Whirlpool's (WHR) recent refinancing removes near-term maturity risk but the increase in interest costs present a cash interest headwind that will likely pressure the company's earnings and free cash flow, RBC Capital Markets said in a note emailed Tuesday.
The investment firm said it updated its model to take into account Whirlpool's $2 billion senior secured second lien notes issued to tender about 1.1 billion euros ($1.28 billion) of euro notes and pay down a revolver, which also "significantly" increased the company's interest burden.
RBC said it is "well below" the company's guidance for earnings per share and free cash flow.
For 2026, RBC is expecting EPS to decline to $0.04 from $1.41, versus the $3.00 guidance, and for 2027 it expects EPS to fall to $1.97 from $3.64.
RBC also expects the company's 2026 and 2027 free cash flow to fall to $183 million and $308 million from $229 million and $435 million previously.
RBC decreased Whirlpool's price target to $30 from $32, while keeping the company's underperform rating.
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