Whirlpool has blamed the ongoing Iran conflict for a sharp collapse in US consumer confidence and a “recession-level” decline in the domestic appliance market, as the manufacturer announced its biggest price increase in more than a decade in an effort to restore margins.
In its first-quarter 2026 results, the US appliance giant said worsening macroeconomic conditions linked to the war in Iran had severely impacted demand in North America during February and March. Whirlpool chairman and chief executive Marc Bitzer said the company had moved quickly to offset the downturn through pricing and cost-cutting measures.
“We acted decisively to address pricing and costs in the face of rapid deterioration in macroeconomic conditions,” Bitzer said. “War in Iran resulted in recession-level industry decline in the U.S. as consumer confidence collapsed in late February and March.”
The manufacturer confirmed it is implementing a double-digit price increase in North America – the largest increase in more than a decade – citing multi-year inflationary pressures and worsening trading conditions.
The update comes two years after Whirlpool agreed to combine its European major domestic appliance business with Turkish manufacturer Arçelik in a move that created Beko Europe – a new appliance giant covering brands including Hotpoint, Indesit, Beko and Whirlpool across Europe. Under the deal, Whirlpool retained a 25% stake in the business, with Arçelik owning 75%.
Whirlpool’s North American major domestic appliance division reported a 7.5% fall in sales to $2.24bn in Q1, while EBIT margins collapsed from 6.2% to just 0.3%. The company said lower volumes, aggressive market disruption and unfavourable pricing conditions all contributed to the decline.
Overall group sales for the quarter fell 9.6% year-on-year to $3.27bn, while the business swung to a net loss of $85m compared with a $71m profit a year earlier.
Despite the difficult quarter, Whirlpool insisted its pricing strategy and restructuring programme would help restore profitability through the remainder of 2026. The company said it expects full-year EBIT margins of around 4%, driven largely by the newly announced price increases and more than $150m in structural cost savings.
The announcement will raise questions for UK kitchen retailers over whether further supplier price increases could follow globally if geopolitical tensions continue to affect raw material costs, consumer confidence and supply chains. Whirlpool specifically highlighted ongoing exposure to higher steel, resin and component costs, alongside broader uncertainty around tariffs and global trade conditions.
Whirlpool’s updated guidance for 2026 now forecasts full-year sales of around $15bn, down from $15.5bn in 2025.