New Steel Tariffs Give Whirlpool A Competitive Edge, Says Analyst

Bank of America Securities analyst Rafe Jadrosich upgraded Whirlpool Corporation WHR to Neutral from Underperform, raising the price forecast from $68 to $94.

Jadrosich upgraded the stock, citing improved North American margin prospects and tariff-related tailwinds.

The analyst lifted 2025 estimates to $8.56 from $8.35 and 2026 EPS estimates to $10.33 from $9.39, as Whirlpool’s domestic production stands to benefit from new appliance-related steel tariffs.

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Despite long-term concerns over free cash flow sufficiency for deleveraging and sustaining the $400 million annual dividend, the analyst writes that the recent debt refinancing and expected India business sale in the second half of 2025 provide enough support through the company’s 2026 maturity.

Jadrosich highlighted multiple times that Whirlpool is relatively well positioned to benefit from new Section 232 tariffs, which will impose a 50% duty on the steel content of imported home appliances starting June 23.

Since 80% of Whirlpool’s U.S. sales are domestically produced and 96% of its steel is U.S.-sourced, the company faces minimal impact.

In contrast, competitors who rely on imports for over half of their U.S. sales, around 20% from China and 15% from Korea, previously enjoyed a cost advantage by bypassing steel tariffs through finished goods imports, a benefit now significantly reduced.

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According to the analyst, the tariffs could force competitors to raise wholesale appliance prices by 3–5%, or roughly $15–$20 per unit, to offset increased steel costs, potentially giving Whirlpool a competitive edge.

Since Whirlpool earns less than a 7% margin on a typical sub-$500 wholesale appliance, a $15–$20 price lift on half its North America volume could boost EBIT margins by 150–200 basis points and raise profits by 20–30%.

With appliance manufacturing being a low-margin business, he expects rivals to pass on costs, which may allow Whirlpool to gain share or expand margins, Jadrosich adds.

The analyst raised fiscal year 2027 earnings per share to $10.73 from $9.96.

Price Action: WHR shares are trading higher by 5.12% to $92.04 at last check Friday.

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