Whirlpool (WHR -2.00%), a worldwide chief in kitchen and laundry home equipment, launched its Q2 2025 outcomes on July 28, 2025. The corporate reported $1.34 in ongoing earnings per share (a non-GAAP measure), underperforming the $1.68 non-GAAP consensus estimate. Income (GAAP) got here in at $3,773 million, additionally lacking analyst expectations of $3,846.88 million (GAAP). Each figures represented a decline versus the identical interval (Q2 2024), with GAAP web gross sales down 5.4% yr over yr and ongoing earnings per share (non-GAAP) falling by 43.9% yr over yr. Administration characterised the quarter as pressured by ongoing competitors from Asian imports and muted shopper demand, however maintained its full-year outlook.
MetricQ2 2025Q2 2025 EstimateQ2 2024Y/Y ChangeEPS (Non-GAAP)$1.34$1.68$2.39(43.9%)EPS (GAAP)$1.17$3.96(70.5%)Income$3,773 million$3,846.88 million$3,989 million(5.4%)Ongoing EBIT Margin5.3percent5.3percent0.0 ptsFree Money Movement (Non-GAAP)($856 million)($713 million)(143 million)
Supply: Analyst estimates supplied by FactSet. Administration expectations based mostly on administration’s steerage, as supplied in Q1 2025 earnings report.
Enterprise Overview and Strategic Focus
The corporate manufactures and sells a broad vary of family home equipment. Its core product households embody main home home equipment—equivalent to fridges, ovens, and washing machines—in addition to small home home equipment like blenders and espresso machines.
It has just lately centered on a number of key areas: reshaping its enterprise portfolio, accelerating product innovation, and optimizing prices throughout international operations. The corporate divested low-margin or slower-growth operations, launched over 100 new merchandise in 2024, and executed ongoing price financial savings initiatives.
Quarter Evaluation: Monetary and Operational Efficiency
The quarter was marked by shortfalls in each revenue and income in comparison with expectations and final yr’s efficiency. Ongoing earnings per share fell to $1.34 from $2.39 in Q2 2024. Working money circulation (GAAP) and free money circulation (non-GAAP) have been each destructive, with free money circulation (non-GAAP) at ($856 million) for the primary six months of 2025 in comparison with ($713 million) within the prior-year interval. This mirrored continued outflows tied to working capital and stock will increase.
The corporate’s working margin—a gauge of revenue as a share of gross sales—remained degree at 5.3% (ongoing EBIT margin, non-GAAP). Regardless of margin stability, web earnings dropped sharply, with GAAP web earnings falling by 70.5% year-over-year. A $19 million loss from its Beko Europe fairness funding added a one-time drag to the outcomes. Section particulars confirmed North American main equipment gross sales declined by 4.7%, with earnings earlier than curiosity and taxes (EBIT) down 11.7% year-over-year, as promotional exercise remained excessive and competitors from Asian imports weighed down volumes. Latin America recorded a ten.0% gross sales decline. In Asia, gross sales fell 5.9% year-over-year however income rose 11.2% year-over-year. The Small Home Home equipment division noticed web gross sales progress of seven.9% in Q1 2025, with gross sales up 7.5% year-over-year and EBIT leaping 32.9% on robust new product momentum.
The corporate continued to reshape its enterprise by focusing away from Europe, following a transaction with Arçelik to exit its European main equipment operations. Portfolio simplification stays a precedence, although lingering legacy prices proceed to have an effect on reported outcomes. New product launches have been a recurring theme, with the best-in-class KitchenAid induction cooktop and JennAir built-in wall oven amongst these highlighted. These helped maintain direct-to-consumer gross sales progress, particularly in small home equipment.
On capital construction, it refinanced $1.2 billion in time period debt at an rate of interest of roughly 6.3%. Internet debt stays elevated, and the corporate’s money reserves fell to $1.07 billion (GAAP). On the similar time, it advisable an annual dividend payout of $3.60 per share, maintaining the quarterly dividend at $0.90, and ongoing money burn would require shut monitoring because the yr progresses.
Outlook and Investor Issues
Wanting forward, administration reaffirmed its FY2025 steerage: ongoing (non-GAAP) earnings per share between $6.00 and $8.00, and ongoing EBIT margin of roughly 5.7% (non-GAAP), with free money circulation (non-GAAP) steerage set at $400 million for the total yr. The corporate’s management has said that cost-saving actions are anticipated to completely offset anticipated tariff headwinds, which have been a key subject for the trade this yr.
The corporate’s management didn’t announce modifications to its quarterly dividend. Administration didn’t present detailed quarterly margin or phase steerage. Buyers will wish to look ahead to modifications in money circulation, debt reimbursement progress, and the tempo of stock normalization because the again half of the yr unfolds.
Income and web revenue offered utilizing U.S. typically accepted accounting rules (GAAP) until in any other case famous.
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