Regarding the 100 basis points net cost guidance, does this include the $150 million cost takeout, implying flat guidance ex-cost takeouts? How does the first half bridge to the full-year number, considering raw material headwinds?

The 100 basis point improvement in Q2 versus Q1 was due to factory and logistics productivity, offsetting Q1 inventory reduction actions. While cost takeout actions are on track, raw material costs (steel, base metals, resins) are becoming a headwind. Significant factory footprint changes (Amana, Argentina, Mexico) will provide major benefits primarily in 2027, with some portion helping in 2026. “But what is right now already was in Q2 a headwind is the raw material side is becoming more challenging. I mean we have -- on the steel side, we're on the very high end of the contracts, which we have. We have base metal increases. And as you all would have expected from oil price changes, there is some pressure on resins.”

Given significant pricing and difficult market share comparisons, what are the expectations for market share performance in the back half of the year?

Year-to-date market share in North America is largely flat, which is positive given price increases. New product launches will help in the back half. The strategy is to pursue structurally healthy organic market share, even if it means giving up ground on aggressive promotions. Full-year expectation is flat to slightly up market share. “But at the same time, we will continue our strategy on promotions. We will invest in promotions when it creates value for us and the retailer. And that may be a little bit of the offsetting element, and you saw that also in even July 4. We didn't go all aggressive. I'll put it differently, we want to have structurally healthy organic market share and maybe kind of give away a little bit of ground on some aggressive promotions.”

The North America guide implies a 6% EBIT margin in the back half after 1.5% in the first half. Is this an immediate step-up in Q3 or a ramp towards an exit rate north of that?

North America saw a sizable step-up of over 2 points in margin between Q1 and Q2, with only two-thirds of the price increase kicking in. Similar significant step-ups are expected going forward, particularly in Q3, driven by additional pricing actions and carryover momentum, so it's not all back-end loaded to Q4. “So it's not all back-end loaded to Q4. But it is absolutely critical in Q3 that with additional pricing actions and the carryover momentum on pricing, we have a similar step-up in Q3 as we had in between Q1 and Q2.”

WHR

Whirlpool (WHR) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Consumer Discretionary· Aug 4, 2026

Source: earnings call transcript

Executive summary

Whirlpool Q2 FY26 — Sequential Margin Improvement and Reaffirmed Outlook

Whirlpool delivered Q2 FY26 results in line with expectations, showing sequential margin improvement despite persistent macroeconomic challenges and softer industry demand. The company reaffirmed its full-year operational outlook, adjusting EBIT for updated interest expense, and is focused on strategic pricing actions, structural cost takeouts, and product innovation to drive future profitability. Significant balance sheet strengthening actions have also been completed to enhance financial flexibility.

Highlights

Sequential margin improvement of 50 basis points to 1.8% in Q2 FY26.
North America EBIT margin improved by 240 basis points sequentially, driven by promotional price increases.
Successful execution of promotional price increase of over 10% in North America, with incremental benefits expected.
KitchenAid SDA business achieved high teens sell-through growth globally in Q2 FY26.
Strengthened balance sheet with over $3 billion in liquidity secured and debt maturity runway cleared until 2028.

Concerns

Ongoing earnings per share of negative $0.21 in Q2 FY26.
Free cash flow was a consumption of approximately $1.1 billion in Q2 FY26.
Raw material inflation unfavorably impacted margin by 50 basis points, primarily due to elevated steel and base metal costs.
Net tariff impact was an unfavorable 200 basis points, driven by Section 232 implementation.
MDA Latin America net sales decreased 2% excluding currency, due to negative price mix in a highly intense promotional environment.

Guidance & targets

Category	Target	Timeline	Confidence
Full-year operational outlook	Reaffirmed high materiality	FY26	High
Full-year revenue growth	approximately 1.5% high materiality	FY26	High
Full-year ongoing EBIT margin	approximately 4% high materiality	FY26	High
Full-year free cash flow	$300 million high materiality	FY26	High
Full-year interest expense	$350 million medium materiality	FY26	High
Net debt	below $5 billion high materiality	Q4 FY26	High
Full-year CapEx	approximately $400 million medium materiality	FY26	High

Segment performance

Segment	Revenue	YoY	QoQ	Margin
MDA North America Net sales increased sequentially from Q1, with significant EBIT margin improvement driven by promotional price increases and structural cost takeout, partially offset by higher raw material, fuel, and tariff costs. U.S. industry demand was down year-over-year, but the company maintained market share due to product innovation. U.S. industry demand: down 3.4% year-over-yearPromotional price increase: >10% relative to Q1 pricesList price increase: ~4% effective July	$2.4 billion	—	8% sequentially	240 bps improvement sequentially
MDA Latin America Net sales decreased excluding currency due to negative price mix in a highly promotional environment, partially offset by higher volume in Brazil. EBIT margin was 3%, including a tax case related net gain. New pricing actions and product innovation are underway to restore margins. Brazil pricing actions: ~5% overall increase effective August	—	-2% (excluding currency)	—	3% EBIT margin
SDA Global The business delivered solid results with a 12% EBIT margin, in line with expectations, while funding marketing investments. Underlying demand is positive with double-digit sell-through growth and share gains globally, driven by product launches and DTC channel expansion, despite a temporary trade inventory burn in Q2. Sell-through growth: double-digit globallyU.S. sell-through growth: 16% POS growthInternational sell-through growth: high teens	—	—	—	12% EBIT margin

Product announcements

Product	Type	Timeline
KitchenAid Porcelain White Suite	launch	Q3 FY26
Maytag top load washer with pet hair removal impeller	launch	—
Whirlpool UV laundry tower	launch	—
KitchenAid Artisan Plus Stand Mixer	launch	—
Compact fully automatic espresso machines	launch	Q2 FY26
Pure power blender	launch	—
Brastemp laundry, Consul refrigeration, bottom mount refrigeration, French door refrigeration	update	Q3 FY26 / Q4 FY26

Deals & partnerships

Beko Europe BV Sale of minority interest approximately $128 million

Whirlpool successfully sold its minority stake in Beko Europe BV, primarily for cash consideration, as part of strategic actions to strengthen the balance sheet.

Risks & headwinds

Persistent macroeconomic challenges Ongoing

Impacted industry and broader economy

Mitigation:Taking decisive actions to better position business, reaffirming full year operational outlook.

Softer industry demand Q2 FY26

U.S. industry demand down 3.4% year-over-year in Q2

Mitigation:Accelerated new product launches, strong execution of promotional price increases, structural cost takeout initiatives.

Promotional intensity Q2 FY26

Impacted net sales in Latin America

Mitigation:Announced new pricing actions in Latin America (5% increase in Brazil effective August), driving premium mix through product innovation and DTC channel, comprehensive operational review to reduce costs.

Raw material inflation Q2 FY26 and ongoing

Unfavorably impacted margin by 50 basis points; primarily driven by elevated steel and base metal costs, some pressure on resins

Mitigation:Structural cost takeout actions, engineering/redesign of products, factory footprint changes.

Net tariff impact Q2 FY26

Unfavorable 200 basis points impact on margin, driven by implementation of Section 232

Mitigation:Leveraging structural competitive advantage from updated Section 232 tariff framework; passing on real cost to market.

Marketing & Technology headwind Q2 FY26

25 basis points impact on margin

Mitigation:Funding planned marketing investments while delivering solid results in SDA global.

Currency headwind Q2 FY26

25 basis points impact on margin

Mitigation:Partially offset by favorable transaction impacts.

Temporary trade inventory burn Q2 FY26

Sizable impact on SDA global top line results

Mitigation:Underlying demand is positive with double-digit sell-through growth; July looking very healthy, expected to correct in Q3.

Uncertain macroeconomic environment Ongoing

Requires resilience

Mitigation:Strengthened balance sheet, expanded financial flexibility, cleared debt maturity runway until 2028.

What to watch in Q3 FY26

North America EBIT margin expansion

Q3 FY26

Current 240 bps improvement (Q2 vs Q1)

Target Similar step-up in Q3

Why it matters

Continued margin expansion in North America is critical for achieving full-year profitability targets and demonstrating the effectiveness of pricing actions and cost controls.

So it's not all back-end loaded to Q4. But it is absolutely critical in Q3 that with additional pricing actions and the carryover momentum on pricing, we have a similar step-up in Q3 as we had in between Q1 and Q2.

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Q&A highlights

How confident is management in the 4% list price increase for July and the industry's ability to maintain pricing discipline through year-end promotions, given the success of Q2 promotional pricing?

Management is confident in the July list price increase and the carryover benefits from Q2's promotional pricing, along with builder price increases, which are showing good traction. They will continue a disciplined promotional strategy, investing only when it creates value, as demonstrated by the July 4th promotions.

“So we feel actually very confident but a journey which we're on the price increase. The other element also for Q3, which we talked about earlier, we also have the effect of builder price increases kicking in Q3.”

asked by David S. MacGregor · answered by Marc Bitzer (Executives)

3 min read 7 chapters

Detailed narrative

Q2 Performance and Sequential Margin Improvement

Whirlpool's Q2 FY26 performance aligned with expectations, delivering net sales of $3.5 billion despite softer industry demand in North America and promotional intensity in Latin America. The company achieved a sequential margin improvement of 50 basis points, reaching 1.8%, with ongoing EPS at negative $0.21.

This improvement was notably driven by North America's strong operational progress, supported by promotional pricing increases and new product launches, signaling a step towards business stabilization.

Strategic Actions and Cost Takeout Initiatives

The company is accelerating structural cost takeout actions to mitigate macroeconomic headwinds and drive future benefits. Key initiatives include footprint changes in Amana, Iowa, Brazil, and Ramos, Mexico, expected to deliver meaningful cost savings starting in Q4 2026. Additionally, logistics network optimization, reducing local distribution centers by 25% while maintaining coverage, is projected to unlock $60 million in annualized EBIT benefits.

These actions reinforce competitive advantage and support long-term profitability.

Product Innovation and Portfolio Refresh

Whirlpool has significantly accelerated new product launches, transitioning over 30% of its North American MDA portfolio in 2025—three times the typical annual rate. In 2026, the company is on track to launch over 100 new products, including the KitchenAid Porcelain White Suite and the Whirlpool UV laundry tower, which have been positively received by customers and are driving market share gains.

These innovations are crucial for offsetting promotional pressures and driving premium mix.

Balance Sheet Strengthening and Liquidity

Whirlpool undertook strategic actions to strengthen its balance sheet and expand financial flexibility. This included a $1.1 billion equity offering, suspension of the common dividend, a $2 billion asset-based lending facility, and a $2 billion secured bond issuance. These measures secured over $3 billion in liquidity and cleared the debt maturity ladder until 2028, positioning the company to navigate volatility and fund organic growth while committing to deleveraging net debt below $5 billion by year-end.

Pricing Strategy and Market Response

The company successfully executed a promotional price increase of over 10% in North America, effective in late April, which positively impacted Q2 margins. A list price increase of approximately 4% was also announced for July. Management noted resilient demand despite price increases, particularly in the replacement-driven appliance market, and observed competitors also moving average pricing upwards.

This disciplined pricing strategy, combined with product innovation, has helped maintain market share.

Latin America and SDA Global Performance

MDA Latin America saw a 2% net sales decrease (ex-currency) due to negative price mix in a highly promotional environment, resulting in a 3% EBIT margin despite a tax case related net gain. New pricing actions of approximately 5% are effective in Brazil in August, alongside product innovation and cost reductions, to restore margins.

The SDA Global business delivered solid results with an approximately 12% EBIT margin, driven by double-digit sell-through growth and share gains, despite a temporary trade inventory burn in Q2.

Manufacturing and Supply Chain Optimization

Whirlpool is maximizing benefits from its manufacturing and supply chain footprint. Modernization efforts at Amana, Iowa, will generate an effective annualized EBIT benefit of approximately $70 million. A $60 million investment in a new Perrysburg, Ohio facility is expected to yield $30 million in annualized EBIT benefits.

The consolidation of Mexico refrigeration production and U.S. distribution centers (reducing from 126 to 90) will unlock another $60 million in annualized EBIT benefits, enhancing efficiency and delivery speed.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.