Whirlpool (NYSE:WHR) reported third-quarter net sales of $3.7 billion and an ongoing EBIT margin of 2.6%, representing an 80-basis-point sequential improvement, as the appliance maker pursued pricing actions, cost reductions and working-capital discipline amid softer demand and higher input costs.
Ongoing earnings per share were negative $0.21 for the quarter. Chairman and Chief Executive Officer Marc Bitzer said the company’s pricing and cost actions made progress but were partially offset by higher raw-material, fuel and logistics expenses, preventing the margin increase Whirlpool had expected.
“We delivered another quarter of sequential margin improvement against macroeconomic challenges that undoubtedly intensified over the last three months,” Bitzer said. He added that the company is updating its full-year margin outlook to reflect the slower pace of recovery.
Pricing Actions and Cost Pressures
Whirlpool said pricing actions in North America and Latin America generated 250 basis points of sequential margin improvement, offsetting mix headwinds. Net cost was a 100-basis-point benefit, supported by structural cost reductions and productivity efforts, though fuel and logistics costs offset part of that benefit.
However, raw-material inflation reduced margins by 75 basis points, driven chiefly by higher steel, resin and base-metal costs. Tariffs were a 225-basis-point headwind, largely due to incremental U.S. Section 232 tariffs. Marketing and technology investment increased by 25 basis points, while currency and transaction effects each provided 25 basis points of favorable impact.
Whirlpool implemented additional price increases of 7% in North America and up to 10% across Latin America. The North American increase took effect Nov. 1 in Canada and is scheduled for Dec. 3 in the U.S. Bitzer said the actions will have limited fourth-quarter impact but are expected to fully ramp in January.
During the question-and-answer session, Bitzer said the December North American pricing action combines several tools, including MAP, PMAP and first-call pricing. He said the company expects a sizable lift in December that will carry into 2027.
Whirlpool also said its structural initiatives—including strategic sourcing, manufacturing optimization and warehouse consolidation—remain on track, with most of the benefits expected in 2027. The company’s manufacturing and supply-chain actions are expected to generate $290 million in structural cost benefits, according to Juan Carlos Puente, executive president of North America and global strategic sourcing.
North America Demand and Operations
Whirlpool’s North American major domestic appliance segment posted third-quarter net sales of $2.5 billion. Industry demand in the region fell 3.3% during the quarter, consistent with Whirlpool’s full-year expectation for an approximately 5% decline.
Puente said price increases implemented in April and July, along with new product launches, drove approximately 230 basis points of sequential margin expansion in North America. Inflationary pressures reduced the net sequential EBIT margin benefit to 30 basis points.
The company said it has completed a 25% reduction in its local distribution-center count in the U.S. and continues to consolidate regional distribution and return centers. Whirlpool said 97% of customers remain within 100 miles of its distribution centers.
North American product introductions included what Whirlpool described as the industry’s first refrigerator with an in-door nugget ice maker under the Whirlpool brand, as well as a top-load washer with a removable delicates basket. Management said the launches support its premium-growth strategy.
Bitzer said replacement demand remains the dominant driver of the appliance market, although consumers may temporarily delay certain replacements or choose repairs in periods of lower consumer confidence. He said that dynamic can pressure mix, particularly because discretionary purchases tend to carry higher margins.
Latin America and Small Appliances
In Latin America, net sales rose 2.5% excluding currency, supported by volume growth but partly offset by price and mix. Segment EBIT margin was 2%, as the company experienced a mix shift away from the more premium portfolio previously sold through Grupo Casas Bahia, a Brazilian retailer that filed for bankruptcy reorganization in August.
Ludovic Beaufils, executive president of KitchenAid Small Appliances and Latin America, said Whirlpool expects the mix to normalize as retail inventories adjust and volumes are redistributed. The company expects limited benefit from its Latin American price increases in the fourth quarter, with a more meaningful impact in 2027.
Whirlpool’s global small-appliance business reported a third-quarter EBIT margin of 18.6%. Beaufils said new direct-to-consumer product launches supported global share gains and strong sellout activity. Seasonal order timing shifted some revenue growth into the fourth quarter, with October U.S. orders up approximately 40% year over year.
The company said it remains confident that the segment can deliver double-digit growth for the full year at highly accretive margins.
Updated Outlook and Cash Flow Plans
Chief Financial Officer Roxanne Warner said Whirlpool now expects a like-for-like revenue decline of approximately 1.5% for 2026, reflecting softer U.S. demand and price-and-mix pressure, particularly in Latin America. The company forecasts full-year ongoing EBIT margin of 2% to 2.2%.
- Approximately $250 million of gross cost savings are expected for the full year.
- Net cost takeout is expected to be below $150 million after volume deleveraging, fuel and logistics costs.
- Raw-material inflation is expected to create a 100-basis-point full-year margin headwind.
- Tariffs, net of mitigation actions, are expected to reduce full-year margin by 75 basis points.
- Free cash flow is projected at approximately $300 million, or about 2% of net sales.
Third-quarter free cash flow was a use of approximately $1.1 billion, affected by timing related to insurance claims associated with Grupo Casas Bahia. Warner said Whirlpool wrote off approximately $150 million of receivables in the third quarter and expects to collect about $100 million through insurance in the fourth quarter.
The company expects year-end net debt below $4.5 billion, improving from its earlier target of less than $5 billion. Warner said Whirlpool has more than $3 billion of available liquidity and no major debt maturities until 2028.
Looking to 2027, Bitzer said Whirlpool is “cautiously optimistic” that carryover pricing, new product launches and structural cost initiatives can support margin expansion, while acknowledging continuing uncertainty around tariffs, commodity costs and broader market conditions.
About Whirlpool (NYSE:WHR)
Whirlpool Corporation (NYSE: WHR) is a global manufacturer and marketer of home appliances. The company develops products designed for kitchens and laundry rooms, including refrigerators and freezers, cooking appliances, dishwashers, washing machines and dryers, and related household appliances.
Whirlpool sells products under a portfolio of well-known brands, including Whirlpool, Maytag, KitchenAid, JennAir and Amana. Its products are distributed through retailers, builders, distributors and other sales channels to residential customers in North America and international markets.
The company traces its history to 1911, when it was founded as the Upton Machine Company in Benton Harbor, Michigan.
