Company Overview - Westlake Corporation manufactures and markets performance and essential materials, as well as housing and infrastructure products globally, including ethylene, polyethylene, PVC, and vinyl intermediates [1] - Founded in 1986 and headquartered in Houston, Texas, the company also provides consumer and commercial products such as landscape edging and marine dock edging, serving various markets [2] Current Challenges - The company faces challenges from elevated interest rates and lingering inflation, which have dampened housing starts and reduced demand, negatively impacting business confidence [3] - Sluggish construction activity in North America is a concern, particularly affecting the pipe-and-fitting and siding-and-trim businesses [3] Industry Performance - Westlake is a component of the Zacks Chemical – Plastic industry group, which ranks in the bottom 4% out of approximately 250 Zacks Ranked Industries, indicating expected underperformance over the next 3 to 6 months [4] - Stocks in this industry are relatively overvalued and projected to experience below-average earnings growth, with a PE ratio of 92.19 compared to the iShares-SP500's 19.59 [6][7] Stock Performance - WLK shares have been underperforming, hitting a series of lower lows and representing a compelling short opportunity as 2025 approaches [8] - The company has missed earnings estimates in three of the past four quarters, with a significant loss of -$0.31 per share in Q1, missing the Zacks Consensus Estimate by -144.3% [9] - The trailing four-quarter average earnings miss stands at -61.4%, indicating a trend of underperformance [9] Earnings Outlook - Analysts have revised second-quarter earnings estimates down by -88.89% in the past 60 days, with the current Zacks Consensus EPS Estimate at $0.06 per share, reflecting negative growth of -97.5% year-over-year [10] - Falling earnings estimates are viewed as a significant red flag, contributing to a bearish outlook [11] Technical Analysis - WLK stock is in a sustained downtrend, trading below a downward-sloping 200-day moving average, which is a bearish indicator [12] - The stock has experienced a "death cross," where the 50-day moving average crosses below the 200-day moving average, indicating a need for a substantial upside move to warrant long positions [14][15] Conclusion - The combination of a deteriorating fundamental and technical backdrop suggests that WLK is unlikely to reach new highs soon, with a history of earnings misses and falling future earnings estimates likely capping any potential rallies [16] - The stock is recommended to be avoided by potential investors or considered for short or hedge strategies until significant improvements are observed [17]

Financial Performance (LTM 1Q 2016) - Westlake Chemical Corporation reported Net Sales of $4335 million[6] - The company's EBITDA was $1217 million[6] - Net Income attributable to Westlake was $623 million[6] - Olefins contributed $822 million to EBITDA, representing 67% of the total[6] - Vinyls contributed $410 million to EBITDA, representing 33% of the total[6] Strategic Advantages and Growth Drivers - The company leverages a strong ethane and other NGL advantage due to fundamental structural advances in supply[13] - Significant product integration allows the company to capture the full value chain[13] - Westlake is well-positioned for continued profitable growth due to its ongoing financial strength and flexibility[13] - Westlake has one of the highest LDPE product mix percentages in North America[30] - Global PVC demand is growing, supporting exports[45]

Financial Performance - Westlake Chemical Corporation reported net sales of $6.936 billion and EBITDA of $1.291 billion [4] - Net income attributable to Westlake Chemical Corporation was $456 million [4] - Olefins contributed $750 million to EBITDA, representing 53% of the total, while Vinyls contributed $658 million, accounting for 47% [4] Strategic Acquisitions and Synergies - The acquisition of Axiall has created a diverse, vertically-integrated chemicals leader, enhancing margin stability and growth opportunities [7] - Westlake expects to realize $120 million in synergy savings and cost reductions in 2017, with a total of $200 million expected by 2018 [7] Ethylene and Feedstock Advantages - Westlake has a short position in ethylene, providing cost advantages in the coming years due to its all-ethane feedstock capability [11, 12] - The company's ethylene plants are fully capable of using ethane and have some NGL flexibility, with the European business (Vinnolit) providing further feedstock diversification [22] Polyethylene Product Mix - Westlake has an advantaged polyethylene product mix, with LDPE accounting for 58% and LLDPE for 42% of its capacity [24] - The company focuses on LDPE, which has a higher average margin advantage compared to other PE grades [24] PVC and Global Presence - The Axiall acquisition has given Westlake a global PVC presence with facilities in North America, Europe, and Asia [36] - Westlake/Vinnolit is a leading specialty PVC producer with a global capacity of approximately 4,000 KMT in 2016 [48]

Financial Performance - Westlake's Net Sales reached $7766 million[5] - The company's EBITDA was $1631 million[5] - Net Income attributable to Westlake was $601 million[5] - Olefins EBITDA was $796 million, accounting for 47% of the total[5] - Vinyls EBITDA was $915 million, representing 53% of the total[5] Strategic Initiatives and Growth - The acquisition of Axiall has created a diverse, vertically-integrated chemicals leader[8] - Westlake expects to realize $120 million in synergy savings and cost reductions in 2017 and a total of $200 million by 2018 from the Axiall acquisition[8] - Westlake has a polyethylene capacity of 2600 million lbs[13] Market Position and Advantages - Westlake is the second largest producer of PVC in North America and the third largest globally[47] - Westlake is the third largest producer of Chlor-Alkali in North America and the third largest globally[47] - Westlake has one of the highest LDPE product mix percentages in North America[29]

Financial Performance & Strategy - Westlake Chemical Corporation reported Net Sales of $7766 million, EBITDA of $1631 million, and Net Income of $601 million (attributable to WLK) for the Last Twelve Months (LTM) ending in 3Q 2017[5] - The company's EBITDA is split between Olefins (47% or $796 million) and Vinyls (53% or $915 million)[5] - The acquisition of Axiall is expected to enhance margin stability and synergy savings of $120 million are expected in 2017, with a total of $200 million by 2018[8] - Strategic investments and capital projects totaling over $6 billion have been made recently to drive integration and specialty focus[61] Market Position & Advantages - Westlake is a leading integrated plastics materials company, holding the 2 position in North American PVC capacity and 3 globally, as well as the 3 position in North American Chlor-Alkali capacity and 3 globally[8] - The company remains 1 in North American LDPE capacity[8] - Westlake has a short position in ethylene, providing cost advantages, and has NGL feedstock flexibility and infrastructure[12, 15] - Westlake has one of the highest LDPE product mix percentages in North America, with LDPE accounting for 58% and LLDPE accounting for 42% of its capacity[25] Global Presence & Demand - The Axiall acquisition provides Westlake with a global PVC presence, including facilities in North America, Europe, and Asia[37] - Global PVC demand is growing, with a CAGR of 3.1% from 2000-2016 and an expected CAGR of 3.2% from 2017-2021[54] Financial Discipline & Growth - Westlake is committed to maintaining solid investment-grade credit metrics and has been deleveraging since the Axiall acquisition[66] - Westlake Partners (WLKP) provides a lower cost of capital to fund growth, with four levers of distributable cash flow (DCF) growth[70]

Financial Performance - Westlake Chemical Corporation reported Net Sales of $8,041 million for the full year 2017[6] - The company's EBITDA for the full year 2017 was $1,841 million[6] - Net Income attributable to Westlake Chemical for the full year 2017 reached $1,304 million[6] - Olefins contributed $805 million to the EBITDA, representing 42% of the total[6] - Vinyls contributed $1,096 million to the EBITDA, accounting for 58% of the total[6] Strategic Positioning and Growth - Westlake is a leading integrated plastics materials company, holding strong positions in North American and global markets for PVC and Chlor-Alkali[3, 7] - Synergy savings and cost reductions from the Axiall acquisition reached $170 million in 2017, with expectations to achieve a total of $250 million[7] - The company is expanding its global capacity with 750 million lbs of PVC, 200 million lbs of VCM, 60 million lbs of Caustic Soda, and 55 million lbs of Chlorine[13] - Westlake's ethylene plants are fully capable of using ethane and have some NGL flexibility, providing cost advantages[22] Product Mix and Market Focus - Westlake has a unique focus on LDPE, which has a higher margin advantage compared to other PE grades[24, 25] - The company's LDPE capacity represents a significant percentage of its total PE capacity in North America[27] - Westlake/Vinnolit is a leading specialty PVC producer with a global capacity of approximately 4,000 KMT in 2016[46, 47]

Financial Performance - First quarter 2021 sales reached $2357 million, a 20% increase compared to the fourth quarter of 2020 and a 22% increase compared to the first quarter of 2020[11] - Operating income for the first quarter of 2021 was $346 million, a 94% increase compared to the fourth quarter of 2020 and a 154% increase compared to the first quarter of 2020[11] - EBITDA for the first quarter of 2021 was $553 million, a 43% increase compared to the fourth quarter of 2020 and a 64% increase compared to the first quarter of 2020[11] - Net income attributable to Westlake Chemical Corporation for the first quarter of 2021 was $242 million, compared to $113 million in the fourth quarter of 2020 and $145 million in the first quarter of 2020[8, 24] - Diluted earnings per share attributable to Westlake Chemical Corporation for the first quarter of 2021 was $1.87, compared to $0.87 in the fourth quarter of 2020 and $1.13 in the first quarter of 2020[8, 24] Segment Performance - Vinyls segment sales for the first quarter of 2021 were $1820 million, a 14% increase compared to the fourth quarter of 2020 and a 21% increase compared to the first quarter of 2020[15] - Vinyls segment EBITDA for the first quarter of 2021 was $367 million, a 10% increase compared to the fourth quarter of 2020 and a 58% increase compared to the first quarter of 2020[11, 15] - Olefins segment sales for the first quarter of 2021 were $537 million, a 43% increase compared to the fourth quarter of 2020 and a 26% increase compared to the first quarter of 2020[18] - Olefins segment EBITDA for the first quarter of 2021 was $216 million, a 266% increase compared to the fourth quarter of 2020 and a 120% increase compared to the first quarter of 2020[11, 18] Industry Outlook and Sustainability - The company is focused on sustainability, launching green caustic soda with a reduced CO2 impact of more than 30% compared to conventional caustic soda[4, 10]

Core Insights - OpenText Corporation reported strong preliminary revenue expectations for Q4 FY2025, estimating approximately US$1.31 billion [4] - Chadwick Westlake, the current CFO, will step down to become the President & CEO of EQB following the unexpected passing of its CEO [1][3] - Cosmin Balota, the SVP and Chief Accounting Officer, will serve as interim CFO until a long-term successor is found [2] Management Changes - Chadwick Westlake's departure is effective August 15, 2025, after the completion of OpenText's fiscal year-end reporting [1] - The company has initiated a search for a long-term CFO with the help of an executive search firm [2] - Mark J. Barrenechea, OpenText's CEO & CTO, expressed gratitude for Westlake's contributions and confidence in the finance team [3] Financial Performance - OpenText's preliminary revenue expectations for Q4 FY2025 are approximately US$1.31 billion, indicating strong performance [4][6] - The full financial results for Q4 FY2025 will be released after market close on August 7, 2025 [4] - An earnings call webcast is scheduled for August 8, 2025, to discuss the full Q4 results [5][7]

Core Viewpoint - Westlake Chemical Partners LP (WLKP) operates in a growing market with a forward dividend yield of 8.54% and a payout ratio of 126.55%, indicating strong financial management and positive net income and revenue growth [1] Financial Performance - The company has demonstrated the ability to report positive net income and revenue growth, suggesting effective management of its business model [1] - The analysis includes various financial metrics such as cash flow statements, unlevered free cash flow, cost of capital, cost of debt, WACC, share count, and net debt [1] Investment Strategy - The focus is on companies with a long history of reporting financial figures, avoiding growth stocks in favor of more established entities [1] - Trading multiples studied include EV/FCF, net income, and EV/EBITDA, which are critical for evaluating the company's financial health [1]

Core Insights - Westlake Corporation's Epoxy unit has partnered with Alpha Recyclage Composites to enhance recycling capacity for carbon fiber composite materials [1][8] - The partnership aims to support Westlake's composite customers in developing circular options by recovering carbon fibers for reuse in new applications [1][3] Group 1 - Alpha Recyclage Composites will utilize its patented steam pyrolysis process to recycle carbon-fiber-reinforced composites while maintaining their performance qualities [2][3] - The company plans to expand its batch unit to a semi-continuous operation, targeting a recycling capacity of 1,000 metric tons of waste carbon fiber composites annually by 2027 [2][3] Group 2 - This initiative aligns with sustainability goals and will complement Westlake's EpoVIVE portfolio of resin grades [3][8] - The partnership is expected to provide additional circularity options for the composites value chain, enhancing profitability for Alpha Recyclage Composites [3][8]