Whirlpool Corporation shares tumbled to their lowest level in 14 years on Wednesday after the home appliance maker slashed its full-year earnings forecast and suspended its dividend payout, citing persistent weakness in consumer demand and elevated raw material costs.
Sharp decline in share price
The stock fell more than 18% in early trading, touching levels not seen since 2012. The company now expects adjusted earnings per share for 2026 to be between $8 and $9, down significantly from its previous guidance of $12 to $13.
Whirlpool also announced the suspension of its quarterly dividend, a move that will save approximately $200 million annually but underscores the severity of the current downturn. The company had paid a dividend for over 60 consecutive years.
Market and economic pressures
CEO Marc Bitzer cited a challenging macroeconomic environment, including high interest rates that have dampened housing market activity and reduced demand for major appliances. Inflationary pressures on consumers have also led to delayed purchases of big-ticket items.
“We are taking decisive actions to navigate through this cycle, including cost reductions and inventory management,” Bitzer said in a statement. “However, the near-term outlook remains uncertain.”
The company also faces increased competition from Asian rivals and rising costs for steel, plastics, and other materials used in manufacturing.
Industry-wide challenges
Whirlpool’s struggles reflect broader trends in the consumer durables sector. Rival companies such as Electrolux and LG Electronics have also reported weaker sales in North America. Analysts expect the housing market recovery to be gradual, with mortgage rates remaining elevated.
“Whirlpool is particularly exposed to the U.S. housing cycle, and the current environment is as tough as it gets,” said analyst Laura Martin of Needham & Co. “The dividend suspension is a clear signal that management expects a prolonged downturn.”
The company said it will focus on reducing debt and preserving cash. It also announced plans to close two manufacturing plants in the United States and one in Europe, affecting about 1,500 jobs.
Shares closed at $78.34, down 17.5% on the day, making it the worst single-day percentage decline for Whirlpool since the 2008 financial crisis.
