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Investing.com -- Bank of America downgraded Whirlpool (NYSE:WHR) to Underperform from Neutral and lowered its price target to $70 from $100, flagging a weaker 2025 outlook and a sharp dividend cut.
The brokerage said second-quarter results and guidance came in below expectations.
Whirlpool posted Q2 EPS of $1.34, missing BofA’s forecast of $1.47, and reduced its full-year EPS estimate to $6–$8 from $10.
It also trimmed its 2025 revenue growth outlook to flat from 3%, and lowered its EBIT margin target to about 5.7% from 6.8%.
North America, Whirlpool’s largest market, remains under pressure. Major domestic appliance sales in the region fell 5% from a year earlier in Q2, with margin performance also missing estimates.
BofA expects those headwinds to persist through the rest of the year.
The firm also pointed to limited benefit so far from new U.S. tariffs on imported appliances, as rivals moved early to build inventory and appear willing to sacrifice margins to defend market share.
Separately, Whirlpool proposed cutting its annual dividend to $3.60 from $7.00 and lowered its 2025 free cash flow guidance to about $400 million.
Net leverage stands at 5.4 times, with BofA forecasting free cash flow below $500 million in 2026 and 2027.
Though Whirlpool plans to close the sale of a portion of its India business, with estimated $550 to $600 million in proceeds, by year end.