Whirlpool reports weaker demand and sharply reduced profits, warning that a “recession-level” decline in U.S. appliance sales is under way. In its first-quarter results, the company says the war in Iran contributes to a collapse in consumer confidence in late February and March, leading consumers to delay big-ticket purchases. The company also points to economic pressure and the effects of pricing actions intended to help stabilize its North American business. Whirlpool slashes its full-year outlook after posting results below expectations. For the quarter, net sales come in at $3.27 billion, down from consensus expectations of about $3.42 billion, with North America sales at $2.24 billion and Latin America sales at $774 million, both below estimates. The company reports an ongoing loss of 56 cents per share versus earnings of $1.70 per share a year earlier, missing analysts’ expectations for a smaller loss. Operating profit (EBIT) declines year over year, and management forecasts weaker full-year performance. Shares fall sharply in response to the forecast and quarterly results.
Whirlpool warns of recession-level slump, cuts outlook amid Iran war-linked demand drop
Whirlpool reports weaker demand and sharply reduced profits, warning that a “recession-level” decline in U.S. appliance sales is under way. In its first-quarter results, the company says the war in Ir...
- Whirlpool reports first-quarter results below expectations and cuts its full-year outlook.
- The company attributes a “recession-level” decline in U.S. appliance demand to the war in Iran and associated consumer confidence collapse in late February and March.
- Whirlpool’s quarterly net sales are $3.27 billion, below consensus estimates (about $3.42 billion).
- North America sales in the quarter are $2.24 billion and Latin America sales are $774 million, both below estimates.
- Whirlpool reports an ongoing loss of 56 cents per share (after profit the prior year), and its EBIT declines sharply year over year.
Appliance giant slashes earnings forecast and hikes prices by 10% with another 4% spike plannedWith the war in Iran and economic concerns putting pressure on consumers and how they spend their money, Whirlpool is having to adjust to Americans delaying big-ticket purchases while also raising prices to help stabilize its North American business.The company known for brands such as KitchenAid, Maytag and its namesake, said that the Iran war led to a “recession-level industry decline” in America as consumer confidence collapsed in late February and March. Revenue dropped nearly 10% in the quarter as sales of major appliances in North America declined more than 7%. Continue reading...
3 months agoWhirlpool Crashes After Iran Shock Sparks "Recession-Level" Appliance Slump Whirlpool shares crashed as much as 20% in premarket trading after the appliance maker slashed its full-year outlook and posted weaker-than-expected first-quarter results. Management directly blamed the three-month war in the Middle East for triggering a collapse in U.S. appliance demand. Whirlpool began the earnings release with this statement: "War in Iran resulted in a recession-level industry decline in the U.S. as consumer confidence collapsed in late February and March." For the first quarter, the maker of refrigerators, freezers, dishwashers, ovens, ranges, cooktops, microwaves, and range hoods missed Bloomberg Consensus estimates across key metrics, underscoring a sharp deterioration in demand and profitability. Net sales in the quarter came in at $3.27 billion, below the $3.42 billion estimate. North America sales were soft at $2.24 billion, missing expectations of $2.4 billion, while Latin America sales were weak at $774 million, missing estimates of $785.5 million. The company posted an ongoing loss of 56 cents per share, compared with earnings per share of $1.70 a year earlier. This result was far below analyst expectations of a loss of 36 cents per share. EBIT, or earnings before interest and taxes, plunged 79% year over year to $44 million, missing the $110.8 million consensus estimate. Snapshot of 1Q Earnings (courtsey of BBG): Net sales $3.27 billion, estimate $3.42 billion MDA North Amer. Net Sales $2.24 billion, estimate $2.4 billion MDA Latin America Net Sales $774.0 million, estimate $785.5 million Ongoing loss/share 56c vs. EPS $1.70 y/y, estimate EPS 36c Ongoing EBIT $44 million, -79% y/y, estimate $110.8 million Snapshot of 2026 forecast (courtsey of BBG): Sees revenue $15.0 billion, saw $15.3 billion to $15.6 billion, estimate $15.21 billion (Bloomberg Consensus) Sees ongoing EPS $3.00 to $3.50, saw about $7, estimate $4.84 Sees cash from operating activities about $700 million, saw about $850 million, estimate $763.9 million Still sees adjusted tax rate about 25% Shares crashed as much as 20% in premarket trading after first-quarter sales showed weaker demand, mounting margin pressure, and a decline in North American appliance demand. If these losses persist through the cash session, it would be the steepest intraday decline since the October 19, 1987, crash of 21%. Year to date, shares are already down 24% as of Wednesday's close. The stock is now trading at 2011 levels. Is management conveniently blaming the U.S.-Iran war? The largest trend impacting home appliance sales has been a frozen housing market over the past several years. Tyler Durden Thu, 05/07/2026 - 07:45
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