Direct Answer
16 SEC filers are classified under the Standard Industrial Classification codes that describe the household durables industry, and their latest annual reports show $38.0 billion of combined revenue and a median operating margin of -3.8%. Investors should still evaluate its revenue model, industry-specific KPIs, valuation framework and the risks that can change the group's economics.
Industry Overview
Household durables makers produce furniture, appliances, electronics, homebuilding materials and other long-lived goods for homes. Spending follows housing turnover and consumer confidence, and imported inputs matter. The first numbers to compare across companies here are net sales, gross margin and backlog or orders.
Key Industry Metrics
- Net sales: Total revenue across furniture, appliances and other long-lived goods. It follows housing turnover and big-ticket purchases, so it is cyclical and sensitive to confidence.
- Gross margin: Share of sales left after materials, labor and freight. Pricing, imports and plant use move it, so shifts show whether cost increases are being recovered.
- Backlog or orders: Value of new orders or unfilled orders. It leads revenue and shows near-term demand, though customers can cancel or defer when housing or credit conditions weaken.
- Inventory: Value of goods and materials held, relative to sales. Slow-selling stock can lead to markdowns, so rising levels without sales growth need attention.
- Raw material cost: Share of cost from items such as lumber, steel, foam and resin. Price swings reach margin, and fixed contracts or hedges determine how fast.
Primary Macro Drivers
- Housing turnover: Moves lead to purchases of furniture and appliances, so housing activity supports net sales.
- Consumer confidence: Long-lived goods are postponed when people worry about the economy, which shifts orders and backlog.
- Raw material and freight costs: Inputs and shipping make up much of cost, so material and freight price moves change gross margin unless prices can be adjusted.
- Interest rates: Rates affect housing activity and the financing of purchases, moving big-ticket demand.
Major Risks
- Housing downturn: Fewer moves and remodels reduce orders for durable goods, so net sales and backlog fall.
- Tariffs and imports: Imported inputs and finished goods face duties that raise cost and change competition among makers.
- Input costs: Spikes in materials and freight cut margin if pricing lags; watch raw material cost against realized prices.
- Cyclical demand: Sales swing with the economy and housing, so earnings fall faster than revenue in downturns.
Industry Characteristics
| Characteristic | Profile |
|---|---|
| Cyclicality | Cyclical |
| Capital Intensity | Medium |
| Regulatory Intensity | Low |
| Industry Maturity | Mature |
| Geographic Importance | U.S. / Global |
Household Durables Filers in the SEC Record
16 companies with annual reports in the dataset are classified by the SEC in the Standard Industrial Classification codes 2510, 3630, 3634, 3651. Their latest fiscal years end between 2025 and 2026, and together they reported $38.0 billion of revenue. Median revenue growth over the prior year was -1.8%. Median operating margin was -3.8% and median net margin -8.3%. Median total liabilities were 49% of total assets, and 6 of 16 reported a profit in their latest year.
| Company | Revenue | Growth | Operating margin | Net margin | Year |
|---|---|---|---|---|---|
| Whirlpool Corp | $15.5 billion | -6.5% | 5.4% | 2.0% | FY 2025 |
| Somnigroup International Inc. | $7.5 billion | 51.6% | 10.1% | 5.1% | FY 2025 |
| Sharkninja, Inc. | $6.4 billion | 15.7% | 14.4% | 11.0% | FY 2025 |
| Smith A O Corp | $3.8 billion | 0.3% | 19.0% | 14.3% | FY 2025 |
| Compass Diversified Holdings | $1.9 billion | 4.8% | 0.6% | -12.1% | FY 2025 |
| Hamilton Beach Brands Holding Co | $607 million | -7.3% | 6.0% | 4.4% | FY 2025 |
| Traeger, Inc. | $560 million | -7.4% | -17.5% | -20.6% | FY 2025 |
| Purple Innovation, Inc. | $469 million | -3.9% | -9.2% | -11.0% | FY 2025 |
The 8 largest of 16 by revenue. Source: each company's own annual report as filed with the SEC (XBRL data), figures in U.S. dollars. A company's SIC code reflects its main business as the SEC records it, so it can differ from how an index provider or analyst classifies the company, and a diversified group appears under only one code.
Where to Go Next
The Household Durables guide describes how the industry earns money, what to measure and what can go wrong. To see how it compares, read the neighbouring industries in the same sector, then apply the same checks to a specific company.
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- Leisure Products
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Frequently Asked Questions
What are the main KPIs for the Household Durables industry?
Key performance indicators for the Household Durables industry include: Net sales, Gross margin, Backlog or orders, Inventory, Raw material cost. Which matter most depends on the company's model, so compare them across several companies rather than relying on one.
How cyclical is the Household Durables industry?
The Household Durables industry is cyclical, meaning its revenues and earnings tend to expand during economic expansions and contract during downturns. Investors should monitor leading economic indicators and interest rate trends when evaluating timing.
What are the biggest risks in the Household Durables industry?
The primary risks for Household Durables companies include: Housing downturn, Tariffs and imports, Input costs, Cyclical demand. Investors should assess each company's exposure to these factors and its track record of navigating them.