Financial Data and Key Metrics Changes - For Q3 2025, the company reported EBITDA of $313 million on net sales of $2.8 billion, with a loss of $38 million or $0.29 per share, reflecting a decrease in sales and EBITDA compared to Q2 2025 [7][14] - The loss in Q3 2025 was $26 million higher than in Q2 2025, primarily due to lower average sales prices, especially in PVC resin [14][21] - The company recorded a non-cash impairment charge of $727 million for goodwill associated with its North American chlorovinyls business unit [4][10] Business Line Data and Key Metrics Changes - The Housing and Infrastructure Products (HIP) segment delivered EBITDA of $215 million on $1.1 billion of sales, with sales volumes 6% lower compared to Q2 2025 [16][17] - The Performance and Essential Materials (PEM) segment reported sales of $1.7 billion, down $46 million from Q2 2025, driven by a 4% decline in average sales price [20][21] - HIP's EBITDA margin declined to 20% due to lower sales volume and period-related expenses, while PEM's EBITDA fell to $90 million compared to $297 million in Q3 2024 [17][22] Market Data and Key Metrics Changes - North American residential construction demand has softened in 2025, impacting sales volume in the HIP segment, although total sales remained comparable to 2024 [7][8] - The company noted a shift in sales mix towards lower-priced products in the HIP segment due to affordability issues faced by home buyers [8][20] - The global demand for PEM products, particularly PVC resins, has softened, contributing to a challenging macroeconomic environment [10][21] Company Strategy and Development Direction - The company is focused on a three-pillar strategy to improve PEM's performance: enhancing plant reliability, reducing costs, and optimizing the manufacturing footprint [10][11][28] - The HIP segment aims for long-term organic sales growth of 5% to 7% per annum, supported by new product innovations and strategic acquisitions [25][27] - The acquisition of ACI is expected to expand the company's global compound business and access to new markets, particularly in automotive and electrical sectors [9][20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term growth outlook for the HIP segment despite current affordability headwinds in the housing market [8][20] - The company anticipates that the global supply-demand imbalance will improve, which will positively impact the chlorovinyls business in the medium to long term [10][70] - Management highlighted the importance of cost reduction actions and improved operational reliability to return the PEM segment to profitability [15][28] Other Important Information - The company expects total capital expenditures for 2025 to be approximately $900 million and has achieved $115 million towards its structural savings target for the year [23][22] - The company has a cash and investments balance of $2.1 billion and total debt of $4.7 billion as of September 30, 2025 [22] Q&A Session Summary Question: How will the weakening polyethylene market affect earnings in Q4? - Management acknowledged a slight weakening in polyethylene prices but expects stable operating efficiency and demand [32][33] Question: Is the board committed to the current portfolio structure? - Management believes in the synergy of the combined businesses and expects improvements in the PVC business as market conditions stabilize [34][36] Question: What is the near and mid-term outlook for PVC? - Management noted challenges in the chlorovinyl chain but is focused on cost reductions and improving reliability to enhance profitability [40][41] Question: Can you provide details on the ACI acquisition's expected performance? - The ACI business is expected to have good margins and synergies with the existing compounds business, aligning with HIP segment margins [42][43] Question: Why is the HIP guidance lower? - The lower guidance is attributed to a shift in product mix and period-related costs, but management remains optimistic about 2026 construction activity [47][50] Question: What is the outlook for the caustic soda market? - The market is well supplied, and pricing is expected to remain stable [52] Question: How is the company addressing affordability issues in the housing market? - The company is adjusting its product mix to include more affordable options to meet builder needs [104]

Financial Data and Key Metrics Changes - For Q3 2025, the company reported EBITDA of $313 million on net sales of $2.8 billion, with a loss of $38 million or $0.29 per share, reflecting a $26 million increase in loss compared to Q2 2025 primarily due to lower average sales prices, especially in PVC resin [6][16][24] - The company recorded a non-cash impairment charge of $727 million related to goodwill associated with its North American chlorovinyls business unit, which significantly impacted financial results [3][10][16] Business Line Data and Key Metrics Changes - The Housing and Infrastructure Products (HIP) segment delivered EBITDA of $215 million on $1.1 billion of sales, with sales volumes 6% lower compared to Q2 2025, but comparable to Q3 2024 [18][19] - The Performance and Essential Materials (PEM) segment saw sales of $1.7 billion, a decrease of $46 million from Q2 2025, driven by a 4% decline in average sales price, which more than offset a 1% increase in sales volume [21][22][24] Market Data and Key Metrics Changes - North American residential construction demand has softened in 2025, impacting the HIP segment, although sales volumes remained stable compared to 2024 [6][8] - The global demand for PEM products, particularly PVC resins, has softened, contributing to a challenging macroeconomic environment and an extended trough in the chlorovinyl chain [10][24] Company Strategy and Development Direction - The company is focused on a three-pillar strategy to improve PEM's performance: enhancing plant reliability, reducing costs, and optimizing the manufacturing footprint [11][13][29] - The company is committed to long-term growth in the HIP segment, supported by investments in new facilities and acquisitions, such as the ACI acquisition, which will expand its global compound business [9][21][27] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term growth outlook for the HIP segment despite current affordability challenges in the housing market, citing ongoing investments and a solid pipeline of new products [8][27] - The company anticipates that the global supply-demand imbalance will improve over time, which will positively impact the chlorovinyls business [10][29] Other Important Information - The company expects total capital expenditures for 2025 to be approximately $900 million and has achieved $115 million towards its structural savings target of $150 million to $175 million for 2025 [25][24] - The company has a cash and investments balance of $2.1 billion and total debt of $4.7 billion as of September 30, 2025 [24] Q&A Session Summary Question: How will the weakening polyethylene market affect earnings in Q4? - Management acknowledged a slight weakening in polyethylene prices but expects stable operating efficiency and will strive to create value in that segment [35][36] Question: Is the board committed to the current portfolio structure? - Management believes in the synergy of the combined businesses and expects improvements in the PVC business as market conditions stabilize [38][39] Question: What is the near and mid-term outlook for PVC? - Management noted challenges in the chlorovinyl chain but is focused on cost reductions and improving reliability to return to acceptable financial returns [44][46] Question: Can you provide details on the ACI acquisition? - The ACI business is expected to have good margins and synergies with the existing compounds business, enhancing overall performance [48][49] Question: What are the reasons for the revision to HIP guidance? - The revision was due to a shift in product mix and non-recurring period-related costs, but management remains optimistic about the repair and remodeling segment [53][55] Question: How is the company addressing affordability issues in the housing market? - The company is adjusting its product mix to include more affordable options to meet customer needs [112]

Financial Performance - Westlake Corporation's net sales for 3Q 2025 were $2838 million, a decrease of 9% year-over-year from $3117 million in 3Q 2024[6, 25] - The company's EBITDA for 3Q 2025 was $313 million, a 46% decrease compared to $580 million in 3Q 2024[5, 6] - Westlake reported a net loss attributable to the company of $782 million for 3Q 2025, compared to a net income of $108 million in 3Q 2024[25, 27] - The company achieved approximately $115 million in company-wide cost savings year-to-date, including $40 million in 3Q 2025, toward its fiscal year 2025 target of $150 - $175 million[6] Segment Performance - Housing and Infrastructure Products (HIP) - HIP segment sales for 3Q 2025 were $1091 million, a 1% decrease compared to $1098 million in 3Q 2024[10, 25] - HIP segment EBITDA for 3Q 2025 was $215 million, an 18% decrease compared to $262 million in 3Q 2024[6, 10] - The company expects 2025 revenue and EBITDA margin for the HIP segment to be at the low ends of the previously communicated ranges of $4200 - $4400 million of sales with a 20% - 22% EBITDA margin[11] Segment Performance - Performance and Essential Materials (PEM) - PEM segment sales for 3Q 2025 were $1747 million, a 13% decrease compared to $2019 million in 3Q 2024[15, 25] - PEM segment EBITDA for 3Q 2025 was $90 million, a 70% decrease compared to $297 million in 3Q 2024[6, 15] - PEM EBITDA includes an estimated $32 million unfavorable FIFO impact[18] Strategic Initiatives - Westlake is progressing towards $200 million of identified cost savings in 2026, in addition to a footprint optimization benefit of approximately $100 million in 2026 from the Pernis shutdown[5] - The company is taking action to achieve $200 million of company-wide identified cost savings in 2026 with the majority of that occurring in the PEM segment[22]

For the quarter ended September 2025, Westlake (WLK) reported revenue of $2.84 billion, down 9% over the same period last year. EPS came in at -$0.29, compared to $1.41 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $2.94 billion, representing a surprise of -3.44%. The company delivered an EPS surprise of -261.11%, with the consensus EPS estimate being $0.18.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street ...

Westlake (WLK) came out with a quarterly loss of $0.29 per share versus the Zacks Consensus Estimate of $0.18. This compares to earnings of $1.41 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -261.11%. A quarter ago, it was expected that this chemical company would post earnings of $0.06 per share when it actually produced a loss of $0.09, delivering a surprise of -250%.Over the last four quarters, the company has not been a ...

Financial Performance - Westlake Corporation reported net sales of $2.8 billion for Q3 2025, a decrease of 9% from $3.1 billion in Q3 2024[4]. - The company experienced a net loss of $782 million, or $6.06 per share, compared to a net income of $108 million, or $0.83 per share, in Q3 2024[5]. - EBITDA for Q3 2025 was $(431) million, down from $505 million in Q3 2024, with EBITDA excluding Identified Items at $313 million[4][5]. - The Performance and Essential Materials segment reported a net sales decline of 13% year-over-year, with a loss from operations of $158 million compared to income of $66 million in Q3 2024[22]. - The Housing and Infrastructure Products segment generated net sales of $1.1 billion, a slight decrease from $1.1 billion in Q3 2024, with an income from operations of $151 million[4][19]. - The company recorded a non-cash impairment charge of $727 million related to the North American chlorovinyls business, significantly impacting earnings[5][17]. - The EBITDA margin for Q3 2025 was 11%, down from 19% in Q3 2024, reflecting lower average sales prices and margins[4][8]. - Gross profit for Q3 2025 was $236 million, down 53% from $499 million in Q3 2024[31]. - The company reported a net loss of $772 million in Q3 2025, compared to a net income of $120 million in Q3 2024[31]. - The impairment of goodwill amounted to $727 million in Q3 2025, with no such impairment reported in Q3 2024[31]. - The overall operating income margin for Q3 2025 was (27)%, while the margin excluding identified items was (1)%[39]. Cash Flow and Debt - Net cash provided by operating activities was $182 million, with total debt at $4.7 billion as of September 30, 2025[18]. - Cash and cash equivalents decreased to $1,927 million as of September 30, 2025, down from $2,919 million at the end of 2024[33]. - Total assets decreased to $19,814 million as of September 30, 2025, compared to $20,750 million at the end of 2024[33]. - Total liabilities increased to $9,876 million as of September 30, 2025, compared to $9,707 million at the end of 2024[33]. - Net cash provided by operating activities for the nine months ended September 30, 2025, was $240 million, a significant decrease from $880 million in the same period of 2024[35]. - Net cash provided by operating activities for Q3 2025 was $182 million, compared to $135 million in Q2 2025, and $880 million for the nine months ended September 30, 2025[39]. Cost Management and Future Outlook - Westlake expects to achieve $200 million in cost savings by the end of 2026, alongside $100 million in annual losses from the Pernis Shutdown starting in 2026[11]. - The company incurred restructuring, transaction, and integration-related costs of $17 million in Q3 2025, down from $75 million in Q3 2024[31]. Segment Performance - Sales volume decreased by 1% and average sales price decreased by 2% compared to Q2 2025, with a 6% decrease in Housing and Infrastructure Products sales volume[7][6]. - The Housing and Infrastructure Products segment reported net external sales of $1,091 million in Q3 2025, down from $1,160 million in Q2 2025[45]. - The Performance and Essential Materials segment had a loss from operations of $(902) million in Q3 2025, compared to $(318) million in Q2 2025[47]. - Average sales price for the Housing and Infrastructure Products segment decreased by 1% in Q3 2025 compared to Q2 2025, with a volume decrease of 6%[49]. Earnings Per Share - Diluted earnings per share attributable to Westlake Corporation for Q3 2025 was $(6.06), improving from $(1.11) in Q2 2025, with earnings per share excluding identified items at $1.41[41]. - Free cash flow for Q3 2025 was $(57) million, compared to $(132) million in Q2 2025, with a total of $157 million for the nine months ended September 30, 2025[43]. Identified Items Impact - Identified items added $744 million to the income from operations in Q3 2025, highlighting significant impacts on reported earnings[47]. - EBITDA for Q3 2025 was $67 million, a significant decrease from $(431) million in Q2 2025, while EBITDA for the nine months ended September 30, 2025 was $1,795 million[39].

Core Points - Westlake Chemical Partners GP LLC has declared a distribution of $0.4714 per unit for its partnership, marking the 45th quarterly distribution since its IPO [1] - The distribution is scheduled to be payable on November 26, 2025, to unit holders of record on November 10, 2025 [1] - This announcement serves as a qualified notice under Treasury Regulations [1]

Group 1: Company Overview - Westlake Corporation (NYSE:WLK) is recognized as one of the Best 52-Week Low Mid Cap Stocks to Buy Now [1] - The company is an international producer of materials used in construction, packaging, healthcare, automotive, and consumer products [3] Group 2: Analyst Ratings and Price Targets - On October 20, Truist Financial maintained a Buy rating on Westlake Corporation with a price target of $90 [1] - Earlier, on October 14, RBC Capital reduced the price target from $92 to $87 while maintaining an Overweight rating, reflecting a preview of Q3 earnings in the chemicals sector [2] Group 3: Market Conditions and Demand - Demand in the chemicals sector remained tepid throughout Q3, as indicated by discussions with investor relations teams [2] - Building and construction activity has also been muted, with a weaker job market posing a headwind for the industry [3] - The demand for consumer durables has yet to see substantial recovery [3]

Core Insights - Westlake Corporation (NYSE: WLK) has seen its shares roughly double since acquiring Axiall nearly a decade ago, including dividends [1] Group 1: Company Performance - The investment group "Value In Corporate Events" focuses on identifying opportunities in IPOs, mergers & acquisitions, earnings reports, and corporate capital allocation changes [1] - The coverage includes approximately 10 major events per month, aimed at finding the best investment opportunities [1]

Group 1: Company Overview - Westlake Corporation's share was trading at $89.58 as of September 11th, with trailing and forward P/E ratios of 69.52 and 37.59 respectively [1] - Westlake is the second-largest fully integrated global chlor-alkali producer, benefiting from structural advantages in ethylene feedstock access and energy efficiency in its production process [3] Group 2: Market Conditions - Commodity chemicals companies are facing challenging business conditions, with stock valuations near decade lows due to excess capacity in China and energy price distortions from the war in Ukraine [2] - Current market conditions have depressed Westlake's margins, but limited capacity additions in the U.S., closures in Europe, and restrained Chinese expansion support a favorable mid-cycle outlook [3] Group 3: Investment Thesis - Westlake's acquisition of Boral North America building products assets enhances its Housing & Infrastructure Products segment, complementing its PVC operations [4] - Valuation analysis suggests a share value around $110 based on mid-cycle EBITDA of $2.7 billion, NOPAT of $1.3 billion, and EPS of $9.22, indicating significant upside potential from current levels [4] - The company presents a compelling cyclical investment opportunity, with catalysts including sector recovery, higher utilization, and structural capacity advantages [4]