Whirlpool Corporation

10/27/2026 | Press release | Distributed by Public on 10/27/2026 08:35

Quarterly Report for Quarter Ending September 30, 2026 (Form 10-Q)

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A) is intended to promote understanding of the results of operations and financial condition of the Company and generally discusses the results of operations for the current three and nine months ended periods compared to the same prior-year periods. MD&A is provided as a supplement to, and should be read in connection with, the Consolidated Condensed Financial Statements and Notes to the Consolidated Condensed Financial Statements included in this Form 10-Q.
Certain references to particular information in the Notes to the Consolidated Condensed Financial Statements are made to assist readers.
Certain columns and rows in the financial tables within the MD&A may not sum due to rounding. Percentages have been calculated from the underlying whole-dollar amounts.
ABOUT WHIRLPOOL
Whirlpool Corporation ("Whirlpool") is a leading kitchen and laundry appliance company, in constant pursuit of improving life at home and inspiring generations with our brands. The Company is driving meaningful innovation to meet the evolving needs of consumers through its iconic brand portfolio, including Whirlpool, KitchenAid, JennAir, Maytag, Amana, Brastemp, Consul, and InSinkErator. In 2025, the Company reported approximately $16 billion in annual sales, 41,000 employees, and 35 manufacturing and technology research centers. We conduct our business through three operating segments, which consist of Major Domestic Appliances ("MDA") North America; MDA Latin America; and Small Domestic Appliances ("SDA") Global.
OVERVIEW
Whirlpool reported third-quarter net earnings (loss) available to Whirlpool common shareholders of $(249) million (net earnings (loss) margin of (6.8)%), or $(3.80) per share, compared to net earnings (loss) available to Whirlpool shareholders of $73 million (net earnings margin of 1.8%), or $1.29 per share in the same prior-year period. Cash provided by (used in) operating activities was $(826) million for the nine months ended September 30, 2026, compared to $(669) million in the same prior year period, with capital expenditures of $255 million and $239 million, respectively.
Net earnings (loss) margins were unfavorably impacted by the non-cash impairment charge of $124 million related to the carrying value of our investment in Whirlpool India, the net charges of $54 million related to the bankruptcy reorganization of a significant trade customer in Latin America (Casas Bahia), lower volume due to the industry demand decline in North America, higher cost of tariffs and cost inflation, partially offset by favorable price/mix.
We continue to take actions to deliver shareholder value as we navigate through a challenging macro environment in North America. We remain confident in delivering structural cost actions to help offset inflation, implementing previously announced pricing actions, including the largest pricing changes in a decade, introducing over 100 new products and improving net debt.
RESULTS OF OPERATIONS
The following table summarizes the consolidated results of operations for the periods presented:
Three Months Ended September 30, Nine Months Ended September 30,
Consolidated - Millions of dollars, except per share data 2026 2025 Better/(Worse) % 2026 2025 Better/(Worse) %
Net sales $ 3,677 $ 4,033 (8.8)% $ 10,467 $ 11,426 (8.4)%
Gross margin 473 594 (20.4) 1,330 1,811 (26.6)
Selling, general and administrative 428 405 (5.6) 1,158 1,209 4.2
Intangible amortization 6 7 6.6 18 20 6.7
Restructuring costs 35 6 nm 108 17 nm
Loss (gain) on sale and disposal of businesses - (30) nm (139) (30) (363.3)
Interest and sundry (income) expense 15 (5) nm 11 (41) nm
Interest expense 102 92 (10.6) 241 256 5.6
Income tax expense (benefit) 8 33 nm 25 105 76.5
Equity method investment income (loss) (118) (11) (972.7) (140) (46) (204.3)
Net earnings (loss) available to Whirlpool shareholders
(237) 73 nm (231) 210 nm
Mandatory convertible preferred stock dividends accumulated during the period
12 - nm 29 - nm
Net earnings (loss) available to Whirlpool common shareholders
$ (249) $ 73 nm $ (260) $ 210 nm
Diluted net earnings (loss) available to Whirlpool per share $ (3.80) $ 1.29 nm $ (4.10) $ 3.74 nm
(1) Not meaningful ("nm")
Consolidated net sales decreased 8.8% and 8.4% for the three and nine months ended September 30, 2026 compared to the same periods in 2025. The decrease was primarily driven by the deconsolidation of Whirlpool of India and industry demand decline in North America. This was partially offset by favorable currency impacts in Latin America.
The consolidated gross margin percentage for the three and nine months ended September 30, 2026 was 12.9% and 12.7% compared to 14.7% and 15.8% in the same prior-year periods. The decrease was primarily driven by operational inefficiencies associated with lower volume, higher cost of tariffs, and cost inflation.
The following is a discussion of results for each of our operating segments, which consist of MDA North America; MDA Latin America; and SDA Global. For additional information, see Note 13 to the Consolidated Condensed Financial Statements.
MDA NORTH AMERICA
Net Sales
Net sales decreased 8.3% and 5.9% for the three and nine months ended September 30, 2026 compared to the same periods in 2025. The decrease for the three and nine months ended was primarily driven by lower volume due to a soft industry demand, partially offset by favorable product price/mix in the three months ended September 30, 2026. Excluding the impact from foreign currency, net sales decreased 8.2% and 5.9% for the three and nine months ended September 30, 2026, compared to the same periods in 2025.
Cost of Products Sold
Cost of products sold for the three and nine months ended September 30, 2026 decreased 6.4% and 1.6% compared to the same periods in 2025. The decrease for the three and nine months ended was primarily driven by lower volume, partially offset by tariffs, as well as raw material, transportation and fuel inflation.
EBIT
EBIT decreased for the three and nine months ended September 30, 2026 compared to the same periods in 2025. The decrease for the three and nine months ended was primarily due to operational inefficiencies associated with lower volume, tariffs and cost inflation. This was partially offset by favorable product price/mix in the three months ended September 30, 2026. EBIT margin was 3.0% and 2.0% for the three and nine months ended September 30, 2026, compared to 4.9% and 5.6% for the same periods in 2025.
MDA LATIN AMERICA
Net Sales
Net sales increased 6.9% and 6.6% for the three and nine months ended September 30, 2026, compared to the same periods in 2025. The increase was primarily driven by favorable foreign currency and increased volume, partially offset by unfavorable price/mix. Excluding the impact from foreign currency, net sales increased 2.5% and decreased 0.9% for the three and nine months ended September 30, 2026, compared to the same periods in 2025.
Cost of Products Sold
Cost of products sold for the three and nine months ended September 30, 2026 increased 10.5% and 9.6% compared to the same periods in 2025. The increase was primarily driven by higher volume.
EBIT
EBIT decreased for the three and nine months ended September 30, 2026 compared to the same periods in 2025. The decrease was primarily driven by unfavorable price/mix, partially offset by favorable currency. EBIT margin was 2.0% and 3.6% for the three and nine months ended September 30, 2026, compared to 5.7% and 6.0% for the same periods in 2025.
SDA GLOBAL
Net Sales
Net sales decreased 0.7% and increased 3.7% for the three and nine months ended September 30, 2026 compared to the same periods in 2025. The decrease for the three months ended September 30, 2026 was primarily driven by timing shift of orders into the fourth quarter. The increase for the nine months ended September 30, 2026 was primarily driven by increased volume and favorable foreign currency. Excluding the impact from foreign currency, net sales decreased 0.9% and increased 2.0% for the three and nine months ended September 30, 2026 compared to the same periods in 2025.
Cost of Products Sold
Cost of products sold for the three and nine months ended September 30, 2026 remained flat and increased 3.6% compared to the same periods in 2025.
EBIT
EBIT increased for the three and nine months ended September 30, 2026 compared to the same periods in 2025. The increase was primarily driven by price mix and cost take-out, as well as increased volume in the nine months period, partially offset by tariffs and raw material inflation. EBIT margin was 18.6% and 17.4% for the three and nine months ended September 30, 2026 compared to 16.5% and 17.3% for the same periods in 2025.
Selling, General and Administrative
The following table summarizes selling, general and administrative expenses as a percentage of net sales:
Three Months Ended September 30, Nine Months Ended September 30,
Millions of dollars 2026 As a % of Net Sales
2025
As a % of Net Sales 2026 As a % of Net Sales
2025
As a % of Net Sales
Consolidated $ 428 11.6 % $ 405 10.1 % $ 1,158 11.1 % $ 1,209 10.6 %
Consolidated selling, general and administrative expenses increased for the three months ended September 30, 2026, compared to the same period in 2025 primarily due to credit losses related to the bankruptcy reorganization of Casas Bahia, partially offset by the India deconsolidation and decreased marketing spend.
Consolidated selling, general and administrative expenses decreased for the nine months ended September 30, 2026, compared to the same period in 2025 primarily due to India deconsolidation and decreased marketing spend, offset by the credit losses related to the bankruptcy reorganization of Casas Bahia.
For additional information, see Notes 1 and 13 to the Consolidated Condensed Financial Statements.
Restructuring
We incurred restructuring charges of $35 million and $108 million for the three and nine months ended September 30, 2026 compared to $6 million and $17 million for the same periods in 2025.
For additional information, see Note 11 to the Consolidated Condensed Financial Statements.
For the full year 2026, we expect to incur approximately $170 million of restructuring charges, inclusive of the restructuring charges recorded for the nine months ended September 30, 2026. We expect a significant portion of these actions to result in non-cash settlement.
(Gain) Loss on Sale and Disposal of Businesses
(Gain) loss on sale and disposal of businesses was $0 million and $(139) million for the three and nine months ended September 30, 2026 compared to $(30) million in the same prior year periods. The amounts recorded in 2025 is for a release of previously accrued tax related indemnity for the sale of a majority interest in our European major appliance business. The amount recorded in the second quarter of 2026 is for the sale of our remaining ownership stake in Beko and the termination of the Russia agreement.
See Note 14 to the Consolidated Financial Statements for additional information.
Interest and Sundry (Income) Expense
Net interest and sundry (income) expense was $15 million and $11 million for the three and nine months ended September 30, 2026 compared to $(5) million and $(41) million in the same prior year periods.
For additional information, see Note 8 to the Consolidated Condensed Financial Statements.
Interest Expense
Interest expense was $102 million and $241 million for the three and nine months ended September 30, 2026 compared to $92 million and $256 million in the same prior year periods.
Income Taxes
Income tax expense was $8 million and $25 million for the three and nine months ended September 30, 2026 compared to income tax expense of $33 million and $105 million in the same prior year periods. The decrease in tax expense for the nine months ended September 30, 2026, is primarily due to an earnings loss for the nine month period. For more information, see Note 12 to the Consolidated Condensed Financial Statements.
Other Information
Our Critical Accounting Policies and Estimates for goodwill and other indefinite-lived intangibles are disclosed in Note 1 to the Consolidated Financial Statements and in Management's Discussion and Analysis of our annual report on Form 10-K for the fiscal year ended December 31, 2025.
We continue to monitor the significant global economic uncertainty to assess the outlook for demand for our products and the impact on our business and our overall financial performance. Our Maytag, JennAir, Amana and InSinkErator trademarks continue to be at risk at September 30, 2026. None of our reporting units are presently at risk for future impairment.
For additional information, see Note 1 to the Consolidated Condensed Financial Statements.
FINANCIAL CONDITION AND LIQUIDITY
Background
Our objective is to finance our business through operating cash flow and the appropriate mix of long-term and short-term debt. By diversifying the maturity structure, we avoid concentrations of debt, reducing liquidity risk. We have varying needs for short-term working capital financing as a result of the nature of our business. We regularly review our capital structure and liquidity priorities, which include funding innovation and growth through capital expenditures and research and development expenditures as well as debt repayment; opportunistic mergers and acquisitions; and providing returns to shareholders through dividends and share repurchases.
Whirlpool has historically been able to leverage its free cash flow generation to fund our operations, pay for any debt servicing costs and allocate capital for reinvestment in our business, funding share repurchases and dividend payments.
On February 20, 2024, Whirlpool's wholly-owned subsidiary, Whirlpool Mauritius Limited ("Seller"), executed the sale of 30.4 million equity shares of Whirlpool India via a market transaction. The transaction reduced Whirlpool's ownership in Whirlpool India from 75% to 51%, and generated sales proceeds of approximately $462 million on settlement. In October 2025, we signed certain brand license, technology license, and transition service agreements with Whirlpool India. On November 27, 2025, the Seller executed the sale of 14.3 million equity shares of Whirlpool India via a market transaction. The transaction reduced Seller's ownership of Whirlpool India from 51% to approximately 40%, and generated gross sales proceeds of approximately $166 million on settlement, which occurred on November 28, 2025. We are pleased with our retained position and will continue to evaluate all options to further reduce our debt throughout 2026 in line with our guidance and capital allocation priorities.
On February 27, 2026, we issued depository shares for our Mandatory Convertible Preferred Stock and shares of common stock. For the Mandatory Convertible Preferred Stock, we received cash proceeds of approximately $557 million, net of underwriting fees and other issuance costs. For the common stock we received cash proceeds of approximately $524 million, net of underwriting fees and other issuance costs. We used approximately $900 million of the net proceeds from this offering, to repay a portion of the amounts outstanding under our prior revolving Credit Facility.
Our debt currently has a non-investment grade rating from the rating agencies, which has partially reduced access to and has increased costs associated with accessing certain types of financing that are typically reserved for investment-grade companies (e.g., commercial paper). During the first quarter of 2026, our senior unsecured debt was further downgraded by Fitch Ratings, Inc. to BB from BB+, with a negative outlook. During the second quarter of 2026, our senior unsecured debt was further downgraded by Fitch Ratings, Inc. to BB- from BB and Moody's to Ba3 from Ba2. Please see Part II, Item 1A "Risk Factors" for a discussion of impacts related to potential further developments or downgrades to our credit ratings.
Our short-term potential uses of liquidity include funding our ongoing capital and research and development spending, debt repayment, and returns to shareholders, including dividend payments on our Mandatory Convertible Preferred Stock. We have $14 million of debt maturing in the next twelve months.
Cash and cash equivalents
The Company had cash and cash equivalents of approximately $1.1 billion at September 30, 2026. For cash in each of its foreign subsidiaries, the Company makes an assertion regarding the amount of earnings intended for permanent reinvestment, with the balance available to be repatriated to the United States. The cash held by foreign subsidiaries for permanent reinvestment is generally used to finance the subsidiaries' operational activities and expected future foreign investments. Our primary intent is to reinvest these funds outside of the United States. However, if these funds were repatriated, we would be required to accrue and pay applicable United States taxes (if any) and withholding taxes payable to various countries. It is not practicable to estimate the amount of the deferred tax liability associated with the repatriation of cash due to the complexity of its hypothetical calculation.
At September 30, 2026, we had cash or cash equivalents greater than 1% of our consolidated assets in United States (3.7%). In addition, we had third-party accounts receivable outside of the United States greater than 1% of our consolidated assets in Brazil and Mexico, which represented 1.2% and 1.1%, respectively. We continue to monitor general financial instability and uncertainty globally.
ABL Credit Facility
On June 16, 2026, we entered into the $2 billion ABL Credit Facility with JP Morgan Chase Bank, N.A., as Administrative Agent. The ABL Credit Facility is subject to a borrowing base comprised of eligible accounts, inventory, intellectual property, machinery and equipment, credit card receivables, and cash. Proceeds may be used for working capital and general corporate purposes. Borrowings bear interest based on availability at either Term SOFR, the Alternate Base Rate, or other applicable benchmarks, plus an applicable margin ranging from 0.50% to 2.00% per annum. The ABL Credit Facility contains customary events of default and covenants that restrict our ability to incur debt, pay dividends, create liens, make investments, or dispose of assets. It also includes a springing financial covenant requiring a minimum consolidated fixed charge coverage ratio if Availability (as defined in the ABL Credit Agreement) falls below a specified threshold.
For additional information, see Note 5 to the Consolidated Condensed Financial Statements.
Other committed credit facilities
At September 30, 2026, we had $0 million outstanding under the ABL Credit Facility. In addition to the committed $2.00 billion ABL Credit Facility, we have committed credit facilities in Brazil. These Brazil committed credit facilities provide borrowings up to approximately $193 million at September 30, 2026
In May 2026, the Company entered into an amendment to its Long-Term Credit Agreement which reduces the aggregate commitment from $3.50 billion to $2.25 billion. As of June 16, 2026 Long-Term Credit Agreement was terminated and replaced with the Asset-based Credit Facility.
For additional information, see Note 5 to the Consolidated Condensed Financial Statements.
Notes payable
As of September 30, 2026, we have $14 million of notes payable outstanding. This primarily includes an Argentina note. For additional information, see Note 5 to the Consolidated Condensed Financial Statements.
Trade customers
During the third quarter of 2026, the Company recorded a charge of $54 million related to the bankruptcy reorganization of a significant trade customer in Latin America, Casas Bahia, which is not indicative of ongoing operational performance. This charge includes $46 million of trade customer credit losses, net of expected credit insurance recoveries (reflecting $157 million of gross accounts receivable impairments, net of $112 million of expected credit insurance recoveries), and $8 million of other direct charges resulting from the event. We believe the Casas Bahia bankruptcy could have a near-term impact on our results of operations as consumers, retailers, and competitors adjust to Casas Bahia's reorganization, and we work through the impact of accounts receivable, including any partial recovery through applicable insurance arrangements; furthermore, we do not believe that the bankruptcy reorganization will materially impact our financial results over the long term. In the past, when faced with a potential volume reduction from any one particular segment of our trade distribution network, we generally have been able to offset such declines through increased sales throughout our broad distribution network.
We continue to review customer conditions globally, considering each geographic region, the unique credit risk specific to the country, marketplace and economic environment, and take appropriate risk mitigation steps.
For additional information on guarantees, see Note 6 to the Consolidated Condensed Financial Statements.
Share Repurchase Program
For additional information about our share repurchase program, see Note 10 to the Consolidated Condensed Financial Statements.
Sources and Uses of Cash
The following table summarizes the net increase (decrease) in cash and cash equivalents for the periods presented:
Nine Months Ended September 30,
Millions of dollars 2026 2025
Cash provided by (used in):
Operating activities $ (826) $ (669)
Investing activities (148) (239)
Financing activities 1,380 503
Effect of exchange rate changes 28 64
Net change in cash and cash equivalents $ 434 $ (341)
Cash Flows from Operating Activities
Cash used in operating activities increased during the nine months ended September 30, 2026 compared to the same prior year period. The increase in cash used in operating activities was primarily driven by lower earnings.
The timing of cash flows from operations varies significantly throughout the year primarily due to changes in production levels, sales patterns, promotional programs, funding requirements, credit management, as well as receivable and payment terms. Depending on the timing of cash flows, the location of cash balances, as well as the liquidity requirements of each country, external sources of funding are used to support working capital requirements.
Cash Flows from Investing Activities
Cash used in investing activities during the nine months ended September 30, 2026 decreased compared to the same prior year period, primarily driven by the proceeds from the Beko Europe sale and the purchase and sale of previously leased assets. For additional information, see Note 1 to the Consolidated Condensed Financial Statements.
Cash Flows from Financing Activities
Cash provided by financing activities during the nine months ended September 30, 2026 increased compared to the same period in 2025, primarily driven by the issuance of common stock and mandatory convertible preferred stock in February of 2026, which resulted in cash proceeds of $524 million and $557 million, net of issuance costs. For additional information, see Note 10 to the Consolidated Condensed Financial Statements.
Financing Arrangements
The Company had total committed credit facilities of approximately $2.2 billion at September 30, 2026. These facilities are geographically reflective of the Company's business operations. The Company has entered into a new ABL Credit Facility on June 16, 2026 and is confident that the committed credit facilities are sufficient to support its business operations. We had $0 million outstanding under the ABL Credit Facility at September 30, 2026.
For additional information about our financing arrangements, see Note 5 to the Consolidated Condensed Financial Statements.
Secured Notes Offering
On June 16, 2026, we issued $2 billion in aggregate principal amount of the Secured Notes pursuant to the Indenture, with U.S. Bank Trust Company, National Association, as trustee and notes collateral agent. The sale of the Secured Notes was not registered under the Securities Act of 1933, as amended, and the Notes were sold on a private placement basis under Rule 144A.
The Indenture contains customary covenants that limit our ability and our subsidiaries' ability to incur additional debt, pay dividends, create liens, make investments, dispose of assets, or engage in mergers. The covenants are subject to important exceptions and qualifications. Upon a specified change of control, we must offer to purchase the Secured Notes at 101% of the principal amount plus accrued interest. Additionally, certain asset sales may require the Company to use net proceeds to offer to purchase the Notes at 100% of the principal amount plus accrued interest.
We used the net proceeds from the issuance of the Secured Notes to pay the consideration for all 1.250% Senior Notes due 2026 and 1.100% Senior Notes due 2027 issued by the Company's wholly owned subsidiary and, together with borrowings under our ABL Credit Facility, to repay the amount outstanding under our previously existing unsecured revolving credit facility. The entirety of the unsecured revolving credit facility and Senior Notes were repaid by July 1, 2026.
For additional information, see Note 5 to the Consolidated Condensed Financial Statements.
Depositary Shares Offering
On February 27, 2026, we issued 11,500,000 depositary shares, each of which represents a 1/20th interest in a share of our 8.50% Series A Mandatory Convertible Preferred Stock in an underwritten public offering. The Mandatory Convertible Preferred Stock has a $1,000 per share liquidation preference and $1.00 per share par value.
See Note 10 to the Consolidated Condensed Financial Statements for additional information.
Common Stock Offering
Also on February 27, 2026, we issued 7,898,550 shares of our common stock in an underwritten public offering at an offering price of $69 per share.
As a result of the depositary shares and common stock offering transactions, we received cash proceeds of approximately $1.08 billion, net of underwriting fees and other issuance costs.
See Note 10 to the Consolidated Condensed Financial Statements for additional information.
Dividends
During the second quarter of 2026, the Board of Directors made the decision to suspend our regular quarterly cash dividend on our common stock, which had previously been paid at a rate of $0.90 per share. The Board determined that suspending the dividend is prudent to strengthen our balance sheet in light of current macroeconomic uncertainties. The Board determined to pay the third quarter Mandatory Convertible Preferred Stock dividend in cash.
Off-Balance Sheet Arrangements
In the ordinary course of business, we enter into agreements with financial institutions to issue bank guarantees, letters of credit, and surety bonds. These agreements are primarily associated with unresolved tax matters in Brazil, as is customary under local regulations, and other governmental obligations and debt agreements. At September 30, 2026, we had approximately $578 million outstanding under these agreements.
For additional information about our off-balance sheet arrangements, see Notes 5 and 6 to the Consolidated Condensed Financial Statements.
FORWARD-LOOKING PERSPECTIVE
Earnings per diluted share presented below are net of tax. We currently estimate our 2026 full-year GAAP tax rate of ~8.0%. We currently estimate earnings per diluted share for 2026 as follows:
2026
Current Outlook
Estimated GAAP earnings per diluted share, for the year ending December 31, 2026 $(4.95)
Including:
Restructuring expense 2.65
Impairment of equity method investment 1.90
Impact of M&A transactions (1.75)
Trade customer insolvency impact 0.85
Income tax impact (0.40)
Normalized tax rate adjustment 0.40
Industry Demand
MDA North America ~(5)%
MDA Latin America 5-7%
SDA Global ~Flat
For the full-year 2026, we expect to generate cash from operating activities of approximately $700 million and make capital expenditures of approximately $400 million.
OTHER MATTERS
For additional information regarding certain of our loss contingencies/litigation, see Note 6 to the Consolidated Condensed Financial Statements. Unfavorable outcomes in these proceedings could have a material adverse effect on our financial statements in any particular reporting period.
Antidumping
As previously reported, Whirlpool filed petitions in 2011 and 2015 alleging that Samsung, LG and Electrolux violated U.S. and international trade laws by dumping large residential washers into the U.S. Those petitions resulted in orders imposing antidumping duties on certain large residential washers imported from South Korea, Mexico, and China, and countervailing duties on certain large residential washers from South Korea. In August 2022, the order covering certain large residential washers from China was extended for an additional five years. In September 2024, the order covering certain large residential washers from Mexico was extended for an additional five years.
Raw Materials and Global Economy
The current domestic and international political environment have contributed to uncertainty surrounding the future state of the global economy. We have experienced raw material inflation in certain prior years based on the impact of U.S. tariffs and other global macroeconomic factors.
The recent imposition of significant trade policy and tariff actions by the U.S. government, including but not limited to tariffs on imported steel, aluminum and copper products, multiple tariffs on certain imports from China, global tariffs under Section 122 and Section 301, and multiple ongoing investigations that could lead to additional tariffs, are creating significant uncertainty and potential risks for our business. Certain of these actions have increased the cost of certain raw materials and components, impacting our cost of products sold, and have led to "pre-loading" of finished product inventories by foreign competitors. Pre-loading by competitors can delay expected positive impacts of tariffs on appliances and impact competitors' go-to-market actions. These actions have also created significant uncertainty and potential risks for our business.
In February 2026, the U.S. Supreme Court issued a decision invalidating tariffs imposed under the International Emergency Economic Powers Act ("IEEPA"). Subsequent lower court rulings allow for recovery of
IEEPA tariff amounts previously paid, although the timing and administration of any potential IEEPA tariff refunds may be subject to further legal and regulatory developments. Subsequent to the U.S. Supreme Court's ruling, an executive order was issued imposing a new global tariff under Section 122, which went into effect in February 2026 and expired in July 2026. Additional Section 301 tariffs were imposed and effective in July 2026. Both the Section 122 tariffs and the Section 301 tariffs are subject to legal challenges.
Also, in April 2026, Section 232 tariffs were modified so that global home appliance imports are subject to a 25% tariff on the product's full import value, effective April 6th. Home appliance imports were previously subject to a 50% tariff on the product's steel content value. This action, coupled with other tariff and trade policy actions taken by the U.S. government, is expected to help close long-standing loopholes and help support a level playing field for domestic producers.
While we continue to actively explore and implement opportunities to mitigate certain increased costs, as further set forth in "Risk Factors," there can be no guarantee that we will be able to fully offset the impact of these tariffs. The U.S. government may increase enforcement activity around tariffs and customs compliance, including evolving guidance, increased audits and more aggressive investigations, which could impact our mitigation strategies and lead to increased costs and legal risks. The imposition of retaliatory tariffs from other countries on our exported products, including most recently from Canada, could negatively affect our sales and marketplace access in those countries. The long-term effects of these tariffs and any future trade policy changes on the global economy and our industry remain uncertain and could have a material adverse effect on our financial statements in any particular reporting period.
In addition to existing and potential additional tariff actions by the U.S. government and retaliatory actions by others, and certain additional factors beyond our control, including the conflict in Iran, the conflict in Ukraine and related sanctions, the Israel-Palestinian conflict, the Red Sea conflict and its impact on shipping and logistics, and government actions in China, among other factors, we expect to continue to experience the following impacts: a global shortage of certain components, such as semiconductors, raw material and input cost inflation, and fluctuations in logistics availability, timing and costs. This could require us to modify our current business practices, and could have a material adverse effect on our financial statements in any particular reporting period.
Whirlpool Corporation published this content on October 27, 2026, and is solely responsible for the information contained herein. Distributed via EDGAR on October 27, 2026 at 14:36 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]