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Whirlpool's Refinancing Removes Maturity Risks, Introduces Earnings Headwinds, RBC Says

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Whirlpool's Refinancing Removes Maturity Risks, Introduces Earnings Headwinds, RBC Says

Whirlpool's (WHR) recent refinancing removes near-term debt maturity risks, but the associated increase in interest costs will likely weigh on earnings and free cash flow, RBC Capital Markets said in a note emailed Tuesday.

Earlier in June, the appliance maker priced an upsized $2 billion debt offering.

"The new note issuance clears (near-term) maturities through (2027), a positive which provides some runway/flexibility," RBC analyst Mike Dahl said in the note. "However, the combination of higher interest costs, lower (earnings before interest, taxes, depreciation, and amortization), and reduced (free cash flow) also pushes out the deleverage path."

The new debt replaces cheaper euro-denominated notes, a move that could lift net annual interest costs by more than $100 million, Dahl wrote.

RBC slashed Whirlpool's 2026 adjusted earnings projection to $0.04 per share from $1.41 and its 2027 outlook to $1.97 per share from $3.64.

The brokerage reduced the price target on the company's stock to $30 from $32 and reiterated an underperform rating.

In May, the company lowered its full-year guidance as record-low consumer sentiment triggered by the Iran war drove a downturn in the US appliance industry. Whirlpool cut its 2026 adjusted EPS guidance to between $3 and $3.50 from $7, and reduced its revenue outlook to about $15 billion.

Whirlpool's shares declined 4.6% in Tuesday trade, and have fallen 45% so far this year.

"We see limited room for meaningful further deleveraging absent a stronger fundamental/housing recovery," Dahl said.

US housing starts plummeted to the lowest level since 2020 in May amid a steep drop in multi-family projects, government data showed Tuesday.

Price: $39.97, Change: $-1.89, Percent Change: -4.52%

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