By Al Root
Whirlpool is caught in a vortex.
A combination of rising costs, aggressive competition, and an uncooperative economy led to weaker-than-expected earnings, a dividend cut, and reduced financial guidance.
Shares are down in early trading on Thursday.
Wednesday evening, Whirlpool reported a first-quarter per share loss of 56 cents from sales of $3.3 billion. Wall Street was looking for earnings per share of 38 cents from sales of $3.4 billion, according to FactSet.
A year ago, Whirlpool reported earnings per share of $1.70 from sales of $3.6 billion. Lower industry sales, unfavorable "price/mix," and tariff confusion helped lead to the decline.
In February, the Supreme Court overturned President Donald Trump's Liberation Day tariffs, which impacted industry pricing, Whirlpool said. The company was already facing higher steel and aluminum prices due to the separate Section 232 tariffs.
Section 232 gives the U.S. president the authority to restrict imports deemed a threat to national security.
The company now expects to earn between $3.00 and $3.50 for the full year and free cash flow of $300 million. Prior guidance given in January called for earnings per share of $7 and free cash flow of about $450 million.
The company was looking forward to a housing recovery this year, which has yet to materialize. It also announced a dividend "suspension." Whirlpool was paying 90 cents per quarter.
Whirlpool stock was down 17% in premarket trading at $45.25, while S&P 500 and Dow Jones Industrial Average futures were both up less than 0.1%.
"Headwinds in...North America came in earnest in the quarter, with industry demand reaching recession-level lows while the aggressive promotional environment re-accelerated following recent tariff rulings," wrote Citi analyst Kyle Menges in a Wednesday report. "Whirlpool did announce double-digit percentage price increases to help restore profitability, which we gather should be relatively defensible."
A rejiggering of the Section 232 tariffs should also help. Trump used Section 232 to impose 50% tariffs on raw materials, such as steel. In April, the tariffs were changed from levies on just steel and aluminum to levies on the value of entire products made mostly of steel and aluminum. That should help Whirlpool compete with imported appliance makers.
Investors aren't waiting to find out. They were surprised by Whirlpool's quarterly report and outlook.
Coming into Thursday trading, Whirlpool stock was down 24% this year and down 28% over the past 12 months.
Write to Al Root at allen.root@dowjones.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
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May 07, 2026 07:13 ET (11:13 GMT)
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