Appaloosa LP, the hedge fund managed by billionaire David Tepper, increased its holding in Whirlpool Corporation to 5.5 million shares, a position valued at $432 million as of September 30 2025. The stake now represents 5.85% of the fund’s $7.38 billion reportable U.S. equity assets and is the third‑largest holding in the portfolio.
The move signals strong confidence from a prominent investor in a company that has faced recent margin pressure and cash‑flow challenges. A stake of this size can attract attention from other institutional investors and may provide a stabilizing presence in Whirlpool’s capital structure, potentially influencing future capital‑allocation decisions.
Whirlpool’s Q3 2025 results show a modest 1.0% year‑over‑year increase in net sales to $4.033 billion, driven by new product launches in North America and gains in the SDA Global segment. However, GAAP net earnings fell 33.3% to $73 million, and ongoing earnings per diluted share dropped to $2.09 from $3.43 in Q3 2024. The ongoing EBIT margin contracted to 4.5% from 5.8%, and free cash flow turned negative at $(907) million, largely due to tariff payments and inventory build‑up. These figures illustrate how external headwinds—tariffs, competitive inventory pre‑loading, and promotional spending—have eroded profitability even as sales remain relatively flat.
Management highlighted the drivers behind the results. CEO Marc Bitzer praised progress in North America and the launch of new products, while CFO Jim Peters noted that inventory loading from Asian competitors and tariff costs of roughly $100 million in Q3 2025 contributed to margin compression. Both executives emphasized ongoing cost‑control initiatives and the company’s investment in U.S. manufacturing to support long‑term resilience.
Whirlpool is also pursuing a $300 million investment in U.S. laundry facilities to expand capacity and innovation, a strategic move aimed at strengthening its domestic footprint. The company cut its dividend by 48.6% in July 2025 to preserve cash amid negative free cash flow, reflecting the need to balance shareholder returns with capital‑allocation priorities.
The stake increase acted as a catalyst for a positive market reaction, with investors interpreting Tepper’s bet as a vote of confidence in Whirlpool’s turnaround prospects. At the same time, broader market sentiment remains cautious because of ongoing margin pressures, negative cash flow, and a series of 52‑week lows that have prompted some analysts to downgrade the stock. The juxtaposition of a high‑profile investment against a backdrop of operational challenges underscores the complexity of Whirlpool’s current position and the potential for both upside and downside as the company navigates tariff impacts and competitive dynamics.
In summary, Appaloosa’s sizable investment highlights a belief in Whirlpool’s long‑term strategy despite short‑term financial headwinds. The company’s recent results and strategic initiatives suggest a focus on stabilizing margins and strengthening its U.S. manufacturing base, while the market’s mixed reaction reflects the tension between confidence in a contrarian bet and concerns over persistent operational challenges.
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