Whirlpool (WHR) Is Up 5.4% After Q3 Beat and $200 Million Cost-Cutting Plan—What's Next?

• In the past week, Whirlpool reported its third-quarter 2025 results, surpassing earnings and sales estimates with net sales increasing 1% year over year and highlighting strong growth in its North America Major Domestic Appliance segment.
• The company also outlined plans for approximately US$200 million in structural cost reductions and projected improved cash generation, targeting free cash flow of US$200 million in 2025.
• We'll examine how Whirlpool's pursuit of significant cost savings could reshape its investment narrative and future financial outlook.

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Whirlpool Investment Narrative Recap

To be a Whirlpool shareholder, it’s crucial to believe in the company’s ability to drive operating efficiency and maintain steady cash generation even as it faces the challenge of flat sales in mature markets. The recent announcement of US$200 million in structural cost reductions may help sustain margin improvement, which remains the most important short-term catalyst, but the outlook for flat 2025 net sales means the fundamental risk of stagnant top-line growth is largely unchanged for now.

Among Whirlpool’s recent moves, the announcement of a US$300 million investment in U.S. laundry manufacturing stands out, especially as it aligns with efforts to reinforce domestic operations and potentially benefit from future tariff-related tailwinds. This development is directly related to the company’s focus on cost efficiency and may play a supporting role as Whirlpool targets improved cash flow and margin resilience over the next year.

On the other hand, with international market challenges still unresolved and flat sales guidance ahead, investors should be aware that...

Read the full narrative on Whirlpool (it's free!)

Whirlpool's outlook projects $15.8 billion in revenue and $741.4 million in earnings by 2028. This forecast assumes a 0.6% annual decline in revenue, while earnings are expected to rise by $887.4 million from the current loss of $146.0 million.

Uncover how Whirlpool's forecasts yield a $86.78 fair value, a 12% upside to its current price.

Exploring Other Perspectives

Fair value estimates from four Simply Wall St Community contributors range from US$86.78 to US$145 per share, highlighting widely differing outlooks. While some see room for significant upside, flat sales and margin pressure remain central concerns that could influence Whirlpool’s recovery trajectory.

Explore 4 other fair value estimates on Whirlpool - why the stock might be worth as much as 87% more than the current price!

Build Your Own Whirlpool Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Whirlpool research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Whirlpool research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Whirlpool's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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