Whirlpool: More Than an Extra Spin Needed - Weak 2Q26 Earnings

Research evidence excerpt

Whirlpool: More Than an Extra Spin Needed - Weak 2Q26 Earnings

J P M O R G A N North America Credit Research

04 August 2026

Underweight

Whirlpool WHR

More Than an Extra Spin Needed - Weak 2Q26 Moody's:S&P: B1BB- Outlook:Outlook: NEGNEG

Earnings Fitch: BB- Outlook: NEG

The above agency ratings are at the corporate level

North America Corporate Credit -

Whirlpool (WHR) reported weak 2Q26 results on soft industry demand, which Consumer, Retailing, and Food &

was partially offset by higher pricing. It reaffirmed its FY26 guidance, except for Beverage

lowering its adj EPS to account for the higher interest expense following its June AC Yaakov Musheyev

refinancing. We remain Underweight the unsecured bonds and Short Risk the 5yr (1-212) 834 5865

CDS. Our 1Q structural-subordination thesis played out (1Q26 Earnings Note), yaakov.a.musheyev@jpmorgan.com

which saw the agencies downgrade the rating to B1/BB-/BB- on the $2bn 2L Carla Casella, CFA

issuance, causing the unsecured notes and CDS to trade wider. We are still not (1-212) 270-6798

covering our Underweight. While the subordination leg has been realized and carla.casella@jpmorgan.com

largely priced-in, we think the two legs still mispriced are: 1) a 2H FCF shortfall J.P. Morgan Securities LLC

that forces a guide cut at 3Q, and 2) a further downgrade into single-B (B2/B+/B+)

that triggers index-driven forced selling. The upside risk to our rating include

better-than-expected earnings and deleveraging, further equity stake sales

($436mn WHR India stake, $179mn WHR China stake), sale leaseback

transactions (WHR owns 12mn sq ft of its total 46mn sq ft) and a potential

acquisition by a competitor or private equity (see recent media comments link).

2Q26 Earnings Call Later Today (8/4) at 8:00AM EST. Dial-in: +1 (888) 440-