Core Viewpoint - Westlake Corporation reported disappointing earnings for Q4 2025, with a significant GAAP EPS loss, but adjusted EPS exceeded market expectations, indicating some resilience despite revenue declines [1][5]. Financial Performance - The company reported a GAAP EPS of -$4.22 for Q4 2025, while the adjusted EPS was -$0.25, surpassing the consensus estimate of -$1.44 [1][5]. - Revenue for the period was $2.53 billion, falling short of the estimated $2.57 billion, and represents a decrease from $2.8 billion in both the previous quarter and the same quarter of the previous year [2][5]. - For the full year 2025, net sales totaled $11.2 billion, down from $12.5 billion in 2024, indicating a consistent decline in sales performance [2]. Valuation Metrics - Westlake's trailing twelve-month (TTM) P/E ratio stands at 69.52, reflecting the market's valuation of its positive full-year earnings of $1.22 per share [3]. - The price-to-sales ratio is 1.04, indicating that investors are willing to pay $1.04 for every dollar of sales [3]. - The enterprise value to sales ratio is 1.32, and the enterprise value to EBITDA ratio is 31.41, reflecting the company's valuation relative to its sales and cash flow generation [3]. Financial Ratios - The TTM earnings yield is approximately 1.44%, highlighting the company's positive full-year earnings situation [4]. - The debt-to-equity ratio is 0.54, indicating a moderate approach to leveraging equity [4][5]. - The current ratio is 1.99, suggesting adequate liquidity and the ability to cover short-term liabilities with current assets [4].

Hassan Ahmed - Partner and Head of Research Jean-Marc Gilson - President and CEO Jeffrey A. Holy - Vice President and Chief Accounting Officer Kevin McCarthy - Partner Matthew Blair - Managing Director Steve Bender - Executive Vice President and Chief Financial Officer Conference Call Participants Westlake (NYSE:WLK) Q4 2025 Earnings call February 24, 2026 11:00 AM ET Company Participants Operator Good morning, ladies and gentlemen. Thank you for standing by. Welcome to the Westlake Corporation Fourth Quart ...

Financial Data and Key Metrics Changes - In Q4 2025, Westlake reported a net loss of $33 million, or a loss of $0.25 per share, on sales of $2.5 billion, which was a $5 million lower loss compared to Q3 2025 due to lower average sales prices and sales volumes [12][13] - For the full year 2025, the company reported a net loss of $116 million and EBITDA of $1.1 billion, with total sales of $11.2 billion, reflecting an 8% decline compared to 2024 [13][14] Business Line Data and Key Metrics Changes - The Housing and Infrastructure Products (HIP) segment experienced an 8% decline in sales year-over-year in Q4 2025, primarily due to decreased sales volumes in PVC compounds and exterior building products, although municipal pipe sales volumes remained strong [16][18] - The Performance and Essential Materials (PEM) segment's Q4 EBITDA was $45 million, down from $90 million in Q3 2025, driven by a 5% decline in average sales prices and a 2% decrease in sales volume [17][18] Market Data and Key Metrics Changes - The company noted that global overcapacity in certain products continued to exert downward pressure on sales prices, particularly in the PEM segment, leading to a sharp decline in profitability compared to historical levels [9][19] - The company expects housing starts in 2026 to range between 1.3 million and 1.4 million, with improved home affordability due to lower interest rates [21][22] Company Strategy and Development Direction - Westlake is implementing a three-pillar strategy aimed at achieving $600 million in earnings improvement in 2026 through cost reductions, plant reliability improvements, and footprint optimization [7][10][20] - The company has taken decisive actions to close higher-cost PEM assets and improve operational reliability, which are expected to enhance financial performance in a competitive global marketplace [10][11][24] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding a rebound in demand and sales volume growth in 2026, supported by signs of improvement in global industrial and manufacturing activity [24][25] - The company has achieved its carbon emissions reduction goal six years ahead of schedule, reflecting its commitment to sustainability and environmental stewardship [25] Other Important Information - The company announced that its long-serving CFO, Steve Bender, plans to retire later in 2026, marking a significant transition in leadership [11][12] - Westlake's balance sheet remains strong, with cash and securities totaling $2.9 billion and total debt of $5.6 billion as of December 31, 2025 [19][20] Q&A Session Summary Question: Can you break down the PEM business in Q4 and compare it to previous announcements? - Management noted that the beat was due to proactive steps in their three-pillar initiative, which included removing losses from shuttered assets and initiating cost reduction measures [31][32] Question: What are your expectations around polyethylene price increases? - Management indicated that there has been some improvement in demand and price action, with announced price increases expected to offset previous market adjustments [34] Question: How do you view the chlorovinyls and PVC chain outlook for 2026? - Management remains cautiously optimistic, noting some restocking and price improvements, but acknowledges ongoing structural supply issues [38] Question: Can you clarify the guidance for HIP and its impact on margins? - The guidance reflects expected housing starts similar to 2025, with product mix potentially impacting overall margins [40] Question: What is the expected contribution from the $600 million in cost savings? - Management expects these savings to be realized throughout 2026, driven by actions taken in 2025 and improved operational reliability [44][45] Question: How do you assess the market balance and pricing for caustic soda? - Management reported some price traction in caustic soda, with recent price announcements indicating positive demand signals [97]

Earnings Presentation 4Q and Full Year 2025 1 Fourth Quarter and Full Year 2025 Highlights Profitability Improvement Plan expected to deliver $600M EBITDA benefit in 2026 $2.5B 11% decrease QoQ $196M EBITDA(1,2) 37% decrease QoQ (2) $225M Net Cash Provided by Operating Activities $11.2B Net Sales 8% decrease YoY $1.1B EBITDA(1,2) 50% decrease YoY(2) $465M Net Cash Provided by Operating Activities 4Q 2025 Financial Results FY 2025 Financial Results (1) Reconciliation of EBITDA excl. Identified Item to Net In ...

Westlake (WLK) reported $2.53 billion in revenue for the quarter ended December 2025, representing a year-over-year decline of 10.9%. EPS of -$0.25 for the same period compares to $0.06 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $2.57 billion, representing a surprise of -1.34%. The company delivered an EPS surprise of +82.59%, with the consensus EPS estimate being -$1.44.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and h ...

Westlake (WLK) came out with a quarterly loss of $0.25 per share versus the Zacks Consensus Estimate of a loss of $1.44. This compares to earnings of $0.06 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +82.59%. A quarter ago, it was expected that this chemical company would post earnings of $0.18 per share when it actually produced a loss of $0.29, delivering a surprise of -261.11%.Over the last four quarters, the company ha ...

Core Insights - Westlake Corporation (WLK) has expanded its epoxy distribution partnership with Brenntag into India, enhancing its presence in the Asia-Pacific region [1][8] - The partnership aims to improve product availability, supply chain efficiency, and provide localized technical support to customers [2] - Westlake is leveraging Brenntag's established infrastructure and customer network to capitalize on India's infrastructure development and industrial growth [3] Company Performance - WLK's shares have decreased by 17% over the past year, while the industry has seen a rise of 4.2% [5]

EXHIBIT 99.1 WESTLAKE CORPORATION Contact—(713) 960-9111 Investors—Steve Bender Media—L. Benjamin Ederington Westlake Corporation Reports Fourth Quarter and Full Year 2025 Results • Meaningful actions taken in 2025 to optimize footprint, improve plant reliability, and structurally reduce costs expected to provide earnings improvement in 2026 HOUSTON--(BUSINESS WIRE)--Westlake Corporation (NYSE: WLK) (the "Company" or "Westlake") today announced fourth quarter and full year 2025 results. i SUMMARY FINANCIAL ...

HOUSTON--(BUSINESS WIRE)--Westlake Corporation (NYSE: WLK) announced that Mr. Bhavesh V. "Bob†Patel and Mr. Jean-Marc Gilson, the President and Chief Executive Officer of the Company, have been elected to the company's board of directors, effective February 20, 2026. "We are very pleased to welcome Bob to our board,†said Westlake Corporation Executive Chairman Albert Chao. "He brings a wealth of experience and in-depth knowledge of the chemicals and building materials industries and adds to t. ...

HOUSTON--(BUSINESS WIRE)--Westlake Royal Building Productsâ"¢ ("Westlake Royal†), a Westlake company (NYSE: WLK), today announced the launch of a new 9†wide vinyl Board & Batten profile, expanding its Royal® and Exterior Portfolio® lines. The new profile is the widest traditional vinyl Board & Batten profile currently on the market. "The 9†Board & Batten profile reflects the continued shift toward wider siding profiles that deliver timeless curb appeal at a scale suited for today's. ...