Whirlpool (WHR) investor relations material

Executive summary

• Q1 2026 was severely impacted by a rapid deterioration in the macro environment, including the war in Iran, record-low consumer sentiment, and recession-level demand in North America and Canada, resulting in a net loss of $85M and diluted EPS of $(1.43).

• Aggressive pricing actions were implemented, including the largest price increase in over a decade (>10%) and further cost reductions to restore margins, especially in North America.

• Free cash flow was negative $896M, impacted by lower earnings despite inventory reduction benefits.

• Issued $1.08B in equity (common and preferred) to strengthen liquidity and repay over $900M in debt.

• Dividend on common stock was paid in Q1 but suspended thereafter to prioritize debt reduction and financial flexibility.

Financial highlights

• Q1 2026 net sales were $3.27B, down 9.6% year-over-year; ongoing EBIT margin was 1.3% (down from 5.9% YoY); ongoing EPS was $(0.56), including a $(0.32) non-cash loss from Beko Europe B.V.

• Free cash flow was $(896)M, with free cash flow as a percentage of net sales at (27.4)%.

• Gross margin declined to $415M from $607M year-over-year.

• Paid a $0.90 dividend per share in Q1.

• Operating cash flow was $(827)M, with capital expenditures of $68M in Q1.

Outlook and guidance

• 2026 revenue expected at ~$15.0B (up 1.5% YoY), with full-year ongoing EBIT margin guidance at ~4% and ongoing EPS guidance of $3.00–$3.50; GAAP EPS guidance is $2.45–$2.95.

• Free cash flow expected to exceed $300M (2% of net sales); cash from operations projected at ~$700M.

• Dividend suspended for 2026 to prioritize debt reduction of over $900M.

• North America industry demand expected to decline ~5%; Latin America flat to up 3%; SDA Global flat.

• Capital expenditures planned at ~$400M, with over 100 new products launching in 2026.