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Whirlpool (WHR) is sharply lower after reporting its Q4 results last night. The company missed EPS expectations by a wide margin, while revenue fell 1% yr/yr to $4.1 bln, also below expectations. FY26 guidance did not ignite enthusiasm either, with EPS of approximately $7 below estimates and the midpoint of revenue guidance of $15.30-15.60 bln also below expectations.

• Q4 headwinds were tariffs and housing. WHR ultimately expects to benefit as a domestic producer, but the industry hasn't moved on pricing yet, and WHR suspects that is because pre-tariff inventory loading and policy uncertainty.
• Importantly, pricing and promotions improved after mid-December through MLK, noting pre-tariff inventory appears to be selling through and importers are increasingly feeling tariff-cost pressure, making elevated promotions less sustainable.
• WHR is driving cost and productivity actions and leaning on new product launches to support share, but Q4 cost takeout wasn't enough to offset tariffs with pricing still lagging.
• The pressure showed up in margins, driving the EPS miss as ongoing EBIT margin fell 270 bps to 3.3% and ongoing EBIT dropped 45.6% to $135 mln.
• Segment sales were mixed, with MDA North America down 1% to $2.57 bln, MDA Latin America up nearly 1% to $927 mln, and SDA Global up 10.3% on KitchenAid and DTC strength.
• Taking in the guidance, WHR expects margins to strengthen in 2026 on roughly $150 mln of cost actions, a more normalized promo environment including its own resets, and new launches, while not assuming housing upside.

Briefing.com Analyst Insight

WHR's Q4 results underscore a business operating in a challenging environment, most notably tariffs and a still-soft housing backdrop. WHR continues to state it should ultimately benefit on tariffs relative to competitors as a more domestic producer, but industry pricing still hasn't responded, keeping promotions elevated and pressuring margins. Importantly, we liked the company's comments around pricing and promotions improving after mid-December into MLK, which suggests pre-tariff inventory may finally be clearing and offers an early sign that the benefits of WHR's domestic-production could start to show as importers feel the tariff pressure. That said, sentiment remains shaky given depressed home turnover and muted discretionary demand. Today's miss and softer guidance are weighing on shares, but incremental cost actions and a stabilizing pricing environment could help WHR begin rebuilding profitability in 2026.