Q2 2026 Whirlpool Corp Earnings Call Transcript
Key Points
- Whirlpool Corp (WHR) delivered sequential EBIT margin improvement of 50 basis points in Q2, driven by strong execution of pricing actions and structural cost takeout initiatives.
- The company successfully executed a promotional price increase of over 10% in North America, which is already positively impacting margins and is expected to provide further incremental gains.
- Whirlpool Corp (WHR) has a robust pipeline of new product launches, including the KitchenAid Porcelain White Suite and Whirlpool UV laundry tower, which are driving market share gains and premium mix.
- The company completed strategic balance sheet actions, including a $1.1 billion equity offering, a $2 billion ABL facility, and a $2 billion bond issuance, securing over $3 billion in liquidity and clearing debt maturities until 2028.
- Whirlpool Corp (WHR) is on track to deliver $150 million in structural cost takeout in 2026, with additional footprint optimizations expected to generate significant EBIT benefits starting in Q4 2026 and into 2027.
- The SDA global business achieved a 12% EBIT margin in Q2, with double-digit sell-through growth and strong share gains, particularly in stand mixers and espresso machines.
- Whirlpool Corp (WHR) reported a net loss with ongoing EPS of negative $0.21 in Q2, impacted by softer industry demand and promotional intensity in Latin America.
- The company faces significant headwinds from raw material inflation, particularly elevated steel and base metal costs, which negatively impacted margins by 50 basis points in Q2.
- Net tariff impacts were a 200 basis point headwind in Q2, driven by the implementation of Section 232 tariffs, and similar levels are expected in the second half of 2026.
- Latin America MDA segment experienced negative price mix and intense promotional competition, leading to an EBIT margin of only 3% despite a tax-related net gain.
- The company's free cash flow was a consumption of approximately $1.1 billion in Q2, largely due to lower earnings and seasonal working capital, though it expects improvement in the second half.
- Whirlpool Corp (WHR) updated its full-year EPS guidance downward due to increased interest expense from recent debt refinancing, raising interest expense outlook from $300 million to $350 million.
Good morning, and welcome to Whirlpool Corporation's second-quarter 2026 earnings call. Today's call is being recorded. Joining me today are Marc Bitzer, our Chairman and Chief Executive Officer; Roxanne Warner, our Chief Financial Officer; Juan Carlos Puente, our Executive President of North America and Global Strategic Sourcing; and Ludovic Beaufils, our Executive President of KitchenAid Small Appliances and Latin America. Our remarks today track with a presentation available on our Investors section of our website at whirlpoolcorp.com.
Before we begin, I want to remind you that as we conduct this call, we will be making forward-looking statements to assist you in better understanding Whirlpool Corporation's future expectations. Our actual results could differ materially from these statements due to many factors discussed in our latest 10-K, 10-Q and other periodic reports. We also want to remind you that today's presentation includes the non-GAAP measures outlined in further detail at the beginning of our earnings
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