Whirlpool Corporation has launched a concurrent underwritten public offering of common stock and depositary shares, with aggregate proceeds expected to total $800 million. The company plans to use the net proceeds to repay a portion of its revolving credit facility and to fund general corporate purposes, including strategic investments in vertical integration and automation.
The announcement comes as Whirlpool’s balance sheet shows a total debt of $5.6 billion at the end of Q4 2025, a debt‑to‑equity ratio of 2.7 and a current ratio of 0.76. Investors have reacted negatively, citing concerns about dilution and the company’s recent credit rating downgrades to below investment grade. The offering is intended to reduce debt and improve liquidity, addressing the liquidity constraints reflected in the current ratio.
Q4 2025 results revealed a revenue miss of $4.1 billion versus an estimate of $4.28 billion, a 4.21% shortfall driven by promotional pressure and tariff headwinds. Earnings per share were reported at $1.10 against an estimate of $1.50, a miss that reflects the impact of these headwinds. Other reports, however, noted an EPS of $1.91 versus an estimate of $1.53, a 24.84% beat, highlighting the effect of differing non‑GAAP adjustments. Gross margin fell 220 basis points to 14%, and EBIT margin contracted to 2.7% from 6.7% year‑over‑year, underscoring margin compression from pricing and cost pressures.
Management has emphasized the challenges of 2025 and the outlook for 2026. CEO Marc Bitzer said, "With a challenging 2025 behind us, our confidence for 2026 is based on our recent successful product launches, reduced promotional intensity and a gradual recovery of the housing market." CFO Roxanne Warner added, "We expect full‑year ongoing earnings per share of approximately $7, with an adjusted effective tax rate of about 25%. In 2025 we managed significant working‑capital challenges due to our record level of product refreshes and the notable operational shifts as a result of tariffs."
The company’s strategic rationale for the offering centers on vertical integration and automation to support domestic manufacturing and product innovation. By reducing debt, Whirlpool aims to free capital for these initiatives, which are expected to improve operational efficiency and long‑term profitability. The offering also signals management’s commitment to strengthening the balance sheet amid a competitive and tariff‑affected environment.
The market’s negative reaction reflects concerns about dilution and the company’s financial distress signals, but the capital raise is a proactive step to improve financial flexibility and support Whirlpool’s long‑term growth strategy. The move is expected to provide the company with the resources needed to invest in automation and domestic manufacturing while reducing leverage and addressing liquidity constraints.
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