Whirlpool cuts EPS guidance to $12–$13, halts $0.80 dividend after 20% order slump
Whirlpool cut its fiscal 2026 adjusted EPS guidance to $12.00–$13.00 from prior $14.50 and suspended its $0.80 quarterly dividend to preserve about $400 million of cash after Iran war–related disruptions drove a 20% drop in Middle East orders. The company now expects full-year organic revenue growth of 2%, down from a previous 5% forecast.
1. Guidance Revision
Whirlpool lowered its fiscal 2026 adjusted EPS guidance range to $12.00–$13.00 per share from a prior forecast of $14.50, citing weakening demand in key markets. The revision reflects heightened uncertainty over raw material costs and logistics challenges arising from geopolitical tensions in the Middle East.
2. Dividend Suspension
The board suspended its $0.80 quarterly dividend to conserve roughly $400 million of cash, bolstering the balance sheet as the company navigates order volatility. Executives indicated the suspension will remain until visibility on global demand recovers.
3. Regional Demand Impact
Orders from the Middle East fell 20% as the Iran conflict disrupted trade routes and consumer spending in affected countries. Whirlpool noted that unit sales in the region have not rebounded and could remain pressured through year-end.
4. Outlook and Market Reaction
With organic revenue growth now pegged at 2%, management will focus on cost control, inventory management and targeted marketing to stabilize volumes. Shares dipped 3% in early trading, reflecting investor concern over near-term cash flow and margin compression.