcing, said U.S. industry demand declined 3.4% year over year in the quarter. Still, he said Whirlpool maintained market share despite higher prices, aided by a replacement-driven demand environment and product innovation. The company raised promotional pricing by more than 10% relative to first-quarter levels, effective in late April. It also implemented an approximately 4% list-price increase in July and expects builder pricing increases to benefit third-quarter results. Bitzer said the promotional increase affected only about two-thirds of the second quarter, leaving additional carryover benefits for the second half. → Why the Landlord of the AI Boom Could Outlast the Chipmakers Whirlpool expects North America to post another significant margin step-up in the third quarter, Bitzer said, driven by the full effect of earlier promotional pricing, July list-price increases, builder pricing and continuing cost actions. The company said recent product launches are supporting share performance. Puente said the Maytag top-load washer gained about one point of laundry share, while the Whirlpool UV laundry tower captured roughly 10 points of share in its category. The new KitchenAid suite drove 20% year-over-year brand-share growth, according to the company. Whirlpool remains on track to deliver $150 million in cost reductions during 2026. The company expects about $60 million of that target to come from automation, $15 million from strategic sourcing and $20 million from corporate-center fixed-cost actions. The company is also pursuing broader manufacturing and logistics changes that it expects to generate benefits beginning in the fourth quarter, with larger carryover effects in 2027 and 2028. Whirlpool is modernizing its Amana, Iowa, operations, investing $60 million in a new Perrysburg, Ohio, facility and shifting refrigeration production in Mexico to its Ramos facility. Puente said the Amana project is expected to produce roughly $70 million in annualized EBIT benefits, while the Perrysburg investment is expected to provide about $30 million. Whirlpool is also reducing its number of local distribution centers to 94 from 126 and consolidating regional distribution and returns facilities. The company expects those logistics changes to unlock an additional $60 million in annualized EBIT benefits while keeping 97% of customers within 100 miles of a local distribution center. In Latin America, sales excluding currency declined 2%, as unfavorable price mix more than offset higher volume in Brazil’s promotional environment. Segment EBIT margin was 3%, despite a net gain tied to a tax case. Ludovic Beaufils, executive president of KitchenAid Small Appliances and Latin America, said Whirlpool implemented an approximately 5% price increase in Brazil that became fully effective in August. The company is also refreshing Brastemp laundry and refrigeration lines, preparing to launch a new French-door refrigerator, and conducting an operational review focused on reducing variable and fixed costs. Whirlpool’s global small-appliance business generated an EBIT margin of about 12% in the second quarter, in line with expectations. Underlying demand was positive, with double-digit sell-through growth and global share gains, though a temporary trade inventory reduction weighed on reported sales. Beaufils said U.S. sell-through grew 16%, while global sell-through rose in the high teens. New products, including the Artisan Plus stand mixer, fully automatic espresso machines and the Pure Power Blender, are expected to support second-half performance. The company said its espresso machines entered a U.S. category that grew more than 25% through May 2026. Whirlpool completed a series of financing actions intended to improve liquidity and address debt maturities. The company executed a $1.1 billion equity offering, suspended its common dividend, finalized a $2 billion asset-based lending facility and issued $2 billion in secured bonds. It also sold its minority interest in Beko Europe B.V. for approximately $128 million, generating about $84 million in net cash consideration. Chief Financial Officer Roxanne Warner said the actions secured more than $3 billion in liquidity and cleared Whirlpool’s debt maturity schedule until 2028. Net debt remained largely flat at $5.8 billion in the second quarter, and the company expects to finish 2026 with net debt below $5 billion. For the full year, Whirlpool continues to expect approximately 1.5% revenue growth on a like-for-like basis, ongoing EBIT margin of about 4%, and free cash flow of $300 million, or roughly 2% of net sales. The company expects about $400 million of capital expenditures this year, directed toward product innovation, digital transformation and cost-efficiency projects. 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. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Whirlpool Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Whirlpool Corporation WHR reported second-quarter 2026 results that showed early progress in its turnaround efforts, driven by pricing actions, cost reductions and balance sheet initiatives. However, the company continues to face pressure from weak appliance demand, elevated costs and higher interest expense.Whirlpool’s recovery strategy focuses on improving profitability while maintaining financial flexibility. The company’s second-quarter performance reflected sequential margin improvement, but earnings remained below prior-year levels as operating challenges persisted. Whirlpool Corporation price-consensus-eps-surprise-chart | Whirlpool Corporation Quote Whirlpool’s pricing actions are beginning to support margin recovery, particularly in North America. In the second quarter of 2026, MDA North America net sales increased 8% sequentially, while EBIT margin improved 240 basis points from the first quarter, driven primarily by previously announced promotional price increases.The company executed a promotional price increase of more than 10% compared with first-quarter prices and implemented an additional list price increase of approximately 4% effective in July. Whirlpool expects these actions, along with builder pricing, to provide additional benefits during the second half of 2026. Whirlpool continues to advance structural cost-reduction initiatives aimed at creating a lower-cost operating structure. The company remains on track to deliver more than $150 million in structural cost takeout in 2026 through automation, strategic sourcing and fixed-cost actions.The company is also pursuing footprint optimization efforts, including the modernization of the Amana facility, development of the Perrysburg facility and distribution network changes. These initiatives are expected to provide additional EBIT benefits beyond 2026, with larger contributions expected in 2027 and 2028. Image Source: Zacks Investment Research Whirlpool has improved liquidity through financing actions, including the completion of a $2 billion asset-based lending facility and issuance of $2 billion in secured bonds. These steps extended debt maturities and strengthened financial flexibility.However, leverage remains a key consideration. Whirlpool raised its expected 2026 interest expense outlook to approximately $350 million from $300 million following refinancing activity, which contributed to lower earnings guidance despite maintaining its operational outlook.Management expects net debt to decline below $5 billion by year-end 2026 and is targeting more than $300 million in free cash flow as part of its deleveraging efforts. A sustained recovery will depend partly on improvement in appliance demand and housing activity. Whirlpool reported second-quarter 2026 net sales of $3.52 billion, down 6.8% year over year, while U.S. appliance industry demand declined 3.4%.Lower industry demand has limited volume growth, increasing Whirlpool’s reliance on pricing actions and efficiency improvements to support profitability. MDA North America sales declined 1.5% year over year, with favorable price/mix partially offsetting lower volumes.The company also continues to face competitive pressure in the consumer products market, with peers such as SharkNinja, Inc. SN and Newell Brands Inc. NWL providing additional context for investors evaluating Whirlpool’s recovery outlook.WHR currently carries a Zacks Rank #3 (Hold), with a Value Score of B, Growth Score of F, Momentum Score of F and VGM Score of D. The ratings highlight a mixed investment profile, with valuation support offset by weaker growth and momentum indicators.You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Until demand conditions improve, Whirlpool’s turnaround remains dependent on continued execution of pricing initiatives, cost reductions and balance sheet management. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Whirlpool Corporation (WHR) : Free Stock Analysis Report Newell Brands Inc. (NWL) : Free Stock Analysis Report SharkNinja, Inc. (SN) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

With SharkNinja, Inc. SN set to report its second-quarter 2026 earnings results on Aug. 5, before the market opens, investors are asking an important question: Can the company extend its impressive earnings-beat streak, or will a challenging consumer environment weigh on its performance?The Zacks Consensus Estimate for second-quarter revenues stands at $1,639 million, indicating a 13.5% increase from the prior-year reported figure. On the earnings front, the consensus estimate has risen by a penny to $1.10 per share over the past 30 days, implying a year-over-year increase of 13.4%. SharkNinja has a trailing four-quarter earnings surprise of 13.8%, on average. In the last reported quarter, this Needham, MA-based company surpassed the Zacks Consensus Estimate by 7.9%. Image Source: Zacks Investment Research As investors prepare for SharkNinja’s second-quarter results, the question looms regarding an earnings beat or miss. Our proven model predicts that an earnings beat is likely for SharkNinja this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here. You can see the complete list of today’s Zacks #1 Rank stocks here.SharkNinja has a Zacks Rank #2 and an Earnings ESP of +2.65%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. SharkNinja, Inc. price-consensus-eps-surprise-chart | SharkNinja, Inc. Quote SharkNinja’s second-quarter performance is likely to have been supported by sustained demand for its innovation-led product portfolio across both established and newer categories. Management has consistently emphasized that solving consumer problems through differentiated products remains the foundation of its growth strategy. Momentum in products such as Ninja Luxe Café, Ninja Crispi and Shark CryoGlow, along with newer launches across beauty, cleaning and other adjacent categories, is likely to have continued into the quarter, supported by strong consumer engagement and growing brand awareness. The company’s ability to refresh existing categories while expanding into adjacent ones may have helped sustain solid revenue momentum. The company has continued accelerating its international expansion while strengthening its direct-to-consumer capabilities through enhanced websites and expanding digital commerce initiatives, including TikTok Shop. Management has also highlighted strengthening retailer relationships and increased shelf placements across key international markets. These initiatives, together with growing brand awareness and broader product availability overseas, may have supported continued market-share gains and further diversified the company’s revenue base beyond North America.Another factor likely to have aided SharkNinja’s performance is disciplined execution and continued investment in innovation, marketing and operational capabilities. The company has been increasingly incorporating artificial intelligence into product development, consumer insights and operational processes to improve efficiency and accelerate innovation. At the same time, its diversified category portfolio, agile sourcing network and omnichannel distribution strategy position it to respond quickly to changing consumer preferences. These strengths, combined with continued investment in brand-building and product launches, are anticipated to have supported continued consumer demand and operational execution during the second quarter.On the flip side, the quarter may have been affected by ongoing macroeconomic and cost-related pressures. Management has acknowledged that consumer demand across several appliance categories remains uneven and that tariffs, broader geopolitical uncertainty and global economic volatility continue to create a challenging operating environment. While SharkNinja has implemented pricing actions, sourcing initiatives and other mitigation measures to offset these pressures, such headwinds could still have weighed on margins. Shares of SharkNinja have rallied 38.6% over the past three months compared with the industry’s 8.3% rise. SharkNinja has outperformed Whirlpool Corporation WHR and Lifetime Brands, Inc. LCUT. While shares of Lifetime Brands have advanced 32.3%, those of Whirlpool have fallen 27.6% in said period. Image Source: Zacks Investment Research SharkNinja’s valuation remains attractive relative to the industry. The stock currently trades at a forward 12-month price-to-sales (P/S) multiple of 2.97, below the industry average of 3.26. However, the multiple stands above SN’s 12-month median of 2.28, suggesting that the stock is discounted against its industry peers but trades at a premium to its recent historical valuation.This premium positioning is especially notable when compared to peers like Whirlpool (with a forward 12-month P/S ratio of 0.17) and Lifetime Brands (0.29). Image Source: Zacks Investment Research SharkNinja appears well positioned heading into its second-quarter earnings release, supported by its innovation-driven product pipeline, expanding international footprint and disciplined execution across operations. While tariffs, macroeconomic uncertainty and softer industry demand could remain near-term headwinds, the company's ability to consistently gain market share and successfully launch new products provides reasons for optimism. With the Zacks model indicating favorable odds of an earnings beat, the stock appears well placed to deliver another solid quarterly performance. Existing investors may consider holding their positions ahead of the results, while prospective investors could keep the stock on their watchlist for a potential entry opportunity, particularly if management reinforces confidence in its long-term growth strategy. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report SharkNinja, Inc. (SN) : Free Stock Analysis Report Whirlpool Corporation (WHR) : Free Stock Analysis Report Lifetime Brands, Inc. (LCUT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management attributed Q2 performance to the successful execution of a 10% promotional price increase in North America, which fully offset price/mix headwinds in Latin America. The company is undergoing its largest portfolio refresh in a decade, transitioning over 30% of the North American MDA portfolio to new products to drive premium mix and market share. Operational progress was supported by a 100 basis point tailwind in net costs as the company moved past the heavy inventory reduction actions taken in the first quarter. Strategic footprint changes in Iowa, Brazil, and Mexico are being implemented to accelerate vertical integration and automation, though the vast majority of benefits are expected in 2027. Management noted that while industry demand remains soft due to the housing market, appliance demand is currently replacement-driven and relatively price inelastic at the point of sale. A series of recapitalization actions, including a $2 billion bond issuance and a $1.1 billion equity offering, were completed to clear debt maturities through 2027 and enhance liquidity. Full-year operational outlook remains unchanged, with revenue growth expected at approximately 1.5% and ongoing EBIT margins targeted at 4%. Management expects continued sequential margin expansion through the second half of 2026, driven by the compounding benefits of July list price increases and builder pricing actions. Free cash flow guidance of $300 million is supported by expected structural inventory optimization and the seasonal strength of the KitchenAid small appliance business. Interest expense guidance was revised upward to $350 million to reflect the costs associated with recent debt refinancing and bond issuances. The company anticipates exiting 2026 with net debt below $5 billion, maintaining a long-term commitment to deleveraging the balance sheet. Raw material inflation, specifically elevated steel and base metal costs, created a 50 basis point headwind in Q2 and remains a challenge for the full-year outlook. The implementation of Section 232 tariffs and the expiration of previous credit benefits resulted in an unfavorable 200 basis point impact on margins. The common dividend was suspended as a prudent measure to maximize cash preservation and improve near-term liquidity during a volatile macroeconomic period. A 25% reduction in the local distribution center network is underway to optimize logistics costs while maintaining 97% customer coverage within 100 miles. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management expressed high confidence in the 4% list price increase and builder pricing, noting that Q2 only reflected about two-thirds of the initial promotional price impact. The strategy involves reducing promotional windows, such as the July 4th period, to maintain pricing discipline across the industry. A temporary trade inventory burn impacted Q2 top-line results, but underlying retail sell-through remains in the high teens globally. Management expects the inventory situation to correct in Q3, supported by strong demand for new espresso machines and blenders. North American market share is currently flat year-to-date, which management views as a success given the significant price increases implemented. The company intends to prioritize structurally healthy organic share over aggressive, low-value promotions in the second half of the year. While some benefits will help 2026, the $70 million annualized benefit from Amana and $30 million from Perrysburg are primarily 2027 and 2028 drivers. Consolidation of Mexico refrigeration production is expected to begin yielding EBIT benefits starting in Q4 2026.

This article first appeared on GuruFocus. Net Sales: $3.5 billion in Q2 2026, impacted by softer industry demand in North America and promotional intensity in Latin America. Ongoing EBIT Margin: 1.8%, a sequential improvement of 50 basis points. Ongoing Earnings Per Share: Negative $0.21. Free Cash Flow: Consumption of approximately $1.1 billion, driven by lower earnings and seasonal working capital. MDA North America Net Sales: $2.4 billion, up 8% sequentially from Q1. MDA North America EBIT Margin: Improved 240 basis points sequentially. MDA Latin America Net Sales: Decreased 2% excluding currency, due to negative price mix. MDA Latin America EBIT Margin: 3%, despite a tax case related net gain. SDA Global EBIT Margin: Approximately 12% in Q2. Net Debt: Largely flat at $5.8 billion in Q2. Full Year Revenue Growth Guidance: Approximately 1.5% on a like-for-like basis. Full Year Ongoing EBIT Margin Guidance: Approximately 4%. Full Year Free Cash Flow Guidance: $300 million, or approximately 2% of net sales. Full Year Interest Expense Guidance: Updated from $300 million to $350 million. Warning! GuruFocus has detected 7 Warning Signs with WHR. Is WHR fairly valued? Test your thesis with our free DCF calculator. Release Date: August 04, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Whirlpool Corp (NYSE:WHR) delivered sequential EBIT margin improvement of 50 basis points in Q2, driven by strong execution of pricing actions and structural cost takeout initiatives. The company successfully executed a promotional price increase of over 10% in North America, which is already positively impacting margins and is expected to provide further incremental gains. Whirlpool Corp (NYSE:WHR) has a robust pipeline of new product launches, including the KitchenAid Porcelain White Suite and Whirlpool UV laundry tower, which are driving market share gains and premium mix. The company completed strategic balance sheet actions, including a $1.1 billion equity offering, a $2 billion ABL facility, and a $2 billion bond issuance, securing over $3 billion in liquidity and clearing debt maturities until 2028. Whirlpool Corp (NYSE:WHR) is on track to deliver $150 million in structural cost takeout in 2026, with additional footprint optimizations expected to generate significant EBIT benefits starting in Q4 2026 and into 2027. The SDA global business achieved a 12% EBIT margin in Q2, with double-digit sell-through growth and strong share gains, particularly in stand mixers and espresso machines. Whirlpool Corp (NYSE:WHR) reported a net loss with ongoing EPS of negative $0.21 in Q2, impacted by softer industry demand and promotional intensity in Latin America. The company faces significant headwinds from raw material inflation, particularly elevated steel and base metal costs, which negatively impacted margins by 50 basis points in Q2. Net tariff impacts were a 200 basis point headwind in Q2, driven by the implementation of Section 232 tariffs, and similar levels are expected in the second half of 2026. Latin America MDA segment experienced negative price mix and intense promotional competition, leading to an EBIT margin of only 3% despite a tax-related net gain. The company's free cash flow was a consumption of approximately $1.1 billion in Q2, largely due to lower earnings and seasonal working capital, though it expects improvement in the second half. Whirlpool Corp (NYSE:WHR) updated its full-year EPS guidance downward due to increased interest expense from recent debt refinancing, raising interest expense outlook from $300 million to $350 million. Q: What gives you confidence in the 4% list price increase for July, and how confident are you that the industry will maintain promotional discipline through year-end?A: Marc Bitzer (CEO) stated that the execution of the promotional price increase from late April was strong, with Q2 results already reflecting about two-thirds of the impact. The company is confident in the July list price increase and the builder price increases kicking in during Q3. He noted that the company demonstrated its promotional discipline during the July 4th period by reducing the promotional window from three weeks to two, and expects this policy to continue, providing confidence in pricing traction for Q3 and Q4. Q: Can you clarify the cadence of margin improvement in North America for the back half of the year, given the guidance implies a significant step-up from the first half?A: Marc Bitzer (CEO) explained that North America saw a margin improvement of over 2 points between Q1 and Q2, driven by only two-thirds of the price increase. He expects similar significant step-ups in Q3 and Q4, driven by the successful pricing actions and additional cost initiatives. He emphasized that the improvement is not back-end loaded to Q4, with Q3 expected to show a similar step-up as seen between Q1 and Q2. Q: What drove the temporary inventory burn in the SDA (Small Domestic Appliances) business in Q2, and how does this square with the expectation of double-digit growth?A: Marc Bitzer (CEO) and Ludovic Beaufils (President of KitchenAid Small Appliances) explained that the underlying sell-through in retail was double-digit, with global sell-through up high teens. The inventory burn was a temporary situation caused by a sizable order arriving late in the quarter. July is already looking healthy, and the company remains confident in the full-year revenue guidance for SDA, with the momentum from new product launches boding well for Q3 and the rest of the year. Q: How are you balancing investments in product innovation with other capital allocation needs, given the success of recent launches?A: Marc Bitzer (CEO) confirmed that despite challenges, the company has not cut back on capital investment for product innovation. The successful launches in 2025 and 2026, such as the KitchenAid suite and laundry tower, are helping offset promotional environment challenges. The company will continue to feed the product pipeline and has no intention of reducing capital investments in products. Juan Carlos Puente (President of North America) added that innovation drives top-line growth and margin expansion, while automation and vertical integration drive cost efficiencies. Q: Can you discuss the opportunities for further operational efficiencies from the cost takeout initiatives and how technology plays into that?A: Marc Bitzer (CEO) outlined ongoing cost takeout initiatives, including product redesigns with quick turnarounds and factory automation investments. He highlighted significant footprint decisions, such as refocusing the Amana, Iowa factory on bottom-mount refrigeration, consolidating Argentina operations into Brazil, and consolidating two refrigeration factories in Mexico. These moves will structurally improve cost positions, with major benefits expected in 2027. Ludovic Beaufils added that investments in IT infrastructure, including direct-to-consumer platforms and AI, are driving efficiencies across the business. Q: Are you seeing any trade-down in consumer mix, and are new product launches enough to offset those headwinds?A: Marc Bitzer (CEO) noted that in a replacement-driven market, price elasticity is limited. However, some consumers are staying at the same price point, leading to a slight mix-down. The offsetting element is new products, which drive mix-up. He believes the new product launches can certainly offset the negative impact of price increases on the replacement mix. Q: Are competitors holding onto IEEPA refunds, and is there any impact from changing Section 232 dynamics?A: Marc Bitzer (CEO) stated he cannot speak for competitors, but those who gave detailed Q2 statements largely recognized these benefits in Q2, so the impact is largely behind. He does not expect a major change in the tariff environment, with Q3 and Q4 tariff costs expected to be similar to Q2 levels, plus or minus. Q: What is the expected sequential uplift in MDA Latin America margins from Q2 to Q3 and Q4, given the promotional environment?A: Ludovic Beaufils (President of Latin America) explained that pricing actions in Brazil, effective August 1, will progressively take hold through Q3 and expand fully into Q4. The rest of the continent has been performing well. Cost actions will also progress sequentially from Q2 to Q4 as fixed and variable costs are taken out of the P&L. Marc Bitzer (CEO) added that the seasonal KitchenAid SDA business will also contribute to a step-up in profitability in the second half. Q: Can you quantify the Brazilian tax tailwind in the quarter?A: Roxanne Warner (CFO) confirmed that the net impact of the Brazil tax benefit was approximately $14 million, with some puts and takes, but overall netting to that amount. Q: Does the steady improvement in competitive pricing give you confidence that the industry has become more rational from a pricing and promotional standpoint?A: Marc Bitzer (CEO) noted that the final change in Section 232 is now a couple of months in the market, and pricing has stabilized. He emphasized that the company's pricing actions are not just tariff-related but also reflect years of cost inflation. He believes the industry is now passing on real costs to the market, which he considers a rational environment. He also noted that Whirlpool's tariff costs are lower on a relative basis than competitors, but he can only speculate on their pricing strategies. Q: Can you discuss the decision to consolidate distribution centers and the timing of the expected $60 million in annualized EBIT benefit?A: Marc Bitzer (CEO) explained that the company is rebalancing its distribution network, reducing local distribution centers from 126 to 94 while maintaining 97% of customers within 100 miles. This consolidation will improve inventory availability and reduce operating costs. The $60 million annualized EBIT benefit is expected to be realized over time as the network optimization is completed. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Whirlpool Corporation WHR 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-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. 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. 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 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. 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 Duluth Holdings Inc. DLTH 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 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 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. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Whirlpool Corporation (WHR) : Free Stock Analysis Report Vince Holding Corp. (VNCE) : Free Stock Analysis Report Duluth Holdings Inc. (DLTH) : Free Stock Analysis Report Revolve Group, Inc. (RVLV) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Q2 performance in line with expectations, delivering sequential margin improvement Successfully executed previously announced pricing actions in North America, with the support of successful new product launches; announced price increases in Latin America Completed the transition to a $2 billion asset based lending facility and issued $2 billion in secured bonds, clearing debt maturities until 2028 and creating financial flexibility Q2 GAAP net earnings margin of 2.1%; GAAP earnings per diluted share of $1.15 Q2 ongoing (non-GAAP) EBIT margin(2) of 1.8%; ongoing earnings (loss) per diluted share(3) of $(0.21) Full year 2026 revenue and margin outlook is unchanged 2026 updated EPS outlook includes full-year GAAP earnings per diluted share of $2.25 to $2.75, and ongoing earnings per diluted share(3)of $2.50 to $3.00, reflecting new interest expense outlook 2026 cash flow outlook includes cash provided by operating activities of approximately $700 million and free cash flow(4) of over $300 million BENTON HARBOR, Mich., Aug. 3, 2026 /PRNewswire/ -- Whirlpool Corporation (NYSE: WHR), today reported second-quarter financial results. "We are encouraged by the sequential margin expansion achieved in Q2, driven by price increase execution, progress with our cost take-out program and key product innovation. These decisive actions position our business for sustained performance improvement."MARC BITZER, CHAIRMAN AND CHIEF EXECUTIVE OFFICER "We have taken proactive steps to strengthen our balance sheet and optimize our capital structure. By completing the $2B ABL facility and successfully issuing $2B in secured bonds, we have significantly extended our debt maturity profile and created financial flexibility to support our strategic priorities." ROXANNE WARNER, CHIEF FINANCIAL OFFICER SEGMENT REVIEW MDA NORTH AMERICA Strong sequential net sales growth of 8% with EBIT margin improvement of 240 bps, primarily driven by successful execution of previously announced pricing actions Excluding currency, net sales decreased 1.5% year-over-year driven by lower volume resulting from industry decline, partially offset by favorable price/mix EBIT margin(5) decreased year-over-year, pressured by volume decline and the unfavorable impact of tariff, raw material inflation and fuel costs, partially offset by favorable price/mix MDA LATIN AMERICA Excluding currency, net sales decreased 1.7% year-over-year due to negative price mix in Brazil, despite volume increase EBIT margin(5) impacted by unfavorable price/mix, partially supported by favorable Brazil tax-case related gain Announced price increase and structural cost actions to restore margins in Brazil SDA GLOBAL Excluding currency, net sales decreased 1.2% year-over-year driven by lower retailer inventory despite strong sell-out EBIT margin(5) in line with expectations, impacted by planned marketing investments and supported by new product launches and direct-to-consumer expansion Underlying demand is positive, with strong sell-out and share gains globally FULL-YEAR 2026 OUTLOOK On a full year basis in 2026, our operational outlook is unchanged. EPS is revised to reflect the new interest expense. We expect: Net sales of approximately $15.0 billion; approximately 1.5% growth vs. 2025 like-for-like(6) net sales of approximately $14.7 billion GAAP net earnings margin of 1.0% and ongoing (non-GAAP) EBIT margin of approximately 4.0%, driven by our largest price increase in over a decade Structural cost take out to deliver over $150 million or 100 basis points of margin expansion GAAP earnings per diluted share of $2.25 to $2.75 and full-year ongoing earnings per diluted share(3) of $2.50 to $3.00 2026 GAAP tax rate of approximately 20% and adjusted (non-GAAP) tax rate of 25% Cash provided by operating activities of approximately $700 million and free cash flow(4) of over $300 million Net debt below $5.0 billion at year end ABOUT WHIRLPOOL CORPORATION Whirlpool Corporation (NYSE: WHR) is a leading home appliance company, in constant pursuit of improving life at home. As the only major U.S.-based manufacturer of kitchen and laundry appliances, the company is driving meaningful innovation to meet the evolving needs of consumers through its iconic brand portfolio, including Whirlpool, KitchenAid, JennAir, Maytag, Amana, Brastemp, Consul, and InSinkErator. In 2025, the company reported approximately $16 billion in annual net sales - close to 90% of which were in the Americas - 41,000 employees and 35 manufacturing and technology research centers. Additional information about the company can be found at WhirlpoolCorp.com. WEBSITE DISCLOSURE We routinely post important information for investors on our website, WhirlpoolCorp.com, in the "Investors" section. We also intend to update the "Hot Topics Q&A" portion of this webpage as a means of disclosing material, non-public information and for complying with our disclosure obligations under Regulation FD. Accordingly, investors should monitor the "Investors" section of our website, in addition to following our press releases, SEC filings, public conference calls, presentations and webcasts. The information contained on, or that may be accessed through, our webpage is not incorporated by reference into, and is not a part of, this document. WHIRLPOOL ADDITIONAL INFORMATION This document contains forward-looking statements about Whirlpool Corporation and its consolidated subsidiaries ("Whirlpool") within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Whirlpool intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and includes this statement for purposes of complying with those safe harbor provisions. Any statements made in this press release that are not statements of historical fact, including statements regarding future financial results, long-term value creation goals, restructuring expectations, productivity, raw material prices and related costs, supply chain, portfolio transformation expectations, India transaction expectations, asset impairment, new product introduction benefits, trade and tariffs, litigation, ESG efforts, debt repayment and dividend expectations, share position, trade customer inventory expectations, cost take-out, manufacturing investment benefits, and the impact of housing recovery-related benefits on our operations are forward-looking statements and should be evaluated as such. Such statements can be identified by the use of terminology such as "may," "could," "will," "should," "possible," "plan," "predict," "forecast," "potential," "anticipate," "estimate," "expect," "project," "intend," "believe," "may impact," "on track," "margin lift," and similar words or expressions. Many risks, contingencies and uncertainties could cause actual results to differ materially from Whirlpool's forward-looking statements. Whirlpool disclaims any obligation to update these statements. Many risks, contingencies and uncertainties could cause actual results to differ materially from Whirlpool's forward-looking statements. Among these factors are: (1) intense competition in the home appliance industry, and the impact of the changing retail environment, including direct-to-consumer sales; (2) Whirlpool's ability to maintain or increase sales to significant trade customers and builders; (3) Whirlpool's ability to maintain its reputation and brand image; (4) Whirlpool's ability to achieve its business objectives and successfully manage its strategic portfolio transformation and outsourced business unit service model; (5) Whirlpool's ability to understand consumer preferences and successfully develop new products; (6) Whirlpool's ability to obtain and protect intellectual property rights; (7) acquisition, divestiture, and investment-related risks, including risks associated with our past transactions; (8) the ability of suppliers of critical parts, components and manufacturing equipment to deliver sufficient quantities to Whirlpool in a timely and cost-effective manner; (9) risks related to Whirlpool's international operations; (10) Whirlpool's ability to respond to unanticipated social, political and/or economic events, including epidemics/pandemics; (11) information technology system and cloud failures, data security breaches, data privacy compliance, network disruptions, and cybersecurity attacks; (12) product liability and product recall costs; (13) Whirlpool's ability to attract, develop and retain executives and other qualified employees; (14) the impact of labor relations; (15) fluctuations in the cost of key materials (including steel, resins, and base metals) and components and the ability of Whirlpool to offset cost increases; (16) Whirlpool's ability to manage foreign currency fluctuations; (17) impacts from goodwill, intangible asset and/or inventory impairment charges; (18) health care cost trends, regulatory changes and variations between results and estimates that could increase future funding obligations for pension and postretirement benefit plans; (19) impacts from credit rating agency downgrades; (20) litigation, tax, and legal compliance risk and costs; (21) the effects and costs of governmental investigations or related actions by third parties; (22) changes in the legal and regulatory environment including environmental, health and safety regulations, data privacy, taxes and AI; (23) the impacts of changes in foreign trade policies, including tariffs; (24) Whirlpool's ability to respond to the impact of climate change and climate change or other environmental regulation; (25) the uncertain global economy and changes in economic conditions; (26) financing and liquidity uncertainty including payment of dividends on our Mandatory Convertible Preferred Stock; (27) the dilutive effect of conversion and potential dividend payments in common stock for our Mandatory Convertible Preferred Stock; (28) the liquidation preference of our Mandatory Convertible Preferred Stock above our common stock; (29) reduced operational flexibility under our Senior Secured Second Lien Notes due 2031 and 2034; and (30) reduced operational flexibility and liquidity availability under our Asset-Based loan facility. SUPPLEMENTAL INFORMATION - CONSOLIDATED FINANCIAL STATEMENTS RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (Millions of dollars except per share data) (Unaudited) We supplement the reporting of our financial information determined under U.S. generally accepted accounting principles (GAAP) with certain non-GAAP financial measures, some of which we refer to as "ongoing" measures. These measures may include earnings before interest and taxes (EBIT), EBIT margin, ongoing EBIT, ongoing EBIT margin, ongoing earnings per diluted share, ongoing EBITDA, adjusted effective tax rate, organic net sales, net debt leverage (Net Debt/Ongoing EBITDA), return on invested capital (ROIC) and free cash flow. Ongoing measures exclude items that may not be indicative of, or are unrelated to, results from our ongoing operations and provide a better baseline for analyzing trends in our underlying businesses. Sales excluding foreign currency: Current period net sales translated in functional currency, to U.S. dollars using the applicable prior period's exchange rate compared to the applicable prior period net sales. Management believes that sales excluding foreign currency provides stockholders with a clearer basis to assess our results over time, excluding the impact of exchange rate fluctuations. Organic net sales: Sales excluding the impact of certain acquisitions or divestitures, and foreign currency. Management believes that organic net sales provides stockholders with a clearer basis to assess our results over time, excluding the impact of exchange rate fluctuations and certain acquisitions and/or divestitures. Ongoing EBIT margin: Ongoing earnings before interest and taxes divided by net sales. Ongoing measures exclude items that may not be indicative of, or are unrelated to, results from our ongoing operations and provide a better baseline for analyzing trends in our underlying businesses. Ongoing earnings per diluted share: Diluted net earnings per share from continuing operations, adjusted to exclude items that may not be indicative of, or are unrelated to, results from our ongoing operations. Ongoing measures provide a better baseline for analyzing trends in our underlying businesses. Ongoing EBITDA: Ongoing earnings before interest, taxes, depreciation and amortization. Ongoing measures exclude items that may not be indicative of, or are unrelated to, results from our ongoing operations and provide a better baseline for analyzing trends in our underlying businesses. Net debt leverage: Net debt to ongoing earnings before interest, taxes, depreciation, and amortization (EBITDA) ratio is net debt outstanding, including long-term debt, current maturities of long-term debt, and notes payable, less cash and cash equivalents, divided by ongoing EBITDA. Management believes that net debt leverage provides stockholders with a view of our ability to generate earnings sufficient to service our debt. Return on invested capital: Ongoing EBIT after taxes divided by total invested capital, defined as total assets less non-interest bearing current liabilities (NIBCLS). NIBCLS is defined as current liabilities less current maturities of long-term debt and notes payable. This ROIC definition may differ from other companies' methods and therefore may not be comparable to those used by other companies. Management believes that ROIC provides stockholders with a view of capital efficiency, a key driver of stockholder value creation. Adjusted effective tax rate: Effective tax rate, excluding pre-tax income and tax effect of certain unique items. Management believes that adjusted tax rate provides stockholders with a meaningful, consistent comparison of the Company's effective tax rate, excluding the pre-tax income and tax effect of certain unique items. Free cash flow: Cash provided by (used in) operating activities less capital expenditures. Management believes that free cash flow provides stockholders with a relevant measure of liquidity and a useful basis for assessing the Company's ability to fund its activities and obligations. Whirlpool does not provide a non-GAAP reconciliation for its forward-looking long-term value creation goals, such as EBIT, free cash flow conversion, ROIC and net debt leverage, as these long-term management goals are not annual guidance, and the reconciliation of these long-term measures would rely on market factors and certain other conditions and assumptions that are outside of the Company's control. We believe that these non-GAAP measures provide meaningful information to assist investors and stockholders in understanding our financial results and assessing our prospects for future performance, and reflect an additional way of viewing aspects of our operations that, when viewed with our GAAP financial measures, provide a more complete understanding of our business. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies' non-GAAP financial measures having the same or similar names. These ongoing non-GAAP financial measures should not be considered in isolation or as a substitute for reported net earnings available to Whirlpool per diluted share, net earnings, net earnings available to Whirlpool, net earnings margin, return on assets, net sales, effective GAAP tax rate and cash provided by (used in) operating activities, the most directly comparable GAAP financial measures. We also disclose segment EBIT as an important financial metric used by the Company's Chief Operating Decision Maker to evaluate performance and allocate resources in accordance with ASC 280 - Segment Reporting. GAAP net earnings available to Whirlpool per basic or diluted share (as applicable) and ongoing earnings per diluted share are presented net of tax, while individual adjustments in each reconciliation are presented on a pre-tax basis; the income tax impact line item aggregates the tax impact for these adjustments. The tax impact of individual line item adjustments may not foot precisely to the aggregate income tax impact amount, as each line item adjustment may include non-taxable components. Historical quarterly earnings per share amounts are presented based on a normalized tax rate adjustment to reconcile quarterly tax rates to full-year tax rate expectations. We strongly encourage investors and stockholders to review our financial statements and publicly filed reports in their entirety and not to rely on any single financial measure. SECOND-QUARTER 2026 ONGOING EARNINGS BEFORE INTEREST AND TAXES AND ONGOING EARNINGS PER DILUTED SHARE The reconciliation provided below reconciles the non-GAAP financial measures ongoing earnings before interest and taxes and ongoing earnings per diluted share, with the most directly comparable GAAP financial measures, net earnings (loss) available to Whirlpool common shareholders and net earnings (loss) per diluted share available to Whirlpool common shareholders, for the three months ended June 30, 2026. Net earnings (loss) margin is calculated by dividing net earnings (loss) available to Whirlpool common shareholders by net sales. Ongoing EBIT margin is calculated by dividing ongoing EBIT by net sales. EBIT margin is calculated by dividing EBIT by net sales. The earnings per diluted share GAAP measure and ongoing measure are presented net of tax, while each adjustment is presented on a pre-tax basis. Our second-quarter GAAP tax rate was 3.5%. The aggregate income tax impact of the taxable components of each adjustment is presented in the income tax impact line item at our second-quarter adjusted tax rate (non-GAAP) of 25.0%. SECOND-QUARTER 2025 ONGOING EARNINGS BEFORE INTEREST AND TAXES AND ONGOING EARNINGS PER DILUTED SHARE The reconciliation provided below reconciles the non-GAAP financial measures ongoing earnings before interest and taxes and ongoing earnings per diluted share, with the most directly comparable GAAP financial measures, net earnings (loss) available to Whirlpool and net earnings (loss) per diluted share available to Whirlpool, for the three months ended June 30, 2025. Net earnings (loss) margin is calculated by dividing net earnings (loss) available to Whirlpool by net sales. Ongoing EBIT margin is calculated by dividing ongoing EBIT by net sales. EBIT margin is calculated by dividing EBIT by net sales. The earnings per diluted share GAAP measure and ongoing measure are presented net of tax, while each adjustment is presented on a pre-tax basis. Our second-quarter GAAP tax rate was 23.9%. The aggregate income tax impact of the taxable components of each adjustment is presented in the income tax impact line item at our second-quarter adjusted tax rate (non-GAAP) of 22.5%. FIRST-QUARTER 2026 ONGOING EARNINGS BEFORE INTEREST AND TAXES AND ONGOING EARNINGS PER DILUTED SHARE The reconciliation provided below reconciles the non-GAAP financial measures ongoing earnings before interest and taxes and ongoing earnings per diluted share, with the most directly comparable GAAP financial measures, net earnings (loss) available to Whirlpool common shareholders and net earnings (loss) per diluted share available to Whirlpool common shareholders, for the three months ended March 31, 2026. Net earnings (loss) margin is calculated by dividing net earnings (loss) available to Whirlpool common shareholders by net sales. Ongoing EBIT margin is calculated by dividing ongoing EBIT by net sales. EBIT margin is calculated by dividing EBIT by net sales. The earnings per diluted share GAAP measure and ongoing measure are presented net of tax, while each adjustment is presented on a pre-tax basis. Our first-quarter GAAP tax rate was (26.9)%. The aggregate income tax impact of the taxable components of each adjustment is presented in the income tax impact line item at our first-quarter adjusted tax rate (non-GAAP) of 25.0%. FULL-YEAR 2025 ONGOING EARNINGS BEFORE INTEREST AND TAXES AND ONGOING EARNINGS PER DILUTED SHARE The reconciliation provided below reconciles the non-GAAP financial measures ongoing earnings before interest and taxes and ongoing earnings per diluted share, with the most directly comparable GAAP financial measures, net earnings (loss) available to Whirlpool and net earnings (loss) per diluted share available to Whirlpool, for the twelve months ended December 31, 2025. Net earnings (loss) margin is calculated by dividing net earnings (loss) available to Whirlpool by net sales. Ongoing EBIT margin is calculated by dividing ongoing EBIT by net sales. EBIT margin is calculated by dividing EBIT by net sales. The earnings per diluted share GAAP measure and ongoing measure are presented net of tax, while each adjustment is presented on a pre-tax basis. Our full-year GAAP tax rate was 27.5%. The aggregate income tax impact of the taxable components of each adjustment is presented in the income tax impact line item at our full-year adjusted tax (non-GAAP) rate of 3.5%. FULL-YEAR 2024 ONGOING EARNINGS BEFORE INTEREST AND TAXES AND ONGOING EARNINGS PER DILUTED SHARE The reconciliation provided below reconciles the non-GAAP financial measures ongoing earnings before interest and taxes and ongoing earnings per diluted share, with the most directly comparable GAAP financial measures, net earnings (loss) available to Whirlpool and net earnings (loss) per diluted share available to Whirlpool, for the twelve months ended December 31, 2024. Net earnings (loss) margin is calculated by dividing net earnings (loss) available to Whirlpool by net sales. Ongoing EBIT margin is calculated by dividing ongoing EBIT by net sales. EBIT margin is calculated by dividing EBIT by net sales. The earnings per diluted share GAAP measure and ongoing measure are presented net of tax, while each adjustment is presented on a pre-tax basis. Our full-year GAAP tax rate was (5.5)%. The aggregate income tax impact of the taxable components of each adjustment is presented in the income tax impact line item at our full-year adjusted tax (non-GAAP) rate of (28.6)%. FULL-YEAR 2026 OUTLOOK FOR ONGOING EARNINGS BEFORE INTEREST AND TAXES AND ONGOING EARNINGS PER DILUTED SHARE The reconciliation provided below reconciles the non-GAAP financial measures ongoing earnings before interest and taxes and ongoing earnings per diluted share, with the most directly comparable GAAP financial measures, net earnings available to Whirlpool common shareholders and net earnings per diluted share available to Whirlpool common shareholders, for the twelve months ending December 31, 2026. Net earnings margin is calculated by dividing net earnings available to Whirlpool common shareholders by net sales. Ongoing EBIT margin is calculated by dividing ongoing EBIT by net sales. EBIT margin is calculated by dividing EBIT by net sales. The earnings per diluted share GAAP measure and ongoing measure are presented net of tax, while each adjustment is presented on a pre-tax basis. Our anticipated full-year GAAP tax rate is approximately 20.0%. The aggregate income tax impact of the taxable components of each adjustment is presented in the income tax impact line item at our anticipated full-year adjusted tax (non-GAAP) rate of approximately 25.0%. NET SALES AND ONGOING EBIT EXCLUDING MDA INDIA 2025 The reconciliation provided below reconciles the impact of removing MDA India from our net sales and ongoing EBIT for the twelve months ended December 31, 2025 for the Whirlpool business. Please see elsewhere in this Supplemental Information section for a reconciliation of Ongoing EBIT to GAAP reported net earnings (loss) available to Whirlpool. NET SALES AND ONGOING EBIT EXCLUDING MDA EUROPE 2024 FIRST QUARTER AND MDA INDIA 2024 DECEMBER The reconciliation provided below reconciles the impact of removing Q1 MDA Europe from our net sales and ongoing EBIT for the twelve months ended December 31, 2024 for the Whirlpool business. Please see elsewhere in this Supplemental Information section for a reconciliation of Ongoing EBIT to GAAP reported net earnings (loss) available to Whirlpool. Net Sales Year Over Year Change Walk The reconciliation provided below reconciles the year over year change in net sales percentage utilizing like-for-like net sales figures. FREE CASH FLOW Free cash flow is cash provided by (used in) operating activities after capital expenditures. The reconciliation provided below reconciles six months ended June 30, 2026 and 2025 and 2026 full-year free cash flow with cash provided by (used in) operating activities, the most directly comparable GAAP financial measure. Free cash flow as a percentage of net sales is calculated by dividing free cash flow by net sales. EQUITY METHOD INVESTMENT INCOME (LOSS), NET OF TAX The reconciliation provided below reconciles the non-GAAP financial measure ongoing equity method investment income (loss), net of tax to GAAP reported equity method investment income (loss), net of tax, for the three months ended June 30, 2025 and 2026 for the Whirlpool business. ORGANIC NET SALES The reconciliation provided below reconciles the non-GAAP financial measure organic net sales to GAAP reported net sales, for three months ended June 30, 2025 and 2026 for the Whirlpool business. View original content to download multimedia:https://www.prnewswire.com/news-releases/whirlpool-corporation-announces-second-quarter-results-302841564.html