Home appliances manufacturer Whirlpool (NYSE:WHR) announced better-than-expected revenue in Q3 CY2025, with sales up 1% year on year to $4.03 billion. The company’s full-year revenue guidance of $15.8 billion at the midpoint came in 1.9% above analysts’ estimates. Its non-GAAP profit of $2.09 per share was 50.3% above analysts’ consensus estimates.
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Whirlpool (WHR) Q3 CY2025 Highlights:
- Revenue: $4.03 billion vs analyst estimates of $3.93 billion (1% year-on-year growth, 2.5% beat)
- Adjusted EPS: $2.09 vs analyst estimates of $1.39 (50.3% beat)
- Adjusted EBITDA: $263 million vs analyst estimates of $283.6 million (6.5% margin, 7.3% miss)
- The company reconfirmed its revenue guidance for the full year of $15.8 billion at the midpoint
- Management reiterated its full-year Adjusted EPS guidance of $7 at the midpoint
- Operating Margin: 5.1%, down from 6.6% in the same quarter last year
- Market Capitalization: $4.36 billion
StockStory’s Take
Whirlpool’s third quarter was marked by positive market reaction, driven by organic growth in its North American appliance segment and continued strength in its KitchenAid small domestic appliance business. Management credited double-digit revenue growth in KitchenAid and share gains in North American major appliances to an extensive wave of new product launches, despite an intense promotional environment. CEO Marc Bitzer highlighted that “the share gains came from new products,” and noted that KitchenAid reached a near all-time high in market share for major appliances. However, margin pressure persisted due to ongoing industry-wide tariff preloading and elevated promotional activity.
Looking ahead, Whirlpool’s guidance remains anchored in expectations for a normalization of tariff impacts and a more level competitive landscape as preloaded inventory from foreign competitors dissipates. Management identified the company’s strong U.S.-based manufacturing footprint and the ongoing rollout of new products as strategic advantages in the evolving tariff environment. CFO Jim Peters stated, “we are confident that these headwinds are temporary and ultimately, Whirlpool is uniquely positioned to benefit from these policies mid and long term.” The company also plans to leverage its expanded product portfolio and recent investments in domestic manufacturing to capitalize on any recovery in U.S. housing demand, which management views as a multi-year opportunity.
Key Insights from Management’s Remarks
Management attributed the quarter’s performance to North American product launches, SDA global business momentum, and temporary margin impacts from tariff-related inventory dynamics.
- KitchenAid growth momentum: The KitchenAid brand achieved double-digit revenue growth and near record market share in major appliances, fueled by the launch of its redesigned product suite—the first in a decade—and positive consumer response to new personalization features.
- North America share gains: Whirlpool reported market share gains in North American major appliances, primarily from new product introductions such as the French door refrigerators and the 2-in-1 removable agitator laundry machines, despite holding firm on promotional spending in a highly competitive environment.
- Tariff environment impact: The company’s North American margins were pressured by competitors’ preloading of Asian-produced inventory ahead of tariff implementation, leading to a prolonged period of elevated promotions and delayed realization of tariff-related competitive advantages.
- SDA global business strength: The small domestic appliance (SDA) segment delivered robust 10% sales growth and sustained high margins, attributed to new product launches, increased direct-to-consumer sales, and effective marketing campaigns.
- Manufacturing investment: Whirlpool announced a $300 million investment in its U.S. laundry manufacturing facilities to expand capacity and support future product innovation, citing the long-term advantage of its domestic production base under the current tariff regime.
Drivers of Future Performance
Whirlpool’s outlook for the coming quarters is shaped by tariff normalization, ongoing product innovation, and anticipated shifts in U.S. housing demand.
- Tariff normalization expected: Management expects the full impact of tariffs to level the playing field in 2026, as foreign competitors’ preloaded inventory is depleted and all imports face reciprocal tariffs. This is anticipated to support higher margins for Whirlpool due to its majority U.S.-based manufacturing.
- Product portfolio expansion: The company plans to continue rolling out new products in 2026, though at a slower pace than 2025, which is expected to yield ongoing market share gains and improved profitability as upfront launch costs diminish.
- Housing market recovery potential: Whirlpool sees the U.S. housing market as a multi-year growth driver, with management citing chronic undersupply and pent-up demand from elevated mortgage rates. The company’s strong builder channel relationships and renewed contracts position it to benefit when housing activity accelerates.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will be monitoring (1) the pace at which promotional pressures recede as competitors’ pre-tariff inventory is worked through, (2) the margin recovery in North America as tariff effects normalize and new product costs roll off, and (3) progress on U.S. housing market indicators and builder channel activity. Execution on domestic manufacturing investments and ongoing product innovation will remain critical signposts for future success.
Whirlpool currently trades at $77.58, up from $73.80 just before the earnings. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it’s free for active Edge members).
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