Whirlpool's shares have taken a hit, down 10.2% since they reported Q4 earnings last month. The stock underperformed the broader market, but here's what caught my attention in the actual numbers.

The earnings report showed some real struggles. EPS dropped 75.9% year-over-year to $1.10, missing expectations at $1.54. Net sales came in at $4.098 billion versus the expected $4.267 billion, and that's actually down 0.9% from a year ago. Gross profit fell 14.3%, which is a pretty significant margin squeeze. The company's ongoing EBIT margin contracted 270 basis points to just 2.7%. That's the kind of pressure that explains why investors sold off.

Breaking down by region, North America was particularly rough—EBIT dropped 59% with the segment dealing with heavy promotional pricing and cost pressures. Latin America also weakened with volume declines. The one bright spot was their SDA Global segment, which grew 10.3% with strong new product momentum.

Now here's where it gets interesting. Looking at Whirlpool's balance sheet, they ended 2025 with $2.7 billion in total stockholders' equity against $5.6 billion in long-term debt. Understanding how to calculate total stockholders equity—essentially what's left for shareholders after liabilities—shows the company still has a reasonable equity base despite the debt load. They generated $78 million in free cash flow during the year and are planning to reduce debt by $400 million in 2026.

But management's 2026 guidance is actually pretty constructive. They're expecting 5% sales growth and, more importantly, EBIT margins expanding to 5.5-5.8% from 4.7% in 2025. They're projecting over $150 million in structural cost savings. Ongoing EPS is expected to hit $7 versus $6.23 last year. Free cash flow guidance is $400-$500 million, which would be a meaningful improvement.

So yeah, the recent earnings were disappointing, but the forward guidance suggests management sees a path to better profitability. Whether that actually materializes is the real question investors are weighing right now.