Whirlpool (WHR -2.00%), a global leader in kitchen and laundry appliances, released its Q2 2025 results on July 28, 2025. The company reported $1.34 in ongoing earnings per share (a non-GAAP measure), underperforming the $1.68 non-GAAP consensus estimate. Revenue (GAAP) came in at $3,773 million, also missing analyst expectations of $3,846.88 million (GAAP). Both figures represented a decline versus the same period (Q2 2024), with GAAP net sales down 5.4% year over year and ongoing earnings per share (non-GAAP) falling by 43.9% year over year. Management characterized the quarter as pressured by ongoing competition from Asian imports and muted consumer demand, but maintained its full-year outlook.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (Non-GAAP) | $1.34 | $1.68 | $2.39 | (43.9%) |
| EPS (GAAP) | $1.17 | $3.96 | (70.5%) | |
| Revenue | $3,773 million | $3,846.88 million | $3,989 million | (5.4%) |
| Ongoing EBIT Margin | 5.3% | 5.3% | 0.0 pts | |
| Free Cash Flow (Non-GAAP) | ($856 million) | ($713 million) | (143 million) |
Source: Analyst estimates provided by FactSet. Management expectations based on management’s guidance, as provided in Q1 2025 earnings report.
Business Overview and Strategic Focus
The company manufactures and sells a broad range of household appliances. Its core product families include major domestic appliances—such as refrigerators, ovens, and washing machines—as well as small domestic appliances like blenders and espresso machines.
It has recently focused on several key areas: reshaping its business portfolio, accelerating product innovation, and optimizing costs across global operations. The company divested low-margin or slower-growth operations, launched over 100 new products in 2024, and executed ongoing cost savings initiatives.
Quarter Review: Financial and Operational Performance
The quarter was marked by shortfalls in both profit and revenue compared to expectations and last year’s performance. Ongoing earnings per share fell to $1.34 from $2.39 in Q2 2024. Operating cash flow (GAAP) and free cash flow (non-GAAP) were both negative, with free cash flow (non-GAAP) at ($856 million) for the first six months of 2025 compared to ($713 million) in the prior-year period. This reflected continued outflows tied to working capital and inventory increases.
The company’s operating margin—a gauge of profit as a share of sales—remained level at 5.3% (ongoing EBIT margin, non-GAAP). Despite margin stability, net earnings dropped sharply, with GAAP net earnings falling by 70.5% year-over-year. A $19 million loss from its Beko Europe equity investment added a one-time drag to the results. Segment details showed North American major appliance sales declined by 4.7%, with earnings before interest and taxes (EBIT) down 11.7% year-over-year, as promotional activity remained high and competition from Asian imports weighed down volumes. Latin America recorded a 10.0% sales decline. In Asia, sales fell 5.9% year-over-year but profits rose 11.2% year-over-year. The Small Domestic Appliances division saw net sales growth of 7.9% in Q1 2025, with sales up 7.5% year-over-year and EBIT jumping 32.9% on strong new product momentum.
The company continued to reshape its business by focusing away from Europe, following a transaction with Arçelik to exit its European major appliance operations. Portfolio simplification remains a priority, though lingering legacy costs continue to affect reported results. New product launches were a recurring theme, with the best-in-class KitchenAid induction cooktop and JennAir built-in wall oven among those highlighted. These helped sustain direct-to-consumer sales growth, especially in small appliances.
On capital structure, it refinanced $1.2 billion in term debt at an interest rate of approximately 6.3%. Net debt remains elevated, and the company’s cash reserves fell to $1.07 billion (GAAP). At the same time, it recommended an annual dividend payout of $3.60 per share, keeping the quarterly dividend at $0.90, and ongoing cash burn will require close monitoring as the year progresses.
Outlook and Investor Considerations
Looking ahead, management reaffirmed its FY2025 guidance: ongoing (non-GAAP) earnings per share between $6.00 and $8.00, and ongoing EBIT margin of approximately 5.7% (non-GAAP), with free cash flow (non-GAAP) guidance set at $400 million for the full year. The company’s leadership has stated that cost-saving actions are expected to fully offset expected tariff headwinds, which have been a key topic for the industry this year.
The company’s leadership did not announce changes to its quarterly dividend. Management did not provide detailed quarterly margin or segment guidance. Investors will want to watch for changes in cash flow, debt repayment progress, and the pace of inventory normalization as the back half of the year unfolds.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
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