Whirlpool Stock Plunges 14% on Debt Reduction Efforts: Do Analysts See a Recovery in 2026?

Wiltone Asuncion5 minute read
Reviewed by: Thomas Richmond
Last updated Feb 25, 2026

Key Stats for Whirlpool Stock

  • Price Change: -13.87%
  • Current Price: $71.67
  • Valuation Model Target: $94.59

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What Happened?

Whirlpool (WHR) shares plunged 13.87% to close at $71.67 on February 24, 2026.

This price action follows market concerns regarding the company’s balance sheet and debt reduction strategies.

However, reports suggesting the company is diluting shareholders by issuing new stock are factually incorrect.

During the fourth-quarter presentation, management confirmed they raised cash by selling a portion of their Indian subsidiary, not by issuing new Whirlpool shares.

CFO Roxanne Warner stated verbatim: “In November, we executed the previously announced India share sale transaction, which resulted in a reduction of our majority stake from 51% to a minority stake of 40%.”

Warner added verbatim: “The proceeds were utilized to pay down debt in line with our capital allocation priorities.”

This is an asset sale, not equity dilution, meaning existing shareholders are not having their stakes reduced to fund the $400 million debt paydown target for 2026.

The company also faced macroeconomic headwinds in 2025, absorbing roughly $300 million in tariffs without immediate industry pricing adjustments.

Whirlpool Stock Price Target (TIKR)

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Is Whirlpool Undervalued Today?

The TIKR Model indicates that the market is overly focused on near-term macroeconomic headwinds and fundamentally misunderstanding the company’s debt reduction mechanisms.

The model projects a target price of $94.59, representing a 32% potential total return from current levels.

Management is actively optimizing the cost structure to protect margins while anticipating a multiyear housing recovery.

CEO Marc Bitzer detailed the specific operational levers the company is pulling to offset the tariff impacts.

Bitzer stated verbatim: “First, we already identified more than $150 million of cost actions, primarily focused in North America. This will allow us to largely offset the remainder of the tariff headwinds.”

With a robust lineup of new products gaining over 30% incremental flooring and the KitchenAid small domestic appliances segment delivering double-digit growth, the underlying cash flow engine remains intact.

Read the full Whirlpool Transcript on TIKR to see the revenue breakdown >>>

Valuation Deep Dive

The TIKR Advanced Valuation Model identifies Whirlpool as a dominant domestic manufacturer actively self-funding its turnaround.

  • Target Price: $94.59
  • Current Price: $71.67
  • Annualized Return (IRR): 5.9%

Strategic Asset Sales Over Dilution: The company is maintaining a strict commitment to shareholder value by avoiding equity dilution. By executing the India share sale transaction to right-size its balance sheet, Whirlpool generated the necessary capital to pay down debt. This strategy allowed the company to retain its $300 million shareholder dividend payout in 2025.

Housing Market Pent-Up Demand: As a primarily domestic producer, Whirlpool is uniquely positioned to benefit from a macroeconomic pivot. The current multiyear trough in existing home sales has created significant pent-up discretionary demand. With the highest aging stock of existing homes in the U.S. having a median age over 40 years, the replacement and remodeling cycle provides a strong structural tailwind for the coming years.

Conclusion: A temporary selloff driven by macro volatility and misunderstood capital allocation strategies. Whirlpool offers a projected 32% total return potential to its $94.59 target. The path to this valuation is supported by aggressive cost takeout initiatives, strategic asset sales to fund debt reduction, and a highly anticipated recovery in the domestic housing market.

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How Much Upside Does Whirlpool Stock Have From Here?

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Disclaimer:

Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!

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