Whirlpool's Q3 Earnings Dip, 9-Month Profit Up on Asset Sales

TL;DR

**Whirlpool's Q3 is a red flag with negative operating cash flow and declining dividends, despite a nine-month profit boost from one-off asset sales.**

AI Summary

Whirlpool Corporation reported a decrease in net earnings available to Whirlpool for the three months ended September 30, 2025, falling to $73 million from $109 million in the prior year, despite a slight increase in net sales to $4,033 million from $3,993 million. For the nine months, net earnings available to Whirlpool significantly improved to $210 million in 2025 from $69 million in 2024, driven by a substantial gain on the sale and disposal of businesses of $30 million compared to a $260 million loss in the prior year. Operating profit for the nine months increased to $595 million from $279 million. However, cost of products sold increased to $3,439 million for the quarter, up from $3,350 million, impacting gross margin which declined to $594 million from $643 million. The company's cash provided by operating activities was a negative $669 million for the nine months, a further decline from a negative $271 million in 2024, largely due to increases in inventories by $523 million and accounts receivable by $258 million. Dividends declared decreased to $0.90 per share for the quarter from $1.75, and to $4.40 for the nine months from $5.25. The company also noted risks of potential future impairment for the Maytag and InSinkErator trademarks.

Why It Matters

Whirlpool's mixed financial results, with a quarterly profit dip but a nine-month surge driven by asset sales, signal a challenging operational environment for investors. The significant negative cash flow from operations, primarily due to inventory build-up and increased receivables, suggests potential working capital strain and could impact future liquidity and dividend sustainability. For employees, the ongoing restructuring costs of $17 million for the nine months indicate continued operational adjustments. Customers might see impacts from strategic shifts, while the competitive landscape, including direct-to-consumer sales, remains intense, pressuring Whirlpool's market share and pricing power.

Risk Assessment

Risk Level: high — The company reported a negative cash flow from operating activities of $669 million for the nine months ended September 30, 2025, a significant deterioration from the negative $271 million in the prior year. This is primarily driven by a $523 million increase in inventories and a $258 million increase in accounts receivable. Additionally, the Maytag and InSinkErator trademarks are explicitly noted as being at risk for future impairment, with Maytag having a $381 million impairment in 2024.

Analyst Insight

Investors should exercise caution and closely monitor Whirlpool's working capital management and cash flow generation in upcoming quarters. Given the negative operating cash flow and potential trademark impairments, consider reducing exposure or holding off on new investments until there's clear evidence of improved operational efficiency and cash conversion.

Financial Highlights

revenue

$11,426M

operating Margin

5.2%

total Assets

$12,846M

net Income

$210M

eps

$3.74

gross Margin

15.9%

cash Position

$934M

revenue Growth

-8.4%

Revenue Breakdown

Key Numbers

• $73M — Net earnings available to Whirlpool (Q3 2025) (Decreased from $109M in Q3 2024)
• $4.03B — Net sales (Q3 2025) (Slightly increased from $3.99B in Q3 2024)
• $210M — Net earnings available to Whirlpool (9 months 2025) (Increased significantly from $69M in 9 months 2024)
• $595M — Operating profit (9 months 2025) (Increased from $279M in 9 months 2024)
• ($669M) — Cash provided by (used in) operating activities (9 months 2025) (Deteriorated from ($271M) in 9 months 2024)
• $523M — Increase in Inventories (9 months 2025) (Major contributor to negative operating cash flow)
• $0.90 — Dividends declared per share (Q3 2025) (Decreased from $1.75 in Q3 2024)
• $30M — Gain on sale and disposal of businesses (9 months 2025) (Contributed to higher net earnings, compared to $260M loss in 2024)
• $381M — Maytag trademark impairment (2024) (Trademark remains at risk for future impairment)
• 56,148,646 — Common stock shares outstanding (As of October 24, 2025)

Key Players & Entities

• Whirlpool Corporation (company) — registrant
• $73 million (dollar_amount) — Net earnings available to Whirlpool for Q3 2025
• $109 million (dollar_amount) — Net earnings available to Whirlpool for Q3 2024
• $4,033 million (dollar_amount) — Net sales for Q3 2025
• $210 million (dollar_amount) — Net earnings available to Whirlpool for nine months 2025
• $69 million (dollar_amount) — Net earnings available to Whirlpool for nine months 2024
• $30 million (dollar_amount) — Gain on sale and disposal of businesses for nine months 2025
• $260 million (dollar_amount) — Loss on sale and disposal of businesses for nine months 2024
• $669 million (dollar_amount) — Cash used in operating activities for nine months 2025
• Maytag (company) — trademark at risk for impairment

FAQ

Risk Factors

• Trademark Impairment Risk [medium — financial]: Whirlpool faces potential future impairment charges for the Maytag and InSinkErator trademarks. In 2024, a $381M impairment was noted for the Maytag trademark, indicating ongoing valuation concerns.
• Inventory Build-up [high — operational]: Inventories increased by $523 million for the nine months ended September 30, 2025, significantly contributing to the negative cash flow from operations. This build-up may indicate slower sales or production issues.
• Deteriorating Operating Cash Flow [high — financial]: Cash provided by operating activities was a negative $669 million for the nine months of 2025, a substantial decline from negative $271 million in the prior year. This is largely due to increased inventories and accounts receivable.
• Gross Margin Compression [medium — financial]: Gross margin declined to $594 million for the three months ended September 30, 2025, from $643 million in the prior year, despite a slight increase in net sales. This was driven by an increase in the cost of products sold.
• Accounts Receivable Increase [medium — financial]: Accounts receivable increased by $258 million for the nine months ended September 30, 2025, further exacerbating the negative cash flow from operations. This could signal challenges in collecting payments from customers.

Industry Context

The home appliance industry is characterized by cyclical demand tied to housing markets and consumer spending. Whirlpool operates in a competitive landscape with global players, facing pressures from raw material costs, supply chain disruptions, and evolving consumer preferences for smart and energy-efficient appliances.

Regulatory Implications

Whirlpool must comply with various regulations related to product safety, environmental standards, and financial reporting. Potential future impairment of trademarks could trigger further scrutiny from investors and analysts regarding asset valuations.

What Investors Should Do

1. Monitor inventory levels and turnover ratios.
2. Analyze the drivers of gross margin decline.
3. Evaluate the impact of business disposals on future earnings.
4. Assess the risk of trademark impairment.

Key Dates

• 2025-09-30: End of Third Quarter 2025 — Reporting period for the latest 10-Q, showing mixed financial results with declining quarterly net earnings but improved nine-month earnings due to business disposals.
• 2025-10-24: Common Stock Shares Outstanding Date — Provides the latest count of shares outstanding (56,148,646), crucial for per-share calculations and market capitalization.

Glossary

Net earnings (loss) available to Whirlpool

The portion of the company's net earnings that belongs to Whirlpool's shareholders after accounting for noncontrolling interests. (This is the bottom-line profit figure that directly impacts shareholder value and is used for EPS calculations.)

Operating profit

Profit generated from a company's core business operations before accounting for interest, taxes, and other non-operating expenses. (Indicates the profitability and efficiency of Whirlpool's primary business activities.)

Cost of products sold

The direct costs attributable to the production of goods sold by a company, including raw materials and direct labor. (An increase in this cost directly impacts gross margin and profitability.)

Cash provided by (used in) operating activities

The net amount of cash generated or consumed by a company's normal business operations over a period. (A key indicator of a company's ability to generate cash from its core business, with a negative figure signaling potential liquidity issues.)

Gain (loss) on sale and disposal of businesses

The profit or loss realized from selling or disposing of business units or assets. (Can significantly impact net earnings, as seen in the nine-month results where a gain offset prior-year losses.)

Goodwill

An intangible asset that arises when a company acquires another company for a price greater than the fair value of its identifiable net assets. (Represents a significant portion of Whirlpool's assets and is subject to impairment testing.)

Year-Over-Year Comparison

Whirlpool's reported net sales for the nine months ended September 30, 2025, decreased by 8.4% to $11,426 million compared to $12,471 million in the prior year. While quarterly net earnings available to Whirlpool declined to $73 million from $109 million, the nine-month net earnings significantly improved to $210 million from $69 million, largely due to a favorable swing from a $260 million loss on business disposals in 2024 to a $30 million gain in 2025. Operating profit for the nine months more than doubled to $595 million from $279 million. However, operating cash flow deteriorated substantially, turning negative at ($669 million) from ($271 million), driven by significant increases in inventories and accounts receivable.

Key Financial Figures

• $1.00 — ich registered Common stock, par value $1.00 per share WHR New York Stock Exchange a

Filing Documents

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• 0000106640-25-000140.txt ( ) — 12583KB
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Financial Statements

Item 1. Financial Statements Consolidated Condensed Statements of Comprehensive Income (Loss) 5 Consolidated Condensed Balance Sheets 6 Consolidated Condensed Statements of Cash Flows 7 Notes to the Consolidated Condensed Financial Statements 8

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 33

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 45

Controls and Procedures

Item 4. Controls and Procedures 45 PART II

Legal Proceedings

Item 1. Legal Proceedings 46

Risk Factors

Item 1A. Risk Factors 46

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 47

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 47

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 47

Other Information

Item 5. Other Information 47

Exhibit s

Item 6. Exhibit s 48

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements made by us or on our behalf. Certain statements contained in this quarterly report, including those within the forward-looking perspective section within the Management's Discussion and Analysis section, and other written and oral statements made from time to time by us or on our behalf do not relate strictly to historical or current facts and may contain forward-looking statements that reflect our current views with respect to future events and financial performance. As such, they are considered "forward-looking statements" which provide current expectations or forecasts of future events. Such statements can be identified by the use of terminology such as "may," "could," "will," "should," "possible," "plan," "predict," "forecast," "potential," "anticipate," "estimate," "expect," "project," "intend," "believe," "may impact," "on track," "guarantee," "seek," "target," and the negative of these words and words and terms of similar substance. Our forward-looking statements generally relate to our growth strategies, financial results, product development, and sales efforts. These forward-looking statements should be considered with the understanding that such statements involve a variety of risks and uncertainties, known and unknown, and may be affected by inaccurate assumptions. Consequently, no forward-looking statement can be guaranteed and actual results may vary materially. This document contains forward-looking statements about Whirlpool Corporation and its consolidated subsidiaries ("Whirlpool") that speak only as of this date. Whirlpool disclaims any obligation to update these statements. Forward-looking statements in this document may include, but are not limited to, statements regarding future financial results, long-term value creation goals, restructuring expectations, productivity, raw material prices and related costs, sup

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS TABLE OF CONTENTS PAGE

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA Consolidated Condensed Statements of Comprehensive Income (Loss) 5 Consolidated Condensed Balance Sheets 6 Consolidated Condensed Statements of Cash Flows 7 PAGE NOTES TO THE CONSOLIDATED CONDENSED FINANCIAL STATEMENTS (UNAUDITED) 1. Basis of Presentation 8 2. Revenue Recognition 11 3. Inventories 12 4. Property, Plant and Equipment 12 5. Financing Arrangements 12 6. Commitments and Contingencies 15 7. Pension and Other Postretirement Benefit Plans 18 8. Hedges and Derivative Financial Instruments 19 9. Fair Value Measurements 22 10. Stockholders' Equity 23 11. Restructuring Charges 26 12. Income Taxes 27 13. Segment Information 28 14. Acquisitions and Divestitures 31 4 WHIRLPOOL CORPORATION CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED) FOR THE PERIODS ENDED SEPTEMBER 30 (Millions of dollars, except per share data) Three Months Ended Nine Months Ended 2025 2024 2025 2024 Net sales $ 4,033 $ 3,993 $ 11,426 $ 12,471 Expenses Cost of products sold 3,439 3,350 9,615 10,561 Gross margin 594 643 1,811 1,910 Selling, general and administrative 405 395 1,209 1,266 Intangible amortization 7 7 20 24 Restructuring costs 6 8 17 81 Loss (gain) on sale and disposal of businesses ( 30 ) ( 32 ) ( 30 ) 260 Operating profit 206 265 595 279 Other (income) expense Interest and sundry (income) expense ( 5 ) ( 6 ) ( 41 ) ( 27 ) Interest expense 92 92 256 275 Earnings (loss) before income taxes 120 179 381 31 Income tax expense (benefit) 33 45 105 ( 85 ) Equity method investment income (loss), net of tax ( 11 ) ( 20 ) ( 46 ) ( 31 ) Net earnings (loss) 76 114 229 85 Less: Net earnings (loss) available to noncontrolling interests 3 5 20 16 Net earnings (loss) available to Whirlpool $ 73 $ 109 $ 210 $ 69 Per share of common stock Basic net earnings (loss) available to Whirlpool $ 1.30 $ 2.01 $ 3.76 $ 1.27 Diluted net earnings (loss) a

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