Whirlpool Q2 Earnings Call Highlights

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.

Whirlpool 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.

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.

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. 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 1...