Whirlpool Crashes After Iran Shock Sparks "Recession-Level" Appliance Slump

Whirlpool shares crashed as much as 20% in premarket trading after the appliance maker slashed its full-year outlook and posted weaker-than-expected first-quarter results. Management directly blamed the three-month war in the Middle East for triggering a collapse in U.S. appliance demand.

Whirlpool began the earnings release with this statement: "War in Iran resulted in a recession-level industry decline in the U.S. as consumer confidence collapsed in late February and March."

For the first quarter, the maker of refrigerators, freezers, dishwashers, ovens, ranges, cooktops, microwaves, and range hoods missed Bloomberg Consensus estimates across key metrics, underscoring a sharp deterioration in demand and profitability.

Net sales in the quarter came in at $3.27 billion, below the $3.42 billion estimate. North America sales were soft at $2.24 billion, missing expectations of $2.4 billion, while Latin America sales were weak at $774 million, missing estimates of $785.5 million.

The company posted an ongoing loss of 56 cents per share, compared with earnings per share of $1.70 a year earlier. This result was far below analyst expectations of a loss of 36 cents per share.

EBIT, or earnings before interest and taxes, plunged 79% year over year to $44 million, missing the $110.8 million consensus estimate.

Snapshot of 1Q Earnings (courtsey of BBG):

Net sales $3.27 billion, estimate $3.42 billion

• MDA North Amer. Net Sales $2.24 billion, estimate $2.4 billion
• MDA Latin America Net Sales $774.0 million, estimate $785.5 million

Ongoing loss/share 56c vs. EPS $1.70 y/y, estimate EPS 36c

Ongoing EBIT $44 million, -79% y/y, estimate $110.8 million

Snapshot of 2026 forecast (courtsey of BBG):

Sees revenue $15.0 billion, saw $15.3 billion to $15.6 billion, estimate $15.21 billion (Bloomberg Consensus)

Sees ongoing EPS $3.00 to $3.50, saw about $7, estimate $4.84

Sees cash from operating activities about $700 million, saw about $850 million, estimate $763.9 million

Still sees adjusted tax rate about 25%

Shares crashed as much as 20% in premarket trading after first-quarter sales showed weaker demand, mounting margin pressure, and a decline in North American appliance demand. If these losses persist through the cash session, it would be the steepest intraday decline since the October 19, 1987, crash of 21%.

Year to date, shares are already down 24% as of Wednesday's close. The stock is now trading at 2011 levels.

Is management conveniently blaming the U.S.-Iran war? The largest trend impacting home appliance sales has been a frozen housing market over the past several years.