Billionaire hedge fund manager David Tepper just turned up the heat on WHR Corp., accusing the appliance giant of “destroying shareholder value.” He is also calling for sweeping changes in his strategy and capital allocation.
In a new letter to the board, Tepper Appaloosa management takes direct aim at Whirlpool’s leadership and criticizes the company’s recent reinvestment moves.
This follows an earlier placement in his portfolio. In the third quarter of last year, Appaloosa sold 8M shares of Intel Corp ( INTC ) and used part of the proceeds to buy 5.2M shares of Whirlpool. It turned capital from a chip maker into a one-hit, high-yield home appliance name and set the stage for today’s public spat with Whirlpool’s board.
The broad scope comes at a critical moment for Whirlpool as its stock trades in the negative at all times. So, as one of Wall Street’s most closely watched activists is the target of this beaten-down stock name, a key question surfaces. Should WHR be a buy, sell, or simply hold one while the dust settles?
Based in Benton Harbor, Michigan, Whirlpool makes major home appliances under brands such as Whirlpool, Maytag, and KitchenAid. It has a market cap of $3.87 billion with a forward annual dividend of $3.60 per share, yielding 4.33%.
Currently, the stock is down 10.87% year-to-date (YTD) and 36.83% over the past 52 weeks.
www.barchart.com
This places Whirlpool at 0.29x price-to-sales and 10.55x forward earnings versus the 0.95x and 16.11x sector medians, highlighting a clear discount to shareholders on both revenue and earnings multiples.
Whirlpool’s latest quarter, ending December 2025, missed expectations on two lines investors are watching closely. It reported adjusted EPS of $1.10 versus the $1.54 estimate, a 28.57% downside surprise, while revenue came in at $4.10 billion versus $4.26 billion, flat year-over-year (YOY) but still missing 3.7%.
This reduction is significant because the 2025 cost pressures are not small. Whirlpool said it has absorbed about $300 million in tariff costs in 2025 as prices in the appliance category lag behind higher costs.
Still, the quarter wasn’t equally weak on profitability measures. Whirlpool delivered adjusted EBITDA of $335 million versus an estimate of $269.3 million, which implies an 8.2% margin and a 24.4% beat on that metric. This improvement is also reflected in operating profit, with operating margin increasing to 5.9% from -3.3% in the same quarter last year.
Whirlpool recently approved a strategic reinvestment aimed at raising approximately $800 million in gross proceeds through common stock and mandatory convertible preferred offerings. The company plans to use the cash to repay its revolving credit facility. It also intends to finance vertical integration and automation projects that management believes will reduce losses and improve margins over time.
On October 15, 2025, Whirlpool announced that it was investing $300 million in its laundry facilities in Clyde and Marion, Ohio. The plan is expected to create 600 new jobs at both factories. It also strengthens Whirlpool’s U.S. manufacturing presence, which already supports about 4,500 workers in Northwest Ohio.
The company is targeting more than $150 million in new spending initiatives focused on vertical integration, automation, and strategic sourcing. These initiatives are designed to prevent residual tariff violations and support higher segment margins. And, Whirlpool is driving product-driven growth through a record number of new launches. The lineup includes expanded KitchenAid offerings and new Brasteam refrigerators aimed at winning share and improving price/mix.
Whirlpool now has the opportunity to present all of this to the investment community. They plan to present their strategy, including reinvestments, spending practices, and product pipeline at the Raymond James 47th Annual Institutional Investor Conference.
Another drop post is not far away. The company is expected to report its next set of results on April 22nd, with RedStreet looking for $0.75 EPS for the current quarter ending March 2026.
That compares to $1.70 in the same period a year ago and implies a 54.71% drop in estimated YOY earnings, which is exactly the kind of deterioration Tepper flags in his critique of value creation.
This negative near-term growth outlook sits alongside a more neutral stance on the stock itself. The consensus opinion from the eight coverage polls is “Hold,” indicating that even after the recent selloff and Tepper’s high-profile letter, the Street isn’t ready to turn the table on bulls or bears. The average 12-month target is around $88.50, which works out to roughly 38% upside.
www.barchart.com
www.barchart.com
The taper line makes it hard to ignore WHR, but the setup still leans heavily toward shout-buying or flash selling. With a nearly 4% yield at around $64, the focus points to active stress, cost reduction, and a gradual overhaul rather than a quick turnaround. The most realistic path is a sudden, moderately upward move over the next year if execution stays on track, with downside risk if management stalls again.
As of the date of publication, Ebob Jones had no positions (either directly or indirectly) in any of the securities mentioned in this article. All information and data in this article is for informational purposes only. This article was originally published on Barchart.com
